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

                         THE BUDGET FOR FISCAL YEAR 2003

                            DEPARTMENT OF AGRICULTURE

                             OFFICE OF THE SECRETARY

                                  Federal Funds

    General and special funds:

                             Office of the Secretary

        For necessary expenses of the Office of the Secretary of
    Agriculture, and not to exceed $75,000 for employment under 5 U.S.C.
    3109, [$2,992,000] $36,741,000, of which $28,250,000, to remain
    available until expended, is for building security and other terrorism
    protection costs; and of which $5,000,000, to remain available until
    September 30, 2005, is for funding workforce and organizational
    streamlining and restructuring activities: Provided, That not to exceed
    $11,000 of this amount shall be available for official reception and
    representation expenses, not otherwise provided for, as determined by
    the Secretary: Provided further, That none of the funds appropriated or
    otherwise made available by this Act may be used to pay the salaries and
    expenses of personnel of the Department of Agriculture to carry out
    section 793(c)(1)(C) of Public Law 104-127: Provided further, That none
    of the funds made available by this Act may be used to enforce section
    793(d) of Public Law 104-127.

              Office of the Assistant Secretary for Administration

        For necessary salaries and expenses of the Office of the Assistant
    Secretary for Administration to carry out the programs funded by this
    Act, [$647,000] $797,000.

          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, [$3,718,000] $4,222,000: Provided,
    That these funds may be transferred to agencies of the Department of
    Agriculture funded by this Act to maintain personnel at the agency
    level: Provided further, That no other funds appropriated to the
    Department by this Act shall be available to the Department for support
    of activities of congressional relations.

       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,
    [$573,000] $797,000.

       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; [$654,000] $797,000.

                  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, [$476,000] $797,000.

    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, [$606,000] $923,000.

       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, [$730,000] $923,000.

               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, [$623,000] $923,000.

     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,
    [$587,000] $797,000. (7 U.S.C. 2201-2202; Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2002; additional authorizing legislation required.)

                            [Office of the Secretary]

        [For emergency expenses to respond to the September 11, 2001,
    terrorist attacks on the United States, for ``Office of the Secretary''
    $80,919,000, to remain available until expended, to be obligated from
    amounts made available in Public Law 107-38.] (Emergency Supplemental
    Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9913-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Office of the Secretary...........           3           3          36
    00.02 Under/Assistant Secretaries.......           5           9           9
    00.03 Infoshare program.................           3
    00.04 Terrorist response................                      81
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          11          93          45
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          14          14          12
    22.00 New budget authority (gross)......          12          91          45
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          26         105          57
    23.95 Total new obligations.............         -11         -93         -45
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............          14          12          12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          44          93          47
    41.00   Transferred to other accounts...         -32          -2          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          12          91          45
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          16          11          26
    73.10 Total new obligations.............          11          93          45
    73.20 Total outlays (gross).............         -16         -77         -69
    74.40 Obligated balance, end of year....          11          26           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          11          65          35
    86.93 Outlays from discretionary
            balances........................           5          12          34
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          16          77          69
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          12          91          45
    90.00 Outlays...........................          17          77          69
    ---------------------------------------------------------------------------

    [[Page 66]]

        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.

        The budget includes continued funding for several security related
    items funded by the Emergency response fund in response to September 11,
    2001. Funding in Office of the Secretary totals $28 million, of which
    $18 million is for Departmental administration for building security in
    the Washington, D.C., area and other terrorism protection costs, $5
    million is for APHIS and $5 million is for ARS.

        The budget proposes to provide $5 million in funding for the
    Department of Agriculture's workforce and organizational streamlining
    and restructuring efforts. Department of Agriculture agencies requesting
    use of the funds will provide an approved streamlining or restructuring
    plan and a cost benefit analysis to the Secretary of Agriculture. The
    Secretary of Agriculture, in coordination with the Chief Financial
    Officer, will approve funding. The Secretary of Agriculture, in
    coordination with the Chief Financial Officer, will be responsible for
    providing the funding and analyzing the results of streamlining and
    restructuring efforts. This is in direct support of the President's
    Management Agenda item on strategic management of human capital.

        Funds are available for any of an array of activities that support
    streamlining and restructuring, such as county office cross-training,
    collocation expenses, workplace restructuring, development of satellite
    offices, centralized servicing of payments or loans, etc. In subsequent
    years, success of implementing streamlining and restructuring plans will
    be considered in funding new efforts.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9913-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           6           8           8
    12.1  Civilian personnel benefits.......           3           2           2
    25.2  Other services....................           2          83          35
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          11          93          45
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9913-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          53          82          82
    ---------------------------------------------------------------------------

                             Fund for Rural America

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0012-0-1-999      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Rural development activities......          20
    00.02 Research, extension and education
            grants..........................          10
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          30
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          60          60         100
    22.00 New budget authority (gross)......          30          90          60
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          90         150         160
    23.95 Total new obligations.............         -30
    23.98 Unobligated balance expiring or
            withdrawn.......................                     -50         -20
    24.40 Unobligated balance carried
            forward, end of year............          60         100         140
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................
    40.35   Appropriation deferred..........                                -160
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                                -160
          Mandatory:

    60.00   Appropriation...................         120         150         160
    60.35   Appropriation deferred..........         -90        -150
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................          30                     160
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          30
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          35          34          26
    73.10 Total new obligations.............          30
    73.20 Total outlays (gross).............         -30          -8         -11
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.40 Obligated balance, end of year....          34          26          15
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                -103
    86.97 Outlays from new mandatory
            authority.......................          17                     103
    86.98 Outlays from mandatory balances...          13           8          11
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          30           8          11
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          30          90          60
    90.00 Outlays...........................          30           8          11
    ---------------------------------------------------------------------------

        The Federal Agriculture Improvement and Reform Act of 1996 (1996
    Act) initially established the Fund for Rural America to provide support
    to rural communities across the United States.

        The 1996 Farm Bill authorized $100 million for the Fund in each of
    1997, 1999, and 2000.

        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.

        For 2001, the first year availability of the 2001 appropriation for
    the Fund for Rural America was blocked. Further, of the $60 million in
    2000 carryover funds, the Secretary was allowed by Congress to spend
    only $30 million in 2001. Congress prohibited spending funds in 2002
    with the exception of administration and oversight of grants awarded
    prior to enactment of the 2002 Agriculture Appropriations Act. In 2001,
    the Secretary allocated $20 million of the available $30 million in
    funding to support rural business grants, outreach for socially
    disadvantaged producers, farm labor loans and other ongoing rural
    development activities. Another $10 million was used to support
    research, education, and extension proposals.

        The 2003 budget proposes blocking the $100 million in 2001 and 2002
    funds available in 2003. The 2003 budget also proposes blocking the
    availability of the $60 million in 2003 funding. The specific
    appropriations language for these funding changes is included as part of
    the General Provisions.

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0012-0-1-999      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......           6
    ---------------------------------------------------------------------------

    [[Page 67]]

                                   Trust Funds

                               Gifts and Bequests

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8203-0-7-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.00 Gifts and bequests................           1           1           1
        Appropriations:
    05.00 Gifts and bequests................          -1          -1          -1
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8203-0-7-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        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 carried
            forward, 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 carried
            forward, end of year............           2           2           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......           1           1           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    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, [$7,704,000] $12,508,000.

                            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, [$12,869,000] $15,262,000.

                      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, [$7,041,000] 7,888,000. (7
    U.S.C. 2201, 2202; 42 U.S.C. 2000d; Agriculture, Rural Development, Food
    and Drug Administration, and Related Agencies Appropriations Act, 2002;
    additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0705-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Chief Economist...................           7           8          12
    00.03 National Appeals Division.........          13          14          15
    00.04 Budget and program analysis.......           8           8           8
    09.01 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          29          31          36
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          29          31          37
    23.95 Total new obligations.............         -29         -31         -36
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          28          30          36
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          29          31          37
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           4           5           5
    73.10 Total new obligations.............          29          31          36
    73.20 Total outlays (gross).............         -29         -31         -37
    73.40 Adjustments in expired accounts
            (net)...........................           1
    74.40 Obligated balance, end of year....           5           5           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          25          28          33
    86.93 Outlays from discretionary
            balances........................           4           3           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          29          31          37
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................          28          30          36
    90.00 Outlays...........................          29          30          36
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          26          28          34
    90.00 Outlays...........................          27          28          34
    ---------------------------------------------------------------------------

        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

                                         2001 actual  2002 est.   2003 est.
    World Agricultural Supply and Demand
    Estimates Reports issued............          12          12          12
    Weekly Weather and Crop Bulletin
    issued..............................          52          52          52

    [[Page 68]]

        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

                                         2001 actual  2002 est.   2003 est.
    Regional or National Training.......                       1           1

        The Office of Budget and Program Analysis provides overall direction
    and administration of the Department's budgetary functions including:
    development, presentation, and execution of the budget; review of
    program and legislative proposals for programs and budget implications;
    and analysis of program issues and alternatives and preparation of
    summaries of pertinent data to aid Departmental policy officials and
    agency program managers in the decisionmaking process.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0705-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          18          21          22
    12.1    Civilian personnel benefits.....           5           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..................           3           1           4
    31.0    Equipment.......................                                   1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          28          30          35
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          29          31          36
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0705-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         230         261         275
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......           4           4           4
    ---------------------------------------------------------------------------

                      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, [$5,384,000] $8,399,000:
    Provided, That the Chief Financial Officer shall actively market and
    expand cross-servicing activities of the National Finance Center.
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2002; additional authorizing
    legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0014-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................           5           5           8
    09.01 Reimbursable program..............           2           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           7           7          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           7           7          10
    23.95 Total new obligations.............          -7          -7         -10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           5           5           8
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           1           2           2
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           1
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......           2           2           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           7           7          10
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           1           1
    73.10 Total new obligations.............           7           7          10
    73.20 Total outlays (gross).............          -7          -7         -10
    73.40 Adjustments in expired accounts
            (net)...........................           1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1
    74.40 Obligated balance, end of year....           1           1           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           7           7          10
    ----------------------------------------------------------------------------

        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   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -1
    ----------------------------------------------------------------------------

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

        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

                                         2001 actual  2002 est.   2003 est.
    Achieve an unqualified opinion on
    the USDA financial statements.......         TBD Unqualified Unqualified
    Implement the Foundation financial
    information system USDA-wide: USDA
    employees served....................         78%         98%        100%

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0014-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           3           4           6
    12.1    Civilian personnel benefits.....           1           1           1
    25.2    Other services..................           1                       1
                                               ---------   ---------  ----------
    99.0      Direct obligations............           5           5           8
    99.0  Reimbursable obligations..........           2           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           7           7          10
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0014-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......          44          61          78
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          20          14          14
    ---------------------------------------------------------------------------

    [[Page 69]]

                     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, [$10,029,000]
    $31,732,000. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2002;
    additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0013-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Office of the Chief Information
              Officer.......................          10          10          32
    00.02   Year 2000 remediation...........           5
    09.01 Reimbursable program..............           7           8           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          22          18          34
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3          -1
    22.00 New budget authority (gross)......          17          18          34
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          21          18          34
    23.95 Total new obligations.............         -22         -18         -34
    24.40 Unobligated balance carried
            forward, end of year............          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          10          10          31
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           2           8           2
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           5
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......           7           8           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          17          18          33
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           3          -2
    73.10 Total new obligations.............          22          18          34
    73.20 Total outlays (gross).............         -25         -18         -34
    73.40 Adjustments in expired accounts
            (net)...........................           5
    73.45 Recoveries of prior year
            obligations.....................          -1          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -5
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................                       3
    74.40 Obligated balance, end of year....          -2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          12          18          33
    86.93 Outlays from discretionary
            balances........................          13
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          25          18          34
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -10          -8          -2
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -5
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          10          10          32
    90.00 Outlays...........................          14          10          32
    ---------------------------------------------------------------------------

        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 planning guidance and technical assistance for cyber
    security, implements measures to ensure that technology investments are
    economical and effective, and implements standards and oversight to
    promote secure information exchange and technical interoperability.

        This office also provides telecommunications and ADP services to
    USDA agencies through 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,
    Office of the Chief Financial Officer, and Executive Operations. OCIO
    also has direct management responsibility for the information technology
    component of the Service Center Modernization Initiative (SCMI). This
    includes the implementation of a common technology infrastructure to
    replace the outdated and stove-piped systems currently supporting the
    Farm Service Agency, the Natural Resources Conservation Service, and
    Rural Development.

                                Performance Measures

                                             2001 actual   2002 est.   2003 est.
    Ensure all USDA agency critical
     information systems are Year 2000
     compliant and operational (%)
      ......................................        100%          NA          NA
    Percent of critical information systems          55%        100%          NA
     evaluated for vulnerabilities

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0013-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           4           6           7
    12.1    Civilian personnel benefits.....           1           1           2
    25.2    Other services..................           3           2          23
    25.3    Other purchases of goods and
              services from Government
              accounts......................           2           1           1
    31.0    Equipment.......................           2
                                               ---------   ---------  ----------
    99.0      Direct obligations............          12          10          33
    99.0  Reimbursable obligations..........           7           8           1
    99.5  Below reporting threshold.........           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          22          18          34
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0013-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......          58          70          88
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......           5           5           3
    ---------------------------------------------------------------------------

                          Common Computing Environment

        For necessary expenses to acquire a Common Computing Environment for
    the Natural Resources Conservation Service, the Farm and Foreign
    Agricultural Service and Rural Development mission areas for information
    technology, systems, and services, [$59,369,000] $133,155,000, 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.
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2002.)

    [[Page 70]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0113-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations.............          47          72         133
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                      13
    22.00 New budget authority (gross)......          59          59         133
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          59          72         133
    23.95 Total new obligations.............         -47         -72        -133
    24.40 Unobligated balance carried
            forward, end of year............          13
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          59          59         133
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                      34           9
    73.10 Total new obligations.............          47          72         133
    73.20 Total outlays (gross).............         -13         -97        -130
    74.40 Obligated balance, end of year....          34           9          12
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          13          50         112
    86.93 Outlays from discretionary
            balances........................                      47          18
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          13          97         130
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          59          59         133
    90.00 Outlays...........................          13          97         130
    ---------------------------------------------------------------------------

        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 passed new
    legislation in 2000, ``The Freedom to E-File Act,'' that requires
    agencies to make more services available to the public electronically.
    The USDA Service Center Modernization Initiative (SCMI) has been working
    to restructure county field offices, modernize and integrate business
    approaches and replace the current stove-piped 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 implement 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. The
    increase of $70 million is to fund increased costs for information
    technology investments by the three Service Center agencies (Farm
    Service Agency, Natural Resources and Conservation Service, and Rural
    Development). An additional $4 million is requested to fund ongoing
    projects necessary to implement the e-gov initiative. In lieu of
    providing the funding to each individual agency, funding is being
    provided through the CCE account to encourage increased oversight on
    expenditures. This change only applies to increased requests for
    funding. Funding already built into agency budgets to support the CCE
    remain within each agency's budget. Additional funds in the individual
    agency budgets will support some CCE investments, the reengineering of
    business processes and data acquisition needed to maximize the benefits
    of this technology.

                                 Performance Measure

                                             2001 actual   2002 est.   2003 est.
    Operational SCMI common computing                 No          No         Yes
     environment

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0113-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.2    Other services..................           4          15          77
    26.0    Supplies and materials..........          12
    31.0    Equipment.......................          30          57          56
                                               ---------   ---------  ----------
    99.0      Direct obligations............          46          72         133
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          47          72         133
    ---------------------------------------------------------------------------

    Intragovernmental funds:

                              Working Capital Fund

        For the acquisition of plant and capital equipment necessary for
    financial, administrative, and information technology services of
    primary benefit to the agencies of the Department of Agriculture,
    $21,000,000, to remain available until expended.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4609-0-4-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    09.01   Administration..................          24          24          25
    09.02   Communications..................           6           5           5
    09.03   Finance and management..........         165         175         180
    09.04   Information technology..........          67          73          74
    09.05   Executive secretariat...........           1           2           2
    09.06   Corporate systems...............          34          37          42
                                               ---------   ---------  ----------
    09.09   Subtotal, operating expenses....         297         316         328
          Purchase of equipment:

    09.12   Finance and management..........           4           4           9
    09.13   Information technology..........           5           4           9
    09.15   Corporate systems...............           4          10          21
                                               ---------   ---------  ----------
    09.19   Subtotal, purchase of equipment.          13          18          39
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         310         334         367
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          14          25          25
    22.00 New budget authority (gross)......         299         334         367
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          22
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         335         359         392
    23.95 Total new obligations.............        -310        -334        -367
    24.40 Unobligated balance carried
            forward, end of year............          25          25          25
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                  21
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         272         334         346
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          27
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         299         334         346
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         299         334         367
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          27         -10          -8
    73.10 Total new obligations.............         310         334         367
    73.20 Total outlays (gross).............        -298        -332        -366
    73.45 Recoveries of prior year
            obligations.....................         -22
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -27
    74.40 Obligated balance, end of year....         -10          -8          -7
    ----------------------------------------------------------------------------

    [[Page 71]]

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         298         290         322
    86.93 Outlays from discretionary
            balances........................                      42          44
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         298         332         366
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -272        -334        -346
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -27
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  21
    90.00 Outlays...........................          27          -2          20
    ---------------------------------------------------------------------------

        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, 2001. 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.

        Twenty-one million dollars is requested to provide for investments
    in such corporate, financial, information technology, or other systems
    of general benefit to the Department and its agencies, and for the
    acquisition of plant and capital equipment necessary for the delivery of
    financial, administrative, and information technology services of
    primary benefit to the agencies of the Department of Agriculture.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4609-0-4-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          96         107         110
    11.3    Other than full-time permanent..           2           2           2
    11.5    Other personnel compensation....           5           3           4
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         103         112         116
    12.1  Civilian personnel benefits.......          30          32          33
    21.0  Travel and transportation of
            persons.........................           2           2           2
    22.0  Transportation of things..........           1           1           1
    23.1  Rental payments to GSA............           3           5           5
    23.2  Rental payments to others.........           2           2           2
    23.3  Communications, utilities, and
            miscellaneous charges...........          34          38          38
    24.0  Printing and reproduction.........           1           2           2
    25.2  Other services....................         107         112         119
    26.0  Supplies and materials............           8           8           8
    31.0  Equipment.........................          19          20          41
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         310         334         367
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-4609-0-4-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......       2,006       2,100       2,100
    ---------------------------------------------------------------------------

                           DEPARTMENTAL ADMINISTRATION

                                  Federal Funds

    General and special funds:

                           Departmental Administration

                         (including transfers of funds)

        For Departmental Administration, [$37,079,000] $48,542,000, 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, 2002;
    additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0120-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.08 Direct program....................          38          39          48
    09.01 Reimbursable program..............          15          16          16
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          53          55          64
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          53          55          64
    23.95 Total new obligations.............         -53         -55         -64
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          38          39          48
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           8          16          16
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           7
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          15          16          16
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          53          55          64
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         -13          -2
    73.10 Total new obligations.............          53          55          64
    73.20 Total outlays (gross).............         -55         -53         -62
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -7
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          20
    74.40 Obligated balance, end of year....          -2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          44          53          59
    86.93 Outlays from discretionary
            balances........................          11                       2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          55          53          62
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -18         -16         -16
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -7
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          38          39          48
    90.00 Outlays...........................          37          38          45
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          36          37          46
    90.00 Outlays...........................          35          36          43
    ---------------------------------------------------------------------------

        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 man

    [[Page 72]]

    agement, ethics, 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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0120-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          21          27          30
    12.1    Civilian personnel benefits.....           6           7           8
    21.0    Travel and transportation of
              persons.......................           1
    23.1    Rental payments to GSA..........                                   4
    23.3    Communications, utilities, and
              miscellaneous charges.........           1
    25.2    Other services..................           3           2           3
    25.3    Other purchases of goods and
              services from Government
              accounts......................           3           2           2
    26.0    Supplies and materials..........           1
    31.0    Equipment.......................           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          37          38          47
    99.0  Reimbursable obligations..........          15          15          15
    99.5  Below reporting threshold.........           1           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          53          55          64
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0120-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         312         376         398
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          60          30          57
    ---------------------------------------------------------------------------

                         Hazardous Materials Management

                         (including transfers of funds)

        For necessary expenses of the Department of Agriculture, to comply
    with the Comprehensive Environmental Response, Compensation, and
    Liability Act, 42 U.S.C. 9601 et seq., and the Resource Conservation and
    Recovery Act, 42 U.S.C. 6901 et seq., [$15,665,000] $15,744,000, to
    remain available until expended: Provided, That appropriations and funds
    available herein to the Department for Hazardous 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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0500-0-1-304      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          18          16          16
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          18          16          16
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1           1
    22.00 New budget authority (gross)......          16          16          16
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          20          17          17
    23.95 Total new obligations.............         -18         -16         -16
    24.40 Unobligated balance carried
            forward, end of year............           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          16          16          16
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          22          18          17
    73.10 Total new obligations.............          18          16          16
    73.20 Total outlays (gross).............         -19         -18         -18
    73.45 Recoveries of prior year
            obligations.....................          -3
    74.40 Obligated balance, end of year....          18          17          15
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          15          14          14
    86.93 Outlays from discretionary
            balances........................           4           4           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          19          18          18
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          16          16          16
    90.00 Outlays...........................          19          18          18
    ---------------------------------------------------------------------------

        Under the Comprehensive Environmental Response, Compensation, and
    Liability Act (CERCLA) and the Resource Conservation and Recovery Act
    (RCRA), 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

                                         2001 actual  2002 est.   2003 est.
    Number of sites assessed/
    characterized on need for cleanup...         153         109          68
    Number of cleanup plans.............          65          64          59
    Number of non-mine CERCLA cleanups..          32           7          23
    Number of mine CERCLA cleanups......          15          10          25
    Number of UST and other RCRA
    cleanups............................          70          15           6
    Number of agreements reached with
    potentially responsible parties
    (PRPs)..............................          19          10          10
    Estimated value of cleanup/
    restoration work performed by PRP's
    ($ millions)........................          12          10           5

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0500-0-1-304      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.1    Advisory and assistance services           1
    25.2    Other services..................          16          15          15
                                               ---------   ---------  ----------
    99.0      Direct obligations............          17          15          15
    99.5  Below reporting threshold.........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          18          16          16
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0500-0-1-304      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......           6           6           6
    ---------------------------------------------------------------------------

    [[Page 73]]

           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 alterations and other
    actions needed for the Department and its agencies to consolidate
    unneeded space into configurations suitable for release to the
    Administrator of General Services, and for] For the operation,
    maintenance, improvement, and repair of Agriculture buildings and
    facilities, and for related costs, [$187,647,000] $70,992,000, to remain
    available until expended[: Provided, That 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 to cover the costs of new
    or replacement space for such agency, 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, 2002; additional authorizing
    legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0117-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Rental payments to GSA: Non-
              recurring repairs.............         120         130
    00.02   Building operations and
              maintenance...................          30          31          37
    00.04   Strategic space plan............          24          26          34
    09.02 Reimbursable program..............          -1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         173         188          72
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          16          25          25
    22.00 New budget authority (gross)......         183         189          72
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         200         214          97
    23.95 Total new obligations.............        -173        -188         -72
    24.40 Unobligated balance carried
            forward, end of year............          25          25          25
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         183         188          70
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          -1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         182         189          71
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          17          46
    73.10 Total new obligations.............         173         188          72
    73.20 Total outlays (gross).............        -142        -235         -72
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.40 Obligated balance, end of year....          46
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         125         187          70
    86.93 Outlays from discretionary
            balances........................          17          47           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         142         235          72
    ----------------------------------------------------------------------------

        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..................         184         188          71
    90.00 Outlays...........................         144         234          71
    ---------------------------------------------------------------------------

        This account finances expenses associated with the operation,
    maintenance, repair and improvement of buildings and facilities in the
    Headquarters area and related costs such as rental of space to house
    functions displaced during modernization of these facilities.

        Beginning in 2003, GSA rental payments and related costs will be
    funded in the budgets of the respective agencies instead of a central
    account.

                               WORKLOAD INDICATORS

                                         2001 actual  2002 est.   2003 est.
    Maintenance and Repairs:
      Minor repairs (number)............         402         400         400
      Maintenance (thousands of hours)..      19,570      19,500      19,500
      Service calls (thousands).........      11,060      11,000      11,000

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0117-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           5           6           6
    12.1    Civilian personnel benefits.....           1           1           2
    23.1    Rental payments to GSA..........         121         130           3
    23.3    Communications, utilities, and
              miscellaneous charges.........           4           5           5
    25.2    Other services..................          43          45          55
                                               ---------   ---------  ----------
    99.0      Direct obligations............         174         187          71
    99.0  Reimbursable obligations..........          -1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         173         188          72
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0117-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          79          88          94
    ---------------------------------------------------------------------------

                   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),
    $3,243,000, to remain available until expended. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0601-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           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:
          Discretionary:

    40.00   Appropriation...................           3           3           3
    ----------------------------------------------------------------------------

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

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

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

        Outreach for Socially Disadvantaged Farmers 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

    [[Page 74]]

    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 will provide outreach, training, and technical assistance
    on sound farm management and production, crop diversification, marketing
    practices, farm accounting, and recordkeeping. The overall objective of
    the program is to enhance the ability of socially disadvantaged
    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.

                               WORKLOAD INDICATOR

                                         2001 actual  2002 est.   2003 est.
    Number of grants....................          28          30          30

                            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, [$8,894,000]
    $10,153,000, 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, 2002; additional authorizing
    legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0150-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Public affairs....................          10          10          11
    09.01 Reimbursable program..............                                   1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          10          10          12
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          11          11          12
    23.95 Total new obligations.............         -10         -10         -12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          10          10          11
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          10          11          12
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -1          -2
    73.10 Total new obligations.............          10          10          12
    73.20 Total outlays (gross).............         -10         -10         -10
    74.40 Obligated balance, end of year....          -2
    ----------------------------------------------------------------------------

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

        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..................          10          10          11
    90.00 Outlays...........................          10           9           9
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

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

        Public affairs.--This office provides general direction, leadership,
    and coordination of the Department's information program. The major
    objective is to provide a balanced and useful information program that
    reports on USDA's research, administrative action, and regulatory
    activities using all communications media in order to enable the general
    public and the agricultural industry to have a better understanding of
    agriculture's services to farmers and to society.

                              PERFORMANCE MEASURES

                                         2001 actual  2002 est.   2003 est.
    Random surveys of selected
    communications initiatives reveal
    that intended audience received the
    material or information distributed.         95%         95%         95%

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0150-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           7           6           7
    12.1    Civilian personnel benefits.....           2           2           2
    25.2    Other services..................           1           1           2
                                               ---------   ---------  ----------
    99.0      Direct obligations............          10           9          11
    99.0  Reimbursable obligations..........                       1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          10          10          12
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0150-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          78          90          90
    ---------------------------------------------------------------------------

                         OFFICE OF THE INSPECTOR GENERAL

                                  Federal Funds

    General and special funds:

                         Office of the Inspector General

        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, [$70,839,000] $87,109,000, 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, 2002; additional authorizing legislation required.)

    [[Page 75]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0900-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          73          76          87
    09.01 Reimbursable program..............           2           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          75          78          89
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           1
    22.00 New budget authority (gross)......          76          78          89
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          78          79          89
    23.95 Total new obligations.............         -75         -78         -89
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          74          76          87
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           2           2           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          76          78          89
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           5           5           6
    73.10 Total new obligations.............          75          78          89
    73.20 Total outlays (gross).............         -80         -77         -94
    73.40 Adjustments in expired accounts
            (net)...........................           4
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           1
    74.40 Obligated balance, end of year....           5           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          76          71          81
    86.93 Outlays from discretionary
            balances........................           6           6          13
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          80          77          94
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................          76          76          87
    90.00 Outlays...........................          78          75          92
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          71          71          82
    90.00 Outlays...........................          73          70          87
    ---------------------------------------------------------------------------

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0900-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          42          43          45
    11.5      Other personnel compensation..           4           4           4
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          46          47          49
    12.1    Civilian personnel benefits.....          17          18          19
    21.0    Travel and transportation of
              persons.......................           5           5           6
    23.1    Rental payments to GSA..........                                   4
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           2           2           5
    25.3    Other purchases of goods and
              services from Government
              accounts......................           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          67          74          85
    99.0  Reimbursable obligations..........           2           2           2
    99.5  Below reporting threshold.........           1           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          75          78          89
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0900-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         650         723         723
    ---------------------------------------------------------------------------

                          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,
    [$32,627,000] $39,841,000. (7 U.S.C. 2201; 2202, 2214a; Agriculture,
    Rural Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2002; additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2300-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          34          35          40
    09.00 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          35          36          41
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          35          36          41
    23.95 Total new obligations.............         -35         -36         -41
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          34          35          40
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          35          36          41
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           2           2
    73.10 Total new obligations.............          35          36          41
    73.20 Total outlays (gross).............         -33         -36         -41
    74.40 Obligated balance, end of year....           2           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          33          34          39
    86.93 Outlays from discretionary
            balances........................                       2           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          33          36          41
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

    [[Page 76]]

        Net budget authority and outlays:
    89.00 Budget authority..................          34          35          40
    90.00 Outlays...........................          32          35          40
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          32          33          37
    90.00 Outlays...........................          30          33          37
    ---------------------------------------------------------------------------

        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 devoted to those efforts are
    under the supervision of the General Counsel.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2300-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          24          25          27
    12.1    Civilian personnel benefits.....           7           8           9
    23.1    Rental payments to GSA..........                                   1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           1           1           1
    31.0    Equipment.......................           1                       1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          34          35          40
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          35          36          41
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2300-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         312         338         352
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......           7           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,
    [$67,200,000] $82,032,000: Provided, That this appropriation shall be
    available for employment pursuant to the second sentence of section
    706(a) of the Organic Act of 1944 (7 U.S.C. 2225). (7 U.S.C. 292, 411,
    427, 1441a, 1704, 1761-68, 2201, 2202, 3103, 3291, 3311, 3504; 22 U.S.C.
    3101; 42 U.S.C. 1891-93; 44 U.S.C. 3501-11; 50 U.S.C. 2061 et seq., 2251
    et seq.; Agriculture, Rural Development, Food and Drug Administration,
    and Related Agencies Appropriations Act, 2002; additional authorizing
    legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1701-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          69          70          82
    09.00 Reimbursable program..............           2           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          71          73          85
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          71          73          85
    23.95 Total new obligations.............         -71         -73         -85
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          70          70          82
    41.00   Transferred to other accounts...          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          69          70          82
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           2           3           3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          71          73          85
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          28          26          26
    73.10 Total new obligations.............          71          73          85
    73.20 Total outlays (gross).............         -71         -73         -85
    74.40 Obligated balance, end of year....          26          26          26
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          55          64          75
    86.93 Outlays from discretionary
            balances........................          16           9           9
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          71          73          85
    ----------------------------------------------------------------------------

        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..................          69          70          82
    90.00 Outlays...........................          69          70          82
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          66          67          79
    90.00 Outlays...........................          66          67          79
    ---------------------------------------------------------------------------

        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 2003 request includes funding for costs associated with the
    Economic Research Service's share of reengineering the Agricultural
    Resource Management Survey and for an initiative on the effects of
    invasive pests and diseases on the global competitiveness of U.S.
    agriculture.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1701-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          35          37          38
    11.3      Other than full-time permanent           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          36          38          39
    12.1    Civilian personnel benefits.....          10          10          10

    [[Page 77]]

    21.0    Travel and transportation of
              persons.......................           1           1           1
    23.1    Rental payments to GSA..........                                   6
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           2           3           4
    25.3    Other purchases of goods and
              services from Government
              accounts......................           7           5           8
    25.5    Research and development
              contracts.....................           8           8           9
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           1           1           1
    41.0    Grants, subsidies, and
              contributions.................           2           2           2
                                               ---------   ---------  ----------
    99.0      Direct obligations............          69          70          82
    99.0  Reimbursable obligations..........           1           2           2
    99.5  Below reporting threshold.........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          71          73          85
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1701-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         489         519         523
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......           2           3           3
    ---------------------------------------------------------------------------

                    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, [$113,786,000]
    $149,069,000, of which up to [$25,350,000] $42,291,000 shall be
    available until expended for the Census of Agriculture: Provided, That
    this appropriation shall be available for employment pursuant to the
    second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C.
    2225), and not to exceed $40,000 shall be available for employment under
    5 U.S.C. 3109. (7 U.S.C. 411, 411a, 411b, 427, 471, 475, 476, 501, 951,
    953, 955-57, 1621-27, 2201, 2202, 2204, 2225, 2248, 3103, 3311, 3504; 18
    U.S.C. 1902, 1905, 2072; 42 U.S.C. 1891-93; 44 U.S.C. 3501-11; 50 U.S.C.
    2061 et seq., 2251 et seq.; Agriculture, Rural Development, Food and
    Drug Administration, and Related Agencies Appropriations Act, 2002;
    additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1801-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Agricultural estimates..........          85          88         101
    00.02   Statistical research and service           4           4           5
    00.03   Census of Agriculture...........          16          27          43
    09.01 Reimbursable program..............          11          11          11
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         116         130         160
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       1
    22.00 New budget authority (gross)......         117         131         160
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         117         132         160
    23.95 Total new obligations.............        -116        -130        -160
    24.40 Unobligated balance carried
            forward, end of year............           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         106         119         149
          Mandatory:

    60.26   Appropriation (trust fund)......           1           1           1
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          11          11          11
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         118         131         161
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          10           9          11
    73.10 Total new obligations.............         116         130         160
    73.20 Total outlays (gross).............        -120        -129        -156
    73.40 Adjustments in expired accounts
            (net)...........................           2
    74.40 Obligated balance, end of year....           9          11          16
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         113         117         144
    86.93 Outlays from discretionary
            balances........................           6          11          11
    86.97 Outlays from new mandatory
            authority.......................                       1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         120         129         156
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -8          -8          -8
    88.40     Non-Federal sources...........          -3          -3          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -11         -11         -11
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         107         120         149
    90.00 Outlays...........................         109         118         145
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         102         115         144
    90.00 Outlays...........................         104         113         140
    ---------------------------------------------------------------------------

        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 46 field offices
    serving the 50 States and Puerto Rico; most of these offices are
    operated as joint State and Federal services. Cooperative arrangements
    with State agencies provide additional State and county data. The 2003
    program includes a reengineered Agricultural Resource Management Survey,
    the development of a locality based agricultural county estimates/small
    area estimation program, e-government data dissemination and electronic
    data reporting and enhancements for improvements to the computer
    security architecture.

        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. A proposed increase of $16 million reflects funding of
    cyclical activities associated with labeling, mailing, processing and
    analysis 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).

    [[Page 78]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1801-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          54          59          74
    11.5      Other personnel compensation..           1           1           2
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          55          60          76
    12.1    Civilian personnel benefits.....          18          20          23
    21.0    Travel and transportation of
              persons.......................           2           2           2
    23.1    Rental payments to GSA..........                                   3
    23.3    Communications, utilities, and
              miscellaneous charges.........           4           3           6
    24.0    Printing and reproduction.......                       4
    25.2    Other services..................          17          17          17
    25.3    Other purchases of goods and
              services from Government
              accounts......................           5           6          13
    25.7    Operation and maintenance of
              equipment.....................           1           1           1
    26.0    Supplies and materials..........           1           1           2
    31.0    Equipment.......................           1           4           4
                                               ---------   ---------  ----------
    99.0      Direct obligations............         104         118         147
    99.0  Reimbursable obligations..........          10          10          10
    99.5  Below reporting threshold.........           2           2           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         116         130         160
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1801-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       1,009       1,082       1,252
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         104         106         106
    ---------------------------------------------------------------------------

                          AGRICULTURAL RESEARCH SERVICE

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

        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, [$979,464,000] $1,014,086,000: Provided, That appropriations
    hereunder shall be available for temporary employment pursuant to the
    second sentence of section 706(a) of the Organic Act of 1944 (7 U.S.C.
    2225), and not to exceed $115,000 shall be available for employment
    under 5 U.S.C. 3109: Provided further, That appropriations hereunder
    shall be available for the operation and maintenance of aircraft and the
    purchase of not to exceed one for replacement only: Provided further,
    That appropriations hereunder shall be available pursuant to 7 U.S.C.
    2250 for the construction, alteration, and repair of buildings and
    improvements, but unless otherwise provided, the cost of constructing
    any one building shall not exceed $375,000, except for headhouses or
    greenhouses which shall each be limited to $1,200,000, and except for 10
    buildings to be constructed or improved at a cost not to exceed $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 $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
    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 [2002] 2003, 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, 2002;
    additional authorizing legislation required.)
        [For emergency expenses to respond to the September 11, 2001,
    terrorist attacks on the United States, for ``Salaries and Expenses'',
    $40,000,000, to remain available until expended, to be obligated from
    amounts made available in Public Law 107-38.] (Emergency Supplemental
    Act, 2002.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1400-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............           5           5           5
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           5           5           5
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1400-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Research on soil, water and air
              science.......................         102         143         107
    00.02   Research on plant science.......         337         356         365
    00.03   Research on animal science......         153         221         196
    00.04   Research on commodity conversion
              and delivery..................         201         182         187
    00.05   Human nutrition research........          78          77          78
    00.06   Integration of agricultural
              systems.......................          35          39          40
    00.07   Repair and maintenance of
              facilities....................          18          18          18
    00.09   Collaborative research program..          11           3
    00.10   Agricultural information and
              library science...............          22          21          23
    09.00 Reimbursable program..............          45          60          60
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,002       1,120       1,074
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           6           3
    22.00 New budget authority (gross)......         999       1,117       1,074
    22.22 Unobligated balance transferred
            from other accounts.............           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,007       1,120       1,074
    23.95 Total new obligations.............      -1,002      -1,120      -1,074
    23.98 Unobligated balance expiring or
            withdrawn.......................          -3
    24.40 Unobligated balance carried
            forward, end of year............           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         932       1,057       1,014
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............          -2
    42.00   Transferred from other accounts.           6
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         936       1,057       1,014
          Mandatory:

    60.00   Appropriation...................          18
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          45          60          60
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         999       1,117       1,074
    ----------------------------------------------------------------------------

    [[Page 79]]

        Change in obligated balances:
    72.40 Obligated balance, start of year..         245         277         314
    73.10 Total new obligations.............       1,002       1,120       1,074
    73.20 Total outlays (gross).............        -974      -1,083      -1,050
    73.40 Adjustments in expired accounts
            (net)...........................           4
    74.40 Obligated balance, end of year....         277         314         338
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         768         913         880
    86.93 Outlays from discretionary
            balances........................         188         170         170
    86.97 Outlays from new mandatory
            authority.......................          18
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         974       1,083       1,050
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -40         -54         -54
    88.40     Non-Federal sources...........          -5          -6          -6
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -45         -60         -60
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         954       1,057       1,014
    90.00 Outlays...........................         929       1,023         990
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         920       1,019         971
    90.00 Outlays...........................         895         985         947
    ---------------------------------------------------------------------------

        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 2003, the Service proposes increased emphases for critical
    research needs in agriculture, such as: Counter-terrorism; Emerging,
    reemerging, and exotic diseases of plants and animals; Agricultural
    genomes; Biotechnology risk assessment; Control of invasive species;
    Agricultural genetic resources; Enhancing air and water quality;
    Biobased products/bioenergy from agricultural commodities; Global
    climate change, and Agricultural information services. The 2003 budget
    also proposes to eliminate funding for unrequested Congressional
    earmarks added in 2001 and 2002, as well as some less critical base
    programs. In 2001, the Service submitted 64 new patent applications,
    participated in 46 new Cooperative research and development agreements
    (CRADAs), licensed 31 new products, and developed 63 new plant varieties
    to release to industry for further development and marketing.

        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 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.

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

        Reimbursements.--Agricultural Research Service performs program
    research activities and services for other USDA, Federal, and non-
    Federal agencies. These activities and services are paid for on a
    reimbursable basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1400-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         362         411         425
    11.3      Other than full-time permanent          15          16          17
    11.5      Other personnel compensation..          20          20          20
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         397         447         462
    12.1    Civilian personnel benefits.....         131         145         154
    21.0    Travel and transportation of
              persons.......................          16          20          19
    22.0    Transportation of things........           1           1           1
    23.1    Rental payments to GSA..........                                   3
    23.2    Rental payments to others.......           1           2           1
    23.3    Communications, utilities, and
              miscellaneous charges.........          36          39          36
    24.0    Printing and reproduction.......           1           2           1
    25.1    Advisory and assistance services           1           1           1
    25.2    Other services..................          13          22          16
    25.3    Other purchases of goods and
              services from Government
              accounts......................           3           5           3
    25.4    Operation and maintenance of
              facilities....................          23          30          24
    25.5    Research and development
              contracts.....................         132         145         111
    25.7    Operation and maintenance of
              equipment.....................           7           7           7

    [[Page 80]]

    25.8    Subsistence and support of
              persons.......................           1           1           1
    26.0    Supplies and materials..........          91          95          93
    31.0    Equipment.......................          47          63          49
    32.0    Land and structures.............           8           8           8
    41.0    Grants, subsidies, and
              contributions.................          48          27          24
                                               ---------   ---------  ----------
    99.0      Direct obligations............         957       1,060       1,014
    99.0  Reimbursable obligations..........          45          60          60
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,002       1,120       1,074
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1400-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       7,424       8,008       7,960
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         396         396         396
    ---------------------------------------------------------------------------

                            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, [$118,987,000]
    $16,580,000, 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, 2002.)
        [For emergency expenses to respond to the September 11, 2001,
    terrorist attacks on the United States, for ``Buildings and
    Facilities'', $73,000,000, to remain available until expended, to be
    obligated from amounts made available in Public Law 107-38.] (Emergency
    Supplemental Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1401-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Building and facilities projects..          56         131          82
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          56         131          82
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         109         127         188
    22.00 New budget authority (gross)......          74         192          17
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         183         319         205
    23.95 Total new obligations.............         -56        -131         -82
    24.40 Unobligated balance carried
            forward, end of year............         127         188         123
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          74         192          17
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          51          52         102
    73.10 Total new obligations.............          56         131          82
    73.20 Total outlays (gross).............         -54         -81        -105
    74.40 Obligated balance, end of year....          52         102          79
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           6          23           2
    86.93 Outlays from discretionary
            balances........................          48          58         103
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          54          81         105
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          74         192          17
    90.00 Outlays...........................          54          81         105
    ---------------------------------------------------------------------------

        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 2003 request provides the continuing modernization of the National
    Agricultural Library, Beltsville, MD; U.S. National Arboretum,
    Washington, DC; ongoing upgrades at Plum Island, and restoration of
    Beltsville, MD Agricultural Research Center facilities damaged by a
    tornado.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1401-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          49          92          57
    32.0  Land and structures...............           7          39          25
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          56         131          82
    ---------------------------------------------------------------------------

                                   Trust Funds

                         Miscellaneous Contributed Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.20 Science and education contributed
            funds...........................          30          35          35
        Appropriations:
    05.00 Miscellaneous contributed funds...         -30         -35         -35
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Miscellaneous contributed funds...          24          28          32
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          24          28          32
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          14          19          26
    22.00 New budget authority (gross)......          30          35          35
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          44          54          61
    23.95 Total new obligations.............         -24         -28         -32
    24.40 Unobligated balance carried
            forward, end of year............          19          26          29
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......          30          35          35
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           8          12          17
    73.10 Total new obligations.............          24          28          32
    73.20 Total outlays (gross).............         -20         -23         -29
    74.40 Obligated balance, end of year....          12          17          20
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           7          11           4
    86.98 Outlays from mandatory balances...          13          12          25
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          20          23          29
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          30          35          35
    90.00 Outlays...........................          20          23          29
    ---------------------------------------------------------------------------

        Miscellaneous contributed funds received from States, local
    organizations, individuals, and others are available for work under
    cooperative agreements on research activities.

    [[Page 81]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           6           8           8
    12.1  Civilian personnel benefits.......           1           2           2
    25.2  Other services....................          11           9          10
    26.0  Supplies and materials............           4           6           7
    31.0  Equipment.........................           1           2           3
    41.0  Grants, subsidies, and
            contributions...................           1           1           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          24          28          32
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         114         114         114
    ---------------------------------------------------------------------------

          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, as
    authorized under section 406 of the Agricultural Research, Extension,
    and Education Reform Act of 1998 (7 U.S.C. 7626), [$42,853,000]
    $44,865,000, as follows: payments for the water quality program,
    $12,971,000; payments for the food safety program, $14,967,000; payments
    for the [national agriculture pesticide impact assessment] regional pest
    management centers program, $4,531,000; payments for the Food Quality
    Protection Act risk mitigation program for major food crop systems,
    $4,889,000; payments for the crops affected by Food Quality Protection
    Act implementation, $1,497,000; payments for the methyl bromide
    transition program, $2,498,000; [and] payments for the organic
    transition program, [$1,500,000] $499,000; payments for the
    international science and education grants program under 7 U.S.C. 3291,
    to remain available until expended, $1,000,000; payments for the
    critical issues program under 7 U.S.C. 450i(c), $500,000; and payments
    for the regional rural development centers program under 7 U.S.C.
    450i(c), $1,513,000. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1502-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.20   Water quality...................          13          13          13
    00.30   Food safety.....................          15          15          15
    00.40   Regional pest management centers           5           5           5
    00.50   Crops at risk from Food Quality
              Protection Act implementation.           1           1           1
    00.60   Food Quality Protection Act risk
              mitigation program............           5           5           5
    00.70   Methyl bromide transition
              program.......................           2           2           2
    00.86   International science and
              education grants..............                                   1
    00.87   Rural development centers.......                                   1
    00.88   Organic transition..............           1           2           1
    00.89   Critical issues--plant and
              animal dseases................                                   1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          42          43          45
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          42          43          45
    23.95 Total new obligations.............         -42         -43         -45
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          42          43          45
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          38          73          85
    73.10 Total new obligations.............          42          43          45
    73.20 Total outlays (gross).............          -7         -31         -41
    74.40 Obligated balance, end of year....          73          85          89
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           2           2
    86.93 Outlays from discretionary
            balances........................           5          29          39
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           7          31          41
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          42          43          45
    90.00 Outlays...........................           7          31          41
    ---------------------------------------------------------------------------
        Note.--2003 estimates include critical issues previously financed from
    the USDA Cooperative State Research, Education, and Extension Service
    (CSREES) Research and education activities account and Rural Development
    Centers previously financed from the USDA CSREES Research and education
    activities and Extension activities accounts.

        Under the Integrated activities account, research, education and/or
    extension grants are awarded for competitive and non-competitive
    programs.

        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.

        Regional pest management centers.--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 multi-tactic IPM strategies. Grant opportunities will be
    available to colleges and universities.

        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 grant program designed
    to support the discovery and implementation of practical pest management
    alternatives for commodities affected by the methyl bromide phase-out in
    2005.

        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 program.--This program
    focuses on incorporating substantive international activities into
    programs related to food systems, agriculture and natural resources at
    U.S. land-grant colleges and universities.

        Critical issues program.--Funds are proposed to develop early
    intervention strategies to prevent, manage or eradicate new and emerging
    diseases, both plant and animal, which would prevent loss of revenue to
    growers or producers.

        Regional rural development centers.--Funding will support activities
    that pursue a holistic development strategy that tailors programming to
    meet regional and local needs and addresses areas of opportunity arising
    from a consumer-driven agricultural economy.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1502-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           1           1           1

    [[Page 82]]

    41.0  Grants, subsidies, and
            contributions...................          41          42          44
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          42          43          45
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1502-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......           8           7           8
    ---------------------------------------------------------------------------

               Initiative for Future Agriculture and Food Systems

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1503-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations.............         110
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         120         120         120
    22.00 New budget authority (gross)......         120         120         120
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         240         240         240
    23.95 Total new obligations.............        -110
    23.98 Unobligated balance expiring or
            withdrawn.......................         -10        -120        -120
    24.40 Unobligated balance carried
            forward, end of year............         120         120         120
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................
    40.35   Appropriation deferred..........                                -240
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                                -240
          Mandatory:

    60.00   Appropriation...................         240         240         240
    60.35   Appropriation deferred..........        -120        -240
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         120                     240
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         120
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         120         201         189
    73.10 Total new obligations.............         110
    73.20 Total outlays (gross).............         -28         -12         -12
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.40 Obligated balance, end of year....         201         189         177
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 -12
    86.97 Outlays from new mandatory
            authority.......................                                  12
    86.98 Outlays from mandatory balances...          28          12          12
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          28          12          12
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         120         120         120
    90.00 Outlays...........................          28          12          12
    ---------------------------------------------------------------------------

        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 2000 appropriations language
    blocked the use of 2000 funds in 2000. However, these funds were
    available in 2001. The 2002 appropriations language blocked the use of
    2001 and 2002 funds in 2002. The 2003 budget includes language under
    General Provisions that would block implementation of the program during
    2003.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1503-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    11.3  Personnel compensation: Other than
            full-time permanent.............           2
    12.1  Civilian personnel benefits.......           1
    25.2  Other services....................           2
    41.0  Grants, subsidies, and
            contributions...................         105
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         110
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1503-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          26
    ---------------------------------------------------------------------------

                        Research and Education Activities

        For payments to agricultural experiment stations, for cooperative
    forestry and other research, for facilities, and for other expenses,
    [$542,062,000] $553,633,000, as follows: to carry out the provisions of
    the Hatch Act (7 U.S.C. 361a-i), $180,148,000; for grants for
    cooperative forestry research (16 U.S.C. 582a-a7), $21,884,000; for
    payments to the 1890 land-grant colleges, including Tuskegee University
    (7 U.S.C. 3222), $34,604,000, of which $1,507,496 shall be made
    available only for the purpose of ensuring that each institution shall
    receive no less than $1,000,000; for special grants for agricultural
    research (7 U.S.C. 450i(c)), [$97,008,000] $3,341,000; for special
    grants for agricultural research on improved pest control (7 U.S.C.
    450i(c)), [$15,206,000] $15,006,000; for competitive research grants (7
    U.S.C. 450i(b)), [$120,452,000] $240,000,000; for the support of animal
    health and disease programs (7 U.S.C. 3195), $5,098,000; [for
    supplemental and alternative crops and products (7 U.S.C. 3319d),
    $924,000; 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), $720,000, to remain available
    until expended;] for the 1994 research program (7 U.S.C. 301 note),
    $998,000, to remain available until expended; for higher education
    graduate fellowship grants (7 U.S.C. 3152(b)(6)), [$2,993,000]
    $3,500,000, to remain available until expended (7 U.S.C. 2209b); for
    higher education challenge grants (7 U.S.C. 3152(b)(1)), [$4,340,000]
    $5,500,000; for a higher education multicultural scholars program (7
    U.S.C. 3152(b)(5)), $998,000, to remain available until expended (7
    U.S.C. 2209b); for an education grants program for Hispanic-serving
    Institutions (7 U.S.C. 3241), $3,492,000; for noncompetitive grants for
    the purpose of carrying out all provisions of 7 U.S.C. 3242 (section 759
    of Public Law 106-78) to individual eligible institutions or consortia
    of eligible institutions in Alaska and in Hawaii, with funds awarded
    equally to each of the States of Alaska and Hawaii, $2,997,000; for a
    secondary agriculture education program and 2-year post-secondary
    education (7 U.S.C. 3152(h)), $1,000,000; for aquaculture grants (7
    U.S.C. 3322), $3,996,000; for sustainable agriculture research and
    education (7 U.S.C. 5811), [$12,500,000] $9,230,000; 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, $9,479,000, to remain available
    until expended (7 U.S.C. 2209b); for payments to the 1994 Institutions
    pursuant to section 534(a)(1) of Public Law 103-382, $1,549,000; and 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,
    [$21,676,000] $10,813,000.
        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: Provided, That this paragraph shall not
    apply to research on the medical, biotechnological, food, and industrial
    uses of tobacco.

                   Native American Institutions Endowment Fund

        For the Native American Institutions Endowment Fund authorized by
    Public Law 103-382 (7 U.S.C. 301 note), $7,100,000. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2002; additional authorizing legislation required.)

    [[Page 83]]

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............          24          32          39
        Receipts:
    02.40 Federal payment, Native American
            Institutions Endowment Fund.....          10           7           7
    02.41 Earnings on investments...........          -1           2           2
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..           9           9           9
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          33          41          48
        Appropriations:
    05.00 Cooperative state research
            activities......................          -1          -2          -2
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............          32          39          46
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Payments under the Hatch Act....         180         180         180
    00.02   Cooperative forestry research...          22          22          22
    00.03   Payments to 1890 colleges and
              Tuskegee University...........          33          35          35
    00.04   Special research grants.........         115         131          32
    00.05   National research initiative
              competitive grants............          77         160         240
    00.06   Animal health and disease
              research......................           5           5           5
    00.07   Federal administration..........          19          23          11
    00.08   Higher education................          26          30          29
    00.09   Native American Institutions
              Endowment Fund................           8           9           9
    00.10   Agricultural risk grants........          28
    09.00 Reimbursable program..............          11          16          16
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         524         611         579
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          89         117          74
    22.00 New budget authority (gross)......         553         568         579
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         642         685         653
    23.95 Total new obligations.............        -524        -611        -579
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............         117          74          74
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         514         550         561
    40.20   Appropriation (special fund)....           1           2           2
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         514         552         563
          Mandatory:

    60.00   Appropriation...................          28
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          11          16          16
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         553         568         579
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         454         463         521
    73.10 Total new obligations.............         524         611         579
    73.20 Total outlays (gross).............        -515        -553        -560
    74.40 Obligated balance, end of year....         463         521         540
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         234         288         305
    86.93 Outlays from discretionary
            balances........................         267         258         250
    86.97 Outlays from new mandatory
            authority.......................          14
    86.98 Outlays from mandatory balances...                       7           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         515         553         560
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -11         -16         -16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         542         552         563
    90.00 Outlays...........................         504         537         544
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...          22          28
    92.02 Total investments, end of year:
            Federal securities: Par value...          28
    ---------------------------------------------------------------------------
        Note.--In 2003 funding for critical issues and rural development centers
    is included in the account for integrated activities.

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         541         551         562
    90.00 Outlays...........................         503         536         543
    ---------------------------------------------------------------------------

        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 eighteen 1890 land-grant colleges, including Tuskegee
    University.

        Special research grants.--This program addresses research areas of
    national interest. 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.
    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. The IR-4 and IPM programs are contained under
    improved pest control funding. Improved pest control also includes Pest
    Management Alternatives, and Expert IPM Decision Support System
    Programs. A 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, and
    aquaculture centers. The 2003 budget eliminates funding for unrequested
    earmarks.

        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 in

    [[Page 84]]

    creased 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. The 2003 budget proposes an
    increase of $120 million for the competitive peer-reviewed grant
    programs of the NRI, for a total request of $240 million.

        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.--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 Native American institutions, Alaska Native-serving
    and Native Hawaiian-serving Institutions, and Secondary Agriculture
    Education and 2-year Post-secondary programs. Proposed funding for these
    higher education programs would support approximately 180 grants. These
    programs will enable universities to broaden their curricula; increase
    faculty development; student research projects; and the number of new
    scholars recruited in the food and agricultural sciences. In addition,
    an increased number of graduate students, including minority graduate
    students, will be enrolled in the agricultural sciences. Funding is also
    proposed for a capacity building program at the 1890 institutions as
    part of the USDA initiative to strengthen these institutions through a
    broadening of curricula, increased faculty development and student
    research projects. Proposed funding would support approximately 43
    teaching and research grants. The 2003 budget includes increases for
    Graduate fellowship grants and Institutional challenge 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)

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           8           9           9
    12.1    Civilian personnel benefits.....           2           3           3
    21.0    Travel and transportation of
              persons.......................           1           2           2
    23.1    Rental payments to GSA..........                                   2
    25.1    Advisory and assistance services           1           1           1
    25.2    Other services..................           3           5           5
    25.3    Other purchases of goods and
              services from Government
              accounts......................           3           4           4
    26.0    Supplies and materials..........           1           1           1
    41.0    Grants, subsidies, and
              contributions.................         494         570         536
                                               ---------   ---------  ----------
    99.0      Direct obligations............         513         595         563
    99.0  Reimbursable obligations..........          11          16          16
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         524         611         579
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         170         218         218
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......           9           9           9
    ---------------------------------------------------------------------------

                            buildings and facilities

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1501-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

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

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3           1
    23.95 Total new obligations.............          -2          -1
    24.40 Unobligated balance carried
            forward, end of year............           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          65          43          32
    73.10 Total new obligations.............           2           1
    73.20 Total outlays (gross).............         -24         -12         -12
    74.40 Obligated balance, end of year....          43          32          20
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          24          12          12
    ----------------------------------------------------------------------------

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

        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 2003.

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1501-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......           1
    ---------------------------------------------------------------------------

                              Extension Activities

        For payments to States, the District of Columbia, Puerto Rico, Guam,
    the Virgin Islands, Micronesia, Northern Marianas, and American Samoa,
    [$439,473,000] $421,035,000, as follows: 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

    [[Page 85]]

    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, $275,940,000[, of which
    $3,600,000 may be used to carry out Public Law 107-19]; payments for
    extension work at the 1994 Institutions under the Smith-Lever Act (7
    U.S.C. 343(b)(3)), $3,273,000; payments for the nutrition and family
    education program for low-income areas under section 3(d) of the Act,
    $58,566,000; payments for the pest management program under section 3(d)
    of the Act, $10,759,000; [payments for the farm safety program under
    section 3(d) of the Act, $5,250,000;] 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), $13,500,000, to remain available until
    expended; [payments for the rural development centers under section 3(d)
    of the Act, $953,000;] payments for youth-at-risk programs under section
    3(d) of the Act, $8,481,000; for youth farm safety education and
    certification extension grants, to be awarded competitively under
    section 3(d) of the Act, $499,000; payments for carrying out the
    provisions of the Renewable Resources Extension Act of 1978, $4,093,000;
    payments for Indian reservation agents under section 3(d) of the Act,
    $1,996,000; payments for sustainable agriculture programs under section
    3(d) of the Act, [$4,750,000; payments for rural health and safety
    education as authorized by section 2390 of Public Law 101-624 (7 U.S.C.
    2661 note, 2662), $2,622,000] $3,792,000; 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,
    $31,181,000, of which $1,724,884 shall be made available only for the
    purpose of ensuring that each institution shall receive no less than
    $1,000,000; and for Federal administration and coordination including
    administration of the Smith-Lever Act, and the Act of September 29, 1977
    (7 U.S.C. 341-349), and section 1361(c) of the Act of October 3, 1980 (7
    U.S.C. 301 note), and to coordinate and provide program leadership for
    the extension work of the Department and the several States and insular
    possessions, [$17,610,000] $8,955,000: 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, 2002;
    additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0502-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Smith-Lever Act, 3(b) and 3(c)..         276         276         276
    00.02   Youth at risk...................           8           8           9
    00.04   Expanded food and nutrition
              education program (EFNEP).....          59          59          59
    00.05   Pest management.................          11          11          11
    00.06   Farm safety.....................           4           5
    00.09   Indian reservation extension
              agents........................           2           2           2
    00.12   Rural development...............           1           1
    00.13   Payments to 1890 colleges and
              Tuskegee University...........          28          31          31
    00.15   Renewable resources extension
              act...........................           3           4           4
    00.16   Federal administration..........          19          19           9
    00.18   Rural health and safety
              education.....................           3           3
    00.19   1890 facilities (section 1447)..           7          12          14
    00.21   Sustainable agriculture.........           4           5           4
    00.22   1994 institutions activities....           3           3           3
    00.23   Youth farm safety pilot program.           1           1           1
    00.24   Agricultural risk grants........           5
    09.00 Reimbursable program..............          16          25          25
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         450         465         448
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           4           4
    22.00 New budget authority (gross)......         454         465         445
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         455         469         449
    23.95 Total new obligations.............        -450        -465        -448
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............           4           4           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         434         440         421
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         433         440         421
          Mandatory:

    60.00   Appropriation...................           5
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          16          25          25
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         454         465         446
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         239         240         203
    73.10 Total new obligations.............         450         465         448
    73.20 Total outlays (gross).............        -449        -502        -455
    74.40 Obligated balance, end of year....         240         203         196
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         270         289         278
    86.93 Outlays from discretionary
            balances........................         178         210         176
    86.97 Outlays from new mandatory
            authority.......................           1
    86.98 Outlays from mandatory balances...                       3           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         449         502         455
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -16         -25         -25
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         438         440         421
    90.00 Outlays...........................         433         477         430
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         437         439         420
    90.00 Outlays...........................         432         476         429
    ---------------------------------------------------------------------------

        Note.--In 2003 funding for rural development centers 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.

    [[Page 86]]

        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 2003 funding has 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, and 1994 (Native American) institutions.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0502-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           9          11          11
    12.1    Civilian personnel benefits.....           3           4           4
    21.0    Travel and transportation of
              persons.......................           1           1           1
    23.1    Rental payments to GSA..........                                   1
    25.2    Other services..................           2           1           1
    25.3    Other purchases of goods and
              services from Government
              accounts......................           2           1           1
    41.0    Grants, subsidies, and
              contributions.................         417         422         404
                                               ---------   ---------  ----------
    99.0      Direct obligations............         434         440         423
    99.0  Reimbursable obligations..........          16          25          25
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         450         465         448
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0502-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         164         217         216
    ---------------------------------------------------------------------------

                   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 Acts
    of March 2, 1931 (46 Stat. 1468) and December 22, 1987 (101 Stat. 1329-
    1331) (7 U.S.C. 426-426c); and to protect the environment, as authorized
    by law, [$620,490,000] $782,227,000, of which [$4,096,000] $4,167,000
    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[; of which $77,355,000
    shall be used for the boll weevil eradication program for cost share
    purposes or for debt retirement for active eradication zones]: 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 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 [2002] 2003, 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
    2002, $84,813,000 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, 2002;
    additional authorizing legislation required.)
        [For emergency expenses to respond to the September 11, 2001,
    terrorist attacks on the United States, for ``Salaries and Expenses'',
    $105,000,000, to remain available until expended, to be obligated from
    amounts made available in Public Law 107-38, of which $50,000,000 may be
    transferred to and merged with the Agricultural Quarantine Inspection
    User Fee Account.] (Emergency Supplemental Act, 2002.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............         130         170         135
        Receipts:
    02.00 Agricultural quarantine inspection
            fees............................         265         215         270
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         395         385         405
        Appropriations:
    05.00 Salaries and expenses.............        -225        -250        -341
                                               ---------   ---------  ----------
    05.99   Total appropriations............        -225        -250        -341
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............         170         135          64
    ---------------------------------------------------------------------------

    [[Page 87]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Pest and disease exclusion......         355         432         213
    00.02   Plant and animal health
              monitoring....................          87         126         145
    00.03   Pest and disease management
              programs......................         163         241         336
    00.04   Animal care.....................          13          16          15
    00.05   Scientific and technical
              services......................          59          68          78
    00.06   Contingencies...................           3           4           4
    00.07   Emergency program funding.......         233         132         172
                                               ---------   ---------  ----------
    01.00   Total direct program............         913       1,019         963
    09.01 Reimbursable program..............          85          88          88
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         998       1,107       1,051
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          74         164         109
    22.00 New budget authority (gross)......       1,114       1,052       1,159
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,188       1,216       1,268
    23.95 Total new obligations.............        -998      -1,107      -1,051
    23.98 Unobligated balance expiring or
            withdrawn.......................         -26
    24.40 Unobligated balance carried
            forward, end of year............         164         109         217
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         475         605         782
    40.20   Appropriation (special fund)....          85         135
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............          -1
    42.00   Transferred from other accounts.         335         151
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         894         891         782
          Mandatory:

    60.00   Appropriation (ARPA)............          31
    60.20   Appropriation (special fund)....         150         125         341
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         181         125         341
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          39          36          36
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,114       1,052       1,159
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         173         214         179
    73.10 Total new obligations.............         998       1,107       1,051
    73.20 Total outlays (gross).............        -957      -1,142      -1,218
    74.40 Obligated balance, end of year....         214         179          12
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         759         743         703
    86.93 Outlays from discretionary
            balances........................          41         248         185
    86.97 Outlays from new mandatory
            authority.......................         156         119         324
    86.98 Outlays from mandatory balances...           1          32           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         957       1,142       1,218
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -17         -16         -16
    88.40     Non-Federal sources...........         -22         -20         -20
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -39         -36         -36
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,075       1,016       1,123
    90.00 Outlays...........................         918       1,106       1,182
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,051         991       1,098
    90.00 Outlays...........................         894       1,081       1,157
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2001 actual  2002 est.   2003 est.
    Enacted/requested:
      Budget Authority..................       1,075       1,016       1,123
      Outlays...........................         918       1,106       1,182
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                  -5
      Outlays...........................                                  -5
                                        ------------------------------------
    Total:
      Budget Authority..................       1,075       1,016       1,118
      Outlays...........................         918       1,106       1,177
                                        ====================================

        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. The 1996 Farm Bill provides that beginning in 2003,
    all AQI user fee collections will become available without the need for
    annual appropriations, and the program will operate like typical user
    fee programs, with spending determined by the demand for AQI services.
    The 2003 budget provides increases to enhance border inspections and
    international programs.

        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. The 2003 budget includes
    significant increases to improve the monitoring of plants and animals
    for the rapid, detection of diseases such as foot and mouth disease.

        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. The 2003 budget proposes a significant increase to
    fund the ongoing eradication costs of infestation; currently funded
    through transfers from the Commodity Credit Corporation (CCC), and to
    reduce Federal assistance for wildlife services operations since much of
    the program provides direct assistance to private landowners.

        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.

    [[Page 88]]

        Scientific and technical services.--APHIS develops methods to
    control animals and pests that are detrimental to agriculture, other
    wildlife, and public safety. The agency regulates genetic research to
    guard against the release of potentially harmful organisms into the
    environment. APHIS also conducts veterinary diagnostic laboratory
    activities and biologic regulatory enforcement to ensure that the
    products developed for combatting disease are potent, safe, and pure. It
    also provides and directs technology development in coordination with
    other groups in APHIS and Plant Protection and Quarantine (PPQ)
    officials to support PPQ programs of the Agency and its cooperators at
    the State, national, and international levels.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         340         351         333
    11.3      Other than full-time permanent           4           9           5
    11.5      Other personnel compensation..          57          70          66
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         401         430         404
    12.1    Civilian personnel benefits.....         109         120         128
    13.0    Benefits for former personnel...           1           1           1
    21.0    Travel and transportation of
              persons.......................          29          40          34
    22.0    Transportation of things........           8           9           9
    23.1    Rental payments to GSA..........                                  27
    23.2    Rental payments to others.......           4          20          18
    23.3    Communications, utilities, and
              miscellaneous charges.........          12           9          10
    24.0    Printing and reproduction.......           3           9           3
    25.2    Other services..................         200         241         178
    26.0    Supplies and materials..........          31          40          36
    31.0    Equipment.......................          44          50          52
            Grants, subsidies, and
                contributions:
    41.0      United States-Colombia
                Commission to Prevent Foot-
                and-Mouth Disease...........           1                       2
    41.0      Joint Screwworm eradication
                programs....................           9                      12
    41.0      Joint Commission on the
                Mediterranean Fruit Fly.....          10                      14
    41.0      Other grants, subsidies, and
                contributions...............          30          41          34
            Insurance claims and
                indemnities:
    42.0      Brucellosis...................
    42.0      Pseudorabies..................          20
    42.0      Other insurance claims and
                indemnities.................           1           9           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         913       1,019         963
    99.0  Reimbursable obligations..........          85          88          88
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         998       1,107       1,051
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       6,101       6,876       7,806
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         750         748         748
    ---------------------------------------------------------------------------

                              Salaries and Expenses

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-2-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.04   Animal care.....................                                  -5
    09.01 Reimbursable program..............                                   5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                  -5
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............                                   5
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....                                  -5
    ----------------------------------------------------------------------------

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

        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.

        This is one of the proposals in the budget to charge fees to users
    directly availing themselves of, or subject to, a government service,
    program, or activity, in order to cover the government's costs.
    Legislation will be proposed to authorize the fees.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-2-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................                                  -3
    12.1    Civilian personnel benefits.....                                  -1
    25.2    Other services..................                                  -1
                                               ---------   ---------  ----------
    99.0      Direct obligations............                                  -5
    99.0  Reimbursable obligations..........                                   5
                                               ---------   ---------  ----------
    99.9    Total new obligations...........
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1600-2-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......                                 -42
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......                                  42
    ---------------------------------------------------------------------------

                            Buildings and Facilities

        For plans, construction, repair, preventive maintenance,
    environmental support, improvement, extension, alteration, and purchase
    of fixed equipment or facilities, as authorized by 7 U.S.C. 2250, and
    acquisition of land as authorized by 7 U.S.C. 428a, [$7,189,000]
    $13,189,000, to remain available until expended. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2002.)
        [For emergency expenses to respond to the September 11, 2001,
    terrorist attacks on the United States, for ``Buildings and
    Facilities'', $14,081,000, to remain available until expended, to be
    obligated from amounts made available in Public Law 107-38.] (Emergency
    Supplemental Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1601-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations (object
            class 25.2).....................          14          28          14
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          16          12           5
    22.00 New budget authority (gross)......          10          21          13
                                               ---------   ---------  ----------

    [[Page 89]]

    23.90   Total budgetary resources
              available for obligation......          26          33          18
    23.95 Total new obligations.............         -14         -28         -14
    24.40 Unobligated balance carried
            forward, end of year............          12           5           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          10          21          13
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           6          12          27
    73.10 Total new obligations.............          14          28          14
    73.20 Total outlays (gross).............          -8         -13         -19
    74.40 Obligated balance, end of year....          12          27          22
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           5           3
    86.93 Outlays from discretionary
            balances........................           5           8          16
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           8          13          19
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          10          21          13
    90.00 Outlays...........................           9          13          19
    ---------------------------------------------------------------------------

        The buildings and facilities account 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 2003 budget proposes $13 million for this program, which
    consists of $5 million for repairs, alterations, preventive maintenance,
    and renovations for currently owned APHIS facilities, $3 million for the
    modernization of the Plum Island, New York, animal disease center, and
    $5 million to assist with the construction of the Miami animal import
    center.

                                   Trust Funds

                            Miscellaneous Trust Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.20 Miscellaneous contributed funds...           9          13          14
        Appropriations:
    05.00 Miscellaneous trust funds.........          -9         -13         -14
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations.............          14          11           8
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           9           4           6
    22.00 New budget authority (gross)......           9          13          14
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          18          17          20
    23.95 Total new obligations.............         -14         -11          -8
    24.40 Unobligated balance carried
            forward, end of year............           4           6          11
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......           9          13          14
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -8           5           8
    73.10 Total new obligations.............          14          11           8
    73.20 Total outlays (gross).............          -1          -8         -14
    74.40 Obligated balance, end of year....           5           8           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                       7           8
    86.98 Outlays from mandatory balances...           1           1           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           1           8          14
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           9          13          14
    90.00 Outlays...........................           1           8          14
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           9          13          13
    90.00 Outlays...........................           1           8          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 available for plant
    and animal quarantine inspection and cooperative plant and animal
    disease and pest control activities (7 U.S.C. 450b, 2220). Commencing in
    1979, fees were collected for the importation of commercial birds.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............           4           3           2
    11.3    Other than full-time permanent..           3           2           1
    11.5    Other personnel compensation....           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..           8           6           4
    12.1  Civilian personnel benefits.......           3           1           2
    21.0  Travel and transportation of
            persons.........................           1           2
    25.2  Other services....................           1           1           1
    26.0  Supplies and materials............           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          14          11           8
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         108         108         108
    ---------------------------------------------------------------------------

                       FOOD SAFETY AND INSPECTION SERVICE

                                  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, including not to exceed $50,000 for
    representation allowances and for expenses pursuant to section 8 of the
    Act approved August 3, 1956 (7 U.S.C. 1766), [$715,642,000]
    $803,598,000, of which no less than [$608,730,000] $722,019,000 shall be
    available for Federal food safety inspection; 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 be available for
    field employment pursuant to the second sentence of section 706(a) of
    the Organic Act of 1944 (7 U.S.C. 2225), and not to exceed $75,000 shall
    be available for employment under 5 U.S.C. 3109: Provided further, That
    this appropriation shall be available pursuant to law (7 U.S.C. 2250)
    for the alteration and repair of buildings and improvements, but the
    cost of altering any one building during the fiscal year shall not
    exceed 10 percent of the current replacement value of the building. (7
    U.S.C. 450, 1901-06; 10 U.S.C. 2306; 18 U.S.C. 1114; 21 U.S.C. 451-470,
    601-624, 641-645, 661, 671-680, 691-692; 694-695; Public Law 99-641;
    Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2002; additional authorizing
    legislation required.)

    [[Page 90]]

        [For emergency expenses to respond to the September 11, 2001,
    terrorist attacks on the United States, for ``Food Safety and Inspection
    Service'', $15,000,000, to remain available until expended, to be
    obligated from amounts made available in Public Law 107-38.] (Emergency
    Supplemental Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-0-1-554      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................         732         791         804
    09.01 Reimbursable program..............          96          99          99
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         828         890         903
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          11          10           3
    22.00 New budget authority (gross)......         841         883         903
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         852         893         906
    23.95 Total new obligations.............        -828        -890        -903
    23.98 Unobligated balance expiring or
            withdrawn.......................         -14
    24.40 Unobligated balance carried
            forward, end of year............          10           3           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

            Appropriation:
    40.00     Appropriation.................         747         769         804
    40.00     Appropriation (terrorist
                response)...................                      15
    40.35   Appropriation rescinded.........          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         745         784         804
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          96          99          99
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         841         883         903
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                      66          75
    73.10 Total new obligations.............         828         890         903
    73.20 Total outlays (gross).............        -794        -881        -899
    73.40 Adjustments in expired accounts
            (net)...........................          32
    74.40 Obligated balance, end of year....          66          75          79
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         749         835         851
    86.93 Outlays from discretionary
            balances........................          45          47          48
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         794         881         899
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -96         -99         -99
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         745         784         804
    90.00 Outlays...........................         698         782         800
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         695         731         763
    90.00 Outlays...........................         648         729         759
    ---------------------------------------------------------------------------

        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 is a priority of the Administration, and
    the 2003 budget proposes an $88 million increase for inspection of meat,
    poultry, shell egg and egg products, including employee pension and
    annuitant health benefits. This increase will cover pay cost increases
    for Federal and State inspection programs, and initiatives for:
    continued improvements toward a science-driven, risk-based food safety
    program, and strengthening information technology and education.

        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.

        The budget proposes to modify the existing overtime fee structure to
    more equitably distribute costs and to implement a new licensing fee,
    from which the receipts would be available without appropriation, to
    cover the cost of food safety-related activities and research. Both
    proposals are expected to be implemented in 2004.

                     FEDERALLY FUNDED INSPECTION ACTIVITIES

                                         2001 actual  2002 est.   2003 est.
    Federally inspected establishments:
      Slaughter plants..................         230         222         210
      Processing plants.................       4,201       4,175       4,120
      Combination slaughter and
        processing plants...............         933         912         890
      Talmadge-Aiken plants.............         242         235         230
      Import establishments.............         120         115         110
      Egg plants........................          72          70          68
      Other plants......................         478         459         423
    Federally inspected and passed
        production (millions of pounds):
      Meat slaughter....................      47,397      47,900      48,400
      Poultry slaughter.................      46,728      47,500      48,500
      Egg products......................       3,134       3,150       3,200
    Import/export activity (millions of
        pounds):
      Meat and poultry imported.........       3,775       3,800       3,850
      Meat and poultry exported.........      11,113      11,200      11,250
    States and territories with
        cooperative programs:
        a
      Intrastate inspection.............          27          29          29
      Talmadge-Aiken inspection.........           9           9           9
      Number of slaughter and/or
        processing plants (excludes
        exempt plants)..................       2,054       2,110       2,150
      Pounds inspected slaughter
        (millions)......................         546         547         547
    Compliance activities:
      Corrective action reviews.........      32,224      32,000      32,000
      Corrective actions completed......         584         580         580
    Product Testing (samples analyzed):
      Food chemistry....................       8,550       9,000       9,000
      Food microbiology.................      83,674      84,000      84,000
      Chemical residues.................      55,245      56,000      56,000
      Antibiotic residues...............     252,046     252,000     252,000
      Pathology samples.................       5,575       5,600       5,600
    Egg Products:
      Food microbiology.................       1,840       1,900       1,900
      Chemical residues.................       1,751       1,800       1,800
    Consumer Education and public
        outreach:
      Meat and poultry hotline calls
        received........................      85,613      86,000      87,000
      Website visits....................      50,000      55,000      60,000
      Electronic messages received......       5,340       6,000       7,000
      Publication subscriptions.........      14,478      15,000      16,000
    Epidemiological Investigations:
      Cooperative efforts with State and
        public health offices...........          26          26          26
      Illnesses reported and treated
        b....................         508         500         500
    Field Automation and Information
        Management Project:
      Number of computers to be provided
        to federal field inspection
        staff...........................       1,177         850         700
      Number of computers to be provided
        to state field inspection staff.          76          80         178
        a States with cooperative agreements which are operating
    programs.
        b Data must be collected over a number of years to chart
    national trends and estimate the incidence of foodborne illness and
    treatment.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-0-1-554      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         384         406         419
    11.3      Other than full-time permanent          15          15          16

    [[Page 91]]

    11.5      Other personnel compensation..          18          19          20
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         417         440         455
    12.1    Civilian personnel benefits.....         172         180         177
    13.0    Benefits for former personnel...           1           1           1
    21.0    Travel and transportation of
              persons.......................          26          29          26
    22.0    Transportation of things........           2           2           2
    23.1    Rental payments to GSA..........           1           3           8
    23.2    Rental payments to others.......           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           9          12          10
    24.0    Printing and reproduction.......           2           2           2
    25.1    Advisory and assistance services           8          13          11
    25.2    Other services..................           5           4           4
    25.3    Other purchases of goods and
              services from Government
              accounts......................          24          27          25
    25.4    Operation and maintenance of
              facilities....................           1           2           2
    25.8    Subsistence and support of
              persons.......................           1           1           1
    26.0    Supplies and materials..........           9          10          10
    31.0    Equipment.......................          10          19          25
    41.0    Grants, subsidies, and
              contributions.................          42          43          43
                                               ---------   ---------  ----------
    99.0      Direct obligations............         731         789         803
    99.0  Reimbursable obligations..........          93          99          99
    99.5  Below reporting threshold.........           4           2           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         828         890         903
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3700-0-1-554      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       9,321       9,409       9,428
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         216         216         216
    ---------------------------------------------------------------------------

                                   Trust Funds

         Expenses and Refunds, Inspection and Grading of Farm Products

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.20 Fees for inspection and grading of
            farm products...................           3           3           3
        Appropriations:
    05.00 Expenses and refunds, inspection
            and grading of farm products....          -3          -3          -3
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations.............           4           3           3
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......           3           3           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                       6           6
    73.10 Total new obligations.............           4           3           3
    73.20 Total outlays (gross).............                      -3          -3
    74.40 Obligated balance, end of year....           6           6           6
    ----------------------------------------------------------------------------

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

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

        Under authority of the Agricultural Marketing Act of 1946, Federal
    meat and poultry inspection services are provided upon request and for a
    fee in cases where inspection is not mandated by statute. This service
    includes: certifying products for export beyond the requirements of
    export certificates; inspecting certain animals and poultry intended for
    human food where inspection is not required by statute, such as buffalo,
    rabbit, and quail; and inspecting products intended for animal
    consumption.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

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

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          45          36          36
    ---------------------------------------------------------------------------

             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, [$33,117,000] $42,908,000: 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, 2002;
    additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Standardization...................           4           4           5
    00.02 Compliance........................           6           6           7
    00.03 Methods development...............           5           6           7
    00.04 Packers and stockyards program....          18          19          24
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          33          35          43
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          34          35          43
    23.95 Total new obligations.............         -33         -35         -43
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          34          35          43
    ----------------------------------------------------------------------------

    [[Page 92]]

        Change in obligated balances:
    72.40 Obligated balance, start of year..           6           4           4
    73.10 Total new obligations.............          33          35          43
    73.20 Total outlays (gross).............         -35         -35         -43
    74.40 Obligated balance, end of year....           4           4           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          29          30          37
    86.93 Outlays from discretionary
            balances........................           5           5           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          35          35          43
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          34          35          43
    90.00 Outlays...........................          35          35          43
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

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

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2001 actual  2002 est.   2003 est.
    Enacted/requested:
      Budget Authority..................          34          35          43
      Outlays...........................          34          35          42
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                 -29
      Outlays...........................                                 -29
                                        ------------------------------------
    Total:
      Budget Authority..................          34          35          14
      Outlays...........................          34          35          13
                                        ====================================

        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 Office of International Affairs 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 2003, 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

                                         2001 actual  2002 est.   2003 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.....          40          40          40
    On-site investigations..............           4          10          10
    Designations renewed................          20          20          16
    Registration certificates issued....          75          75          75
    Investigations......................       1,619       1,700       1,750
    Market agencies/dealers registered..       6,241       6,250       6,250
    Stockyards posted...................       1,525       1,520       1,520
    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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          19          20          22
    12.1  Civilian personnel benefits.......           7           7           8
    21.0  Travel and transportation of
            persons.........................           1           1           2
    23.1  Rental payments to GSA............                                   1
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           2
    25.2  Other services....................           3           3           4
    26.0  Supplies and materials............           1           1           1
    31.0  Equipment.........................           1           2           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          33          35          43
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2400-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         330         355         375
    ---------------------------------------------------------------------------

    [[Page 93]]

                              Salaries and Expenses

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-2-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Standardization...................                                  -6
    00.04 Packers and stockyards program....                                 -23
    09.01 Reimbursable program..............                                  29
                                               ---------   ---------  ----------
    10.00   Total new obligations...........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                 -29
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............                                  29
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....                                 -29
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 -29
    90.00 Outlays...........................                                 -29
    ---------------------------------------------------------------------------

        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 packers and stockyards activities.

        This is one of the proposals in the budget to charge fees to users
    directly availing themselves of, or subject to, a government service,
    program, or activity, in order to cover the government's costs.
    Legislation will be proposed to authorize the fees.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-2-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................                                 -16
    12.1    Civilian personnel benefits.....                                  -5
    21.0    Travel and transportation of
              persons.......................                                  -1
    23.1    Rental payments to GSA..........                                  -1
    25.2    Other services..................                                  -3
    26.0    Supplies and materials..........                                  -1
    31.0    Equipment.......................                                  -2
                                               ---------   ---------  ----------
    99.0      Direct obligations............                                 -29
    99.0  Reimbursable obligations..........                                  29
                                               ---------   ---------  ----------
    99.9    Total new obligations...........
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2400-2-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......                                -252
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......                                 252
    ---------------------------------------------------------------------------

    Public enterprise funds:

             Limitation on Inspection and Weighing Services Expenses

        Not to exceed $42,463,000 (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 Committees
    on Appropriations of both Houses of Congress. (7 U.S.C. 71, 74-79, 84-
    87, 1621-27; Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2002;
    additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4050-0-3-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations.............          36          44          44
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           6           5           5
    22.00 New budget authority (gross)......          34          44          44
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          40          49          49
    23.95 Total new obligations.............         -36         -44         -44
    24.40 Unobligated balance carried
            forward, end of year............           5           5           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          34          44          44
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -3          -3          -3
    73.10 Total new obligations.............          36          44          44
    73.20 Total outlays (gross).............         -34         -44         -44
    74.40 Obligated balance, end of year....          -3          -3          -3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          34          44          44
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -34         -44         -44
    ----------------------------------------------------------------------------

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

        The Grain Inspection, Packers and Stockyards Administration (GIPSA)
    provides a uniform system for the inspection and weighing of grain.
    Services provided under this system are financed through a fee supported
    revolving fund. This authority has been extended through September 2005.

        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).

                                         2001 actual  2002 est.   2003 est.
    Export grain inspected and/or
        weighed (million metric tons):
      By Federal personnel..............        78.8        84.3        91.8
      By delegated States...............        27.2        29.1        31.8
    Quantity of grain inspected (all
    official inspections) domestically
    million metric tons.................       128.6       125.4       128.3
    Number of inspections and
        reinspections:
      By Federal personnel..............     111,802     110,000     110,000
      By delegated state/official agency
        licenses........................   1,798,948   1,790,000   1,790,000
    Number of appeals...................       3,105       3,100       3,100
    Number of appeals carried to the
    Board of Appeals and Review.........         431         400         400
    Quantity of rice inspected (million
    metric tons)........................         3.1         3.4         3.2
    Quantity of rice exports (million
    metric tons)........................         3.3         2.7         2.5

    [[Page 94]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4050-0-3-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          18          22          22
    11.3    Other than full-time permanent..           1           1           1
    11.5    Other personnel compensation....           5           6           6
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          24          29          29
    12.1  Civilian personnel benefits.......           7           8           8
    21.0  Travel and transportation of
            persons.........................           1           1           1
    23.1  Rental payments to GSA............                       1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.2  Other services....................           2           2           2
    26.0  Supplies and materials............           1           1           1
    31.0  Equipment.........................                       1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          36          44          44
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-4050-0-3-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......         420         455         455
    ---------------------------------------------------------------------------

                         AGRICULTURAL MARKETING SERVICE

                                  Federal Funds

    General and special funds:

                               Marketing Services

         For necessary expenses to carry out 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, [$71,430,000] $77,689,000, 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.
    91-99, 136i-136l, 138-138l, 291-292, 415b-415d, 471-476, 501-508, 581-
    599, 951-957, 1031-1056, 1291, 1551-56, 1621-27, 2204(b)(c), 4401-06,
    6501-22; 15 U.S.C. 714-714p; 21 U.S.C. 1031-56; 26 U.S.C. 6804, 7233,
    7263, 7492-93, 7701; 49 U.S.C. 1653.)

                   limitation on administrative expenses level

        Not to exceed [$60,596,000] $63,455,000 (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 Committees on Appropriations of both Houses of
    Congress. (7 U.S.C. 15b, 51-65, 511-511q, 511r; Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2002; additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2500-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Market news service.............          29          30          31
    00.02   Inspection and standardization..           6           6           6
    00.03   Market protection and promotion.          28          31          34
    00.04   Wholesale market development....           2           3           3
    00.05   Transportation services.........           2           3           3
    09.01 Reimbursable program..............          74          65          67
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         141         138         144
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          43          13          13
    22.00 New budget authority (gross)......         111         138         144
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         154         151         157
    23.95 Total new obligations.............        -141        -138        -144
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............          13          13          13
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          67          73          77
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          44          65          67
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         111         138         144
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         -20          21          30
    73.10 Total new obligations.............         141         138         144
    73.20 Total outlays (gross).............        -103        -129        -143
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           4
    74.40 Obligated balance, end of year....          21          30          31
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         111         130         135
    86.93 Outlays from discretionary
            balances........................          -8          -1           8
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         103         129         143
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -44         -65         -67
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          67          73          77
    90.00 Outlays...........................          59          64          76
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          65          71          75
    90.00 Outlays...........................          57          62          74
    ---------------------------------------------------------------------------

        Agricultural Marketing Service activities assist producers and
    handlers of agricultural commodities by providing a variety of marketing
    services. These services continue to become more complex as the volume
    of agricultural commodities increases, as a greater number of new
    processed commodities are developed, and as the agricultural market
    structure undergoes extensive changes. Marketing changes include
    increased concentration in food retailing, direct buying,
    decentralization of processing, growth of interregional competition,
    vertical integration, and contract farming.

        In 2003, increases of $1 million have been provided for
    international market news and for the Federal seed program.

        The individual Marketing Services activities include:

        Market news service.--The market news program provides the
    agricultural community with information pertaining to the movement of
    agricultural products. This nationwide service provides daily reports on
    the supply, demand, and price of over 700 commodities on domestic and
    foreign markets.

        Inspection, grading and standardization.--Nationally uniform
    standards of quality for agricultural products are established and
    applied to specific lots of products to: promote confidence between
    buyers and sellers; reduce hazards in marketing due to misunderstandings
    and disputes arising from the use of nonstandard descriptions; and
    encourage better

    [[Page 95]]

    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

                                         2001 actual  2002 est.   2003 est.
    Percentage of reports released on
    time................................         93%         93%         93%

                       COTTON AND TOBACCO USER FEE PROGRAM

                                         2001 actual  2002 est.   2003 est.

    Cotton classed (samples in millions)          16        19.2        15.9
    Tobacco graded at auction markets
    (million pounds)....................         942         382         382
    Imported tobacco inspected at
    markets and ports of entry (million
    pounds).............................         300         186         186

             FEDERALLY FUNDED INSPECTION AND PROCUREMENT ACTIVITIES

                                         2001 actual  2002 est.   2003 est.

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

                           STANDARDIZATION ACTIVITIES

                                         2001 actual  2002 est.   2003 est.
    International and U.S. standards in
    effect, end of fiscal year..........         242         242         242
    Number of commodities covered.......       1,335       1,342       1,347

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

        The pesticide recordkeeping program monitors compliance of private
    certified applicators with Federal regulations requiring them to keep
    records of restricted pesticides used in agricultural production.

        The pesticide data program develops comprehensive, statistically
    defensible information on pesticide residues in food to improve
    government dietary risk procedures.

        Federal seed inspectors conduct tests on seed samples to help ensure
    truthful labeling of agricultural and vegetable seeds sold in interstate
    commerce.

        The Capper-Volstead Act and the Agricultural Fair Practices Act
    protect producers against discriminatory practices by handlers, permit
    producers to engage in cooperative efforts, and ensure that such
    cooperatives do not engage in practices that monopolize or restrain
    trade.

        The national organic program certifies that organically produced
    food products meet national standards.

                   MARKET PROTECTION AND PROMOTION ACTIVITIES

                                         2001 actual  2002 est.   2003 est.
    Pesticide data program:
      Number of analyses performed......      65,000      67,000      68,000
      Percentage of sampling and
        analysis goal...................        100%        100%        100%
    Pesticide recordkeeping:
      Number of State/Federal
        Inspections conducted...........       4,600       4,600       4,600
      Percentage of sampling goal
        attained........................         98%         98%         98%
    Seed Act:
      Interstate investigations:
        Completed.......................         484         560         700
        Pending.........................         672         600         500
      Seed samples tested...............       1,509       1,700       2,600
      Percentage of cases submitted that
        are completed...................         94%         92%         94%
    Plant Variety Protection Act:
      Percentage of application
        processing goal completed.......        100%        100%        100%
      Number of applications received...         292         260         260
      Certificates of protection issued.         495         450         450
    Research and promotion collections
    (dollars in millions)...............        .676        .673        .687
    Percentage of board budgets and
    marketing plans approved within time
    frame goal..........................         85%         91%         91%

        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

                                         2001 actual  2002 est.   2003 est.
    Number of projects completed........          10          10          10

                       TRANSPORTATION SERVICES ACTIVITIES

                                         2001 actual  2002 est.   2003 est.
    Number of projects completed........           7           8           8

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2500-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          25          28          29
    11.3      Other than full-time permanent           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          26          29          30
    12.1    Civilian personnel benefits.....           8           9          10
    21.0    Travel and transportation of
              persons.......................           2           3           3
    23.1    Rental payments to GSA..........                                   1
    23.2    Rental payments to others.......           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           3           3
    25.2    Other services..................          17          19          19
    25.3    Other purchases of goods and
              services from Government
              accounts......................           3           4           4
    25.7    Operation and maintenance of
              equipment.....................           2           2           2
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           5           2           3
                                               ---------   ---------  ----------
    99.0      Direct obligations............          67          73          77
    99.0  Reimbursable obligations..........          74          65          67
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         141         138         144
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2500-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         520         552         566
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         634         649         649
    ---------------------------------------------------------------------------

                       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)),
    $1,347,000. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2501-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

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

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

        New budget authority (gross), detail:
          Discretionary:

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

    [[Page 96]]

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           2           1
    73.10 Total new obligations.............           1           1           1
    73.20 Total outlays (gross).............          -1          -1          -1
    74.40 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..................           1           1           1
    90.00 Outlays...........................           1           1           1
    ---------------------------------------------------------------------------

        Grants are made on a matching fund basis to State departments of
    agriculture to carry out specifically approved programs designed to
    enhance marketing efficiency. Under this activity, specialists work with
    farmers, marketing firms, and other agencies in solving marketing
    problems and in using research results.

                  Perishable Agricultural Commodities Act Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5070-0-2-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.00 Deposits of Perishable
            Agricultural Commodities Act
            fees............................          38           7           8
        Appropriations:
    05.00 Perishable Agricultural
            Commodities Act fund............         -38          -7          -8
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5070-0-2-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations.............          71           8          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4           1           1
    22.00 New budget authority (gross)......          68           7           8
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          72           8           9
    23.95 Total new obligations.............         -71          -8         -10
    24.40 Unobligated balance carried
            forward, end of year............           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................          30
    60.20   Appropriation (special fund)....          38           7           8
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................          68           7           8
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -3           1           1
    73.10 Total new obligations.............          71           8          10
    73.20 Total outlays (gross).............         -67          -8         -10
    74.40 Obligated balance, end of year....           1           1           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          67           7           8
    86.98 Outlays from mandatory balances...           1           2           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          67           8          10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          68           7           8
    90.00 Outlays...........................          67           8          10
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          68           7           7
    90.00 Outlays...........................          67           8           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.

        The Agricultural Risk Protection Act of 2000 provided $30 million
    for replenishment of the Perishable Agricultural Commodities Act Fund.

               PERISHABLE AGRICULTURAL COMMODITIES ACT ACTIVITIES

                                         2001 actual  2002 est.   2003 est.
    Percentage of informal reparation
    complaints completed within time
    frame goal..........................         85%         85%         85%

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5070-0-2-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           6           4           4
    12.1  Civilian personnel benefits.......           1           1           2
    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
    25.3  Other purchases of goods and
            services from Government
            accounts........................           1                       1
    33.0  Investments and loans.............          60
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          71           8          10
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-5070-0-2-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          90          95          95
    ---------------------------------------------------------------------------

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

                         (including transfers of funds)

        Funds available under section 32 of the Act of August 24, 1935 (7
    U.S.C. 612c), shall be used only for commodity program expenses as
    authorized therein, and other related operating expenses, except for:
    (1) transfers to the Department of Commerce as authorized by

    [[Page 97]]

    the Fish and Wildlife Act of August 8, 1956; (2) transfers otherwise
    provided in this Act; and (3) not more than [$13,995,000] $15,485,000
    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, 2002;
    additional authorizing legislation required.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............      10,251      10,436      10,097
        Receipts:
    02.00 30 percent of customs duties,
            Funds for strengthening markets,
            income and supply...............       5,923       5,800       6,200
    02.40 General fund payment. Funds for
            strengthening markets, income
            and supply......................                       1           1
    02.80 Funds for strengthening markets,
            income, and supply, offsetting
            collections.....................           1           1           1
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..       5,924       5,802       6,202
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...      16,175      16,238      16,299
        Appropriations:
    05.00 Funds for strengthening markets,
            income, and supply (section 32).      -5,739      -6,141      -5,915
                                               ---------   ---------  ----------
    05.99   Total appropriations............      -5,739      -6,141      -5,915
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............      10,436      10,097      10,384
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Commodity program payments:
    00.01     Child nutrition program
                purchases...................         400         400         400
    00.02     Emergency surplus removal.....         200         246         215
    00.03     Direct payment program........          40          18
    00.04     Diversion payment program.....          12
    00.05     Lamb grading and certification
                support.....................           1           2
    00.06     Specialty crop purchases......         200
    00.07     State option contract.........                       5
    00.08     Removal of defective
                commodities.................                       1
                                               ---------   ---------  ----------
    00.91     Subtotal, Commodity program
                payments....................         853         672         615
    01.01 Administrative expenses...........          23          25          26
                                               ---------   ---------  ----------
    01.92   Total direct program............         876         697         641
    09.11 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         877         698         642
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         241         108         300
    22.00 New budget authority (gross)......         739         891         641
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         983         999         941
    23.95 Total new obligations.............        -877        -698        -642
    24.40 Unobligated balance carried
            forward, end of year............         108         300         300
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................         200
    60.20   Appropriation (special fund)....       5,739       6,141       5,914
    61.00   Transferred to other accounts...      -5,201      -5,251      -5,273
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         739         890         641
    69.00 Offsetting collections (cash).....           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         739         891         640
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          74         148         148
    73.10 Total new obligations.............         877         698         642
    73.20 Total outlays (gross).............        -799        -697        -641
    73.45 Recoveries of prior year
            obligations.....................          -3
    74.40 Obligated balance, end of year....         148         148         148
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         484         442         405
    86.98 Outlays from mandatory balances...         315         255         236
                                               ---------   ---------  ----------

    87.00

            Total outlays (gross)...........         799         697         641
    ----------------------------------------------------------------------------

        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..................         739         890         641
    90.00 Outlays...........................         799         697         641
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         738         889         640
    90.00 Outlays...........................         798         696         640
    ---------------------------------------------------------------------------

        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)

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1

            Personnel compensation: Full-
              time permanent................          10          12          13

    12.1

            Civilian personnel benefits.....           3           4           4

    21.0

            Travel and transportation of
              persons.......................           1           1           1

    22.0

            Transportation of things........           1           1           1

    23.3

            Communications, utilities, and
              miscellaneous charges.........           1           1           1

    25.2

            Other services..................           6           6           4

    25.3

            Other purchases of goods and
              services from Government
              accounts......................           2           2           2

    25.7

            Operation and maintenance of
              equipment.....................           1           1           1

    26.0

            Supplies and materials: Grants
              of commodities to States......         850         668         613

    31.0

            Equipment.......................           1           1           1
                                               ---------   ---------  ----------

    99.0

              Direct obligations............         876         697         641

    99.0

          Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------

    99.9

            Total new obligations...........         877         698         642
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:

    1001

          Total compensable workyears: Full-
            time equivalent employment......         152         168         177
        Reimbursable:

    2001

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

    [[Page 98]]

                                   Trust Funds

          Expenses and Refunds, Inspection and Grading of Farm Products

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8015-0-7-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............                       2           2
        Receipts:
    02.20 Deposits of fees from inspection
            and grading of farm products....         162         118         124
    02.41 Payments from general fund, Wool
            research, development, and
            promotion.......................           2           2           2
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         164         120         126
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         164         122         128
        Appropriations:
    05.00 Expenses and refunds, inspection
            and grading of farm products....        -162        -120        -126
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           2           2           2
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8015-0-7-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Dairy products....................           8           7           7
    00.02 Fruits and vegetables.............         105          58          58
    00.03 Meat grading......................          27          25          25
    00.04 Poultry products..................          39          26          26
    00.05 Miscellaneous agricultural
            commodities.....................          10          10          10
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         189         126         126
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          28           7           7
    22.00 New budget authority (gross)......         168         126         126
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         196         133         133
    23.95 Total new obligations.............        -189        -126        -126
    24.40 Unobligated balance carried
            forward, end of year............           7           7           7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......         168         126         126
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         -15         -24         -19
    73.10 Total new obligations.............         189         126         126
    73.20 Total outlays (gross).............        -198        -121        -126
    74.40 Obligated balance, end of year....         -24         -19         -19
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         153         121         121
    86.98 Outlays from mandatory balances...          45                       5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         198         121         126
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         168         126         126
    90.00 Outlays...........................         198         121         126
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         162         120         120
    90.00 Outlays...........................         192         115         120
    ---------------------------------------------------------------------------

        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.

        The Agricultural Risk Protection Act of 2000 provided $29 million
    for replenishment of the trust fund account; and $12 million to improve
    the infrastructure and system used for inspecting fruits and vegetables,
    including improved inspector training and technical resources for
    inspectors.

                               WORKLOAD INDICATORS

                                         2001 actual  2002 est.   2003 est.
    Weighted average cost per cwt. (1990
    index)..............................   .08 cents   .08 cents   .08 cents

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8015-0-7-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          58          60          60
    11.3    Other than full-time permanent..           5           5           5
    11.5    Other personnel compensation....           9           9           9
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          72          74          74
    12.1  Civilian personnel benefits.......          24          24          24
    13.0  Benefits for former personnel.....           1           1           1
    21.0  Travel and transportation of
            persons.........................           6           7           7
    23.2  Rental payments to others.........           3           2           2
    23.3  Communications, utilities, and
            miscellaneous charges...........           2           2           2
    24.0  Printing and reproduction.........                       1           1
    25.2  Other services....................           8           9           9
    25.3  Other purchases of goods and
            services from Government
            accounts........................           2           2           2
    26.0  Supplies and materials............           2           2           2
    31.0  Equipment.........................           2           2           2
    33.0  Investments and loans.............          67
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         189         126         126
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8015-0-7-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......       1,500       1,507       1,507
    ---------------------------------------------------------------------------

                       Milk Market Orders Assessment Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8412-0-8-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.80 Milk market orders assessment
            fund, offsetting collections....          45          44          44
        Appropriations:
    05.00 Milk market orders assessment fund         -45         -44         -44
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8412-0-8-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Administration....................          35          41          41
    09.02 Marketing service.................           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          38          44          44
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          30          37          37
    22.00 New budget authority (gross)......          45          44          44
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          75          81          81
    23.95 Total new obligations.............         -38         -44         -44
    24.40 Unobligated balance carried
            forward, end of year............          37          37          37
    ----------------------------------------------------------------------------

    [[Page 99]]

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          45          44          44
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -3          -3          -3
    73.10 Total new obligations.............          38          44          44
    73.20 Total outlays (gross).............         -38         -44         -44
    74.40 Obligated balance, end of year....          -3          -3          -3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          38          44          44
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -45         -44         -44
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          -7
    ---------------------------------------------------------------------------
        Note.--The administration fund totals are comprised of 31 separate
    independent order accounts in 1998.

        The Secretary of Agriculture is authorized by the Agricultural
    Marketing Agreement Act of 1937, as amended--under certain conditions--
    to issue Federal milk marketing orders establishing minimum prices which
    handlers are required to pay for milk purchased from producers. 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

                                         2001 actual  2002 est.   2003 est.
    Percentage of formal and informal
    rulemaking completed within internal
    timeframes..........................         96%         85%         85%

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8412-0-8-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          25          27          27
    12.1  Civilian personnel benefits.......           5           6           6
    21.0  Travel and transportation of
            persons.........................           2           3           3
    23.2  Rental payments to others.........           2           3           3
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.2  Other services....................           1           1           1
    26.0  Supplies and materials............           1           2           2
    31.0  Equipment.........................           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          38          44          44
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8412-0-8-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    2001  Total compensable workyears: Full-
            time equivalent employment......         429         441         441
    ---------------------------------------------------------------------------

                             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),
    [$74,752,000] $76,062,000: 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, 2002;
    additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2707-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations.............          68          78          76
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          69          78          76
    23.95 Total new obligations.............         -68         -78         -76
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          69          78          76
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          41          39          22
    73.10 Total new obligations.............          68          78          76
    73.20 Total outlays (gross).............         -85         -95         -77
    73.40 Adjustments in expired accounts
            (net)...........................          15
    74.40 Obligated balance, end of year....          39          22          21
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          48          56          54
    86.93 Outlays from discretionary
            balances........................          37          39          23
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          85          95          77
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          69          78          76
    90.00 Outlays...........................          85          95          77
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          66          75          73
    90.00 Outlays...........................          82          92          74
    ---------------------------------------------------------------------------

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

        The Federal government reimburses private insurance companies for
    certain administrative expenses incurred while delivering the crop
    insurance program.

        Current law provides this through mandatory funding. The 2003 budget
    includes a proposal that would cap the underwriting gains at 12.5
    percent of all the companies' combined retained premium for the year.
    This proposal would maintain the incentives companies have to
    participate in the crop insurance program, but provide some constraints
    on windfall profits.

    [[Page 100]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2707-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          31          35          37
    11.3    Other than full-time permanent..           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          32          36          38
    12.1  Civilian personnel benefits.......          10          10          10
    21.0  Travel and transportation of
            persons.........................           2           3           3
    23.1  Rental payments to GSA............                                   2
    23.2  Rental payments to others.........           1           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.2  Other services....................          18          23          19
    26.0  Supplies and materials............           2           2           2
    31.0  Equipment.........................           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          68          78          76
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2707-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         499         568         568
    ---------------------------------------------------------------------------

                                  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,
    2002.)

    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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4085-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Delivery and other expenses.......         697         698         707
    00.03 Change in delivery and other
            expenses........................                                -115
    01.01 Indemnities.......................       3,279       3,023       2,988
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       3,976       3,721       3,580
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         284         623         623
    22.00 New budget authority (gross)......       4,315       3,721       3,580
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       4,599       4,344       4,203
    23.95 Total new obligations.............      -3,976      -3,721      -3,580
    24.40 Unobligated balance carried
            forward, end of year............         623         623         623
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................
    40.35   Appropriation rescinded.........                                -115
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                                -115
          Mandatory:

    60.00   Appropriation...................       3,401       2,900       2,886
    69.00 Offsetting collections (cash).....         914         821         809
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       4,315       3,721       3,580
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,227       1,827       1,844
    73.10 Total new obligations.............       3,976       3,721       3,580
    73.20 Total outlays (gross).............      -3,377      -3,704      -3,594
    74.40 Obligated balance, end of year....       1,827       1,844       1,830
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                -115
    86.97 Outlays from new mandatory
            authority.......................       2,072       2,185       2,173
    86.98 Outlays from mandatory balances...       1,305       1,519       1,536
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,377       3,704       3,594
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....        -914        -821        -809
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,401       2,900       2,771
    90.00 Outlays...........................       2,463       2,883       2,785
    ---------------------------------------------------------------------------

        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 $100 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
    $30 per crop, per county, 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

    [[Page 101]]

    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
    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.

        A legislative proposal amending the Federal Crop Insurance Act is
    included in the 2003 Budget. It is designed to improve the risk sharing
    arrangements between the government and the private insurance companies.

        The dollar volume of total reimbursements went from $495 million to
    $691 million (a 40 percent increase) between 1999 and 2001, reflecting
    the benefits of ARPA to the insurance companies. While the companies
    should have an incentive to participate in the crop insurance program,
    there should be some constraints on windfall profits. With that in mind,
    the Budget includes a proposal that would cap the underwriting gains at
    12.5 percent of all the companies' combined retained premium for the
    year. This is expected to save $115 million in 2003.

        RMA plans to roll out Round IV of the Dairy Options Pilot Program
    (DOPP) during 2002, which includes reaching producers in a total of 300
    counties in 40 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.

        On June 20, 2000, based on the Agricultural Risk Protection Act of
    2000 (ARPA), the Risk Management Agency (RMA) began improving basic
    products by implementing higher premium subsidies to make additional
    coverage more affordable to producers, making adjustments in actual
    production history guarantees to address multiple year disasters, and
    revising administrative fees for CAT and additional coverage. On
    September 17, 2001, RMA published an interim rule in the Federal
    Register in accordance with ARPA, that allows RMA to reimburse
    developers of private crop insurance products for their research and
    development costs and maintenance costs once the FCIC's Board of
    Directors (Board) approves the products. During 2001, RMA awarded over
    $18 million in projects, as authorized by ARPA, to accomplish many of
    the research and development mandates required by ARPA. These projects
    were awarded to public and private entities, including a pool of
    contractors in a base research and development contract that was
    initiated with a period of performance through September 30, 2001. On
    November 15, 2001, the Board approved two livestock pilot programs--
    Livestock gross margin and Livestock risk protection--as allowed by
    ARPA. The pilot livestock programs will cover swine in the State of Iowa
    and will be made available beginning in 2002.

        RMA 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 provided.

        In crop year 2001, 207.6 million acres were insured, with an
    estimated $2,884 million in total premium income, including $1,723
    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 2003. Amounts in the 2001 column are as of September 30,
    2001, and pertain to the 2001 crop year.

                                            2001        2002        2003
                                          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).......      35,833      34,948      34,382
    Insured acreage (millions)..........         208         209         208
                                        ====================================
    Producer premium (millions)\1\......       1,161       1,128       1,116
    Premium subsidy (millions)\1\.......       1,723       1,673       1,660
                                        ------------------------------------
          Total premium (millions)\1\...       2,884       2,801       2,776
                                        ====================================
    Indemnities (million)\1\............       3,100       3,011       2,985
    Loss ratio..........................       1.075       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]

                                            2001         2002        2003
                                         fiscal year fiscal year fiscal year
                                           actual      estimate    estimate
    Premiums:
      Additional coverage premium
        subsidy.........................       1,424       1,450       1,429
      Catastrophic coverage--Reinsurance
        premium subsidy.................         243         230         233
                                        ------------------------------------
        Subtotal, premium subsidy.......       1,667       1,680       1,662
      Producer premium..................       1,079       1,133       1,117
                                        ------------------------------------
          Total premiums................       2,746       2,813       2,779
                                        ====================================
    Indemnities:
      Additional coverage...............       3,236       2,776       2,737
      Catastrophic coverage--Reinsurance          43         247         251
                                        ------------------------------------
          Total indemnities.............       3,279       3,023       2,988
                                        ====================================

        For crop years 1948 through 2000, indemnities ($23,476 million)
    exceeded premium income ($21,252 million) by $2,224 million; the loss
    ratio for the period was 1.10.

        The following table summarizes the insurance operations for 2001,
    2002 and 2003:

                 NET INCOME OR LOSS (-) ON INSURANCE OPERATIONS

                            [In millions of dollars]

                                            2001        2002        2003
                                         fiscal year fiscal year fiscal year
                                            est.        est.        est.
    Producer premium less indemnities...      -2,200      -1,890      -1,871
    Interest expense, net...............           3
    Delivery expenses \1\...............        -620        -646        -638
    Other income or expense, net........          58          55          55
    ARPA costs..........................         -42         -52         -68
    Reinsurance underwriting gain (+) or
    loss (-)............................        -261        -367        -364
                                        ------------------------------------

    [[Page 102]]

    Net income or loss (-)..............      -3,062      -2,900      -2,886
                                        ====================================
        \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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         639            914           821            809
    0102  Expense...........................      -3,006         -3,976        -3,721         -3,695
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............      -2,367         -3,062        -2,900         -2,886
                                            ------------ --------------  ------------  -------------
    0199  Total comprehensive income........      -2,367         -3,062        -2,900         -2,886
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4085-0-3-351    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................       1,776          2,493         2,567          2,567
    1206  Non-Federal assets: Receivables,
            net.............................       1,049          1,083           750            750
    1803  Other Federal assets: Property,
            plant and equipment, net........           1              1             1              1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,826          3,577         3,318          3,318
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................          14             10             1              1
    2105    Other...........................         231            306           175            175
          Non-Federal liabilities:

    2201    Accounts payable................          45             91            70             70
    2207    Other...........................       1,882          2,299         1,750          1,750
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,172          2,706         1,996          1,996
        NET POSITION:
    3100  Appropriated capital..............          36            252           700            700
    3300  Cumulative results of operations..         618            619           622            622
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         654            871         1,322          1,322
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,826          3,577         3,318          3,318
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4085-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Other services:

    25.2    Other services..................         697         698         707
    25.2    Other services..................                                -115
    42.0  Insurance claims and indemnities
            (reinsured buyup)...............       3,279       3,023       2,988
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       3,976       3,721       3,580
    ---------------------------------------------------------------------------

                               FARM SERVICE AGENCY

                                  Federal Funds

    General and special funds:

                              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,
    [$939,030,000] $1,062,712,000: 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, 2002; additional authorization
    legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0600-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Farm programs...................         767         826         855
    00.02   Conservation and environment....         154         157         179
    00.04   Commodity operations............          24          25          29
                                               ---------   ---------  ----------
    03.00     Subtotal, direct program......         945       1,008       1,063
            Reimbursable program:
    09.01     Farm loans....................         265         273         279
    09.02     Other programs................         126         130         131
                                               ---------   ---------  ----------
    09.99   Subtotal, reimbursable program..         391         403         410
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,336       1,411       1,473
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          13           4
    22.00 New budget authority (gross)......       1,328       1,407       1,475
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,341       1,411       1,475
    23.95 Total new obligations.............      -1,336      -1,411      -1,473
    24.40 Unobligated balance carried
            forward, end of year............           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         889       1,004       1,063
    40.15   Appropriation (emergency).......          50
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         937       1,004       1,063
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         360         403         412
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          31
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         391         403         412
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,328       1,407       1,475
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         176         168         153
    73.10 Total new obligations.............       1,336       1,411       1,473
    73.20 Total outlays (gross).............      -1,305      -1,439      -1,487
    73.40 Adjustments in expired accounts
            (net)...........................         -10          13          14
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -31
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           2
    74.40 Obligated balance, end of year....         168         153         153
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,170       1,310       1,373
    86.93 Outlays from discretionary
            balances........................         135         129         116
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,305       1,439       1,487
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -328        -368        -376
    88.40     Non-Federal sources...........         -32         -35         -36
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -360        -403        -412
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -31
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         937       1,004       1,063
    90.00 Outlays...........................         945       1,036       1,075
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         877         939         994

    [[Page 103]]

    90.00 Outlays...........................         885         971       1,006
    ---------------------------------------------------------------------------

        The Farm Service Agency (FSA) was established October 3, 1994,
    pursuant to the Federal Crop Insurance Reform and Department of
    Agriculture Reorganization Act of 1994, P.L. 103-354. The Department of
    Agriculture Reorganization Act of 1994 was amended on April 4, 1996, by
    the Federal Agriculture Improvement and Reform Act of 1996 (1996 Act),
    P.L. 104-127. The FSA administers a variety of activities, such as farm
    income support programs through various loans and payments; the
    Conservation Reserve Program (CRP); the Emergency Conservation Program;
    the Hazardous Waste Management Program; the Commodity Operation Programs
    including the warehouse examination function; farm ownership, farm
    operating, emergency disaster, and other loan programs; price support
    and production control programs for tobacco and peanuts; and the
    Noninsured Crop Disaster Assistance Program (NAP), which provides crop
    loss protection for growers of many crops for which crop insurance is
    not available. The Agency also assists in the administration of several
    conservation cost-share programs financed by the Commodity Credit
    Corporation (CCC), including the Environmental Quality Incentives
    Program (EQIP). In addition, FSA currently provides certain
    administrative support services to the Foreign Agricultural Service
    (FAS) and to the Risk Management Agency (RMA).

         This consolidated administrative expenses account includes funds to
    cover expenses of programs administered by, and functions assigned to,
    the Agency. The funds consist of a direct appropriation, transfers from
    program loan accounts under credit reform procedures, user fees, and
    advances and reimbursements from other sources. This is a consolidated
    account for administrative expenses of national, regional, State, and
    county offices.

        USDA's Farm Service Agency (FSA), Natural Resources Conservation
    Service (NRCS), and Rural Development (RD) offices act as separate
    franchises, with offices often located adjacent to each other. Prior
    efforts to improve the efficiency of USDA's county-based offices have
    resulted in significant co-location, and introduction of new information
    technology to simplify customer transactions. However, the separate
    hierarchical structures at State, regional, and headquarter levels are
    set in law, and this hinders further attempts to achieve additional
    efficiencies.

        This budget proposes changes that will allow the agencies to operate
    together more efficiently within the current organizational constraints.
    Specifically, the Administration proposes that the FSA and NRCS field
    offices seek the following improvements:

         Restructure the administrative support offices to improve
    efficiency of service provision of information technology, personnel,
    travel, payroll, and procurement.

         Review the field office structure to determine the correct
    level of offices necessary to provide services, with the goal of
    consolidating at least 200 offices in 2003.

         Begin centralizing loan servicing functions that do not
    need to be performed at the field level. These functions include mass
    mailings, general information collection and storage, collecting
    payments, and sending out statements.

         Evaluate pilot projects and then develop guidance to
    strengthen NRCS' goal setting process, emphasizing local involvement in
    setting national priorities.

         Implement outsourcing and cross-servicing.

        Improvements undertaken that will improve efficiency and increase
    the number of employees available to provide services directly to the
    U.S. citizen will be evaluated based on:

         Reducing the number of office visits and reporting burden
    for clients of FSA and NRCS. A 10 percent reduction in reporting would
    reduce the number of hours spent filling out forms by 1.7 million hours
    or 46 minutes per farm (currently 17 million hours spent, 7 hours and 44
    minutes per farm).

         Increasing the provision of core customer services,
    including technical assistance visits and eligibility determinations,
    while maintaining or reducing the number of personnel and/or the cost
    associated with the provision of service.

        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
    prevent planting of noninsured crops, and timely designating eligible
    Noninsured Crop Disaster Assistance Program (NAP) areas and approving
    crop prices, average yields, and payment factors.

        Farm program activities include the following functions dealing with
    the administration of programs carried out through the farmer committee
    system of the FSA: (a) developing program regulations and procedures;
    (b) collecting and compiling basic data for individual farms; (c)
    establishing individual farm allotments for tobacco and peanuts and farm
    planting history; (d) notifying producers of established allotments and
    farm planting histories; (e) determining farm marketing quotas for
    tobacco and peanuts; (f) conducting referendums and certifying results;
    (g) accepting farmer certifications and checking compliance for specific
    purposes; (h) issuing marketing cards so that production from the
    allotted acreage can be marketed without penalty; (i) processing
    commodity loan documents and issuing checks; (j) processing production
    flexibility contract payments and issuing checks; (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

    [[Page 104]]

    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)

    ----------------------------------------------------------------------------
    Identification code 12-0600-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         140         153         160
    11.3      Other than full-time permanent           4           5           5
    11.5      Other personnel compensation..           4           8           8
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         148         166         173
    12.1    Civilian personnel benefits.....          60          65          69
    13.0    Benefits for former personnel...           1           2           2
    21.0    Travel and transportation of
              persons.......................          14          19          17
    22.0    Transportation of things........           2           2           3
    23.1    Rental payments to GSA..........                                  17
    23.2    Rental payments to others.......           3           3           3
    23.3    Communications, utilities, and
              miscellaneous charges.........          10          15          15
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          78          98          81
    26.0    Supplies and materials..........           8           6           6
    31.0    Equipment.......................          11          11           6
    41.0    Grants, subsidies, and
              contributions.................         609         619         669
    42.0    Insurance claims and indemnities                       1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         945       1,008       1,063
    99.0  Reimbursable obligations..........         391         403         410
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,336       1,411       1,473
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0600-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       2,413       2,413       2,413
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......       3,393       3,393       3,393
    ---------------------------------------------------------------------------

                             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), [$3,493,000] $4,000,000.
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0170-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

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

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

        New budget authority (gross), detail:
          Discretionary:

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

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

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

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

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

                                GRANT OBLIGATIONS

                                         2001 actual  2002 est.   2003 est.
    Number of States receiving grants...          26          31          30
    Amount of grants (in millions of
    dollars)............................           3         3.5           4

                             Tree Assistance Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2701-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           7           6           4
    73.20 Total outlays (gross).............          -1          -2          -2
    74.40 Obligated balance, end of year....           6           4           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           1           2           2
    ----------------------------------------------------------------------------

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

        Funding of $14 million for the Tree assistance program (TAP) was
    provided by the 1998 Emergency Supplemental

    [[Page 105]]

    Appropriations Act, P.L. 105-174, for obligation through September 30,
    1998. The 1999 Appropriations Act, P.L. 105-277, extended the use of
    unobligated 1998 TAP funds 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
    could not receive more than $25,000 per person.

        This program was originated to provide emergency support. There is
    no expectation that funding, in addition to other USDA programs, will be
    necessary in 2003 to respond to emergencies. Based on this, no funding
    is requested for this program for 2003.

                          Conservation Reserve Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3319-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Technical assistance..............                       2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................                       2
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                       2
    73.20 Total outlays (gross).............                      -2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...                       2
    ----------------------------------------------------------------------------

        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..................
    90.00 Outlays...........................          -1           2
    ---------------------------------------------------------------------------

        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 2001, annual rental payments, cost-share payments, and technical
    assistance for acres enrolled in the program were paid through the
    Commodity Credit Corporation. Just under $2 million in unobligated
    appropriated funds were available at the end of 2001; these funds are
    expected to be exhausted in 2002 for technical assistance. In providing
    technical assistance, the Natural Resources Conservation Service
    determines eligibility, develops conservation plans, and helps install
    approved practices. The Forest Service 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.

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          45           4           4
    22.00 New budget authority (gross)......         -45
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           4           4           4
    24.40 Unobligated balance carried
            forward, end of year............           4           4           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance rescinded...         -45
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          17          11           8
    73.20 Total outlays (gross).............          -2          -3          -2
    73.45 Recoveries of prior year
            obligations.....................          -4
    74.40 Obligated balance, end of year....          11           8           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           2           3           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         -45
    90.00 Outlays...........................           2           3           2
    ---------------------------------------------------------------------------

        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 2001,
    there were $11 million in unliquidated obligations for ACP agreements.

                         Emergency Conservation Program

        For necessary expenses of the Emergency Conservation Program, as
    authorized by 16 U.S.C. 2201-2205, $48,700,000, to remain available
    until expended.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3316-0-1-453      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations (object
            class 41.0).....................          41          62          64
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          67         106          44
    22.00 New budget authority (gross)......          80                      49
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         147         106          93
    23.95 Total new obligations.............         -41         -62         -64
    24.40 Unobligated balance carried
            forward, end of year............         106          44          29
    ----------------------------------------------------------------------------

    [[Page 106]]

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          80                      49
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          25          29          27
    73.10 Total new obligations.............          41          62          64
    73.20 Total outlays (gross).............         -38         -64         -71
    74.40 Obligated balance, end of year....          29          27          20
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          38          64          71
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          80                      49
    90.00 Outlays...........................          38          64          71
    ---------------------------------------------------------------------------

        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.

        Title VIII of the 2001 Agriculture Appropriations Act, P.L. 106-387,
    provided $80 million for the Emergency Conservation Program. This
    funding is available until expended. Under the 2001 program, cost-
    sharing and technical assistance were provided in 40 States to treat
    farmlands damaged by floods, hurricanes, drought, ice storms, tornadoes,
    and other natural disasters.

        The 2003 budget proposes $49 million for this program.

    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, [$1,146,996,000] $1,100,000,000, of which
    $1,000,000,000 shall be for guaranteed loans and [$146,996,000]
    $100,000,000 shall be for direct loans; operating loans,
    [$2,616,729,000] $2,600,000,000, of which [$1,500,000,000]
    $1,700,000,000 shall be for unsubsidized guaranteed loans,
    [$505,531,000] $300,000,000 shall be for subsidized guaranteed loans and
    [$611,198,000] $600,000,000 shall be for direct loans; Indian tribe land
    acquisition loans as authorized by 25 U.S.C. 488, $2,000,000; [for
    emergency insured loans, $25,000,000 to meet the needs resulting from
    natural disasters;] and for boll weevil eradication program loans as
    authorized by 7 U.S.C. 1989, $100,000,000.
        For the cost of direct and guaranteed loans, including the cost of
    modifying loans as defined in section 502 of the Congressional Budget
    Act of 1974, as follows: farm ownership loans, [$8,366,000] $19,110,000,
    of which [$4,500,000] $7,500,000 shall be for guaranteed loans;
    operating loans, [$175,780,000] $192,850,000, of which [$52,650,000]
    $53,890,000 shall be for unsubsidized guaranteed loans and [$68,550,000]
    $35,400,000 shall be for subsidized guaranteed loans; and Indian tribe
    land acquisition loans as authorized by 25 U.S.C. 488, [$118,400; and
    for emergency insured loans, $3,362,500 to meet the needs resulting from
    natural disasters] $179,000.
        In addition, for administrative expenses necessary to carry out the
    direct and guaranteed loan programs, [$280,595,000] $287,176,000, of
    which [$272,595,000] $279,176,000 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: Provided, That
    the Committees on Appropriations of both Houses of Congress are notified
    at least 15 days in advance of any transfer.

                             Dairy Indemnity Program

                         (including transfers of funds)

        For necessary expenses involved in making indemnity payments to
    dairy farmers and manufacturers of dairy products under a dairy
    indemnity program, $100,000, to remain available until expended:
    Provided, That such program is carried out by the Secretary in the same
    manner as the dairy indemnity program described in the Agriculture,
    Rural Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2001 (Public Law 106-387; 114 Stat. 1549A-12).
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............         104          89         140
    00.02 Guaranteed loan subsidy...........          56         128          97
    00.05 Reestimates of direct loan subsidy          70         946
    00.06 Interest on reestimates of direct
            loan subsidy....................           3         274
    00.07 Reestimates of guaranteed loan
            subsidy.........................         209          61
    00.08 Interest on reestimates of
            guaranteed loan subsidy.........          40           6
          Administrative expenses:

    00.09   Administrative expenses--
              salaries and expenses.........         265         272         279
    00.10   Administrative expenses--non-
              recoverable costs.............           6           8           8
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         753       1,784         524
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         100          73          25
    22.00 New budget authority (gross)......         722       1,755         499
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         827       1,828         524
    23.95 Total new obligations.............        -753      -1,784        -524
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1         -19
    24.40 Unobligated balance carried
            forward, end of year............          73          25
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         401         468         499
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         400         468         499
          Mandatory:

    60.00   Appropriation...................         322       1,287
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         722       1,755         499
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          13          12          24
    73.10 Total new obligations.............         753       1,784         524
    73.20 Total outlays (gross).............        -749      -1,772        -522
    73.45 Recoveries of prior year
            obligations.....................          -5
    74.40 Obligated balance, end of year....          12          24          26
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         388         445         475
    86.93 Outlays from discretionary
            balances........................          39          40          47
    86.97 Outlays from new mandatory
            authority.......................         322       1,287
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         749       1,772         522
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         722       1,755         499
    90.00 Outlays...........................         749       1,772         522
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Farm ownership....................         163         147         100
    115002Farm operating....................         691         611         600
    115003Emergency disaster................          90          25
    115004Indian tribe land acquisition.....           1           2           2
    115005Boll weevil eradication...........          95         100         100
    115006Seed cotton.......................          28
                                               ---------   ---------  ----------
    115901Total direct loan levels..........       1,068         885         802

    [[Page 107]]

        Direct loan subsidy (in percent):
    132001Farm ownership....................       12.55        2.63       11.61
    132002Farm operating....................       18.34        8.93       17.26
    132003Emergency disaster................       17.64       13.45       20.39
    132004Indian tribe land acquisition.....       58.36        5.92        8.95
    132005Boll weevil eradication...........       -0.56       -2.18       -2.70
    132006Seed cotton.......................        4.30
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       15.36        6.78       14.09
        Direct loan subsidy budget authority:
    133001Farm ownership....................          20           4          12
    133002Farm operating....................         127          55         104
    133003Emergency disaster................          16           3
    133004Indian tribe land acquisition.....           1
    133005Boll weevil eradication...........          -1          -2          -3
    133006Seed cotton.......................           1
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....         164          60         113
        Direct loan subsidy outlays:
    134001Farm ownership....................          17           5          11
    134002Farm operating....................          60          56         100
    134003Emergency disaster................          22          28          25
    134004Indian tribe land acquisition.....
    134005Boll weevil eradication...........
    134006Seed cotton.......................           3
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............         102          89         136
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Farm ownership....................           1         163
    135002Farm operating....................          34         776
    135003Emergency disaster................          17         169
    135004Indian tribe land acquisition.....                       3
    135005Boll weevil eradication...........          21          16
    135006Seed cotton.......................
    135007Soil and water....................                       4
    135008Farm ownership credit sales.......                      89
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................          73       1,220
        Direct loan upward reestimate subsidy outlays:
    136001Farm ownership....................           1         163
    136002Farm operating....................          34         776
    136003Emergency disaster................          17         169
    136004Indian tribe land acquisition.....                       3
    136005Boll weevil eradication...........          21          16
    136006Seed cotton.......................
    136007Soil and water....................                       4
    136008Farm ownership credit sales.......                      89
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...          73       1,220
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Farm ownership....................        -156
    137002Farm operating....................        -485
    137003Emergency disaster................        -213         -16
    137004Indian tribe land acquisition.....
    137005Boll weevil eradication...........          -2          -9
    137006Seed cotton.......................         -60
    137007Soil and water....................          -2
    137008Seed loans........................                      -2
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................        -918         -27
        Direct loan downward reestimate subsidy
                    outlays:
    138001Farm ownership....................        -156
    138002Farm operating....................        -485
    138003Emergency disaster................        -213         -16
    138004Indian tribe land acquisition.....
    138005Boll weevil eradication...........          -2          -9
    138006Seed cotton.......................         -60
    138007Soil and water....................          -2
    138008Seed loans........................                      -2
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................        -918         -27
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Farm ownership, unsubsidized......         852       1,161       1,000
    215002Farm operating, unsubsidized......         998       1,548       1,700
    215003Farm operating, subsidized........         464         511         300
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......       2,314       3,220       3,000
        Guaranteed loan subsidy (in percent):
    232001Farm ownership, unsubsidized......        0.73        0.45        0.75
    232002Farm operating, unsubsidized......        3.49        3.51        3.17
    232003Farm operating, subsidized........       13.08       13.56       11.80
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        4.41        3.98        3.23
        Guaranteed loan subsidy budget authority:
    233001Farm ownership, unsubsidized......           6           5           8
    233002Farm operating, unsubsidized......          35          54          54
    233003Farm operating, subsidized........          61          69          35
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....         102         128          97
        Guaranteed loan subsidy outlays:
    234001Farm ownership, unsubsidized......           4           5           7
    234002Farm operating, unsubsidized......          13          48          52
    234003Farm operating, subsidized........          45          63          40
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............          62         116          99
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235001Farm ownership, unsubsidized......           6          17
    235002Farm operating, unsubsidized......         177          26
    235003Farm operating, subsidized........          66          24
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................         249          67
        Guaranteed loan upward reestimate subsidy
                    outlays:
    236001Farm ownership, unsubsidized......           6          17
    236002Farm operating, unsubsidized......         177          26
    236003Farm operating, subsidized........          66          24
                                               ---------   ---------  ----------
    236901Total upward reestimate subsidy
            outlays.........................         249          67
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237001Farm ownership, unsubsidized......          -1
    237002Farm operating, unsubsidized......                     -12
    237003Farm operating, subsidized........          -4         -10
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................          -5         -22
        Guaranteed loan downward reestimate subsidy
                    outlays:
    238001Farm ownership, unsubsidized......          -1
    238002Farm operating, unsubsidized......                     -12
    238003Farm operating, subsidized........          -4         -10
                                               ---------   ---------  ----------
    238901Total downward reestimate subsidy
            outlays.........................          -5         -22
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................         269         280         287
    358001Outlays from balances.............
    359001Outlays from new authority........         269         280         287
    ---------------------------------------------------------------------------

        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. Boll weevil eradication loans are
    available to eliminate the cotton boll weevil pest from infested areas.

        Additional funding was 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.

        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 2001, $21.1 thousand was paid to producers who filed claims under
    the program.

        The 2003 budget requests $100 thousand for this program.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................         271         280         287

    [[Page 108]]

    41.0  Grants, subsidies, and
            contributions...................         482       1,504         237
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         753       1,784         524
    ---------------------------------------------------------------------------

        Agricultural Credit Insurance Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4212-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................       1,080       1,004         902
    00.02   Advances on behalf of borrowers.           2           3           3
    00.04   Interest on Treasury borrowing..         296         229         210
    00.05   Capital investments.............           4           4           4
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating program.....       1,382       1,240       1,119
    08.01 Negative subsidy receipts.........           2           2           2
          Reestimates:

    08.02   Downward reestimate of subsidy..         726          25
    08.04   Downward reestimate of subsidy--
              interest......................         192           2
                                               ---------   ---------  ----------
    08.91   Subtotal, reestimates...........         920          29           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,302       1,269       1,121
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         182          35
    22.00 New financing authority (gross)...       2,460       2,169       2,280
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          35
    22.40 Capital transfer to general fund..                     -35
    22.60 Portion applied to repay debt.....        -325        -900      -1,159
    22.70 Balance of authority to borrow
            withdrawn.......................         -15
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,337       1,269       1,121
    23.95 Total new obligations.............      -2,302      -1,269      -1,121
    24.40 Unobligated balance carried
            forward, end of year............          35
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............       1,373       1,153       1,006
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).       1,014       1,016       1,274
          Mandatory:

    69.00   Offsetting collections (cash)...          73       1,220
    69.27   Capital transfer to general fund                  -1,220
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          73
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       2,460       2,169       2,280
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         160         135         157
    73.10 Total new obligations.............       2,302       1,269       1,121
    73.20 Total financing disbursements
            (gross).........................      -2,292      -1,247      -1,134
    73.45 Recoveries of prior year
            obligations.....................         -35
    74.40 Obligated balance, end of year....         135         157         144
    87.00 Total financing disbursements
            (gross).........................       2,292       1,247       1,134
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Payments from
                program account.............        -175      -1,309        -136
    88.25     Interest on uninvested funds..         -97        -102        -110
              Non-Federal sources:
    88.40       Repayments of principal.....        -654        -665        -858
    88.40       Repayments of interest......        -156        -160        -170
    88.40       Other income................          -5
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,087      -2,236      -1,274
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............       1,373         -67       1,006
    90.00 Financing disbursements...........       1,205        -989        -140
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4212-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         848         885         802
    1121  Limitation available from carry-
            forward.........................         452         218         100
    1142  Unobligated direct loan limitation
            (-).............................         -16
    1143  Unobligated limitation carried
            forward (P.L.106-113 ) (-)......        -218        -100
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       1,066       1,003         902
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       3,909       4,313       4,609
    1231  Disbursements: Direct loan
            disbursements...................       1,072       1,011         917
    1251  Repayments: Repayments and
            prepayments.....................        -661        -665        -858
          Write-offs for default:

    1263    Direct loans....................         -37         -50         -51
    1264    Other adjustments, net..........          30
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       4,313       4,609       4,617
    ---------------------------------------------------------------------------

        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, Indian land, boll weevil eradication, and
    credit sales of acquired property.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4212-0-3-351    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1106    Federal assets: Receivables, net         342            651           385            385
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       3,909          4,313         4,609          4,617
    1402    Interest receivable.............         155            176            50             50
    1403    Accounts receivable from
              foreclosed property...........           6              7            20             20
    1405    Allowance for subsidy cost (-)..        -241           -999          -988           -988
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       3,829          3,497         3,691          3,699
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       4,171          4,148         4,076          4,084
        LIABILITIES:
    2103  Federal liabilities: Debt.........       4,162          4,133         4,061          4,069
    2207  Non-Federal liabilities: Other....           9             15            15             15
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       4,171          4,148         4,076          4,084
        NET POSITION:
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       4,171          4,148         4,076          4,084
    -----------------------------------------------------------------------------------------------

      Agricultural Credit Insurance Fund Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4213-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Default claims..................          54          61          61
    00.02   Interest assistance on
              guaranteed loans..............         109         130         150

    [[Page 109]]

    00.04   Interest payments to Treasury...                      10           5
    00.05   Capital investments.............           2           2           2
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating program.....         165         203         218
          Reestimates:

    08.02   Downward reestimate of subsidy..           4          15
    08.04   Downward reestimate of subsidy--
              interest......................           1           7
                                               ---------   ---------  ----------
    08.91   Subtotal, reestimates...........           5          22
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         170         225         218
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                     102         110
    22.00 New financing authority (gross)...         346         233         144
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          44
    22.70 Balance of authority to borrow
            withdrawn.......................        -118
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         272         335         254
    23.95 Total new obligations.............        -170        -225        -218
    24.40 Unobligated balance carried
            forward, end of year............         102         110          34
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          97         166         144
          Mandatory:

    69.00   Offsetting collections (cash)...         249          67
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         346         233         144
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         389         407         323
    73.10 Total new obligations.............         170         225         218
    73.20 Total financing disbursements
            (gross).........................        -108        -309        -287
    73.45 Recoveries of prior year
            obligations.....................         -44
    74.40 Obligated balance, end of year....         407         323         254
    87.00 Total financing disbursements
            (gross).........................         108         309         287
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.        -304        -183         -99
    88.25     Interest on uninvested funds..         -22         -30         -25
    88.40     Fees and premiums.............         -20         -20         -20
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -346        -233        -144
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........        -238          76         143
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4213-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........       2,053       3,006       3,000
    2121  Limitation available from carry-
            forward.........................         476         214
    2143  Uncommitted limitation carried
            forward.........................        -214
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       2,315       3,220       3,000
    2199  Guaranteed amount of guaranteed
            loan commitments................       2,084       2,899       2,700
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       8,601       9,111      10,423
    2231  Disbursements of new guaranteed
            loans...........................       2,200       2,988       3,025
    2251  Repayments and prepayments........      -1,668      -1,557      -1,600
          Adjustments:

    2263    Terminations for default that
              result in claim payments......         -80        -119        -123
    2264    Other adjustments, net..........          58
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       9,111      10,423      11,725
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       7,962       9,381      10,553
    ---------------------------------------------------------------------------

        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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         271            282           293            293
            Investments in US securities:
    1106      Receivables, net..............         249            259           269            269
    1206  Non-Federal assets: Receivables,
            net.............................           1              1             1              1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         521            542           563            563
        LIABILITIES:
          Non-Federal liabilities:

    2201    Accounts payable................         515            534           554            554
    2203    Debt............................           6              8             9              9
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         521            542           563            563
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         521            542           563            563
    -----------------------------------------------------------------------------------------------

             Agricultural Credit Insurance Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investment:

    00.08   Loan recoverable costs..........           5           7           6
          Operating expenses:

    01.07   Loss settlement expenses on
              guaranteed loans..............           1           2           2
    01.08   Admininstrative expenses--
              Department of Justice fees....           1           1           1
    01.09   Costs incident to acquisition of
              property......................           1           1           1
    01.10   Undistributed charges...........           1           1           1
    01.13   Interest assistance--guaranteed
              loans.........................           6           4           4
    01.17   Unclassified costs..............           2           1           1
    01.18   Civil rights settlements........                       1           1
                                               ---------   ---------  ----------
    01.91     Total operating expenses......          12          11          11
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          17          18          17
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          46          65
    22.00 New budget authority (gross)......          24          18          17
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          11
    22.40 Capital transfer to general fund..                     -65
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          81          18          17
    23.95 Total new obligations.............         -17         -18         -17
    24.40 Unobligated balance carried
            forward, end of year............          65
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         824         809         784
    69.27   Capital transfer to general fund        -800        -791        -767
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          24          18          17
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          51          45          45
    73.10 Total new obligations.............          17          18          17
    73.20 Total outlays (gross).............         -12         -18         -17
    73.45 Recoveries of prior year
            obligations.....................         -11
    74.40 Obligated balance, end of year....          45          45          45
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          12          18          17
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Rent on acquired property...          -1          -1          -1

    [[Page 110]]

    88.40       Guaranteed insurance
                  purchased from holders--
                  principal.................          -1          -1          -1
    88.40       Interest on loans...........        -280        -285        -285
    88.40       Guaranteed loss recoveries..          -2          -1          -1
    88.40       Interest on judgments.......          -2          -2          -2
    88.40       Repayments on loans--
                  principal.................        -491        -455        -430
    88.40       Judgments--principal........         -14          -9          -9
    88.40       Shared appreciation
                  recapture.................          -9         -14         -14
    88.40       Sale of acquired property/
                  chattels..................         -28         -40         -40
    88.40       Undistributed receipts......           4          -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -824        -809        -784
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -800        -791        -767
    90.00 Outlays...........................        -812        -791        -767
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       5,067       4,463       3,825
    1251  Repayments: Repayments and
            prepayments.....................        -491        -455        -430
    1261  Adjustments: Capitalized interest.          26          14          13
    1263  Write-offs for default: Direct
            loans...........................        -139        -197        -191
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       4,463       3,825       3,217
    ---------------------------------------------------------------------------
        \1\ Amounts shown are based on payment of delinquent installments,
    advances on behalf of borrowers, acquired property and chattels, loans
    in kind, and judgments.

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         471         411         344
    2251  Repayments and prepayments........         -33         -65         -50
          Adjustments:

    2263    Terminations for default that
              result in claim payments......         -36          -2          -2
    2264    Other adjustments, net..........           9
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         411         344         292
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         341         310         263
    ---------------------------------------------------------------------------

        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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         149            146           150            150
    0102  Expense...........................        -196           -165          -110           -110
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............         -47            -19            40             40
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4140-0-3-351    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................          97            109            90             90
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       5,067          4,463         3,825          3,217
    1602    Interest receivable.............         130            135           134            134
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -904           -900          -850           -850
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............       4,293          3,698         3,109          2,501
    1606    Foreclosed property.............          67             54            54             54
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       4,360          3,752         3,163          2,555
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       4,457          3,861         3,253          2,645
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............       4,339          3,745         3,147          2,539
          Non-Federal liabilities:

    2201    Accounts payable................         107            106            96             96
    2207    Other...........................          11             10            10             10
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       4,457          3,861         3,253          2,645
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       4,457          3,861         3,253          2,645
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           6           7           7
    33.0  Investments and loans.............           5           7           6
    43.0  Interest and dividends............           6           4           4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          17          18          17
    ---------------------------------------------------------------------------

                          COMMODITY CREDIT CORPORATION

                                  Corporations

        The following corporations and agencies are hereby authorized to
    make expenditures, within the limits of funds and borrowing authority
    available to each such corporation or agency and in accord with law, and
    to make contracts and commitments without regard to fiscal year
    limitations as provided by section 104 of the Government Corporation
    Control Act as may be necessary in carrying out the programs set forth
    in the budget for the current fiscal year for such corporation or
    agency, except as hereinafter provided. (Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies Appropriations Act,
    2002.)

                                  Federal Funds

    Public enterprise funds:

                        Commodity Credit Corporation Fund

                      reimbursement for net realized losses

        For fiscal year [2002] 2003, 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

                            (limitation on expenses)

        For fiscal year [2002] 2003, 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, 42 U.S.C. 9607(g), and
    section 6001 of the Resource Conservation and Recovery Act, 42 U.S.C.
    6961. (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2002.)

    [[Page 111]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-0-3-999      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Support and related programs:

            Operating expenses:
    00.01     Commodity purchases and
                related inventory
                transactions................       3,827       4,733       3,620
    00.02     Storage, transportation and
                other obligations...........         317         118         103
    00.03     Export enhancement program....           5         478         478
    00.04     Market access program.........          96          90          90
    00.05     Dairy export incentive program          25          39          62
    00.06     Section 416/Food for progress
                ocean transportation........         362         320           8
    00.07     Foreign market development
                cooperative.................          30          28          28
    00.08     Quality samples program.......           1           2           3
              Direct producer payments:
    00.10       Feed grains.................       6,371       3,322       2,137
    00.11       Wheat.......................       2,505       1,074       1,046
    00.12       Rice........................         896         658         662
    00.13       Cotton......................       1,584       1,420         766
    00.14       Tobacco.....................         471           5
    00.15       Peanuts.....................         118
    00.16       Senior's farmers market.....          15
    00.17       Wool and mohair.............          46
    00.18       Honey.......................          23
    00.19       Dairy marketing loss
                  assistance................         673
    00.20       Dairy option pilot program..           2          14           2
    00.22       Noninsured assistance
                  program...................          64         155         199
    00.23       Oilseeds loan deficency.....       2,884       3,150       2,209
    00.24       Certificates Issued.........         106         104
    00.25       Other market loss assistance
                  payments..................         134         113
    00.26       Marketing loan writeoffs....         721         822         459
    00.27       State payment transfers.....         184           5
    00.28       Poulte enteritis............           2
    00.29       Crop disaster...............       1,848          94
    00.30       Livestock assistance........         427
    00.32       Disaster reserve assistance/
                  American Indian livestock
                  feed......................           6           8
    00.33       Disaster reserve flood
                  compensation..............          44          26
    00.34       BioEnergy program...........          26         150
    00.35     Conservation reserve program
                (CRP).......................       1,623       1,801       1,856
              Other conservation programs:
    00.37       Klamath/Yakima basin........          22
    00.38       Environmental quality
                  incentives program (EQIP).         124         150         160
    00.39       Wetlands reserve program
                  (WRP).....................         163          -4
    00.40       Farmland protection program
                  (FPP).....................          17           1
    00.41       Conservation farm option....                                  56
    00.42       Soil and water conservation
                  program...................          20
    00.43       Agricultural management
                  assistance program........                       4           4
    00.44     Reimbursement agreement and
                transfers to State and
                Federal agencies............          51          56          56
              Interest:
    00.45       Treasury....................         427         277         356
    00.46       Other.......................          33          30          29
    00.47     EQIP technical assistance.....          38          35          38
    00.48     EQIP educational assistance...           2           1           2
    00.49     CRP technical assistance......          32          17
    00.50     WRP technical assistance......          14
    00.51     FPP technical assistance......           1
    00.52     AMA technical assistance......           2           3           3
                                               ---------   ---------  ----------
    01.92     Total support and related
                programs....................      26,382      19,299      14,432
          Reimbursable program:

    09.01   Commodity loans.................       8,267      10,624       8,844
    09.03   Reimbursable program............         401         500         555
    09.04   P. L. 480 ocean transportation..         547         559         685
                                               ---------   ---------  ----------
    09.09   Subtotal, reimbursable programs.       9,215      11,683      10,084
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      35,597      30,982      24,516
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,064         996       1,020
    22.00 New budget authority (gross)......      35,957      31,006      24,343
    22.21 Unobligated balance transferred to
            other accounts..................         -25
    22.60 Portion applied to repay debt.....        -404
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      36,592      32,002      25,363
    23.95 Total new obligations.............     -35,597     -30,982     -24,516
    24.40 Unobligated balance carried
            forward, end of year............         996       1,020         847
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................      25,077      20,279      16,285
    40.47   Portion applied to repay debt...     -24,742     -20,128     -16,458
    41.00   Transferred to other accounts...        -335        -151
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                                -173
          Mandatory:

    67.10   Authority to borrow.............      23,643      17,663      11,481
    69.00 Offsetting collections (cash).....      12,314      13,343      13,035
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      35,957      31,006      24,343
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       3,293       2,570       2,794
    73.10 Total new obligations.............      35,597      30,982      24,516
    73.20 Total outlays (gross).............     -36,601     -30,758     -24,750
    73.40 Adjustments in expired accounts
            (net)...........................         281
    74.40 Obligated balance, end of year....       2,570       2,794       2,560
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................      23,408       8,756      11,333
    86.98 Outlays from mandatory balances...      13,194      22,002      13,417
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      36,601      30,758      24,750
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

    88.00         Sales to special
                    activities..............        -402        -501        -555
    88.00         Advance from foreign
                    assistance programs
                    (P.L. 480)..............        -872        -850      -1,185
    88.00         Interest revenue..........         -15
              Non-Federal sources (62
                  stat.1070): Support and
                  related programs:
                Non-Federal sources:

    88.40         Sales and other proceeds..        -255        -487        -564
    88.40         Assessments...............                     -41         -44
    88.40         Interest revenue..........        -117         -68        -124
    88.40         Other revenue and
                    certificates redeemed...        -491
    88.40         Loans repaid..............      -8,258      -9,480      -8,556
    88.40         Export credit sales
                    program repayments......         -14         -17         -22
    88.40         Commodity certificates
                    redeemed................      -1,890      -1,899      -1,985
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........     -12,314     -13,343     -13,035
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      23,643      17,663      11,308
    90.00 Outlays...........................      24,288      17,415      11,715
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2001 actual  2002 est.   2003 est.
    Enacted/requested:
      Budget Authority..................      23,643      17,663      11,308
      Outlays...........................      24,288      17,415      11,715
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                   4,640       7,825
      Outlays...........................                   4,200       7,271
                                        ------------------------------------
    Total:
      Budget Authority..................      23,643      22,303      19,133
      Outlays...........................      24,288      21,615      18,986
                                        ====================================

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-0-3-999      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
              SHORT TERM CREDIT LOANS
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         364         350         333
    1251  Repayments: Repayments and
            prepayments.....................         -14         -17         -22
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         350         333         311
    ----------------------------------------------------------------------------

              COMMODITY LOANS
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................       8,267      10,624       8,844
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       8,267      10,624       8,844
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       3,070       1,896       2,602
    1231  Disbursements: Direct loan
            disbursements...................       8,267      10,624       8,844
    1251  Repayments: Repayments and
            prepayments.....................      -8,257      -9,480      -8,555

    [[Page 112]]

    1264  Write-offs for default: Other
            adjustments, net................      -1,184        -438        -756
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,896       2,602       2,135
    ----------------------------------------------------------------------------

              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 2002 and 2003 budget estimates: (a) national
    income will rise both in 2002 and 2003 from the present level; (b) 2002
    crop production will increase from 2001 crop levels for some
    commodities; (c) generally, exports of agricultural commodities in 2003
    are expected to be higher than 2002 levels; (d) yields for the 2002
    crops are based on recent averages adjusted for trends; (e) acreage
    allotments and marketing quotas will be in effect for the 2002 crops of
    certain kinds of tobacco; and (f) poundage quotas will be in effect for
    the 2002 crop of peanuts.

        It is difficult to accurately forecast requirements for the year
    ending September 30, 2003, 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 from 33.6 million acres at
    the end of 2001 to 36.4 million acres. 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.

        CRP continuous signup acreage, which contributes to the USDA
    Conservation Buffer Initiative and the Conservation reserve enhancement
    program (CREP), is estimated to enroll 4 million acres. During 2001,
    about 435,000 acres were signed up for continuous practices in signup
    23. Technical assistance for these signups was paid with funds for 2001
    provided in the 2001 Agriculture Appropriations Act.

        The 2001 Appropriations Act authorized the Secretary to enroll
    500,000 acres during 2001 and 2002 for a Farmable Wetlands Pilot Program
    and required that the acreage enrolled not reduce the continuous-signup
    or CREP acreage.

        A one-year contract extension for CRP participants with contracts of
    original duration of less than 15 years that are scheduled to expire
    September 20, 2002, is assumed.

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

                                  2003 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...................       8,844       3,741           0
      Feed grain payments...............       2,137       2,137       2,137
      Wheat payments....................       1,046       1,047       1,046
      Rice payments.....................         662         662         662
      Cotton payments...................         766         845         766
      Export enhancement program........         478         478         478
      Other support and related.........       8,023         172       4,530
    Other items not distributed by
        program:
      Interest..........................         385         228         261
      All other.........................          56         286          56
                                        ------------------------------------
          Total, farm income, marketing
            assistance loans, and price-
            support programs............      22,397       9,596       9,936
    Conservation programs:
      Conservation reserve program......       1,856       1,856       1,946
      Environmental quality incentives
        program.........................         200         190         190
      Wetlands reserve program..........           0          57          57
      Farmland protection program.......           0           6           6
      Soil and water conservation
        program.........................                       3           3
      Conservation farm option program..          63           7           7
                                        ------------------------------------
        Total, conservation programs....       2,119       2,119       2,209
            Total, Commodity Credit
              Corporation...............      24,516      11,715      12,145
                                        ------------------------------------

                           programs of the corporation

        Price support, marketing assistance loans, and related stabilization
    programs.--The Corporation conducts programs to support farm income and
    prices and stabilize the market for agricultural commodities. Price
    support is provided to producers of agricultural commodities through
    loans, purchases, payments, and other means. This is done mainly under
    the Commodity Credit Corporation Charter Act, as amended, the
    Agricultural Act of 1949 (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. However, the
    budget assumes continued support at the 2002 level. Participants
    received a 50-percent advance payment for the 1996 crop within 30

    [[Page 113]]

    days after contract approval. The balance of the 1996 payment was issued
    by September 30, 1996. In subsequent years, participants receive final
    payments by September 30, with an option to receive advances on December
    15 or January 15. For 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.
    Current budget estimates assume continued funding in 2003. 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.

        Tobacco program.--The 2002 Appropriations Act provides payments to
    eligible persons for eligible tobacco under the same standards for
    payments as provided by the Agricultural Risk Protection Act of 2000
    (ARPA).

        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. The 2002
    Appropriations Act provides assistance to Minnesota sugar producers for
    losses incurred beyond those that may be compensated under existing
    programs.

        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.

        Noninsured assistance program.--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 (NAP),
    administered by the Farm Service Agency. As enacted, the program has
    been reimbursing producers at the same rates and terms as the
    catastrophic program where assistance is triggered by area wide
    disasters. The ARPA eliminated the area loss requirement for triggering
    assistance and made other changes including a provision that all types
    or varieties of a crop may be considered a single eligible crop for NAP
    assistance. The ARPA also authorizes the collection of service fees. NAP
    ARPA payments will continue in 2002.

        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 2002 Appropriations Act
    extended the price support program through May 31, 2002, at the $9.90
    per hundred-weight support level, which is the same level as the 2000
    and 2001 Appropriations Acts. 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 2002
    Appropriations Act permanently repealed Section 142 of the 1996 Act. 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.

        Emergency livestock feed assistance.--The 2001 Appropriations Act
    provided $490 million to make and administer payments for livestock
    losses using the criteria established to carry out the 1999 LAP to
    producers for 2000 losses in a county which received an emergency
    designation after January 1, 2000. Of this amount, $40 million was
    designated for the Pasture Recovery Program, $12 million was used for
    the American Indian Livestock Feed Program, and $438 million was used
    for LAP and other assistance mandated by the 2001 Consolidated
    Appropriations Act, P.L. 106-554.

        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 and
    2000 crops.

        Livestock indemnity program.--The 2001 Appropriations Act provided
    $10 million to make LIP payments to producers on farms that have
    incurred livestock losses during calendar year 2000 due to a disaster,
    including losses due to fires and anthrax. This funding level was
    reduced by the 0.22 percent rescission in P.L. 106-554.

        Dairy market loss assistance II program.--Provisions of this program
    were implemented on January 19, 2000. U.S. dairy producers were
    experiencing a decline in the basic formula price, which is used by the
    Federal milk marketing order system to set manufacturing, and is the
    price mover for fluid milk. Under the 2001 Appropriations Act, $675
    million was authorized for payment to dairy producers.

    [[Page 114]]

        Emergency and market loss assistance.--Under provisions of Title XI,
    Subtitle A, this assistance is provided fairly and equitably to
    producers who have incurred crop and livestock losses in all affected
    geographic regions of the United States. The Secretary may determine (1)
    one or more loss thresholds producers on a farm must incur, with respect
    to a crop, to be eligible for assistance, (2) the payment rate for crop
    and livestock feed losses incurred, and (3) eligibility and payment
    limitation criteria. This is in addition to AMTA and NAP (crop insurance
    indemnities provided for the 1998 crops under the Federal Crop Insurance
    Act, and emergency loans available for 1998 crops under subtitle C of
    the Consolidated Farm and Rural Development Act).

        Crop loss assistance.-- The 2001 Appropriations Act authorized such
    sums as are necessary, which amounted to $1.8 billion for CY 2001
    losses. There are no crop loss provisions in the 2002 Appropriations
    Act.

        The Agricultural Economic Assistance Act of 2001, P.L. 107-25,
    authorized the following payments in 2001 to producers (in millions).

    Supplemental oilseeds payments....................                $424
    Supplemental peanut payments......................                  54
    Supplemental tobacco payments.....................                 129
    Supplemental wool and mohair payments.............                  17
    Supplemental cottonseed assistance................                  85
    Specialty crops--base state grants................                  26
    Specialty crops grants for value of production....                 133
    Commodity assistance program......................                  10

        Bioenergy program.--During 2002, CCC will provide incentive
    payments, to ethanol, biodiesel, and other bioenergy producers to expand
    production of bio-based fuels. A $150 million program level is estimated
    for 2002. This program is authorized by the CCC Charter Act. No program
    is proposed and no funds are available for any program beyond 2002.

        Agricultural management assistance program.--The Agricultural Risk
    Protection Act of 2000 authorized CCC funding of $10 million for 2001
    and subsequent years to provide grants to qualified public and private
    entities for the purpose of educating agricultural producers about the
    full range of risk management activities, including futures, options,
    agricultural trade options, crop insurance, cash forward contracting,
    debt reduction, production diversification, farm resources risk
    reduction, and other risk management strategies. The Secretary delegated
    authority to Natural Resources Conservation Service, Risk Management
    Agency, and the Agricultural Marketing Service.

        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
    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
    1999, 2000 and 2001 program levels have been limited to $174 million by
    the appropriations acts. The 2001 Consolidated Appropriations Act, P.L.
    106-554, then provided $26 million in contingent emergency funds, with
    $57 thousand rescinded, making $199.9 million the total amount available
    in 2001. In 2002, $200 million is available for EQIP; $13 million of
    this amount is available for transfer to CRP.

        The Farmland Protection Program (FPP) assists State, local, and
    tribal governments and nonprofit organizations in purchasing
    conservation easements. The Agricultural Risk Protection Act of 2000
    provided for payments using CCC funds totaling $10 million for 2001. The
    2002 Appropriations Act authorized purchase of conservation easements in
    three Kentucky counties.

        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.

        Section 211(b) of the Agricultural Risk Protection Act of 2000
    provides an additional $40 million for soil and water conservation
    assistance to provide financial assistance to farmers and ranchers to
    address a wide range of threats to soil, water and related natural
    resources. The 2001 Consolidated Appropriations Act gave the Secretary
    the authority to reallocate these funds to WHIP or FPP; $8 million in
    additional funds was provided for FPP, bringing its total 2001 funding
    level to $18 million, and $12 million was allocated to WHIP.

        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. Total
    authorized funding is $197.5 million. However, no obligations were
    incurred in 1997-2002. In 1999-2002, appropriations acts precluded
    operations of the CFO.

        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

    [[Page 115]]

    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.

        The 2001 Appropriations Act raised the enrollment cap by 100,000
    acres to 1,075,000 acres; this enrollment cap was reached in 2001. In
    2002, no additional acres will enroll, and only the monitoring of
    enrolled acres is authorized.

        ARPA authorized $20 million for the Soil and Water Conservation
    Program. Financial assistance is available to farmers and ranchers to
    address threats to natural resources, comply with Federal and State
    environmental laws, and make beneficial, cost-effective changes to
    conserve and improve natural resources.

        The 2001 Supplemental Appropriations Act, P.L. 107-20, authorized
    the Klamath Basin Water Conservation Program and made available $20
    million in financial assistance to eligible producers to promote water
    conservation in the Klamath Basin, Oregon.

        The 2001 Supplemental Appropriations Act, P.L. 107-20, authorized
    the Yakima Basin Water Conservation Program and made available $2
    million in financial assistance to eligible producers to promote water
    conservation in the Yakima Basin, Washington.

        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. USDA will not purchase commodities for
    donation purposes in 2003. No such donation program is proposed for
    2003. Instead discretionary funding has been added to the P.L. 480 Title
    II Appropriation to provide for donation needs. In the 2003 budget, CCC-
    owned commodities will be available for the regular Section 416(b)
    program when inventory stocks are available.

        The Flood Compensation Program was authorized in the Agricultural
    Risk Protection Act of 2000. $24 million of CCC will be used to
    compensate producers for the loss of cropland or pastureland due to
    long-term flooding. This program provides assistance for producers who
    are experiencing losses due to flooding but were not compensated by the
    Flood Compensation Program authorized by the 1998 Omnibus Appropriation.

        The 2001 Supplemental Appropriations Act, P.L. 107-20, authorized
    $23 million for the Global Food for Education Initiative. Under this
    program, USDA donates surplus commodities for use in school feeding and
    pre-school nutrition projects in developing countries. Financial
    assistance for internal transportation, storage and handling and
    administrative expenses, as determined by the Secretary, is available.

        Supply and foreign purchases.--The Corporation can procure from
    domestic and foreign sources food, agricultural commodities, and
    products and related materials to supply the needs of Federal agencies,
    foreign governments, and private and international relief agencies,
    under section 5 (b) and (c) of the Commodity Credit Corporation Charter
    Act, as amended.

        No purchase program is proposed for international food donations for
    2003.

        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. The
    Budget assumes that CCC will purchase commodities for use in the Food
    for Progress program only through 2002 at a level that can be supported
    within the annual $30 million limitation on Food for Progress ocean
    transportation and other non-commodity expenses.

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

                            [In millions of dollars]

                    Item                 2001 actual  2002 est.   2003 est.
    Loans outstanding, gross, start of
        year:
      Commodity Credit Corporation......       3,071       1,896       2,602
      Additional loans made.............       8,267      10,624       8,844
    Deduct:
      Loans repaid......................      -8,258      -9,481      -8,555
      Acquisition of loan collateral....      -1,085        -437        -756
      Write-offs........................         -99           0           0
                                        ------------------------------------
          Total loans outstanding,
            gross, end of year..........       1,896       2,602       2,135
                                        ====================================

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

                            AGRICULTURAL COMMODITIES

                            [In millions of dollars]

                    Item                 2001 actual  2002 est.   2003 est.
    On hand, start of year, gross.......       1,204       2,285       1,890
                                        ====================================
    Acquisitions:
      Forfeiture of loan collateral.....       1,085         437         756
      Excess of collateral acquired over
        loans canceled..................           2          36          77
      Purchases.........................       3,779       4,655       3,521
      Transfers and exchanges...........          13           0           0
    Carrying charges:
      Charges to inventory..............          33          42          22
      Storage and handling (non-add)....        (75)        (86)        (86)
      Transportation (non-add)..........        (13)        (10)        (11)
                                        ------------------------------------
          Total acquisitions............       4,912       5,170       4,376
                                        ====================================
    Dispositions:
      Domestic donations to:
        Families........................          31          52          46
        Institutions....................          27          48          38
        School lunch....................           0          22          22
                                        ------------------------------------
          Total domestic donations......          58         122         106
                                        ====================================
      Export donations..................         517         889          57
      Sales and transfers:
        Special programs: Title II,
          Public Law 480................         398         500         555
        Title III, Public Law 480.......           3           0           0
        Other sales.....................       2,239       2,275       2,541
        Net loss or gain (-) on sales
          and transfers.................         616       1,779       1,245
                                        ------------------------------------
          Total sales and transfers.....       3,256       4,554       4,341
                                        ====================================

    [[Page 116]]

          Total dispositions............       3,831       5,565       4,504
                                        ====================================
    On hand, end of year, gross.........       2,285       1,890       1,762
    Allowances for losses...............        -847        -700        -653
                                        ------------------------------------
    On hand, end of year, net...........       1,438       1,190       1,109
                                        ====================================

        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                 2001 actual  2002 est.   2003 est.
    Loans made..........................       8,267      10,624       8,844
    Loans repaid........................       8,258       9,480       8,555
    Loan collateral forfeited...........       1,085         437         756
    Loans outstanding, end of year......       1,896       2,602       2,135
    Acquisitions........................       4,912       5,170       4,376
    Cost of commodities sold............       3,256       4,554       4,341
    Cost of commodities donated.........         576       1,011         163
    Inventory, end of year..............       2,285       1,890       1,762
    Investment in loans and inventory,
    end of year.........................       4,181       4,492       3,897
    Direct producer payments............      21,118      11,713       9,175
    Net expenditures....................      22,099      17,415      11,715
    Realized losses.....................      23,380      17,749      12,145

        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 1996,
    and $275 million for the six-year period including 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. At the end of 2000, CCC had $2 million to carry forward to
    2001. The remaining funds were nearly exhausted in 2001.

        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 1995 were $46 million. The 1995 cap was revised to $36.209
    million effective 1999 to exclude the Emerging Markets Program because
    such transfers are not made pursuant to Section 11 of the CCC Charter
    Act. In 2001, the Section 11 cap was increased to $56 million to include
    FSA loan service fees.

        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:

                                             2003 estimate [In millions of
                                                        dollars]
                                             -----------------------------
                      Item                       Gross          Outlays
                                              obligations   (reimbursable)
    (1) Financing sales of agricultural
     commodities for foreign currencies or
     for dollars on credit terms............           150             160
    (2) Commodities supplied in connection
     with dispositions abroad (Title II)....         1,185           1,063
                                             -------------  --------------

       Total................................         1,335           1,223
                                             -------------  --------------

        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

    [[Page 117]]

    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                 2001 actual  2002 est.   2003 est.
    Statutory borrowing authority.......      30,000      30,000      30,000
    Deduct: Borrowings from Treasury....      22,550      25,034      24,974
    Net statutory borrowing authority
    available...........................       7,450       4,966       5,026

        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]
                                                      2001 actual
    Realized losses, 1933 to 2001, inclusive                       339,223
     Reimbursements by the Treasury:
      Reimbursements of realized losses:
       Appropriations (62 times)............       313,977
       Note cancellations (6 times).........         2,697
       Less dividends paid to Treasury (4
        times)..............................          -138
                                             -------------  --------------

        Total reimbursements for net
         realized losses....................       316,536
                                             -------------  --------------

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

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

      Total.................................                       317,134
                                             -------------  --------------

    Realized deficit as of September 30,
     2001, support and related programs.....                        22,089
                                             -------------  --------------

        Foreign Market Development Cooperator Program (FMDCP) and Quality
    Samples Program. In 2000, funding for the FMDCP shifted from the Foreign
    Agricultural Service annual appropriation to CCC funding. The FMDCP
    encourages export promotion and overseas market development activities
    of U.S. agricultural products. The 2001 program level of $27.5 million
    remains constant in 2002. Also in 2001, CCC funded the Quality Samples
    Program at an authorized annual level of $2.5 million, and the program
    continues to be funded at the $2.5 million level in 2002. Under this
    program, samples of U.S. agricultural products are 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.'' CCC announced on
    February 8, 2000, that commodity certificates will be issued in an
    effort to discourage producers from forfeiting commodities pledged as
    collateral for CCC commodity loans. Certificates are used to repay 1998-
    2002 crop marketing assistance loans when the adjusted world price (for
    rice and upland cotton) or the posted county price (for wheat, feed
    grains, soybeans, and designated minor oilseeds) is lower than the
    applicable loan rate.

        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 resumed
    the program in 2000 due to a current shortage of sufficient storage
    space. The estimated direct loan level is $125 million for FY's 2002 and
    2003, and $100 million for FY's 2004 through 2007. The cost to the U.S.
    government (subsidy) for the FSFL program is estimated using procedures
    stipulated by the Federal Credit Reform Act of 1990.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4336-0-3-999    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................       1,704          1,507         3,308          3,565
    0102  Expense...........................     -30,955        -24,887       -21,057        -15,710
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............     -29,251        -23,380       -17,749        -12,145
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4336-0-3-999    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....      -1,508         -1,220        -1,220         -1,220
            Investments in US securities:
    1106      Receivables, net..............         441            925           925            925
          Non-Federal assets:

    1206    Receivables, net................         111            413           413            413
    1207    Advances and prepayments........          19            175           175            175
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       3,464          1,896         1,795          1,795
    1602    Interest receivable.............         525            275           275            275
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -180           -285          -180           -180
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............       3,809          1,886         1,890          1,890
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       3,809          1,886         1,890          1,890
          Other Federal assets:

    1802    Inventories and related
              properties....................         846            878           878            878
    1803    Property, plant and equipment,
              net...........................          16             19            19             19
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       3,734          3,076         3,080          3,080
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................         704            475           475            475
    2102    Interest payable................           6            123           123            123
    2103    Debt............................      22,949         22,732        10,670          9,793
    2105    Other...........................         527            731           650            527
          Non-Federal liabilities:

    2201    Accounts payable................          22             27            22             22
    2207    Other...........................       4,459          2,696         1,334          1,334
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      28,667         26,784        13,274         12,274
        NET POSITION:
    3300  Cumulative results of operations..     -24,933        -23,708       -10,194         -9,194
                                            ------------ --------------  ------------  -------------

    [[Page 118]]

    3999    Total net position..............     -24,933        -23,708       -10,194         -9,194
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       3,734          3,076         3,080          3,080
    -----------------------------------------------------------------------------------------------
        Note.--In addition to obligations other than liabilities, the
    Corporation does not reflect in its accounts claims by the Corporation
    on which adequate proof has not been established.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-0-3-999      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    22.0    Transportation of things........         375         330          18
            Other services:
    25.2      Other services................         369         135         105
    25.2      Other services: Storage and
                handling....................          75          86          86
    26.0    Supplies and materials: Costs of
              commodities sold or donated:
              P.L. 480......................       3,828       4,733       3,620
    41.0    Grants, subsidies, and
              contributions.................      21,275      13,708      10,217
    43.0    Interest and dividends..........         460         307         386
                                               ---------   ---------  ----------
    99.0      Direct obligations............      26,382      19,299      14,432
          Reimbursable obligations:

    22.0    Transportation of things: P. L.
              480 ocean transportation......         547         559         685
    26.0    Supplies and materials: Cost of
              commodities sold or donated:
              P. L. 480.....................         401         500         555
    33.0    Investments and loans...........       8,267      10,624       8,844
                                               ---------   ---------  ----------
    99.0      Reimbursable obligations......       9,215      11,683      10,084
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      35,597      30,982      24,516
    ---------------------------------------------------------------------------

                        Commodity Credit Corporation Fund

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-4-3-999      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Support and related programs:

    00.01   Farm income stabilization
              programs......................                   4,021       6,745
    00.02   Conservation programs...........                     619       1,080
                                               ---------   ---------  ----------
    01.92     Total support and related
                programs....................                   4,640       7,825
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                   4,640       7,825
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                   4,640       7,825
    23.95 Total new obligations.............                  -4,640      -7,825
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............                   4,640       7,825
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                 440
    73.10 Total new obligations.............                   4,640       7,825
    73.20 Total outlays (gross).............                  -4,200      -7,271
    74.40 Obligated balance, end of year....                     440         994
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                   4,200       7,044
    86.98 Outlays from mandatory balances...                                 227
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                   4,200       7,271
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                   4,640       7,825
    90.00 Outlays...........................                   4,200       7,271
    ---------------------------------------------------------------------------

        The Budget includes $73.5 billion in budget authority over a ten
    year period for a farm bill that will provide a solid safety net for
    farmers and ranchers, expand markets abroad for American agricultural
    products, increase conservation of natural resources and improve
    domestic food assistance. This funding will provide additional farm
    support payments, increased funding for conservation programs, improve
    the food stamp program, enable the establishment of Federal farm and
    ranch risk management accounts, as well as increasing support for other
    USDA programs, including research and rural development.

            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,
    [$4,014,000] $4,058,000; 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
    $3,224,000 may be transferred to and merged with the appropriation for
    ``Foreign Agricultural Service, Salaries and Expenses'', and of which
    [$790,000] $834,000 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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1336-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........         103         265         294
    00.07 Reestimates of guaranteed loan
            subsidy.........................                     120
    00.08 Interest on reestimates of
            guaranteed loan subsidy.........                      28
    00.09 Administrative expenses...........           4           4           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         107         417         298
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         345       2,405         436
    22.00 New budget authority (gross)......       2,167         417         298
    22.40 Capital transfer to general fund..                  -1,969
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,512         853         734
    23.95 Total new obligations.............        -107        -417        -298
    24.40 Unobligated balance carried
            forward, end of year............       2,405         436         436
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

            Appropriation:
    60.00     Appropriation.................         194         265         294
    60.00     Appropriation--upward
                reestimate..................                     148
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         194         413         294
    69.00 Downward reestimate...............       1,969
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,167         417         298
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         198         105         105
    73.10 Total new obligations.............         107         417         298
    73.20 Total outlays (gross).............        -201        -417        -292
    74.40 Obligated balance, end of year....         105         105         111
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           4           4           4
    86.97 Outlays from new mandatory
            authority.......................         142         360         235
    86.98 Outlays from mandatory balances...          55          53          53
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         201         417         292
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........      -1,969
    ----------------------------------------------------------------------------

    [[Page 119]]

        Net budget authority and outlays:
    89.00 Budget authority..................         198         417         298
    90.00 Outlays...........................      -1,769         417         292
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1336-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Export guarantee program..........       3,227       3,926       4,225
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......       3,227       3,926       4,225
        Guaranteed loan subsidy (in percent):
    232001Export Guarantee Program..........        6.01        6.80        6.96
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        6.01        6.80        6.96
        Guaranteed loan subsidy budget authority:
    233001Export Guarantee Program..........         194         267         294
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....         194         267         294
        Guaranteed loan subsidy outlays:
    234001Export Guarantee Program..........         197         267         288
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............         197         267         288
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235001Export Guarantee Program..........                     148
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................                     148
        Guaranteed loan upward reestimate subsidy
                    outlays:
    236001Export Guarantee Program..........                     148
                                               ---------   ---------  ----------
    236901Total upward reestimate subsidy
            outlays.........................                     148
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237001Export Guarantee Program..........      -1,969        -126
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................      -1,969        -126
        Guaranteed loan downward reestimate subsidy
                    outlays:
    238001Export Guarantee Program..........      -1,969        -126
                                               ---------   ---------  ----------
    238901Total downward reestimate subsidy
            outlays.........................      -1,969        -126
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority--administrative
            expenses........................           4           4           4
    359001Outlays 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 2003 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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................           4           4           4
    41.0  Grants, subsidies, and
            contributions...................         103         413         294
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         107         417         298
    ---------------------------------------------------------------------------

         Commodity Credit Corporation Export Guarantee Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4337-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          New loans:

    00.01   Default claims..................          52         334         325
    00.02   Interest on debt to Treasury....         104         104         104
                                               ---------   ---------  ----------
    00.91   Subtotal, new loans.............         156         438         429
          Reestimates:

    08.02   Reestimates of guaranteed loan
              subsidy.......................       1,410         118
    08.04   Interest on reestimates of
              guaranteed loan subsidy.......         559           8
                                               ---------   ---------  ----------
    08.91   Subtotal, reestimates...........       1,969         126
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,125         564         429
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,625         589         659
    22.00 New financing authority (gross)...       1,089         636         527
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,714       1,225       1,186
    23.95 Total new obligations.............      -2,125        -564        -429
    24.40 Unobligated balance carried
            forward, end of year............         589         659         757
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    60.36   Recissions--capital transfer....        -613
    67.10   Authority to borrow.............       1,108
    69.00 Offsetting collections (cash).....         489         636         527
    69.10 Receivable from Federal sources...         105
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................         594         636         527
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       1,089         636         527
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                    -105          42
    73.10 Total new obligations.............       2,125         564         429

    [[Page 120]]

    73.20 Total financing disbursements
            (gross).........................      -2,125        -417        -292
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -105
    74.40 Obligated balance, end of year....        -105          42         180
    87.00 Total financing disbursements
            (gross).........................       2,125         417         292
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.        -197        -415        -288
    88.25     Interest on uninvested funds..        -125         -28         -30
              Non-Federal sources:
    88.40       Loan origination fee........         -18         -26         -29
    88.40       Principal collections.......         -31         -48         -66
    88.40       Interest collections........        -118        -119        -114
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -489        -636        -527
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............        -105
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         495
    90.00 Financing disbursements...........       1,636        -219        -235
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4337-0-3-351      2001 actual   2002 est.   2003 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.................       3,227       3,926       4,225
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       3,227       3,926       4,225
    2199  Guaranteed amount of guaranteed
            loan commitments................       3,124       3,800       4,090
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       6,483       4,915       4,762
    2231  Disbursements of new guaranteed
            loans...........................       2,183       3,926       4,225
    2251  Repayments and prepayments........      -3,699      -3,745      -3,980
    2261  Adjustments: Terminations for
            default that result in loans
            receivable......................         -52        -334        -325
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       4,915       4,762       4,682
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       4,761       4,611       4,533
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......         464         485         771
    2331    Disbursements for guaranteed
              loan claims...................          52         334         325
    2351    Repayments of loans receivable..         -31         -48         -66
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         485         771       1,030
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from loan guarantees committed in 1992 and beyond. The amounts
    in this account are a means of financing and are not included in the
    budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4337-0-3-351    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

            Fund balances with Treasury:
    1101      Fund balances with Treasury...       1,625            589           659            757
    1101      Cash..........................           3
    1101      Accounts Receivable, net......          11          1,612
    1101      Adjustments...................                        168
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............       2,058            484           771          1,030
    1505    Allowance for subsidy cost (-)..        -977
                                            ------------ --------------  ------------  -------------
    1599      Net present value of assets
                related to defaulted
                guaranteed loans............       1,081            484           771          1,030
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,720          2,853         1,430          1,787
        LIABILITIES:
    2103  Federal liabilities: Debt.........       2,404          2,538           851            852
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.         316            315           579            935
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,720          2,853         1,430          1,787
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,720          2,853         1,430          1,787
    -----------------------------------------------------------------------------------------------

        Commodity Credit Corporation Guaranteed Loans Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4338-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         -20          84
    22.00 New budget authority (gross)......         104
    22.40 Capital transfer to general fund..                     -84
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          84
    24.40 Unobligated balance carried
            forward, EOY....................          84
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         423         393         384
    69.27   Capital transfer to general fund        -319        -393        -384
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         104
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Repayments of principal.....        -162        -184        -201
    88.40       Interest received on loans..        -250        -209        -183
    88.40       Non-Federal sources.........          -2
    88.40       Financing fund..............          -9
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -423        -393        -384
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -319        -393        -384
    90.00 Outlays...........................        -423        -393        -384
    ---------------------------------------------------------------------------
        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......       4,131       3,969       3,785
    2351    Repayments of loans receivable..        -162        -184        -201
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       3,969       3,785       3,584
    ---------------------------------------------------------------------------

        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.

    [[Page 121]]

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4338-0-3-351    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         110            120           125            130
    0102  Expense...........................
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............         110            120           125            130
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4338-0-3-351    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

            Fund balances with Treasury:
    1101      Fund balances with Treasury...         -20             84
    1101      Undepostied Collections.......          57             59
    1206  Non-Federal assets: Foreign Loans
            Receivables.....................       5,566          5,375         5,361          5,361
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1702    Interest receivable.............          55             30            30             30
    1703    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -3,398         -2,795        -3,019         -3,019
                                            ------------ --------------  ------------  -------------
    1799      Value of assets related to
                loan guarantees.............      -3,343         -2,765        -2,989         -2,989
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,260          2,753         2,372          2,372
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................           1              1
    2104    Resources payable to Treasury...       2,232          2,722         2,372          2,372
    2207  Non-Federal liabilities: Other....          27             30
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,260          2,753         2,372          2,372
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,260          2,753         2,372          2,372
    -----------------------------------------------------------------------------------------------

                   Farm Storage Facility Loans Program Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3301-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............           2           3           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           2           3           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           8          10
    22.00 New budget authority (gross)......           4           3           2
    22.40 Capital transfer to general fund..                     -10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          12           3           2
    23.95 Total new obligations.............          -2          -3          -2
    24.40 Unobligated balance carried
            forward, end of year............          10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................           4           3           2
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           1           3           2
    86.98 Outlays from mandatory balances...           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           2           3           2
    ----------------------------------------------------------------------------

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

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

    ----------------------------------------------------------------------------
    Identification code 12-3301-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Farm storage facility loans.......          86         125         125
                                               ---------   ---------  ----------
    115901Total direct loan levels..........          86         125         125
        Direct loan subsidy (in percent):
    132001Farm Storage Facility Loans.......        2.18        2.42        1.28
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        2.18        2.42        1.28
        Direct loan subsidy budget authority:
    133001Direct loan levels................           2           3           2
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....           2           3           2
        Direct loan subsidy outlays:
    134001Direct loan levels................           2           3           2
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............           2           3           2
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Farm Storage Facility Loans.......                      -2
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................                      -2
        Direct loan downward reestimate subsidy
                    outlays:
    138001Farm Storage Facility Loans.......                      -2
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................                      -2
    ---------------------------------------------------------------------------

        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 was implemented in 2000 by CCC under
    Section 504(c) of the Federal Credit Reform Act of 1990. This program
    provides 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)

    ----------------------------------------------------------------------------
    Identification code 12-4158-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................          81         125         125
    00.03 Interest to Treasury..............           5           9          15
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............          86         134         140
    08.02 Payment of downward re-estimate to
            receipt account.................                       2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          86         136         140
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                      40

    [[Page 122]]

    22.00 New financing authority (gross)...         128         136         140
    22.40 Capital transfer to general fund..                     -40
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         128         136         140
    23.95 Total new obligations.............         -86        -136        -140
    24.40 Unobligated balance carried
            forward, end of year............          40
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............         372         133         138
          Offsetting collections (cash):

    69.00   Payments from program account...           2           3           2
    69.00   Interest from Treasury..........          16          25          25
    69.00   Principal.......................           2          36          36
    69.00   Interest........................           1           8           8
    69.10 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           2
    69.27 Capital transfer to general fund..                     -69         -69
    69.47 Portion applied to repay debt.....        -267
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................        -244           3           2
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         128         136         140
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          67          77           3
    73.10 Total new obligations.............          86         136         140
    73.20 Total financing disbursements
            (gross).........................         -77        -210        -140
    73.40 Adjustments in expired accounts
            (net)...........................           3
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -2
    74.40 Obligated balance, end of year....          77           3           3
    87.00 Total financing disbursements
            (gross).........................          77         210         140
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -2          -3          -2
    88.25     Interest on uninvested funds..         -16         -25         -25
              Non-Federal sources:
    88.40       Principal collections.......          -2         -36         -36
    88.40       Interest collections........          -1          -8          -8
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -21         -72         -71
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          -2
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         105          64          69
    90.00 Financing disbursements...........          55         138          69
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4158-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................          81         125         125
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          81         125         125
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          32          78         198
    1231  Disbursements: Direct loan
            disbursements...................          48         156         125
    1251  Repayments: Repayments and
            prepayments.....................          -2         -36         -36
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          78         198         287
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4158-0-3-351    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..          32             78           198            287
    1405    Allowance for subsidy cost (-)..          -2             -4            -7             -9
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          30             74           191            278
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          30             74           191            278
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............          30             74           191            278
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          30             74           191            278
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          30             74           191            278
    -----------------------------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond (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.

                           Apple Loans Program Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3302-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.22 Unobligated balance transferred
            from other accounts.............           5
    23.95 Total new obligations.............          -1
    23.98 Unobligated balance expiring or
            withdrawn.......................          -4
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           1
    ----------------------------------------------------------------------------

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

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

    ----------------------------------------------------------------------------
    Identification code 12-3302-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Apple loan program................          12
                                               ---------   ---------  ----------
    115901Total direct loan levels..........          12
        Direct loan subsidy (in percent):
    132001Apple loan program................       -4.80
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       -4.80
        Direct loan subsidy budget authority:
    133001Apple loan program................          -1
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....          -1
        Direct loan subsidy outlays:
    134001Apple loan program................           1
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............           1
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Apple loan program................                      -1
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................                      -1

    [[Page 123]]

        Direct loan downward reestimate subsidy
                    outlays:
    138001Apple loan program................                      -1
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................                      -1
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................
    358001Outlays from balances.............
    359001Outlays from new authority........
    ---------------------------------------------------------------------------

        The Agricultural Risk Protection Act of 2000 authorized up to $5
    million for the cost to provide loans to producers of apples for
    economic losses as the result of low prices for apples. Although the
    program is funded through CCC, program management is performed through
    farm loan programs. No funding is provided for this program in 2002, and
    none is requested for 2003.

        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.

                    Apple Loans Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4211-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................          12
    00.04   Interest on Treasury borrowing..           4
                                               ---------   ---------  ----------
    00.91   Subtotal, operating program.....          16
    08.02 Downward reestimates of subsidy...                       1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          16           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...          66           4           4
    22.60 Portion applied to repay debt.....         -50          -3          -4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          16           1
    23.95 Total new obligations.............         -16          -1
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............          61
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           5           4           4
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          66           4           4
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                       1
    73.10 Total new obligations.............          16           1
    73.20 Total financing disbursements
            (gross).........................         -15          -2
    74.40 Obligated balance, end of year....           1
    87.00 Total financing disbursements
            (gross).........................          15           2
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -1
    88.25     Interest on uninvested funds..          -4
    88.40     Principal repayments..........                      -4          -4
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -5          -4          -4
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          61
    90.00 Financing disbursements...........          10          -2          -4
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4211-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........          12
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          12
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........                      11           8
    1231  Disbursements: Direct loan
            disbursements...................          11           1
    1251  Repayments: Repayments and
            prepayments.....................                      -4          -4
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          11           8           4
    ---------------------------------------------------------------------------

        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   12-4211-0-3-351    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................                         35
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..                         11             8              4
    1405    Allowance for subsidy cost (-)..                         -1            -6             -4
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....                         10             2
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                         45             2
        LIABILITIES:
    2103  Federal liabilities: Debt.........                         45             2
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                         45             2
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                         45             2
    -----------------------------------------------------------------------------------------------

                   Emergency Boll Weevil Loan Program Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3303-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............           6
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.22 Unobligated balance transferred
            from other accounts.............           6
    23.95 Total new obligations.............          -6
    ----------------------------------------------------------------------------

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

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

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

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

    ----------------------------------------------------------------------------
    Identification code 12-3303-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Emergency boll weevil loan program          10
                                               ---------   ---------  ----------

    [[Page 124]]

    115901Total direct loan levels..........          10
        Direct loan subsidy (in percent):
    132001Subsidy rate......................       60.00
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       60.00
        Direct loan subsidy budget authority:
    133001Subsidy budget authority..........           6
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....           6
        Direct loan subsidy outlays:
    134001Subsidy outlays...................           6
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............           6
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................
    358001Outlays from balances.............
    359001Outlays from new authority........
    ---------------------------------------------------------------------------

        The Agricultural Risk Protection Act of 2000 authorized CCC funding
    to make an interest-free loan to the Texas Boll Weevil Eradication
    Foundation, Inc., to enable the Foundation to retire certain debt
    associated with boll weevil eradication zones which have ended their
    participation, in whole or in part, in the federally funded boll weevil
    eradication program. Although the program is funded through CCC, program
    management is performed through Farm Loan Programs. No funding is
    provided for this program in 2002, and none is requested for 2003.

        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.

               Emergency Boll Weevil Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4221-0-4-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................          10
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...          10           1           1
    23.95 Total new obligations.............         -10
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............           4
    69.00 Offsetting collections (cash).....           6           1           1
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          10           1           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............          10
    73.20 Total financing disbursements
            (gross).........................         -10
    87.00 Total financing disbursements
            (gross).........................          10
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -6
    88.40     Non-Federal sources: Principal
                repayments..................                      -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -6          -1          -1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           4
    90.00 Financing disbursements...........           4          -1          -1
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4221-0-4-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........          10
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          10
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........                      10           9
    1231  Disbursements: Direct loan
            disbursements...................          10
    1251  Repayments: Repayments and
            prepayments.....................                      -1          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          10           9           8
    ---------------------------------------------------------------------------

        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   12-4221-0-4-351    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................                          1
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..                         10             9              8
    1405    Allowance for subsidy cost (-)..                         -6            -5             -4
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....                          4             4              4
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                          5             4              4
        LIABILITIES:
    2103  Federal liabilities: Debt.........                          5             4              4
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                          5             4              4
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                          5             4              4
    -----------------------------------------------------------------------------------------------

                     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,
    [$779,000,000] $897,190,000, to remain available until expended (7
    U.S.C. 2209b), of which not less than [$8,515,000] $9,162,000 is for
    snow survey and water forecasting, and not less than [$9,849,000]
    $10,701,000 is for operation and establishment of the plant materials
    centers, and of which not less than $21,500,000 shall be for the grazing
    lands conservation initiative: 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

    [[Page 125]]

    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, 2002;
    additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1000-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Technical assistance............         673         737         787
    00.02   Soil surveys....................          84          89          90
    00.03   Snow survey and water
              forecasting...................           6           9           9
    00.04   Plant materials centers.........          10          11          11
    09.00 Reimbursable program..............         164         129         108
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         937         975       1,005
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          11          17
    22.00 New budget authority (gross)......         920         958       1,005
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          22
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         953         975       1,005
    23.95 Total new obligations.............        -937        -975      -1,005
    24.40 Unobligated balance carried
            forward, end of year............          17
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         761         829         897
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         759         829         897
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          78         129         108
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          83
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         161         129         108
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         920         958       1,005
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         139         165         128
    73.10 Total new obligations.............         937         975       1,005
    73.20 Total outlays (gross).............        -807      -1,011      -1,003
    73.45 Recoveries of prior year
            obligations.....................         -22
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -83
    74.40 Obligated balance, end of year....         165         128         130
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         739         865         904
    86.93 Outlays from discretionary
            balances........................          68         146          99
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         807       1,011       1,003
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -61        -111         -89
    88.40     Non-Federal sources...........         -17         -18         -19
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -78        -129        -108
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -83
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         759         829         897
    90.00 Outlays...........................         729         882         895
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         712         779         841
    90.00 Outlays...........................         682         832         839
    ---------------------------------------------------------------------------

        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.

        Technical assistance targeted towards nutrient management and water
    quality concerns associated with animal feeding will increase by $48
    million above the 2002 level to $128 million. These funds will help
    livestock producers develop comprehensive nutrient management plans.

        NRCS has initiated a performance goal pilot program that will be
    completed by April 2002. NRCS will use this analysis in establishing
    goals, strategies and managerial structures for targeting resources to
    have the greater impact. NRCS will emphasize State plans for targeting
    assistance in watersheds as part of the process. Funds are requested to
    pay the costs of personnel transferred from watershed and flood
    prevention operations and watershed surveys and planning.

                              MAIN WORKLOAD FACTORS

                                         2001 Actual  2002 est.   2003 est.
    Customers served, number............ 2.3 million   2 million   2 million
    Customers receiving onsite technical
    assistance, number..................     448,000     340,000     340,000
    Conservation systems planned to the
    RMS level, acres....................25.9 million  17 million  17 million
    Conservation plans applied to the
    RMS level, acres....................21.5 million  19 million  19 million

        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 on the soil
    resources of the Nation's private lands. NRCS provides this information
    as electronic and printed publications for use by the American public
    and other Federal, State and local agencies in making land-use
    decisions. NRCS uses the information for program development, resource
    conservation planning, and installation of planned practices. NRCS
    provides national leadership for the National Cooperative Soil Survey
    and digitizing of soil surveys in cooperation with States, and other
    users of soil survey data. Legislation requires that the Secretary shall
    make a reasonable effort to assure that ``a substantial portion of the
    survey costs for NRCS are to be reimbursed by survey recipients.''

                              MAIN WORKLOAD FACTORS

                                         2001 actual  2002 est.   2003 est.
    Acres mapped annually (millions)....  24,365,174  22,000,000  20,000,000
    Soil surveys ready for publication
    (number)............................          25          80          80

        Snow survey water forecasting.--Water supply forecasts prepared from
    snow surveys in western states are used in mak

    [[Page 126]]

    ing efficient seasonal use of water for irrigation, flood control, fish
    and wildlife, recreation, power generation, municipal and industrial
    water supply, and water quality management.

        Operation of plant materials centers.--The selection and evaluation
    of plant materials are made at 26 plant materials centers through field
    trials to determine their suitability for erosion control, conservation,
    and other environmental improvements. Native plant species will be
    preferred and exotic species introductions phased out for this program.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1000-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         415         434         472
    11.3      Other than full-time permanent           8           8           9
    11.5      Other personnel compensation..           5           5           5
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         428         447         486
    12.1    Civilian personnel benefits.....         162         172         192
    21.0    Travel and transportation of
              persons.......................          14          14          15
    22.0    Transportation of things........           3           3           3
    23.1    Rental payments to GSA..........                                  18
    23.2    Rental payments to others.......          12          12          13
    23.3    Communications, utilities, and
              miscellaneous charges.........          20          21          23
    24.0    Printing and reproduction.......           3           3           3
    25.2    Other services..................         100         137         107
    26.0    Supplies and materials..........          16          16          18
    31.0    Equipment.......................          15          21          19
                                               ---------   ---------  ----------
    99.0      Direct obligations............         773         846         897
    99.0  Reimbursable obligations..........         164         129         108
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         937         975       1,005
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1000-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       8,580       8,594       9,101
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......       1,481       1,078         934
    ---------------------------------------------------------------------------

                        [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), $10,960,000: 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.]
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1066-0-1-301      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          12          12
    09.01 Reimbursable program..............                       1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          12          13
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          12          13
    23.95 Total new obligations.............         -12         -13
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          12          12
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............                       1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          12          13
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           2           2
    73.10 Total new obligations.............          12          13
    73.20 Total outlays (gross).............         -12         -13          -2
    74.40 Obligated balance, end of year....           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           9          12
    86.93 Outlays from discretionary
            balances........................           3           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          12          13           2
    ----------------------------------------------------------------------------

        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..................          12          12
    90.00 Outlays...........................          12          12           2
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          11          11
    90.00 Outlays...........................          11          11           2
    ---------------------------------------------------------------------------

        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 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. Watershed
    plans are used to develop the small watershed projects. The small
    watershed program has been eliminated in this year's budget, reflecting
    the low economic returns and slight environment benefits of the program.
    Accordingly, the watershed surveys and planning program, which creates
    new small watershed program projects has also been eliminated.

        No funding is requested for this program in 2003. The staff years
    funded by this program will be funded in the conservation operations
    account.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1066-0-1-301      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           6           6
    12.1    Civilian personnel benefits.....           3           3
    25.2    Other services..................           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          10          10
    99.0  Reimbursable obligations..........                       1
    99.5  Below reporting threshold.........           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          12          13
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1066-0-1-301      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         113         111
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......           5           5
    ---------------------------------------------------------------------------

    [[Page 127]]

        [Watershed and Flood Prevention Operations] Emergency Watershed
                                   Protection

        [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, $106,590,000, to remain available until
    expended (7 U.S.C. 2209b) (of which up to $15,000,000 may be available
    for the watersheds authorized under the Flood Control Act approved June
    22, 1936 (33 U.S.C. 701 and 16 U.S.C. 1006a)): Provided, That not to
    exceed $45,514,000 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.]
        For necessary expenses to repair damages to waterways and
    watersheds, including the purchase of floodplain easements, resulting
    from natural disasters pursuant to section 403 of the Agricultural
    Credit Act of 1978, as amended, $111,389,000, to remain available until
    expended: Provided, That, any balances in ``Watershed surveys and
    planning,'' ``Watershed and flood prevention operations,'' and
    ``Watershed rehabilitation program'' shall be transferred to and merged
    with this account. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2002;
    additional authorization legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1072-0-1-301      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Watershed operations (P.L. 534).          13          14
    00.03   Emergency watershed protection
              operations....................         138          82         111
    00.04   Small watershed operations (P.L.
              566)..........................         100         101
    09.01 Reimbursable program..............          20          25           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         271         222         113
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          65          86
    22.00 New budget authority (gross)......         267         136         113
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          25
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         357         222         113
    23.95 Total new obligations.............        -271        -222        -113
    24.40 Unobligated balance carried
            forward, end of year............          86
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         102         110
    40.15   Appropriation (emergency).......         147           1         111
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         249         111         111
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          24          25           2
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -6
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          18          25           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         267         136         113
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         168         218         199
    73.10 Total new obligations.............         271         222         113
    73.20 Total outlays (gross).............        -202        -241        -187
    73.45 Recoveries of prior year
            obligations.....................         -25
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           6
    74.40 Obligated balance, end of year....         218         199         125
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         109          91          78
    86.93 Outlays from discretionary
            balances........................          93         151         109
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         202         241         187
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -17         -15
    88.40     Non-Federal sources...........          -7         -10          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -24         -25          -2
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         249         111         111
    90.00 Outlays...........................         178         216         185
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         245         107         110
    90.00 Outlays...........................         174         212         184
    ---------------------------------------------------------------------------

        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.

        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. The budget
    provides $110 million for the program in 2003, an amount equal to the
    10-year average on spending.

        To improve the delivery and defensibility of the program, NRCS
    published a draft programmatic environmental impact statement (EIS) for
    public review and comment 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. NRCS will also consider these EIS
    comments in making any necessary revisions to its regulations.

        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.

    [[Page 128]]

        Given the program's low economic returns and environmental benefits,
    no funding is proposed for 2003.

        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.

        No funding is requested for this program in 2003. The staff years
    funded by this program will be funded in the Conservation operations
    account. Low economic and environmental benefits mean other programs can
    provide greater assistance to landowners and their communities at lower
    cost, with more impact. For flood prevention, FEMA programs and Corps of
    Engineer programs provide higher returns from each dollar spent on flood
    damage reduction. While the USDA Watershed program program generated
    $1.40 per dollar spent, the Corps provides $1.90 and FEMA $2.30 in
    economic benefits for every dollar invested. Other USDA programs, such
    as the Environmental quality incentives program provide assistance to
    landowners to pursue water quality and other environmental benefits, at
    far lower cost and with better targeting for priorities. Other USDA
    programs provide loans and grants to rural communities to pursue
    economic development goals. Again, these funds are made preferentially
    available to communities in need. Less-well-off communities would
    quality for the USDA Rural development program's subsidized loans and
    grants and be in a position to pursue Watershed and flood prevention
    projects.

        Loans through the Agricultural Credit Insurance Fund have been made
    in previous years to the local sponsors in order to fund the local cost
    of Public Law 566 or 534 projects. No funding for these loans is assumed
    in 2003.

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

                             MAIN WORKLOAD FACTORS

                                              2001 actual      2002 est.
    Status of operational projects:.........
     Projects receiving land treatment......           193             195
     Structural projects....................           253             248
     Land treatment and structural..........            67              69
                                             -------------  --------------

       Subtotal active projects.............           513             512
     Projects continuing post-installation
      assistance............................           927             932
     Inactive projects......................            17              17
     Project life completed.................            38              44
     Deauthorized projects..................           159             160
                                             -------------  --------------

       Total operational projects...........         1,654           1,665
                                             -------------  --------------

     New projects approved during year......             5               6
                                             -------------  --------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1072-0-1-301      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          38          33          12
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          39          34          13
    12.1    Civilian personnel benefits.....          14          13           4
    21.0    Travel and transportation of
              persons.......................           2           2           1
    23.2    Rental payments to others.......           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           1           1
            Other services:
    25.2      Other services................           6           4           3
    25.2      Other services................          76          67          47
    26.0    Supplies and materials..........           2           2           1
    31.0    Equipment.......................           3           2           1
    32.0    Land and structures.............          32           4
    41.0    Grants, subsidies, and
              contributions.................          74          66          40
                                               ---------   ---------  ----------
    99.0      Direct obligations............         251         196         111
    99.0  Reimbursable obligations..........          18          24           2
    99.5  Below reporting threshold.........           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         271         222         113
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1072-0-1-301      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         720         601         225
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          31          31
    ---------------------------------------------------------------------------

                       [Watershed Rehabilitation Program]

        [For necessary expenses to carry out rehabilitation of structural
    measures, in accordance with section 14 of the Watershed Protection and
    Flood Prevention Act approved August 4, 1954 (16 U.S.C. 1001 et seq.),
    as amended by section 313 of Public Law 106-472, November 9, 2000 (16
    U.S.C. 1012), and in accordance with the provisions of laws relating to
    the activities of the Department, $10,000,000, to remain available until
    expended.] (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1002-0-1-301      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations.............                      10
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                      10
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                   3
    73.10 Total new obligations.............                      10
    73.20 Total outlays (gross).............                      -7          -5
    74.40 Obligated balance, end of year....                       3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       6
    86.93 Outlays from discretionary
            balances........................                                   5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                       7           5
    ----------------------------------------------------------------------------

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

        Under the authorities of Public Law 106-472 assistance is provided
    to communities to address concerns about local aging dams. NRCS may
    provide technical and financial assistance for the planning, design, and
    implementation of rehabilitation projects that may include upgrading or
    removing the dams.

        This program is not funded in 2003. The management and upkeep of
    local, privately-owned dams is not a federal responsibility. In
    addition, many of the dams were built relying on different economic and
    environmental standards than dams built today. It is not clear that all
    of these dams should be maintained.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1002-0-1-301      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................                       4
    12.1  Civilian personnel benefits.......                       1
    25.2  Other services....................                       3

    [[Page 129]]

    41.0  Grants, subsidies, and
            contributions...................                       2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                      10
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1002-0-1-301      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......                      74
    ---------------------------------------------------------------------------

                      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), [$43,048,000] $52,031,000, 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, 2002;
    additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1010-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Technical assistance..............          45          50          51
    09.01 Reimbursable program..............                       1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          45          51          52
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       2
    22.00 New budget authority (gross)......          46          51          52
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          46          53          52
    23.95 Total new obligations.............         -45         -51         -52
    24.40 Unobligated balance carried
            forward, end of year............           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          45          50          51
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          45          51          52
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           7          11          13
    73.10 Total new obligations.............          45          51          52
    73.20 Total outlays (gross).............         -41         -49         -52
    74.40 Obligated balance, end of year....          11          13          13
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          39          46          47
    86.93 Outlays from discretionary
            balances........................           3           3           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          41          49          52
    ----------------------------------------------------------------------------

        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..................          44          50          51
    90.00 Outlays...........................          41          49          51
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          41          47          48
    90.00 Outlays...........................          38          46          48
    ---------------------------------------------------------------------------

        Under this program, the Department assists States, local units of
    government, groups and individuals in developing area plans for resource
    conservation and development (RC and D).

        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

                                         2001 actual  2002 est.   2003 est.
    Areas authorized at beginning of
    year................................         315         348         368
    Areas authorized at end of year.....         348         368         368
    Project plans adopted...............       2,970       3,000       3,000
    Projects completed..................       3,043       3,000       3,000

                    Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1010-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          24          27          29
    12.1    Civilian personnel benefits.....           9          13          10
    21.0    Travel and transportation of
              persons.......................           2           1           1
    23.2    Rental payments to others.......           1           1           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           6           6           7
    31.0    Equipment.......................           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          44          50          51
    99.5  Below reporting threshold.........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          45          51          52
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1010-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         438         502         490
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......           3           3           5
    ---------------------------------------------------------------------------

                        Great Plains Conservation Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2268-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations.............           2           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3           2
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           4           2
    23.95 Total new obligations.............          -2          -2
    24.40 Unobligated balance carried
            forward, end of year............           2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           5           4           2
    73.10 Total new obligations.............           2           2
    73.20 Total outlays (gross).............          -3          -2          -2

    [[Page 130]]

    73.45 Recoveries of prior year
            obligations.....................          -1
    74.40 Obligated balance, end of year....           4           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           3           2           2
    ----------------------------------------------------------------------------

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

        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

                                         2001 actual  2002 est.   2003 est.
    Program participants:
      Number of contracts serviced
        during year.....................       1,665         930         600
      Number of acres under contracts...   6,053,449   3,906,269   2,520,200

        As of October 1, 2001, there were 930 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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2268-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           1           1
    41.0  Grants, subsidies, and
            contributions...................           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           2           2
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2268-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          21          10
    ---------------------------------------------------------------------------

                          [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, $6,811,000, to remain available until
    expended, as authorized by that Act.] (Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies Appropriations Act,
    2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3336-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations (object
            class 41.0).....................          11           7
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3           2           2
    22.00 New budget authority (gross)......           7           7
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          13           9           2
    23.95 Total new obligations.............         -11          -7
    24.40 Unobligated balance carried
            forward, end of year............           2           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           7           7
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          18          18          18
    73.10 Total new obligations.............          11           7
    73.20 Total outlays (gross).............          -8          -7          -6
    73.45 Recoveries of prior year
            obligations.....................          -3
    74.40 Obligated balance, end of year....          18          18          12
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           3           3
    86.93 Outlays from discretionary
            balances........................           5           5           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           8           7           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           7           7
    90.00 Outlays...........................           8           7           6
    ---------------------------------------------------------------------------

        No funds are proposed for the Forestry incentives program (FIP).
    Previous acceptable appropriations for the program have been emergency
    appropriations to assist regions affected by natural disaster. As a non-
    emergency program, the FIP is merely a subsidy paying the costs of tree
    planting. There is no basis for a federal program to pay for tree
    planting on a non-emergency basis.

        The FIP was authorized by the Cooperative Forestry Assistance Act of
    1978 (16 U.S.C. 2101). The objectives of the program are to bring
    private, nonindustrial forest land under improved management, to
    increase timber production, to ensure adequate supplies of timber
    products, and to enhance other forest resources.

        FIP 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.

                               Water Bank Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3320-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          11           7           3
    73.20 Total outlays (gross).............          -4          -4          -3
    74.40 Obligated balance, end of year....           7           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           4           4           3
    ----------------------------------------------------------------------------

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

        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,

    [[Page 131]]

    as amended by Public Law 96-182, approved January 2, 1980. 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 2002. For 2003, the budget 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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

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

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

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

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           1           1
    ----------------------------------------------------------------------------

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

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3318-0-1-304      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......           8
    ---------------------------------------------------------------------------

                            Wetlands Reserve Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1080-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.03 Technical assistance..............                       2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 99.5)...................                       2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           2
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           2           2
    23.95 Total new obligations.............                      -2
    24.40 Unobligated balance carried
            forward, end of year............           2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          11           7           3
    73.10 Total new obligations.............                       2
    73.20 Total outlays (gross).............          -4          -4          -3
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.40 Obligated balance, end of year....           7           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           4           4           3
    ----------------------------------------------------------------------------

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

        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) and the
    Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriation Act, 2001 (P.L. 106-387). 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. For additional information on WRP, see the Commodity
    Credit Corporation section.

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1080-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......           2
    ---------------------------------------------------------------------------

                       Wildlife Habitat Incentives Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3322-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

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

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           2
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
    22.22 Unobligated balance transferred
            from other accounts.............          13
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          17           2
    23.95 Total new obligations.............         -15
    24.40 Unobligated balance carried
            forward, end of year............           2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          26          31          27

    [[Page 132]]

    73.10 Total new obligations.............          15
    73.20 Total outlays (gross).............          -7          -4          -4
    73.45 Recoveries of prior year
            obligations.....................          -3
    74.40 Obligated balance, end of year....          31          27          23
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           7           4           4
    ----------------------------------------------------------------------------

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

        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 Conservation
    reserve program for the years 1996-2002. These funds were exhausted in
    1999. The Agriculture, Rural Development, Food and Drug Administration,
    and Related Agencies Appropriation Act, 2001 (P.L. 106-387) provided the
    Secretary of Agriculture discretionary authority to use funding provided
    under the Agriculture Risk Protection Act of 2000 for WHIP; the
    Secretary designated $12 million for the program in 2001.

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           2
    41.0  Grants, subsidies, and
            contributions...................          13
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          15
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3322-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          31
    ---------------------------------------------------------------------------

                            Rural Clean Water Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3337-0-1-304      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           5           5           5
    24.40 Unobligated balance carried
            forward, end of year............           5           5           5
    ----------------------------------------------------------------------------

        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 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 payments have been
    made and the program will be closed out in 2002. Similar activities will
    be carried out through the mandatory Environmental Quality Incentives
    Program.

        Agricultural Resource Conservation Demonstration Guaranteed Loan
                                Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2086-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.07 Reestimates of guaranteed loan
            subsidy.........................           2           2
    00.08 Interest on reestimates of
            guaranteed loan subsidy.........           1           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           3           4
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................           3           4
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                       3
    73.10 Total new obligations.............           3           4
    73.20 Total outlays (gross).............                      -7
    74.40 Obligated balance, end of year....           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                       4
    86.98 Outlays from mandatory balances...                       3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                       7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           3           4
    90.00 Outlays...........................                       7
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-2086-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct loan upward reestimate subsidy outlays:
    136001Upward reestimates subsidy outlays
    136001Upward reestimates subsidy outlays
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235001Upward reestimate subsidy budget
            authority.......................           3           4
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................           3           4
        Guaranteed loan upward reestimate subsidy
                    outlays:
    236001Upward reestimate subsidy outlays.           3           4
                                               ---------   ---------  ----------
    236901Total upward reestimate subsidy
            outlays.........................           3           4
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the loan
    guarantees committed in 1992 and beyond (including modifications of 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.

    [[Page 133]]

    Credit accounts:

        Agricultural Resource Conservation Demonstration Guaranteed Loan
                                Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4177-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Interest assistance on guaranteed
            loans...........................           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           1           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           1           7
    22.00 New financing authority (gross)...                       7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           2           8           7
    23.95 Total new obligations.............          -1          -1
    24.40 Unobligated balance carried
            forward, end of year............           1           7           7
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............                       7
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............           1           1
    73.20 Total financing disbursements
            (gross).........................          -1          -1
    87.00 Total financing disbursements
            (gross).........................           1           1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

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

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........           1          -6
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4177-0-3-351      2001 actual   2002 est.   2003 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........                                 -10
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          24          24          14
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          24          24          14
    ---------------------------------------------------------------------------

        This program, also known as ``Farms for the Future,'' provides
    guarantees and interest assistance on loans made to State trust funds,
    who in turn finance acquisitions to preserve farmland in selected
    states. No guarantees have been made since 1993.

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from guaranteed loans committed in 1992 and beyond. The
    amounts in this account are a means of financing and are not included in
    the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4177-0-3-351    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           3              1             7
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           3              1             7
        LIABILITIES:
    2103  Federal liabilities: Debt.........           3              1             7
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           3              1             7
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           3              1             7
    -----------------------------------------------------------------------------------------------

                                   Trust Funds

                         Miscellaneous Contributed Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............           4           4           4
        Receipts:
    02.20 Miscellaneous contributed funds...           1           1           1
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           5           5           5
        Appropriations:
    05.01 National Agricultural Statistics
            Service.........................          -1          -1          -1
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           4           4           4
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations.............           1           1
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          15           2
    73.10 Total new obligations.............           1           1
    73.20 Total outlays (gross).............         -13          -3
    74.40 Obligated balance, end of year....           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           1
    86.98 Outlays from mandatory balances...          12           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          13           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           1
    90.00 Outlays...........................          13           3
    ---------------------------------------------------------------------------

        Funds received from State and local organizations, and others are
    available for work under cooperative agreements for soil survey,
    watershed protection, and resource conservation and development
    activities.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           1
    25.2  Other services....................                       1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           1           1
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          10           1           1
    ---------------------------------------------------------------------------

    [[Page 134]]

                                RURAL DEVELOPMENT

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

                         (including transfers of funds)

        For necessary expenses for carrying out the administration and
    implementation of programs in the Rural Development mission area,
    including activities with institutions concerning the development and
    operation of agricultural cooperatives; and for cooperative agreements;
    [$133,722,000] $184,339,000: 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 from prior years 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 appropriation. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2002;
    additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0403-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................         136         142         155
    09.01 Reimbursable program..............         484         514         551
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         620         656         706
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         621         656         706
    23.95 Total new obligations.............        -620        -656        -706
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         162         169         185
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         444         487         521
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          15
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         459         487         521
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         621         656         706
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          99         124         124
    73.10 Total new obligations.............         620         656         706
    73.20 Total outlays (gross).............        -583        -656        -692
    73.40 Adjustments in expired accounts
            (net)...........................         -27
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -15
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          30
    74.40 Obligated balance, end of year....         124         124         138
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         494         557         600
    86.93 Outlays from discretionary
            balances........................          89          99          92
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         583         656         692
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -459        -487        -521
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -15
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          15
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         162         169         185
    90.00 Outlays...........................         124         169         171
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         130         134         146
    90.00 Outlays...........................          92         134         132
    ---------------------------------------------------------------------------

        Since 2001, Rural Development has had a consolidated Salaries and
    Expenses account to administer all Rural Development programs, including
    programs administered by the Rural Utilities Service (RUS), the Rural
    Housing Service (RHS), and the Rural Business-Cooperative Service (RBS).

        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.

        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)

    ----------------------------------------------------------------------------
    Identification code 12-0403-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          67          72          72
    11.3      Other than full-time permanent           5           5           5
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          73          78          78
    12.1    Civilian personnel benefits.....          26          30          31
    21.0    Travel and transportation of
              persons.......................           3           4           4
    23.2    Rental payments to others.......           4           4           5
    23.3    Communications, utilities, and
              miscellaneous charges.........           6           5           6
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          12          11          21
    25.3    Other purchases of goods and
              services from Government
              accounts......................           7           5           5
    25.7    Operation and maintenance of
              equipment.....................           2           2           2
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         136         142         155
    99.0  Reimbursable obligations..........         484         514         551
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         620         656         706
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0403-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       1,527       1,575       1,575
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......       5,280       5,445       5,449
    ---------------------------------------------------------------------------

    [[Page 135]]

                       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, 381N, and 381O of the Consolidated Farm and Rural
    Development Act, [$806,557,000] $791,499,000, to remain available until
    expended, of which [$83,545,000] $32,600,000 shall be for rural
    community programs described in section 381E(d)(1) of such Act; of which
    [$646,512,000] $682,814,000 shall be for the rural utilities programs
    described in sections 381E(d)(2), 306C(a)(2), and 306D of such Act; and
    of which [$76,500,000] $76,085,000 shall be for the rural business and
    cooperative development programs described in 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, including grants for
    drinking water and waste disposal systems pursuant to section 306C of
    such Act, of which $4,000,000 shall be available for community
    facilities grants to tribal colleges, as authorized by section
    306(a)(19) of the Consolidated Farm and Rural Development Act, and of
    which $250,000 shall be available for a grant to a qualified national
    organization to provide technical assistance for rural transportation in
    order to promote economic development: [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, low-income rural communities, and Federally
    Recognized Native American Tribes 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, nonprofit and public intermediary
    organizations proposing to carry out a program of financial and
    technical assistance: Provided further, That such intermediary
    organizations shall provide matching funds from other sources, including
    Federal funds for related activities, in an amount not less than funds
    provided:] Provided further, That of the amount appropriated for the
    rural business and cooperative development programs, not to exceed
    $500,000 shall be made available for a grant to a qualified national
    organization to provide technical assistance for rural transportation in
    order to promote economic development; and $2,000,000 shall be for
    grants to Mississippi Delta Region counties: 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 border, including grants
    pursuant to section 306C of such Act; not to exceed [$24,000,000]
    $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 1 percent available to administer the program and up to 1 percent
    available to improve interagency coordination may be transferred to and
    merged with the appropriation for ``Rural Development, Salaries and
    Expenses''; not to exceed [$17,465,000,] $16,215,000 shall be for
    technical assistance grants for rural water and waste systems pursuant
    to section 306(a)(14) of such Act[, of which $5,250,000 shall be for
    Rural Community Assistance Programs]; and not to exceed [$11,000,000]
    $9,500,000 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 [$37,624,000] $32,202,000 shall be
    available through June 30, [2002] 2003, for authorized empowerment zones
    and enterprise communities and communities designated by the Secretary
    of Agriculture as Rural Economic Area Partnership Zones; of which
    [$1,163,000] $1,187,000 shall be for the rural community programs
    described in section 381E(d)(1) of such Act, of which [$27,431,000]
    $23,300,000 shall be for the rural utilities programs described in
    section 381E(d)(2) of such Act, and of which [$9,030,000] $7,715,000
    shall be for the rural business and cooperative development programs
    described in section 381E(d)(3) of such Act: [Provided further, That of
    the amount appropriated for rural community programs, not to exceed
    $25,000,000 shall be to provide grants for facilities in rural
    communities with extreme unemployment and severe economic depression
    (Public Law 106-387), with 5 percent for administration and capacity
    building in the State rural development offices: Provided further, That
    of the amount appropriated $30,000,000 shall be to provide grants in
    rural communities with extremely high energy costs:] Provided further,
    That any prior year balances for high cost energy grants authorized by
    section 19 of the Rural Electrification Act of 1936 (7 U.S.C. 901(19))
    shall be transferred to and merged with the ``Rural Utilities Service,
    High Energy Costs Grants'' account[: Provided further, That of the funds
    appropriated by this Act to the Rural Community Advancement Program for
    guaranteed business and industry loans, funds may be transferred to
    direct business and industry loans as deemed necessary by the Secretary
    and with prior approval of the Committees on Appropriations of both
    Houses of Congress]. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0400-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Loan program:

    00.01   Direct loan subsidy.............         148          83         107
    00.02   Guaranteed loan subsidy.........           9          44          29
    00.05   Reestimate of direct loan
              subsidy.......................         132
    00.06   Interest on reestimate of direct
              loan subsidy..................          31
    00.07   Reestimate of guaranteed loan
              subsidy.......................          84
    00.08   Interest on reestimate of
              guaranteed loan subsidy.......          11
          Grant program:

    00.11   Water and waste disposal systems
              grants........................         579         584         587
    00.12   Water and waste grants--
              emergency supplemental........          17
    00.13   Emergency community water
              assistance grants.............          20
    00.14   Solid waste management grants...           4           4           4
    00.15   Community facility grants.......          30          14          17
    00.16   Community facility grants--
              emergency supplemental........           8          11
    00.17   Hazardous weather early warning
              grants........................                       5
    00.18   Economic impact initiative
              grants........................          32          37
    00.19   High energy cost grants.........          20
    00.20   Rural business enterprise grants          49          41          44
    00.21   Rural business opportunity
              grants........................           4           5           3
    00.22   Rural partnership technical
              assistance grants.............           5
    00.23   Rural community development
              initiatitive grants...........                      12
    00.24 Department of Energy Matching
            Grant...........................                       3
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       1,183         843         791
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           8          76          30
    22.00 New budget authority (gross)......       1,235         807         791
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          17
    22.21 Unobligated balance transferred to
            other accounts..................                     -10         -30
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,260         873         791
    23.95 Total new obligations.............      -1,183        -843        -791
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............          76          30
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         972         807         791
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         970         807         791
          Mandatory:

    60.00   Appropriation...................         258
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           7
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,235         807         791
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,926       2,178       2,239
    73.10 Total new obligations.............       1,183         843         791
    73.20 Total outlays (gross).............        -913        -777        -765
    73.31 Obligated balance transferred to
            other accounts..................                      -5
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    73.45 Recoveries of prior year
            obligations.....................         -17
    74.40 Obligated balance, end of year....       2,178       2,239       2,265
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          65          58          56
    86.93 Outlays from discretionary
            balances........................         588         719         709
    86.97 Outlays from new mandatory
            authority.......................         258
    86.98 Outlays from mandatory balances...           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         913         777         765
    ----------------------------------------------------------------------------

    [[Page 136]]

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................       1,228         807         791
    90.00 Outlays...........................         907         777         765
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-0400-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Direct water and waste disposal...         767         879         814
    115002Direct community facility.........         409         249         250
    115003Direct business and industry......          50
                                               ---------   ---------  ----------
    115901Total direct loan levels..........       1,226       1,128       1,064
        Direct loan subsidy (in percent):
    132001Direct water and waste disposal...       13.59        6.88       11.34
    132002Direct community facility.........       11.69        5.43        6.24
    132003Direct business and industry......        5.82        0.00        0.00
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       12.64        6.56       10.15
        Direct loan subsidy budget authority:
    133001Direct water and waste disposal...         104          60          92
    133002Direct community facility.........          48          14          16
    133003Direct business and industry......           3
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....         155          74         108
        Direct loan subsidy outlays:
    134001Direct water and waste disposal...          95          97          82
    134002Direct community facility.........          16          21          20
    134003Direct business and industry......           1
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............         112         118         102
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Direct water and waste disposal...          93
    135002Direct community facility.........          35
    135003Direct business and industry......          35
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................         163
        Direct loan upward reestimate subsidy outlays:
    136001Direct water and waste disposal...          93
    136002Direct community facility.........          35
    136003Direct business and industry......          35
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...         163
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Direct water and waste disposal...        -108
    137002Direct community facility.........         -18
    137003Direct business and industry......          -1
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................        -127
        Direct loan downward reestimate subsidy
                    outlays:
    138001Direct water and waste disposal...        -108
    138002Direct community facility.........         -18
    138003Direct business and industry......          -1
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................        -127
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Water and waste disposal loan
            guarantees......................          75          75          75
    215002Community facility loan guarantees         210         210         210
    215003Business and industry loan
            guarantees......................       2,383         733         733
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......       2,668       1,018       1,018
        Guaranteed loan subsidy (in percent):
    232001Water and waste disposal loan
            guarantees......................       -1.50       -0.80       -0.81
    232002Community facility loan guarantees       -0.54       -0.68       -0.54
    232003Business and industry loan
            guarantees......................        0.86        3.74        3.97
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        0.67        2.46        2.65
        Guaranteed loan subsidy budget authority:
    233001Water and waste disposal loan
            guarantees......................          -1          -1          -1
    233002Community facility loan guarantees          -1          -1          -1
    233003Business and industry loan
            guarantees......................          20          27          29
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....          18          25          27
        Guaranteed loan subsidy outlays:
    234001Water and waste disposal loan
            guarantees......................
    234002Community facility loan guarantees
    234003Business and industry loan
            guarantees......................           7          18          18
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............           7          18          18
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235003Business and industry loan
            guarantees......................          95
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................          95
        Guaranteed loan upward reestimate subsidy
                    outlays:
    236003Business and industry loan
            guarantees......................          95
                                               ---------   ---------  ----------
    236901Total upward reestimate subsidy
            outlays.........................          95
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237002Community facility loan guarantees          -2
    237003Business and industry loan
            guarantees......................         -25
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................         -27
        Guaranteed loan downward reestimate subsidy
                    outlays:
    238002Community facility loan guarantees          -2
    238003Business and industry loan
            guarantees......................         -25
                                               ---------   ---------  ----------
    238901Total downward reestimate subsidy
            outlays.........................         -27
    ---------------------------------------------------------------------------

        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 loan and grant programs under RCAP
    provides greater flexibility to tailor financial assistance to applicant
    needs. Funding in 2003 for all programs is projected to be at or
    slightly above the 2002 enacted level.

        RCAP is composed of the following three funding streams: Rural
    Community Facilities, Rural Utilities, and Rural Business and
    Cooperative Development. 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. Total
    loan level is projected to be $889 million for these programs in 2003.

        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. $587 million is projected for
    this program in 2003.

        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

    [[Page 137]]

    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. These
    grants are funded on an as needed basis using RCAP flexibility of funds
    authorization.

        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. $4 million is projected for this program in 2003.

        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
    20,000 population, such as hospitals and fire stations. Total program
    level in 2003 is projected to be $477 million.

        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. For direct loans no funds were requested or provided in 2002 and
    no funds are requested in 2003. $733 million in loan guarantees are
    projected for 2003.

        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. $3
    million is projected for this purpose.

                              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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          52
    ----------------------------------------------------------------------------

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

        These funds were used to administer the direct loan, loan guarantee,
    and grant programs of the Farmers Home Administration and the Rural
    Development Administration.

        In 1995, under the reorganization by the Secretary of Agriculture
    the Agency has been eliminated and activities previously administered
    through this account transferred to other Department accounts.

                         Rural Housing Assistance Grants

        For grants and contracts for 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), 1490e, and 1490m,
    [$38,914,000] $42,498,000, to remain available until expended: Provided,
    That of the total amount appropriated, $1,200,000 shall be available
    through June 30, [2002] 2003, 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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1953-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Domestic farm labor natural
            disaster grants.................                       1
    00.03 Very low-income housing repair
            grants..........................          31          30          31
    00.04 Very low-income housing repair
            natural disaster grants.........           3           5
    00.05 Supervisory and technical
            assistance grants...............           1           1           1
    00.06 Processing workers................                       5
    00.07 Rural housing preservation grants.           8           8          10
    00.08 Compensation and construction
            defects.........................                       1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          44          51          42
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          10          12
    22.00 New budget authority (gross)......          44          39          42
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          56          51          42
    23.95 Total new obligations.............         -44         -51         -42
    24.40 Unobligated balance carried
            forward, end of year............          12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          44          39          42
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          53          45          39
    73.10 Total new obligations.............          44          51          42
    73.20 Total outlays (gross).............         -49         -57         -55
    73.45 Recoveries of prior year
            obligations.....................          -2
    74.40 Obligated balance, end of year....          45          39          26
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          27          27          28
    86.93 Outlays from discretionary
            balances........................          23          29          27
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          49          57          55
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          44          39          42
    90.00 Outlays...........................          50          57          55
    ---------------------------------------------------------------------------

        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 funded under this heading until 2001. Starting in 2001,
    it is funded under 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 Budget provides $32 million
    for this program in 2003.

        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,

    [[Page 138]]

    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. $1 million is
    provided for this program in 2003.

        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.
    Because current demand for these funds does not exceed current resources
    available, no new funds are provided for this program.

        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. $10 million is provided for this
    program in 2003.

                           Farm Labor Program Account

        For the cost of direct loans, grants, and contracts, as authorized
    by 42 U.S.C. 1484 and 1486, [$31,431,000] $34,615,000, to remain
    available until expended, for direct farm labor housing loans and
    domestic farm labor housing grants and contracts. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1954-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............          17          13          18
    00.02 Farm labor housing grants.........           9          23          17
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          26          36          35
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       5
    22.00 New budget authority (gross)......          31          31          35
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          31          36          35
    23.95 Total new obligations.............         -26         -36         -35
    24.40 Unobligated balance carried
            forward, end of year............           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..                      25          45
    73.10 Total new obligations.............          26          36          35
    73.20 Total outlays (gross).............                     -16         -27
    74.40 Obligated balance, end of year....          25          45          53
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       7           7
    86.93 Outlays from discretionary
            balances........................                      10          20
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                      16          27
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................          29          31          35
    90.00 Outlays...........................          -1          16          27
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1954-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Farm Labor Program................          28          28          36
                                               ---------   ---------  ----------
    115901Total direct loan levels..........          28          28          36
        Direct loan subsidy (in percent):
    132001Farm Labor Program................       52.59       47.31       49.02
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       52.59       47.31       49.02
        Direct loan subsidy budget authority:
    133001Farm Labor Program................          15          13          18
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....          15          13          18
        Direct loan subsidy outlays:
    134001Farm Labor Program................                       9          12
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............                       9          12
    ---------------------------------------------------------------------------

        The account consists of direct farm labor housing loans and domestic
    farm labor housing 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. Total program level
    provided in 2003 is $53 million ($17 million in grants and $36 million
    in loan level).

                            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, [$701,004,000]
    $712,000,000; 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 [2002] 2003 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, 2002.)

    [[Page 139]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0137-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations (object
            class 41.0).....................         686         707         712
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          14           6
    22.00 New budget authority (gross)......         679         701         712
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         692         707         712
    23.95 Total new obligations.............        -686        -707        -712
    24.40 Unobligated balance carried
            forward, end of year............           6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

            Appropriation:
    40.00     Appropriation.................         680         701         712
    40.00     Appropriation, current
                indefinite..................          59          61          60
    40.47   Portion substituted for
              borrowing authority...........         -59         -61         -60
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         679         701         712
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Unpaid obligations, appropriation,
            start of year...................       2,645       2,727       2,777
    73.10 Total new obligations.............         686         707         712
    73.20 Total outlays (gross).............        -603        -658        -692
    74.40 Obligated balance, end of year....       2,727       2,777       2,797
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          20          21          21
    86.93 Outlays from discretionary
            balances........................         583         637         669
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         603         658         692
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         679         701         712
    90.00 Outlays...........................         603         658         692
    ---------------------------------------------------------------------------

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           2           2
    74.40 Obligated balance, end of year....           2           2           2
    ----------------------------------------------------------------------------

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

        Prior year obligated balances 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), [$35,000,000] $34,000,000, to
    remain available until expended (7 U.S.C. 2209b): Provided, That of the
    total amount appropriated, $1,000,000 shall be available through June
    30, [2002] 2003, 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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2006-0-1-604      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations (object
            class 41.0).....................          18          56          34
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                      21
    22.00 New budget authority (gross)......          34          35          34
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          38          56          34
    23.95 Total new obligations.............         -18         -56         -34
    24.40 Unobligated balance carried
            forward, end of year............          21
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          34          35          34
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          46          37          65
    73.10 Total new obligations.............          18          56          34
    73.20 Total outlays (gross).............         -22         -28         -33
    73.45 Recoveries of prior year
            obligations.....................          -4
    74.40 Obligated balance, end of year....          37          65          66
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           4           4
    86.93 Outlays from discretionary
            balances........................          20          22          30
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          22          28          33
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          34          35          34
    90.00 Outlays...........................          23          28          33
    ---------------------------------------------------------------------------

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

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

        This assistance was authorized by section 7 of the Cooperative
    Forestry Assistance Act of 1978 (16 U.S.C. 2106). Grants are made to
    public bodies to organize, train, and equip local firefighting forces,
    including those of Indian tribes or other Native American groups, to
    prevent, control, and suppress

    [[Page 140]]

    fires threatening human lives, crops, livestock, farmsteads or other
    improvements, pastures, orchards, wildlife, rangeland, woodland, and
    other resources in rural areas.

    Credit accounts:

             Rural Community Facility Direct Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4225-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................         325         330         250
    00.02   Interest on Treasury borrowing..          61          70          46
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating program.....         386         400         296
          Reestimates:

    08.02   Downward reestimate.............          14
    08.04   Interest on downward reestimate.           4
                                               ---------   ---------  ----------
    08.91   Subtotal, Reestimates...........          18
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         404         400         296
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          22          10
    22.00 New financing authority (gross)...         390         390         296
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          16
    22.70 Balance of authority to borrow
            withdrawn.......................         -14
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         414         400         296
    23.95 Total new obligations.............        -404        -400        -296
    24.40 Unobligated balance carried
            forward, end of year............          10
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............         287         252         158
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).         143         151         151
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          20         -13         -13
    68.47     Portion applied to repay debt.         -60
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....         103         138         138
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         390         390         296
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         337         463         581
    73.10 Total new obligations.............         404         400         296
    73.20 Total financing disbursements
            (gross).........................        -242        -295        -295
    73.45 Recoveries of prior year
            obligations.....................         -16
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -20          13          13
    74.40 Obligated balance, end of year....         463         581         595
    87.00 Total financing disbursements
            (gross).........................         242         295         295
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -51         -21         -20
    88.25     Interest on uninvested funds..         -10         -11         -11
              Non-Federal sources:
    88.40       Repayment of principal......         -82         -32         -37
    88.40       Interest received on loans..                     -87         -83
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -143        -151        -151
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............         -20          13          13
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         227         252         158
    90.00 Financing disbursements...........          99         144         144
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4225-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         409         249         250
    1121  Limitation available from carry-
            forward.........................          13         154
    1142  Unobligated direct loan limitation
            (-).............................         -13
    1143  Unobligated limitation carried
            forward (P.L. xx) (-)...........         -84
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         325         403         250
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         864         988       1,220
    1231  Disbursements: Direct loan
            disbursements...................         163         264         275
    1251  Repayments: Repayments and
            prepayments.....................         -39         -32         -37
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         988       1,220       1,458
    ---------------------------------------------------------------------------

        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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          25             20            26             26
            Investments in US securities:
    1106      Receivables, net..............          33             55            47             47
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..         864            988         1,220          1,458
    1402    Interest receivable.............          11             13             9              9
    1405    Allowance for subsidy cost (-)..         -93           -116          -121           -143
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         782            885         1,108          1,324
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         840            960         1,181          1,397
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................         838            902         1,180          1,341
    2105    Other...........................                         55                           55
    2203  Non-Federal liabilities: Liability
            for deposit funds...............           2              3             1              1
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         840            960         1,181          1,397
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         840            960         1,181          1,397
    -----------------------------------------------------------------------------------------------

           Rural Community Facility Guaranteed Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4228-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    08.02 Downward reestimate...............           2
    08.04 Interest on downward reestimate...           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3           2           4
    22.00 New financing authority (gross)...           2           2           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           5           4           6
    23.95 Total new obligations.............          -3

    [[Page 141]]

    24.40 Unobligated balance carried
            forward, end of year............           2           4           4
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............           1
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           2           2
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................           2           2           2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           1           2
    73.10 Total new obligations.............           3
    73.20 Total financing disbursements
            (gross).........................          -3          -1          -1
    74.40 Obligated balance, end of year....           1           2           2
    87.00 Total financing disbursements
            (gross).........................           3           1           1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

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

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

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4228-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........         210         210         210
    2142  Uncommitted loan guarantee
            limitation......................         -71
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................         139         210         210
    2199  Guaranteed amount of guaranteed
            loan commitments................         111         168         168
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         225         227         364
    2231  Disbursements of new guaranteed
            loans...........................          15         155         179
    2251  Repayments and prepayments........         -13         -18         -24
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         227         364         519
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         182         318         415
    ---------------------------------------------------------------------------

        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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           4              4             4              4
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           4              4             4              4
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................           1              1             1              1
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.           3              3             3              3
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           4              4             4              4
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           4              4             4              4
    -----------------------------------------------------------------------------------------------

                  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:
    [$4,217,816,000] $3,707,300,000 for loans to section 502 borrowers, as
    determined by the Secretary, of which [$1,079,848,000] $957,300,000
    shall be for direct loans, and of which [$3,137,968,000] $2,750,000,000
    shall be for unsubsidized guaranteed loans; [$32,324,000] $35,000,000
    for section 504 housing repair loans; [$114,068,000] $60,000,000 for
    repair, rehabilitation, and preservation of section 515 rental housing;
    [$99,770,000] $100,000,000 for section 538 guaranteed multi-family
    housing loans; [$5,090,000] $5,000,000 for section 524 site loans;
    [$11,778,000] $12,000,000 for credit sales of acquired property, of
    which up to [$1,778,000] $2,000,000 may be for multi-family credit
    sales; and [$5,000,000] $5,000,000 for section 523 self-help housing
    land development loans.
        For the cost of direct and guaranteed loans, including the cost of
    modifying loans, as defined in section 502 of the Congressional Budget
    Act of 1974, as follows: section 502 loans, [$182,274,000] $205,229,000,
    of which [$142,108,000] $185,429,000 shall be for direct loans, and of
    which [$40,166,000] $19,800,000 shall be for unsubsidized guaranteed
    loans; section 504 housing repair loans, [$10,386,000] $10,857,000;
    repair, rehabilitation, and preservation of section 515 rental housing,
    [$48,274,000] $27,978,000, to remain available until September 30, 2004;
    section 538 multi-family housing guaranteed loans, [$3,921,000]
    $4,500,000; section 524 site loans, [$28,000] $55,000; multi-family
    credit sales of acquired property, [$750,000] $934,000; and section 523
    self-help housing land development loans, [$254,000] $221,000: Provided,
    That of the total amount appropriated in this paragraph, [$11,656,000]
    $7,100,000 shall be available through June 30, [2002] 2003, 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, [$422,241,000] $455,630,000, which
    shall be transferred to and merged with the appropriation for ``Rural
    Development, Salaries and Expenses''.
        [Of the amounts made available under this heading in chapter 1 of
    title II of Public Law 106-246 (114 Stat. 540) for gross obligations for
    principal amount of direct loans authorized by title V of the Housing
    Act of 1949 for section 515 rental housing, the Secretary of Agriculture
    may use up to $5,986,197 for rental assistance agreements described in
    the item relating to ``Rental Assistance Program'' in such chapter:
    Provided, That such amount is designated by the Congress as an emergency
    requirement pursuant to section 251(b)(2)(A) of the Balanced Budget and
    Emergency Control Act of 1985, as amended.]
        [In making available for occupancy dwelling units in housing that is
    provided with funds made available under the heading referred to in the
    preceding paragraph, the Secretary of Agriculture may give preference to
    prospective tenants who are residing in temporary housing provided by
    the Federal Emergency Management Agency as a result of an emergency.]
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Loan program:

    00.01   Direct loan subsidy.............         245         221         225
    00.02   Guaranteed loan subsidy.........           6          44          24
    00.05   Reestimates of direct loan
              subsidy.......................         218
    00.06   Interest on reestimates of
              direct loan subsidy...........          51
    00.07   Reestimates of guaranteed loan
              subsidy.......................         157
    00.08   Interest on reestimates of
              guaranteed loan subsidy.......          27
    00.09   Administrative expenses.........         408         422         456
    00.11 Modular housing demonstration
            grants..........................           1           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,113         691         705
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          25          23
    22.00 New budget authority (gross)......       1,115         668         705
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------

    [[Page 142]]

    23.90   Total budgetary resources
              available for obligation......       1,141         691         705
    23.95 Total new obligations.............      -1,113        -691        -705
    23.98 Unobligated balance expiring or
            withdrawn.......................          -5
    24.40 Unobligated balance carried
            forward, end of year............          23
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         664         668         705
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         662         668         705
          Mandatory:

    60.00   Appropriation...................         453
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,115         668         705
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         172         198         207
    73.10 Total new obligations.............       1,113         691         705
    73.20 Total outlays (gross).............      -1,079        -683        -727
    73.40 Adjustments in expired accounts
            (net)...........................          -8
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.40 Obligated balance, end of year....         198         207         186
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         552         568         617
    86.93 Outlays from discretionary
            balances........................          72         114         110
    86.97 Outlays from new mandatory
            authority.......................         453
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,079         683         727
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,115         668         705
    90.00 Outlays...........................       1,079         683         727
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Direct 502 single family housing..       1,065       1,080         957
    115002Direct 502 supplemental...........
    115003Direct 502 modular housing........           2
    115004Direct 515 multi-family housing...         114         114          60
    115005Direct 515 natural disaster.......
    115006Direct 504 housing repair.........          32          32          35
    115007Direct 504 supplemental...........
    115008Direct 514 farm labor housing.....
    115009Direct 514 supplemental...........
    115010Direct 524 site development.......           5           5           5
    115011Single family credit sales........          10          10          10
    115012Multi-family credit sales.........           2           2           2
    115013Direct 523 self-help housing......           5           5           5
                                               ---------   ---------  ----------
    115901Total direct loan levels..........       1,235       1,248       1,074
        Direct loan subsidy (in percent):
    132001Direct 502 single family housing..       16.06       13.16       19.37
    132002Direct 502 supplemental...........       16.06       13.16       19.37
    132003Direct 502 modular housing........       20.07       17.68       19.37
    132004Direct 515 multi-family housing...       49.27       42.32       46.63
    132005Direct 515 natural disaster.......       49.27       42.32       46.63
    132006Direct 504 housing repair.........       35.44       32.13       31.02
    132007Direct 504 supplemental...........       35.44       32.13       31.02
    132008Direct 514 farm labor housing.....        0.00        0.00        0.00
    132009Direct 514 supplemental...........       52.59       47.31       49.02
    132010Direct 524 site development.......       -0.12        0.55        1.09
    132011Single family credit sales........       -3.23       -4.82       -9.58
    132012Multi-family credit sales.........       49.03       42.17       46.68
    132013Direct 523 self-help housing......        5.57        5.08        4.41
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       19.35       16.11       20.86
        Direct loan subsidy budget authority:
    133001Direct 502 single family housing..         171         142         185
    133002Direct 502 supplemental...........
    133003Direct 502 modular housing........
    133004Direct 515 multi-family housing...          56          48          28
    133005Direct 515 natural disaster.......
    133006Direct 504 housing repair.........          11          10          11
    133007Direct 504 supplemental...........
    133008Direct 514 farm labor housing.....
    133009Direct 514 supplemental...........
    133010Direct 524 site development.......
    133011Single family credit sales........                                  -1
    133012Multi-family credit sales.........           1           1           1
    133013Direct 523 self-help housing......
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....         239         201         224
        Direct loan subsidy outlays:
    134001Direct 502 single family housing..         145         145         170
    134002Direct 502 supplemental...........           3
    134003Direct 502 modular housing........                       2
    134004Direct 515 multi-family housing...          51          55          53
    134005Direct 515 natural disaster.......                       2           6
    134006Direct 504 housing repair.........          10          10          10
    134007Direct 504 supplemental...........                       3           1
    134008Direct 514 farm labor housing.....           4           6           4
    134009Direct 514 supplemental...........          -1           2
    134010Direct 524 site development.......
    134011Single family credit sales........
    134012Multi-family credit sales.........           1           1           1
    134013Direct 523 self-help housing......
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............         213         226         245
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Direct 502 single family housing..         189
    135004Direct 515 multi-family housing...          71
    135006Direct 504 housing repair.........           2
    135008Direct 514 farm labor housing.....           1
    135011Single family credit sales........           5
    135012Multi-family credit sales.........           1
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................         269
        Direct loan upward reestimate subsidy outlays:
    136001Direct 502 single family housing..         189
    136004Direct 515 multi-family housing...          71
    136006Direct 504 housing repair.........           2
    136006Upward reestimates subsidy outlays
    136008Direct 514 farm labor housing.....           1
    136011Single family credit sales........           5
    136012Multi-family credit sales.........           1
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...         269
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Direct 502 single family housing..        -310
    137004Direct 515 multi-family housing...          -2
    137006Direct 504 housing repair.........         -11
    137008Direct 514 farm labor housing.....          -1
    137011Single family credit sales........          -4
    137012Multi-family credit sales.........          -1
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................        -329
        Direct loan downward reestimate subsidy
                    outlays:
    138001Direct 502 single family housing..        -310
    138004Direct 515 multi-family housing...          -2
    138006Direct 504 housing repair.........         -11
    138008Direct 514 farm labor housing.....          -1
    138011Single family credit sales........          -4
    138012Multi-family credit sales.........          -1
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................        -329
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Guaranteed 502 single family
            housing--unsubsidized...........       3,136       3,138       2,750
    215002Guarantee 538 multi-family housing         100         100         100
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......       3,236       3,238       2,850
        Guaranteed loan subsidy (in percent):
    232001Guaranteed 502 single family
            housing--unsubsidized...........        0.20        1.28        0.72
    232002Guarantee 538 multi-family housing        1.52        3.93        4.50
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        0.28        1.36        0.84
        Guaranteed loan subsidy budget authority:
    233001Guaranteed 502 single family
            housing--unsubsidized...........           7          40          20
    233002Guarantee 538 multi-family housing           2           4           4
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....           9          44          24
        Guaranteed loan subsidy outlays:
    234001Guaranteed 502 single family
            housing--unsubsidized...........           5          29          24
    234002Guarantee 538 multi-family housing          -2           2
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............           3          31          24

    [[Page 143]]

        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235001Guaranteed 502 single family
            housing--unsubsidized...........         184
    235002Guarantee 538 multi-family housing
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................         184
        Guaranteed loan upward reestimate subsidy
                    outlays:
    236001Guaranteed 502 single family
            housing--unsubsidized...........         184
    236002Guarantee 538 multi-family housing
                                               ---------   ---------  ----------
    236901Total upward reestimate subsidy
            outlays.........................         184
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237001Guaranteed 502 single family
            housing--unsubsidized...........          -6
    237002Guarantee 538 multi-family housing
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................          -6
        Guaranteed loan downward reestimate subsidy
                    outlays:
    238001Guaranteed 502 single family
            housing--unsubsidized...........          -6
    238002Guarantee 538 multi-family housing
                                               ---------   ---------  ----------
    238901Total downward reestimate subsidy
            outlays.........................          -6
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................         408         422         456
    358001Outlays from balances.............
    359001Outlays from new authority........         408         422         456
    ---------------------------------------------------------------------------

        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 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 was
    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.'' Starting in 2001,
    section 514 domestic farm labor housing loans and grants are funded
    under the new Farm Labor Program Account in order to provide flexibility
    between 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.

        For 2003, funds for section 515 rural rental housing loans will be
    limited to repair and rehabilitation only and $60 million is included
    for this purpose. This is a change from the 2002 budget; it emphasizes
    the need for repair and rehabilitation of existing rural rental housing.
    During the hiatus of providing new construction, RHS will study its
    multifamily housing portfolio and determine ways to operate and manage
    the portfolio more efficiently so that new construction may be provided
    in future years at less cost to the taxpayers.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the direct
    loans obligated and loan guarantees committed in 1992 and beyond
    (including credit sales of acquired property), as well as administrative
    expenses of this program. The subsidy amounts are estimated on a present
    value basis; the administrative expenses are estimated on a cash basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................         408         269         249
    41.0  Grants, subsidies, and
            contributions...................         705         422         456
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,113         691         705
    ---------------------------------------------------------------------------

           Rural Housing Insurance Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4215-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans including upward
              adjustments of prior year
              obligations...................       1,276       1,327       1,110
    00.02   Advances on behalf of borrowers.          37          90          91
    00.03   Collateral acquired by default..           4          10          10
    00.04   Interest on Treasury borrowing..         629         671         712
    00.06   Other expenses..................           9          10          11
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating program.....       1,955       2,108       1,934
          Reestimates:

    08.02   Downward subsidy reestimate paid
              to receipt account............         199
    08.04   Interest on downward reestimate
              paid to receipt account.......         129
                                               ---------   ---------  ----------
    08.91   Subtotal, Reestimates...........         328
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,283       2,108       1,934
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          94         109
    22.00 New financing authority (gross)...       2,286       2,106       1,934
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          99
    22.60 Portion applied to repay debt.....                    -109
    22.70 Balance of authority to borrow
            withdrawn.......................         -87
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,392       2,106       1,934
    23.95 Total new obligations.............      -2,283      -2,108      -1,934
    24.40 Unobligated balance carried
            forward, end of year............         109
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............       1,049       1,050         849
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...       1,572       1,437       1,590
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          41          -1         -16
    68.47   Portion applied to repay debt...        -376        -380        -489
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......       1,237       1,056       1,085
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       2,286       2,106       1,934
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Unpaid obligations, fund balance
            with Treasury, start of year....         534         489         525
    73.10 Total new obligations.............       2,283       2,108       1,934
    73.20 Total financing disbursements
            (gross).........................      -2,188      -2,071      -1,984
    73.45 Recoveries of prior year
            obligations.....................         -99
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -41           1          16
    74.40 Obligated balance, end of year....         489         525         491
    87.00 Total financing disbursements
            (gross).........................       2,188       2,071       1,984
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: payments from
                program account.............        -482        -233        -259
    88.25     Interest on uninvested funds..         -77         -84         -86
              Non-Federal sources:
    88.40       Non-Federal sources:
                  Repayments of principal...        -493        -550        -615
    88.40       Interest received on loans..        -456        -500        -550
    88.40       Payments on judgments.......          -8          -9         -10

    [[Page 144]]

    88.40       Proceeds on sale of acquired
                  property..................         -15         -29         -30
    88.40       Recaptured income...........         -15         -21         -29
    88.40       Fees........................          -7          -3          -3
    88.40       Miscellaneous collections...         -19          -8          -8
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,572      -1,437      -1,590
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............         -41           1          16
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         673         670         360
    90.00 Financing disbursements...........         616         634         394
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4215-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........       1,263       1,277       1,110
    1121  Limitation available from carry-
            forward.........................          59          51
    1131  Direct loan obligations exempt
            from limitation.................           5
    1142  Unobligated direct loan limitation
            (-).............................         -12
    1143  Unobligated limitation carried
            forward (P.L. xx) (-)...........         -39
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       1,276       1,328       1,110
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      11,053      11,697      12,421
    1231  Disbursements: Direct loan
            disbursements...................       1,212       1,290       1,160
    1251  Repayments: Repayments and
            prepayments.....................        -501        -550        -615
    1261  Adjustments: Capitalized interest.          14          28          31
          Write-offs for default:

    1263    Direct loans....................         -71         -32         -34
    1264    Other adjustments, net..........         -10         -12         -15
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      11,697      12,421      12,948
    ---------------------------------------------------------------------------

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

        This account finances direct rural housing loans for: section 502
    very low- and low-to-moderate-income home ownership loan program;
    section 504 very low income housing repair loan program; section 514
    domestic farm labor housing loan program; section 515 rural rental
    housing loan program; sections 523 self-help housing loans, and 524 site
    development loans; and single family and multi-family housing credit
    sales of acquired property.

        Loan programs are limited to rural areas that include towns,
    villages and other places which are not part of an urban area and that
    have a population not in excess of 2,500 inhabitants, or is in excess of
    2,500 but not in excess of 10,000 if rural in character, or has a
    population in excess 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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         202            245           174            172
            Investments in US securities:
    1106      Receivables, net..............         170            211           210            195
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..      11,053         11,697        12,421         12,948
    1402    Interest receivable.............          46             65            69             73
    1404    Foreclosed property.............          15             18            24             26
    1405    Allowance for subsidy cost (-)..      -2,665         -2,693        -2,794         -2,963
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       8,449          9,087         9,720         10,084
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       8,821          9,543        10,104         10,451
        LIABILITIES:
          Federal liabilities:

    2103    Debt............................       8,607          9,267         9,828         10,188
    2104    Liability for subsidy related to
              undisbursed loans.............         170            211           208            191
    2105    Other...........................           5              5             5              5
    2207  Non-Federal liabilities: Other....          39             60            63             67
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       8,821          9,543        10,104         10,451
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       8,821          9,543        10,104         10,451
    -----------------------------------------------------------------------------------------------

         Rural Housing Insurance Fund Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4216-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default claims....................          64          85          99
    00.02 Interest assistance paid to
            lenders.........................                       2           3
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating program.....          64          87         102
          Reestimates:

    08.02   Downward subsidy reestimates
              paid to receipt account.......           5
    08.04   Interest on downward reestimates
              paid to receipt account.......           1
                                               ---------   ---------  ----------
    08.91   Subtotal, Reestimates...........           6
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          70          87         102
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         195         369         401
    22.00 New financing authority (gross)...         244         119          98
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         439         488         499
    23.95 Total new obligations.............         -70         -87        -102
    24.40 Unobligated balance carried
            forward, end of year............         369         401         397
    ----------------------------------------------------------------------------

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

            Discretionary:
    68.00     Offsetting collections (cash).         241         106          98
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           3          13
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....         244         119          98
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                      -3         -16
    73.10 Total new obligations.............          70          87         102
    73.20 Total financing disbursements
            (gross).........................         -70         -87        -102
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -3         -13
    74.40 Obligated balance, end of year....          -3         -16         -16
    87.00 Total financing disbursements
            (gross).........................          70          87         102
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -187         -31         -24
    88.25     Interest on uninvested funds..         -18         -23         -24
    88.40     Non-Federal sources: guarantee
                fees........................         -36         -52         -50
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -241        -106         -98
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          -3         -13
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........        -171         -19           4
    ---------------------------------------------------------------------------

    [[Page 145]]

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4216-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........       3,236       3,238       2,850
    2121  Limitation available from carry-
            forward.........................          31          12
    2142  Uncommitted loan guarantee
            limitation......................        -894
    2143  Uncommitted limitation carried
            forward.........................         -31
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       2,342       3,250       2,850
    2199  Guaranteed amount of guaranteed
            loan commitments................       2,108       2,925       2,565
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      11,299      12,673      14,588
    2231  Disbursements of new guaranteed
            loans...........................       2,171       2,817       2,751
    2251  Repayments and prepayments........        -698        -817        -954
          Adjustments:

    2263    Terminations for default that
              result in claim payments......         -64         -85         -99
    2264    Other adjustments, net..........         -35
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      12,673      14,588      16,286
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      11,405      13,805      15,606
    ---------------------------------------------------------------------------

        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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         195            366           386            382
            Investments in US securities:
    1106      Receivables, net..............         184              3            16             16
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         379            369           402            398
        LIABILITIES:
          Non-Federal liabilities:

    2204    Liabilities for loan guarantees.         379            366           386            382
    2207    Other...........................                          3            16             16
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         379            369           402            398
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         379            369           402            398
    -----------------------------------------------------------------------------------------------

                Rural Housing Insurance Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investment:

    00.02   Advances on behalf of borrowers.          79          77          87
    00.05   Collateral acquired by default..                       1           1
    00.06   Judgments.......................                       1           1
                                               ---------   ---------  ----------
    00.91     Total capital investment......          79          79          89
          Operating expenses:

    01.03   Interest on FFB borrowings......         514         280         256
    01.04   Premiums paid FFB at redemption
              of certificates of beneficial
              ownership.....................         142         122          65
    01.06   Interest credits on loans sold
              to investors..................           1           1           1
    01.07   Other costs incident to loans...           4           4           3
                                               ---------   ---------  ----------
    01.91     Total operating expenses......         661         407         325
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         740         486         414
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                      92
    22.00 New budget authority (gross)......         832         486         414
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          46
    22.40 Capital transfer to general fund..                     -92
    22.60 Portion applied to repay debt.....         -46
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         832         486         414
    23.95 Total new obligations.............        -740        -486        -414
    24.40 Unobligated balance carried
            forward, end of year............          92
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...       1,951       1,733       1,627
    69.27   Capital transfer to general fund                    -177        -138
    69.47   Portion applied to repay debt...      -1,119      -1,070      -1,075
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         832         486         414
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Unpaid fund balance with treasury,
            end of year.....................         387         341         246
    73.10 Total new obligations.............         740         486         414
    73.20 Total outlays (gross).............        -740        -581        -440
    73.45 Recoveries of prior year
            obligations.....................         -46
    74.40 Obligated balance, end of year....         341         246         220
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         624         365         311
    86.98 Outlays from mandatory balances...         116         216         129
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         740         581         440
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -15
              Non-Federal sources:
    88.40       Repayments of loans and
                  advances..................        -998        -877        -826
    88.40       Proceeds from sale of
                  acquired property.........         -33         -34         -31
    88.40       Payments on judgments.......         -11         -12         -13
    88.40       Interest payments from
                  borrowers.................        -735        -671        -612
    88.40       Undistributed receipts,
                  deposit fund..............         -20
    88.40       Recapture of subsidies......         -96        -124        -138
    88.40       Income from residual
                  investment in loan asset
                  sale......................         -41         -14          -7
    88.40       Fees and other revenue......          -2          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,951      -1,733      -1,627
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      -1,119      -1,247      -1,213
    90.00 Outlays...........................      -1,211      -1,152      -1,187
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      17,366      16,183      15,194
    1251  Repayments: Repayments and
            prepayments.....................        -988        -877        -826
    1261  Adjustments: Capitalized interest.          33          22          22
          Write-offs for default:

    1263    Direct loans....................        -143        -107        -100
    1264    Other adjustments, net..........         -85         -27          -8
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      16,183      15,194      14,282
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          20          18          16
    2251  Repayments and prepayments........          -2          -2          -1
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          18          16          15
    ----------------------------------------------------------------------------

    [[Page 146]]

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          17          16          14
    ---------------------------------------------------------------------------

        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 is recorded in
    corresponding program and financing accounts.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4141-0-3-371    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         890            876           696            674
    0102  Expense...........................        -659           -813          -541           -456
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............         231             63           155            218
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4141-0-3-371    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         387            433           246            220
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............      17,366         16,183        15,194         14,282
    1602    Interest receivable.............         401            546           562            552
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -5,460         -3,045        -2,868         -2,700
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............      12,307         13,683        12,888         12,134
    1606    Foreclosed property.............          48             49            45             42
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................      12,355         13,732        12,933         12,176
    1901  Other Federal assets: Other assets           3              3             3              3
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      12,745         14,168        13,182         12,399
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................         297            264           170            144
    2103    Debt............................       5,542          4,375         3,305          2,230
    2104    Resources payable to Treasury...       6,816          9,415         9,595          9,913
          Non-Federal liabilities:

    2203    Debt............................           2              2             1              1
    2204    Liabilities for loan guarantees.           2              4             3              3
    2207    Other...........................          86            108           108            108
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      12,745         14,168        13,182         12,399
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      12,745         14,168        13,182         12,399
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           4           4           3
    33.0  Investments and loans.............          79          79          89
    41.0  Grants, subsidies, and
            contributions...................           1           1           1
    43.0  Interest and dividends............         656         402         321
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         740         486         414
    ---------------------------------------------------------------------------

                       RURAL BUSINESS-COOPERATIVE SERVICE

                                  Federal Funds

    General and special funds:

            [Rural Empowerment Zones and Enterprise Community Grants]

        [For grants in connection with a second round of empowerment zones
    and enterprise communities, $14,967,000, to remain available until
    expended, for designated rural empowerment zones and rural enterprise
    communities, as authorized by the Taxpayer Relief Act of 1997 and the
    Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999
    (Public Law 105-277).] (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0402-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations (object
            class 41.0).....................          14          15          14
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          13          14          14
    22.00 New budget authority (gross)......          15          15
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          28          29          14
    23.95 Total new obligations.............         -14         -15         -14
    24.40 Unobligated balance carried
            forward, end of year............          14          14
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          15          15
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          11          13          13
    73.10 Total new obligations.............          14          15          14
    73.20 Total outlays (gross).............         -12         -15         -16
    74.40 Obligated balance, end of year....          13          13          12
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           5           5
    86.93 Outlays from discretionary
            balances........................           7          10          17
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          12          15          16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          15          15
    90.00 Outlays...........................          12          15          16
    ---------------------------------------------------------------------------

        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. Appropriated funding in 1999 through 2002 was
    provided for EZ/EC's designated as part of the second round of this
    initiative. No additional funds are requested in 2003 because sufficient
    carryover balances from previous appropriations are available to fund
    current needs.

        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 demonstrated significant successes that are
    stimulating billions of dollars in private sector investment, reviving
    communities that had given up hope for economic opportunity and

    [[Page 147]]

    creating thousands of jobs, moving people from dependency to active
    participation in the economy.

                              Salaries and Expenses

                       (rural development administration)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3400-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

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

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

        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), [$7,750,000] $9,000,000, of which [$2,500,000] $2,000,000 shall
    be [available] for cooperative agreements for the appropriate technology
    transfer for rural areas program[: Provided, That not to exceed
    $1,497,000 of the total amount appropriated]; of which not to exceed
    $1,500,000 shall be [made available to] for cooperatives or associations
    of cooperatives whose primary focus is to provide assistance to small,
    minority producers [and whose governing board and/or membership is
    comprised of at least 75 percent minority]; of which not to exceed
    $500,000 shall be for cooperative research agreements; and of which not
    to exceed $2,000,000 shall be for cooperative research agreements for
    cooperative energy alternatives. (Agriculture, Rural Development, Food
    and Drug Administration, and Related Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1900-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Rural cooperative development
            grants..........................           6           5           7
    00.02 Appropriate technology transfer
            for rural areas.................           2           3           2
    00.03 Value-added agricultural procduct
            marketing.......................          25
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          33           8           9
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          33           8           9
    23.95 Total new obligations.............         -33          -8          -9
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          16           8           9
          Mandatory:

    60.00   Appropriation...................          15
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          33           8           9
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           6          34          15
    73.10 Total new obligations.............          33           8           9
    73.20 Total outlays (gross).............          -5         -26         -14
    74.40 Obligated balance, end of year....          34          15          10
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           2           2
    86.93 Outlays from discretionary
            balances........................           4          14          10
    86.98 Outlays from mandatory balances...                      11           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           5          26          14
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................          31           8           9
    90.00 Outlays...........................           3          26          14
    ---------------------------------------------------------------------------

        Grants for rural cooperative development were authorized under
    section 310B(e) of the Consolidated Farm and Rural Development Act by
    Public Law 104-127, April 4, 1996. These grants are made available to
    nonprofit corporations and institutions of higher education to fund the
    establishment and operation of centers for rural cooperative
    development. The primary purpose of the centers is the improvement of
    economic conditions of rural areas through the development of new
    cooperatives and improving operations of existing cooperatives. RBS can
    fund up to 75 percent of any project and associated administrative costs
    and requires at least a 25 percent matching share from the applicant
    which must be from non-Federal sources.

        The Appropriate Technology Transfer to Rural Areas (ATTRA) program
    was first authorized by the Food Security Act of 1985. The program
    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. Funds are
    requested for cooperative research agreements for cooperative energy
    alternatives. These cooperative research agreements will be made
    available to universities and appropriate nonprofit program
    organizations to determine how the cooperative form of business can be
    adopted to increasing domestic fuel supplies, both traditional and
    alternative, while increasing economic returns to farmers.

                        Rural Economic Development Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3105-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

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

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           7           9           9
    22.00 New budget authority (gross)......           4           4           3
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          12          13          12
    23.95 Total new obligations.............          -3          -4          -4
    24.40 Unobligated balance carried
            forward, end of year............           9           9           8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

            Offsetting collections (cash):
    69.00     Offsetting collections (cash).           1           3           3
    69.00     Offsetting collections (cash).           1
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           2           1
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........           4           4           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           6                      -3
    73.10 Total new obligations.............           3           4           4
    73.20 Total outlays (gross).............          -7          -6          -4
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -2          -1
    74.40 Obligated balance, end of year....                      -3          -3
    ----------------------------------------------------------------------------

    [[Page 148]]

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                       4           3
    86.98 Outlays from mandatory balances...           7           4           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           7           6           4
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -2          -3          -3
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -2          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           5           3           1
    ---------------------------------------------------------------------------

        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

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1906-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations (object
            class 41.0).....................           9           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           9           5           5
    22.00 New budget authority (gross)......           5           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          14           6           5
    23.95 Total new obligations.............          -9          -1
    24.40 Unobligated balance carried
            forward, end of year............           5           5           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................           5           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                       2
    73.10 Total new obligations.............           9           1
    73.20 Total outlays (gross).............          -7          -3
    74.40 Obligated balance, end of year....           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           7           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           5           1
    90.00 Outlays...........................           7           3
    ---------------------------------------------------------------------------

        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 $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 was provided in 2001 to help the domestic lamb industry adjust
    to foreign competition. In 2002, an additional $1 million was provided.
    No additional funds are requested in 2003.

    Credit accounts:

           Rural Business and Industry Direct Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4223-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................          50
    00.02   Interest on Treasury borrowings.           6           8           4
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating program.....          56           8           4
    08.01 Negative subsidy paid to receipt
            account.........................           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          57           8           4
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                      10
    22.00 New financing authority (gross)...          68          12          22
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.70 Balance of authority to borrow
            withdrawn.......................          -1         -14         -18
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          68           8           4
    23.95 Total new obligations.............         -57          -8          -4
    24.40 Unobligated balance carried
            forward, end of year............          10
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          48
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).          45          14          24
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           2          -2          -2
    68.47     Portion applied to repay debt.         -27
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....          20          12          22
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          68          12          22
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          28          45          21
    73.10 Total new obligations.............          57           8           4
    73.20 Total financing disbursements
            (gross).........................         -36         -34         -34
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -2           2           2
    74.40 Obligated balance, end of year....          45          21          -7
    87.00 Total financing disbursements
            (gross).........................          36          34          34
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -36
    88.25     Interest on uninvested funds..          -2          -4          -6
              Non-Federal sources:
    88.40       Repayments of principal.....          -7          -6          -6
    88.40       Interest received on loans..                      -4         -12
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -45         -14         -24
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          -2           2           2
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          21
    90.00 Financing disbursements...........          -8          20          10
    ---------------------------------------------------------------------------

    [[Page 149]]

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4223-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........          50
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          50
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          59          82         106
    1231  Disbursements: Direct loan
            disbursements...................          27          30           6
    1251  Repayments: Repayments and
            prepayments.....................          -3          -6          -6
    1263  Write-offs for default: Direct
            loans...........................          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          82         106         106
    ---------------------------------------------------------------------------

        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. No funds were requested or provided for this
    program in 2002, and no program is proposed in 2003.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4223-0-3-452    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          25             11            14             14
            Investments in US securities:
    1106      Receivables, net..............                         10
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..          59             82           106            106
    1402    Interest receivable.............           3              4             5              5
    1405    Allowance for subsidy cost (-)..                        -31
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          62             55           111            111
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          87             76           125            125
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................           4              1             5              5
    2104    Resources payable to Treasury...          83             71           120            120
    2105    Other...........................                          4
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          87             76           125            125
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          87             76           125            125
    -----------------------------------------------------------------------------------------------

         Rural Business and Industry Guaranteed Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4227-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Guananteed loan costs:

    00.01   Default claims..................          27          50          50
    00.02   Purchases from secondary market.          80
    00.03   Interest to Treasury............           1          14          14
                                               ---------   ---------  ----------
    00.91   Subtotal, Guaranteed loan costs.         108          64          64
          Reestimates:

    08.02   Downward reestimate.............          19
    08.04   Interest on downward reestimate.           6
                                               ---------   ---------  ----------
    08.91   Subtota, Reestimates............          25
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         133          64          64
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          88          91          92
    22.00 New financing authority (gross)...         142          65          65
    22.60 Portion applied to repay debt.....          -5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         225         156         157
    23.95 Total new obligations.............        -133         -64         -64
    24.40 Unobligated balance carried
            forward, end of year............          91          92          93
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............          12
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............         130          65          65
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         142          65          65
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............         133          64          64
    73.20 Total financing disbursements
            (gross).........................        -133         -64         -64
    87.00 Total financing disbursements
            (gross).........................         133          64          64
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -102         -18         -18
    88.25     Interest on uninvested funds..          -6          -8          -8
              Non-Federal sources:
    88.40       Interest and principal on
                  purchased loans from
                  secondary market..........         -22          -8          -8
    88.40       Guarantee fees..............                     -31         -31
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -130         -65         -65
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          12
    90.00 Financing disbursements...........           4          -1          -1
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4227-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........       2,383         733         733
    2121  Limitation available from carry-
            forward.........................         709         419
    2142  Uncommitted loan guarantee
            limitation......................        -126
    2143  Uncommitted limitation carried
            forward.........................      -1,890
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       1,076       1,152         733
    2199  Guaranteed amount of guaranteed
            loan commitments................         850         895         579
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       3,180       3,504       4,957
    2231  Disbursements of new guaranteed
            loans...........................         809       1,777       1,294
    2251  Repayments and prepayments........        -451        -274        -336
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................         -34         -50         -50
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       3,504       4,957       5,865
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       3,504       4,957       5,865
    ---------------------------------------------------------------------------

        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.

    [[Page 150]]

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4227-0-3-452    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          88             91           133            133
            Investments in US securities:
    1106      Receivables, net..............         141             99            92             92
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         229            190           225            225
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................          25
    2104    Resources payable to Treasury...           9             16             9              9
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.         195            174           216            216
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         229            190           225            225
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         229            190           225            225
    -----------------------------------------------------------------------------------------------

                   Rural Development Loan Fund Program Account

                          (including transfer of funds)

         For the principal amount of direct loans, as authorized by the
    Rural Development Loan Fund (42 U.S.C. 9812(a)), [$38,171,000]
    $40,000,000.
        For the cost of direct loans, [$16,494,000] $19,304,000, as
    authorized by the Rural Development Loan Fund (42 U.S.C. 9812(a)), of
    which $1,724,000 shall be available through June 30, 2003, for Federally
    Recognized Native American Tribes and of which $3,449,000 shall be
    available through June 30, 2003, for Mississippi Delta Region counties
    (as defined by Public Law 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 of the
    total amount appropriated, $2,730,000 shall be available through June
    30, [2002] 2003, 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, [$3,733,000] $4,290,000 shall be transferred to and
    merged with the appropriation for ``Rural Development, Salaries and
    Expenses''. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2069-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............          19          16          19
    00.05 Reestimates of direct loan subsidy           3
    00.06 Interest on reestimates of direct
            loan subsidy....................           1
    00.09 Administrative expense............           4           4           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          27          20          24
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1
    22.00 New budget authority (gross)......          30          20          24
    22.70 Balance of authority to borrow
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          30          20          24
    23.95 Total new obligations.............         -27         -20         -24
    23.98 Unobligated balance expiring or
            withdrawn.......................          -3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          23          20          24
          Mandatory:

    60.00   Appropriation...................           4
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          30          20          24
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          51          51          46
    73.10 Total new obligations.............          27          20          24
    73.20 Total outlays (gross).............         -27         -25         -25
    74.40 Obligated balance, end of year....          51          46          44
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           5           5           6
    86.93 Outlays from discretionary
            balances........................          18          20          19
    86.97 Outlays from new mandatory
            authority.......................           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          27          25          25
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................          27          20          24
    90.00 Outlays...........................          24          25          25
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-2069-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Rural development loan fund
            program.........................          38          38          40
                                               ---------   ---------  ----------
    115901Total direct loan levels..........          38          38          40
        Direct loan subsidy (in percent):
    132001Rural Development Loan Fund
            Program.........................       50.91       43.21       48.26
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       50.91       43.21       48.26
        Direct loan subsidy budget authority:
    133001Rural Development Loan Fund
            Program.........................          19          16          19
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....          19          16          19
        Direct loan subsidy outlays:
    134001Rural Development Loan Fund
            Program.........................          19          21          21
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............          19          21          21
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Rural Development Loan Fund
            Program.........................           4
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................           4
        Direct loan upward reestimate subsidy outlays:
    136001Rural Development Loan Fund
            Program.........................           4
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...           4
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Rural Development Loan Fund
            Program.........................          -4
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................          -4
        Direct loan downward reestimate subsidy
                    outlays:
    138001Rural Development Loan Fund
            Program.........................          -4
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................          -4
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................           4           4           4
    359001Outlays from new authority........           4           4           4
    ---------------------------------------------------------------------------

        This account finances loans to intermediary borrowers, who in turn
    relend the funds to small rural businesses, community development
    corporations, and other organizations for the purpose of improving
    economic opportunities in rural areas. Through the use of local
    intermediaries, this program serves small-scale enterprises and gives
    preference to those communities with the greatest need. In 2003 the
    Budget provides $40 million in loans for this purpose.

        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.

    [[Page 151]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2069-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................           4           4           4
    41.0  Grants, subsidies, and
            contributions...................          22          16          20
    43.0  Interest and dividends............           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          27          20          24
    ---------------------------------------------------------------------------

            Rural Development Loan Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4219-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................          39          38          40
    00.03   Interest on Treasury borrowing..          12          20          23
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating program.....          51          58          63
          Non-operating program:

    08.02   Downward subsidy reestimates
              paid to the receipt account...           3
    08.04   Interest on downward reestimate
              paid to receipt account.......           1
                                               ---------   ---------  ----------
    08.91   Subtotal, Non-operating program.           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          55          58          63
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...          55          58          63
    23.95 Total new obligations.............         -55         -58         -63
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............          19          16          13
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          37          38          40
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................                      -5          -1
    68.47   Portion applied to repay debt...          -1           9          11
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          36          42          50
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          55          58          63
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          53          52          52
    73.10 Total new obligations.............          55          58          63
    73.20 Total financing disbursements
            (gross).........................         -56         -63         -67
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................                       5           1
    74.40 Obligated balance, end of year....          52          52          50
    87.00 Total financing disbursements
            (gross).........................          56          63          67
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.         -23         -21         -21
    88.25     Interest on uninvested funds..          -2          -4          -4
              Non-Federal sources:
    88.40       Non-Federal sources--
                  repayment of principal....          -9          -9         -11
    88.40       Non-Federal sources--
                  interest on loans.........          -3          -4          -4
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -37         -38         -40
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............                       5           1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          18          25          24
    90.00 Financing disbursements...........          19          25          27
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4219-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........          38          38          40
    1131  Direct loan obligations exempt
            from limitation.................           6
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          44          38          40
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         282         313         346
    1231  Disbursements: Direct loan
            disbursements...................          40          42          44
    1251  Repayments: Repayments and
            prepayments.....................          -9          -9         -11
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         313         346         379
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond. The amounts in
    this account are a means of financing and are not included in the budget
    totals.

        This account finances loans to intermediary borrowers, who in turn
    relend the funds to small rural businesses, community development
    corporations, or other organizations for the purpose of improving
    economic opportunities in rural areas. Through the use of local
    intermediaries, this program 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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          12             11            17             12
            Investments in US securities:
    1106      Receivables, net..............          51             51            46             42
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..         282            313           346            378
    1402    Interest receivable.............           1              1             1              1
    1405    Allowance for subsidy cost (-)..        -132           -144          -157           -152
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         151            170           190            227
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         214            232           253            281
        LIABILITIES:
          Federal liabilities:

    2104    Resources payable to Treasury...         163            181           206            248
    2105    Other...........................          51             51            47             33
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         214            232           253            281
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         214            232           253            281
    -----------------------------------------------------------------------------------------------

                 Rural Development Loan Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4233-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1
    22.00 New budget authority (gross)......           1           1
    22.40 Capital transfer to general fund..          -1          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           1           1
    24.40 Unobligated balance carried
            forward, 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          -3          -4
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........           1           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           1

    [[Page 152]]

    74.40 Obligated balance, end of year....           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           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          -3          -4
    90.00 Outlays...........................          -4          -4          -4
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4233-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          70          66          63
    1231  Disbursements: Direct loan
            disbursements...................
    1251  Repayments: Repayments and
            prepayments.....................          -3          -3          -3
    1263  Write-offs for default: Direct
            loans...........................          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          66          63          60
    ---------------------------------------------------------------------------

        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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................           1              1             1              1
    0102  Expense...........................           3             -1
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............           4                            1              1
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4233-0-3-452    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           2              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.............          70             66            63             60
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -27            -17           -24            -21
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............          43             49            39             39
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................          43             49            39             39
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          46             52            42             42
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............          46             52            42             42
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          46             52            42             42
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          46             52            42             42
    -----------------------------------------------------------------------------------------------

                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,
    [$14,966,000] $14,967,000.
        For the cost of direct loans, including the cost of modifying loans
    as defined in section 502 of the Congressional Budget Act of 1974,
    [$3,616,000] $3,197,000.
        Of the funds derived from interest on the cushion of credit payments
    in fiscal year [2002] 2003, as authorized by section 313 of the Rural
    Electrification Act of 1936, [$3,616,000] $3,197,000 shall not be
    obligated and [$3,616,000] $3,197,000 are rescinded. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3108-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............           6           4           3
    00.05 Reestimates of direct loan subsidy           3
    00.06 Interest on reestimates of direct
            loan subsidy....................           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          10           4           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          10           4           3
    23.95 Total new obligations.............         -10          -4          -3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           4           4           3
          Mandatory:

    60.00   Appropriation...................           4
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          10           4           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           4           5           4
    73.10 Total new obligations.............          10           4           3
    73.20 Total outlays (gross).............          -8          -5          -3
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.40 Obligated balance, end of year....           5           4           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       1           1
    86.93 Outlays from discretionary
            balances........................           3           4           3
    86.97 Outlays from new mandatory
            authority.......................           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           8           5           3
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................           8           4           3
    90.00 Outlays...........................           6           5           3
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-3108-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Rural economic development loans
            program.........................          15          15          15
                                               ---------   ---------  ----------
    115901Total direct loan levels..........          15          15          15
        Direct loan subsidy (in percent):
    132001Rural Economic Development Loans
            Program.........................       26.07       24.16       21.36
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       26.07       24.16       21.36
        Direct loan subsidy budget authority:
    133001Rural Economic Development Loans
            Program.........................           4           4           3
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....           4           4           3
        Direct loan subsidy outlays:
    134001Rural Economic Development Loans
            Program.........................           6           4           3
                                               ---------   ---------  ----------

    [[Page 153]]

    134901Total subsidy outlays.............           6           4           3
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Rural Economic Development Loans
            Program.........................           4
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................           4
        Direct loan upward reestimate subsidy outlays:
    136001Rural Economic Development Loans
            Program.........................           4
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...           4
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Rural Economic Development Loans
            Program.........................          -3
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................          -3
        Direct loan downward reestimate subsidy
                    outlays:
    138001Rural Economic Development Loans
            Program.........................          -3
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................          -3
    ---------------------------------------------------------------------------

        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)

    ----------------------------------------------------------------------------
    Identification code 12-4176-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................          22          15          15
    00.03   Interest expense................           5           7           8
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating program.....          27          22          23
          Reestimates:

    08.02   Downward reestimate.............           3
    08.04   Interest on downward reestimate.           1
                                               ---------   ---------  ----------
    08.91   Subtotal, Reestimates...........           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          31          22          23
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           6           8           7
    22.00 New financing authority (gross)...          32          21          24
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
    22.70 Balance of authority to borrow
            withdrawn.......................          -2          -1          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          38          28          30
    23.95 Total new obligations.............         -31         -22         -23
    24.40 Unobligated balance carried
            forward, end of year............           8           7           7
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          17          11          13
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).          21          19          19
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           1          -2
    68.47     Portion applied to repay debt.          -7          -7          -8
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....          15          10          11
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          32          21          24
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          13          16          12
    73.10 Total new obligations.............          31          22          23
    73.20 Total financing disbursements
            (gross).........................         -24         -28         -22
    73.45 Recoveries of prior year
            obligations.....................          -2
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1           2
    74.40 Obligated balance, end of year....          16          12          13
    87.00 Total financing disbursements
            (gross).........................          24          28          22
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal Funds: Program Account          -8          -5          -3
    88.25     Interest on uninvested funds..          -1          -1          -1
    88.40     Non-Federal sources: Repayment
                of Principal................         -12         -13         -15
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -21         -19         -19
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          -1           2
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          10           4           5
    90.00 Financing disbursements...........           3           9           3
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4176-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........          15          15          15
    1131  Direct loan obligations exempt
            from limitation.................           8
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          23          15          15
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          69          73          82
    1231  Disbursements: Direct loan
            disbursements...................          16          22          14
    1251  Repayments: Repayments and
            prepayments.....................         -12         -13         -15
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          73          82          81
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond. The amounts in
    this account are a means of financing and are not included in the budget
    totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4176-0-3-452    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....           5              6             6              6
            Investments in US securities:
    1106      Program Account...............           4              5             4              4
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..          69             73            82             81
    1405    Allowance for subsidy cost (-)..         -12            -11           -24            -16
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          57             62            58             65
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          66             73            68             75
        LIABILITIES:
          Federal liabilities:

    2104    Resources payable to Treasury...          62             68            64             71
    2105    Other...........................           4              5             4              4
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          66             73            68             75
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          66             73            68             75
    -----------------------------------------------------------------------------------------------

              Rural Economic Development Loans Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3104-0-1-271      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1
    22.40 Capital transfer to general fund..          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......
    ----------------------------------------------------------------------------

    [[Page 154]]

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...           1
    69.27   Capital transfer to general fund          -1
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

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

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3104-0-1-271      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           1
    1251  Repayments: Repayments and
            prepayments.....................          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........
    ---------------------------------------------------------------------------

        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.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-3104-0-1-271    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................
    1601  Net value of assets related to
            pre-1992 direct loans receivable
            and acquired defaulted
            guaranteed loans receivable:
            Direct loans, gross.............           1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           1
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............           1
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           1
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           1
    -----------------------------------------------------------------------------------------------

    Public enterprise funds:

      Alternative Agricultural Research and Commercialization Corporation
                                 Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4144-0-3-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1           1
    24.40 Unobligated balance carried
            forward, end of year............           1           1           1
    ----------------------------------------------------------------------------

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

        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,
    2001 and 2002, and no funding is requested in 2003.

                             RURAL UTILITIES SERVICE

                                  Federal Funds

    General and special funds:

                             High Energy Cost Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2042-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations (object
            class 41.0).....................                      10          30
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.22 Unobligated balance transferred
            from other accounts.............                      10          30
    23.95 Total new obligations.............                     -10         -30
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                      10          30
    73.20 Total outlays (gross).............                     -15         -15
    73.32 Obligated balance transferred from
            other accounts..................                       5
    74.40 Obligated balance, end of year....                                  15
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................                      15          15
    ----------------------------------------------------------------------------

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

        Funding was provided in 2001 and 2002 to support grants for areas
    that have high energy costs. These grants can be made to eligible
    entities or the Denali Commission to construct, extend, upgrade, and
    otherwise improve energy generation, transmission, or distribution
    facilities serving communities in which the average residential
    expenditure for home energy is at least 275 percent of the national
    average residential expenditure for home energy (as determined by the
    Energy Information Agency using the most recent data available). Grants
    are also available to establish and support a revolving fund to provide
    a more cost-effective means of purchasing fuel where the fuel cannot be
    shipped by means of surface transportation.

    Credit accounts:

          Rural Water and Waste Disposal Direct Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4226-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................         789         894         814
    00.02   Interest on Treasury borrowing..         257         325         346
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating program.....       1,046       1,219       1,160
          Reestimates:

    08.02   Downward reestimate.............          81
    08.04   Interest on downward reestimate.          27
                                               ---------   ---------  ----------
    08.91   Subtotal, Reestimates...........         108
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,154       1,219       1,160
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          15

    [[Page 155]]

    22.00 New financing authority (gross)...       1,242       1,074       1,034
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          32         145         126
    22.60 Portion applied to repay debt.....        -109
    22.70 Balance of authority to borrow
            withdrawn.......................         -26
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,154       1,219       1,160
    23.95 Total new obligations.............      -1,154      -1,219      -1,160
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............         723         716         714
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).         511         348         310
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           8          10          10
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....         519         358         320
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       1,242       1,074       1,034
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,755       1,809       2,024
    73.10 Total new obligations.............       1,154       1,219       1,160
    73.20 Total financing disbursements
            (gross).........................      -1,059        -849      -1,073
    73.45 Recoveries of prior year
            obligations.....................         -32        -145        -126
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -8         -10         -10
    74.40 Obligated balance, end of year....       1,809       2,024       1,975
    87.00 Total financing disbursements
            (gross).........................       1,059         849       1,073
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -188         -97         -82
    88.25     Interest on uninvested funds..         -34         -35         -37
              Non-Federal sources:
    88.40       Repayment of principal......         -90         -66         -76
    88.40       Non-Federal sources.........        -199        -150        -115
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -511        -348        -310
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          -8         -10         -10
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         723         716         714
    90.00 Financing disbursements...........         548         501         763
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4226-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         767         879         814
    1121  Limitation available from carry-
            forward.........................          22          14
    1142  Unobligated direct loan limitation
            (-).............................         -23
    1143  Unobligated limitation carried
            forward (P.L. xx) (-)...........         -23
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         743         893         814
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       3,942       4,548       5,282
    1231  Disbursements: Direct loan
            disbursements...................         694         800         779
    1251  Repayments: Repayments and
            prepayments.....................         -88         -66         -76
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       4,548       5,282       5,985
    ---------------------------------------------------------------------------

        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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          63              7            10             10
            Investments in US securities:
    1106      Receivables, net..............         254            274           262            262
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       3,944          4,548         5,282          5,985
    1402    Interest receivable.............          48             55            37             37
    1405    Allowance for subsidy cost (-)..        -652           -710          -911           -911
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       3,340          3,893         4,408          5,111
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       3,657          4,174         4,680          5,383
        LIABILITIES:
          Federal liabilities:

    2103    Debt............................       3,395          3,888         4,486          5,189
    2105    Other...........................         254            275           186            186
    2207  Non-Federal liabilities: Other....           8             11             8              8
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       3,657          4,174         4,680          5,383
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       3,657          4,174         4,680          5,383
    -----------------------------------------------------------------------------------------------

     Rural Water and Waste Water Disposal Guaranteed Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4218-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                       1           1
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............                       1           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.20 Total financing disbursements
            (gross).........................                      -1          -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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........          75          75          75
    2142  Uncommitted loan guarantee
            limitation......................         -70
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................           5          75          75
    2199  Guaranteed amount of guaranteed
            loan commitments................           4          60          60
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          19          11          52
    2231  Disbursements of new guaranteed
            loans...........................                      43          72
    2251  Repayments and prepayments........          -8          -2          -3
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          11          52         121
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..           9          42          97
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from

    [[Page 156]]

    the Government resulting from guaranteed loans committed in 1992 and
    beyond. The amounts in this account are a means of financing and are not
    included in the budget totals. Loans made prior to 1992 are recorded in
    the Rural Development Insurance Fund Liquidating Account.

        This account finances loan guarantee commitments for water systems,
    and waste disposal facilities in rural areas.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4218-0-3-452    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           1              1             1              1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           1              1             1              1
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............           1              1             1              1
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           1              1             1              1
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           1              1             1              1
    -----------------------------------------------------------------------------------------------

       Rural Electrification and Telecommunications Loans Program Account

                          (including transfer 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, [$121,107,000] $121,103,000;
    municipal rate rural electric loans, [$500,000,000] $100,000,000; loans
    made pursuant to section 306 of that Act, rural electric,
    [$2,700,000,000] $1,700,000,000; Treasury rate direct electric loans,
    [$750,000,000] $700,000,000; 5 percent rural telecommunications loans,
    [$74,827,000] $75,029,000; cost of money rural telecommunications loans,
    $300,000,000; and loans made pursuant to section 306 of that Act, rural
    telecommunications loans, $120,000,000.
        For the cost, as defined in section 502 of the Congressional Budget
    Act of 1974, including the cost of modifying loans, of direct and
    guaranteed loans authorized by the Rural Electrification Act of 1936 (7
    U.S.C. 935 and 936), as follows: cost of rural electric loans,
    [$3,689,000] $11,025,000, and the cost of telecommunication loans,
    [$2,036,000] $1,433,000: 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, [36,000,000] $38,035,000 which
    shall be transferred to and merged with the appropriation for ``Rural
    Development, Salaries and Expenses''. (Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies Appropriations Act,
    2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1230-0-1-271      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............          40           6          12
    00.05 Reestimate of the direct loan
            subsidy.........................         294
    00.06 Interest on reestimates of direct
            loan subsidy....................         112
    00.09 Administrative expenses subject to
            limitation......................          35          36          38
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         481          42          50
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         481          42          50
    23.95 Total new obligations.............        -481         -42         -50
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          75          42          50
          Mandatory:

    60.00   Appropriation...................         406
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         481          42          50
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          81          90          53
    73.10 Total new obligations.............         481          42          50
    73.20 Total outlays (gross).............        -471         -79         -63
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.40 Obligated balance, end of year....          90          53          41
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          40          37          40
    86.93 Outlays from discretionary
            balances........................          24          43          23
    86.97 Outlays from new mandatory
            authority.......................         406
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         471          79          63
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         481          42          50
    90.00 Outlays...........................         471          79          63
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1230-0-1-271      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Hardship electric.................         121         121         121
    115002Municipal electric................         294         500         100
    115003Treasury electric.................         500         750         700
    115004FFB electric......................       1,641       2,600       1,600
    115005Hardship telephone................          75          75          75
    115006Treasury telephone................         300         300         300
    115007FFB telephone.....................         120         120         120
                                               ---------   ---------  ----------
    115901Total direct loan levels..........       3,051       4,466       3,016
        Direct loan subsidy (in percent):
    132001Hardship electric.................        9.96        2.98        5.71
    132002Municipal electric................        6.95       -0.09        4.03
    132003Treasury electric.................                   -0.04       -0.04
    132004FFB electric......................       -3.09       -1.13       -1.82
    132005Hardship telephone................       10.36        2.32        1.71
    132006Treasury telephone................       -1.00        0.10        0.05
    132007FFB telephone.....................       -2.04       -0.85       -2.36
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       -0.52       -0.54       -0.66
        Direct loan subsidy budget authority:
    133001Hardship electric.................          12           4           7
    133002Municipal electric................          20                       4
    133003Treasury electric.................
    133004FFB electric......................         -51         -29         -29
    133005Hardship telephone................           8           2           1
    133006Treasury telephone................          -3
    133007FFB telephone.....................          -2          -1          -3
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....         -16         -24         -20
        Direct loan subsidy outlays:
    134001Hardship electric.................           6           7           6
    134002Municipal electric................          18          15          10
    134003Treasury electric.................
    134004FFB electric......................         -18         -14         -16
    134005Hardship telephone................           4          19           7
    134006Treasury telephone................
    134007FFB telephone.....................          -1          -1          -2
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............           9          26           5
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Hardship electric.................          96
    135002Municipal electric................          68
    135003Treasury electric.................
    135004FFB electric......................         144
    135005Hardship telephone................          51
    135006Treasury telephone................          16
    135007FFB telephone.....................          31
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................         406
        Direct loan upward reestimate subsidy outlays:
    136001Hardship electric.................          96
    136002Municipal electric................          68
    136003Treasury electric.................
    136004FFB electric......................         144
    136005Hardship telephone................          51
    136006Treasury telephone................          16
    136007FFB telephone.....................          31
                                               ---------   ---------  ----------

    [[Page 157]]

    136901Total upward reestimate outlays...         406
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Hardship electric.................        -149
    137002Municipal electric................         -87
    137003Treasury electric.................
    137004FFB electric......................         -61
    137005Hardship telephone................         -66
    137006Treasury telephone................         -16
    137007FFB telephone.....................         -30
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................        -410
        Direct loan downward reestimate subsidy
                    outlays:
    138001Hardship electric.................        -149
    138002Municipal electric................         -87
    138003Treasury electric.................
    138004FFB electric......................         -61
    138005Hardship telephone................         -66
    138006Treasury telephone................         -16
    138007FFB telephone.....................         -30
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................        -410
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Guaranteed electric...............          59         100         100
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......          59         100         100
        Guaranteed loan subsidy (in percent):
    232001Loan guarantee levels.............        0.01        0.08        0.08
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        0.01        0.08        0.08
        Guaranteed loan subsidy budget authority:
    233001Loan guarantee levels.............
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....
        Guaranteed loan subsidy outlays:
    234001Loan guarantee levels.............
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................          35          36          38
    359001Outlays from new authority........          35          36          38
    ---------------------------------------------------------------------------

        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.

        The electric and telecommunications programs need to be better
    targeted to needier areas (lower population and areas of persistent out
    migration and poverty). RUS will be reviewing the electric and
    telecommunications programs to determine and implement methods of
    increasing targeting of funds. This includes reducing the amount of
    funding that subsidizes systems in urban areas.

        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 and guaranteed 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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................          35          36          38
    41.0  Grants, subsidies, and
            contributions...................         446           6          12
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         481          42          50
    ---------------------------------------------------------------------------

       Rural Electrification and Telecommunications Direct Loan Financing
                                     Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4208-0-3-271      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................       3,051       4,466       3,016
    00.02   Interest on Treasury borrowing..         528         712         855
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating program.....       3,579       5,178       3,871
          Non-operating program:

    08.01   Negative subsidy paid to receipt
              account.......................          19          17          20
    08.02   Downward reestimate paid to
              receipt account...............         311
    08.04   Interest on downward reestimate
              paid to receipt account.......          99
                                               ---------   ---------  ----------
    08.91   Subtotal, Non-operating program.         429          17          20
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       4,008       5,195       3,891
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          31          43          49
    22.00 New financing authority (gross)...       4,019       5,201       3,904
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          92
    22.70 Balance of authority to borrow
            withdrawn.......................         -91
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       4,051       5,244       3,953
    23.95 Total new obligations.............      -4,008      -5,195      -3,891
    24.40 Unobligated balance carried
            forward, end of year............          43          49          62
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............       3,150       4,543       3,127
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...       1,106         981       1,171
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          10         -37         -12
    68.47   Portion applied to repay debt...        -247        -286        -382
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         869         658         777
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       4,019       5,201       3,904
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       5,356       6,172       8,259
    73.10 Total new obligations.............       4,008       5,195       3,891
    73.20 Total financing disbursements
            (gross).........................      -3,090      -3,145      -3,493
    73.45 Recoveries of prior year
            obligations.....................         -92
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -10          37          12
    74.40 Obligated balance, end of year....       6,172       8,259       8,669
    87.00 Total financing disbursements
            (gross).........................       3,090       3,145       3,493
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payment from program account..        -436         -43         -24
    88.25     Interest on uninvested funds..         -53         -74         -90
              Non-Federal sources:
    88.40       Repayment of principal......        -211        -206        -267
    88.40       Interest received on loans..        -415        -658        -790
    88.40       Fees........................          -1
    88.40       Other.......................          10
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,106        -981      -1,171
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............         -10          37          12
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............       2,903       4,257       2,745
    90.00 Financing disbursements...........       1,983       2,164       2,322
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4208-0-3-271      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........       3,051       4,466       3,016
                                               ---------   ---------  ----------

    [[Page 158]]

    1150    Total direct loan obligations...       3,051       4,466       3,016
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       7,131       9,072      11,282
    1231  Disbursements: Direct loan
            disbursements...................       2,151       2,416       2,618
    1251  Repayments: Repayments and
            prepayments.....................        -210        -206        -267
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       9,072      11,282      13,633
    ---------------------------------------------------------------------------

        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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          48              2           330            538
            Investments in US securities:
    1106      Receivables, net..............          43            104            24             17
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       6,019          7,815         9,548         11,502
    1402    Interest receivable.............          34             44            65             55
    1405    Allowance for subsidy cost (-)..        -465           -435          -570           -587
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       5,588          7,424         9,043         10,970
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       5,679          7,530         9,397         11,525
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................          21             54            49             42
    2102    Interest payable................          29             46            40             30
    2103    Debt............................       5,571          7,348         9,238         11,389
    2207  Non-Federal liabilities: Other....          58             82            70             64
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       5,679          7,530         9,397         11,525
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       5,679          7,530         9,397         11,525
    --------------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          69            156           314            385
            Investments in US securities:
    1106      Receivables, net..............          37             48            19              7
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       1,088          1,232         1,716          2,113
    1402    Interest receivable.............           3              3             2              3
    1405    Allowance for subsidy cost (-)..         -51            -27           -98           -106
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       1,040          1,208         1,620          2,010
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,146          1,412         1,953          2,402
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................           3              8            15              7
    2102    Interest payable................           2              3             7              3
    2103    Debt............................       1,117          1,365         1,890          2,357
    2207  Non-Federal liabilities: Other....          24             36            41             35
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,146          1,412         1,953          2,402
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,146          1,412         1,953          2,402
    -----------------------------------------------------------------------------------------------

    Rural Electrification and Telecommunications Guaranteed Loans Financing
                                    Account

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4209-0-3-271      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........          59         100         100
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................          59         100         100
    2199  Guaranteed amount of guaranteed
            loan commitments................          59         100         100
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         168         203         268
    2231  Disbursements of new guaranteed
            loans...........................          35          68         113
    2251  Repayments and prepayments........                      -3          -4
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         203         268         377
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         203         268         377
    ---------------------------------------------------------------------------

        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.

        This account finances loan guarantee commitments.

        Rural Electrification and Telecommunications Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-271      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Interest expense on certificates
            of beneficial ownership.........         387         382         382
    00.02 Interest expense, FFB direct......         708         708         653
    00.03 Other interest expense............           7           9          21
    00.05 Other.............................           7           8           7
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,109       1,107       1,063
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,100       1,103       1,061
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          10           4           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,110       1,107       1,064
    23.95 Total new obligations.............      -1,109      -1,107      -1,063
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance rescission
              proposal......................                                  -3
          Mandatory:

    60.36   Unobligated balance rescinded...          -4          -4
    62.00   Transferred from other accounts.          24          23          22
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................          20          19          22
    69.00 Offsetting collections (cash).....       2,518       2,666       2,447
    69.27 Capital transfer to general fund..        -156        -717        -267
    69.47 Portion applied to repay debt.....      -1,282        -865      -1,138
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................       1,080       1,084       1,042
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,100       1,103       1,061
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         521         482         473
    73.10 Total new obligations.............       1,109       1,107       1,063
    73.20 Total outlays (gross).............      -1,139      -1,113      -1,069
    73.45 Recoveries of prior year
            obligations.....................         -10          -4          -3
    74.40 Obligated balance, end of year....         482         473         464
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         764       1,021         948

    [[Page 159]]

    86.98 Outlays from mandatory balances...         375          92         121
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,139       1,113       1,069
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Loans repaid................      -1,406      -1,447      -1,325
    88.40       Interest from loans.........      -1,176      -1,219      -1,122
    88.40       Undistributed charges.......          64
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -2,518      -2,666      -2,447
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      -1,418      -1,563      -1,386
    90.00 Outlays...........................      -1,379      -1,553      -1,378
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-271      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      23,733      21,009      19,333
    1231  Disbursements: Direct loan
            disbursements...................           9          13          13
    1251  Repayments: Repayments and
            prepayments.....................      -1,497      -1,539      -1,416
          Write-offs for default:

    1263    Direct loans....................      -2,953        -142        -130
    1264    Other adjustments, net..........       1,717          -8          -7
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      21,009      19,333      17,793
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-271      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         382         358         335
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................         -24         -23         -21
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         358         335         314
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         358         335         314
    ---------------------------------------------------------------------------

                              STATUS OF AGENCY DEBT

                            [In millions of dollars]

                                         2001 actual  2002 est.   2003 est.
    Agency debt held by FFB:
      Outstanding FFB direct, start of
        year............................      10,662       9,890       9,118
      Outstanding Certificate of
        Beneficial Ownership (CBO's),
        start of year...................       4,327       4,270       4,270
      New agency borrowing, FFB direct..           2
      Repayments and prepayments, FFB
        Direct..........................        -774        -772        -712
      Repayments, CBO's.................         -57
                                        ------------------------------------
      Outstanding FFB direct, end of
        year............................       9,890       9,118       8,406
      Outstanding CBO's, end of year....       4,270       4,270       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]

                                         2001 actual  2002 est.   2003 est.
    Cumulative RUS financed direct loans      21,856      21,856      21,856
    Cumulative FFB financed direct loans      27,089      27,042      26,995
    Cumulative RUS funds advanced.......      21,831      21,833      21,835
    Unadvanced RUS funds, end of year...          25          23          21
    Cumulative RUS principal repaid.....      14,362      15,016      16,313
    Cumulative RUS interest paid........      11,677      12,163      13,214
    Cumulative loan guarantee
    commitments\1\......................       3,967       3,967       3,967
    Number of borrowers.................         737         730         723

        \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]

                                         2001 actual  2002 est.   2003 est.
    Cumulative RUS financed direct loans       6,036       6,026       6,016
    Cumulative FFB financed direct loans         562         562         562
    Cumulative RUS funds advanced.......       5,888       5,896       5,904
    Unadvanced RUS funds, end of period.         148         140         132
    Cumulative RUS principal repaid.....       3,654       3,024       3,365
    Cumulative RUS interest paid........       2,847       2,945       3,036
    Cumulative loan guarantee
    commitments \1\.....................           3           3           3
    Number of borrowers.................         725         707         689

        \1\ Other lenders--privately financed direct loans, FFB.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4230-0-3-271    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
              ELECTRIC PROGRAM:
    0111  Revenue...........................       1,408          1,164         1,099          1,011
    0112  Expense...........................         -22         -2,900          -888           -823
                                            ------------ --------------  ------------  -------------
    0115  Net income or loss (-)............       1,386         -1,736           211            188
              TELEPHONE PROGRAM:
    0121  Revenue...........................         116            113           109            100
    0122  Expense...........................         -17           -380          -121           -112
                                            ------------ --------------  ------------  -------------
    0125  Net income or loss (-)............          99           -267           -12            -12
                                            ------------ --------------  ------------  -------------
    0191  Total revenues....................       1,524          1,277         1,208          1,111
                                            ------------ --------------  ------------  -------------
    0192  Total expenses....................         -39         -3,280        -1,009           -935
                                            ------------ --------------  ------------  -------------
    0195  Total income or loss (-)..........       1,485         -2,003           199            176
                                            ------------ --------------  ------------  -------------
    0199  Net loss (-)......................       1,485         -2,003           199            176
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4230-0-3-271    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         290            267           316            427
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross (Electric)..      21,256         18,732        17,225         15,840
    1602    Interest receivable.............         262            163           159            156
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -1,027         -1,415        -1,302         -1,198
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............      20,491         17,480        16,082         14,798
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................      20,491         17,480        16,082         14,798
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      20,781         17,747        16,398         15,225
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................         780            780           780            780
    2102    Interest payable................         177            156           137            121
    2103    Debt............................      18,867         17,774        16,929         15,291
    2104    Resources payable to Treasury...         803           -970        -1,452           -971
    2105    Other...........................         154              7             4              4
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      20,781         17,747        16,398         15,225
                                            ------------ --------------  ------------  -------------

    [[Page 160]]

    4999  Total liabilities and net position      20,781         17,747        16,398         15,225
    --------------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         173            159           185            251
          Non-Federal assets:

    1201    Investments in non-Federal
              securities, net...............         477            453           430            409
    1206    Receivables, net................         780            780           780            780
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross (telephone).       2,477          2,278         2,109          1,953
    1602    Interest receivable.............           8              8             8              7
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -33           -399          -367           -338
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............       2,452          1,887         1,750          1,622
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       2,452          1,887         1,750          1,622
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       3,882          3,279         3,145          3,062
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................           4              2             2              2
    2103    Debt............................       1,944          1,757         1,674          1,512
    2104    Resources payable to Treasury...       1,922          1,506         1,455          1,534
    2105    Other...........................           2              4             4              4
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       3,872          3,269         3,135          3,052
        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       3,882          3,279         3,145          3,062
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-271      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           7           8           7
    33.0  Investments and loans.............           7           9          21
    43.0  Interest and dividends............       1,095       1,090       1,035
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,109       1,107       1,063
    ---------------------------------------------------------------------------

                      Rural Telephone Bank Program Account

                          (including transfer 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 2002 and within the
    resources and authority available, gross obligations for the principal
    amount of direct loans shall be $174,615,000.]
        [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),
    $3,737,000.]
        [In addition, for] For administrative expenses, including audits,
    necessary to [carry out the loan programs, $3,082,000,] continue to
    service existing loans, $3,082,000, to be derived by transfer from the
    shareholder's equity, contained in the unobligated balances in the Rural
    Telephone Bank Liquidating Account, which shall be transferred to and
    merged with the appropriation for ``Rural Development, Salaries and
    Expenses''. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1231-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............           3           4
    00.05 Reestimates on direct loan subsidy           3
    00.06 Interest on reestimate............           1
    00.09 Administrative expenses subject to
            limitation......................           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          10           7           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          10           7           3
    23.95 Total new obligations.............         -10          -7          -3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           6           7
    42.00   Transferred from other accounts.                                   3
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............           6           7           3
          Mandatory:

    60.00   Appropriation...................           4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          10           7           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          15          16          18
    73.10 Total new obligations.............          10           7           3
    73.20 Total outlays (gross).............          -8          -5          -5
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.40 Obligated balance, end of year....          16          18          16
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           3           3           3
    86.93 Outlays from discretionary
            balances........................           1           1           2
    86.97 Outlays from new mandatory
            authority.......................           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           8           5           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          10           7           3
    90.00 Outlays...........................           8           5           5
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1231-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Rural Telephone Bank..............         175         175
                                               ---------   ---------  ----------
    115901Total direct loan levels..........         175         175
        Direct loan subsidy (in percent):
    132001Rural Telephone Bank..............        1.48        2.14        0.00
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        1.48        2.14        0.00
        Direct loan subsidy budget authority:
    133001Rural Telephone Bank..............           3           4
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....           3           4
        Direct loan subsidy outlays:
    134001Rural Telephone Bank..............           1           2           2
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............           1           2           2
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Rural Telephone Bank..............           4
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................           4
        Direct loan upward reestimate subsidy outlays:
    136001Rural Telephone Bank..............           4
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...           4
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Rural Telephone Bank..............          -6
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................          -6
        Direct loan downward reestimate subsidy
                    outlays:
    138001Rural Telephone Bank..............          -6
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................          -6
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................           3           3           3

    [[Page 161]]

    359001Outlays from new authority........           3           3           3
    ---------------------------------------------------------------------------

        The President's budget proposes no more federally funded loans.
    Funding for the RTB's administrative expenses will be transferred from
    the unobligated balances in the RTB liquidating account.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for the Rural Telephone Bank, the subsidy costs associated with
    the direct loans obligated in 1992 and beyond as well as administrative
    expenses for the program. The subsidy amounts are estimated on a present
    value basis; administrative expenses are estimated on a cash basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1231-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           3           3           3
    41.0  Grants, subsidies, and
            contributions...................           7           4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          10           7           3
    ---------------------------------------------------------------------------

               Rural Telephone Bank Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4210-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................         175         175
    00.02   Interest on Treasury borrowing..          20          36          45
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating program.....         195         211          45
          Reestimate:

    08.02   Downward reestimate.............           4
    08.04   Interest on downward reestimate.           2
                                               ---------   ---------  ----------
    08.91   Subtotal, reestimate............           6
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         201         211          45
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           6
    22.00 New financing authority (gross)...         207         205          45
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          21
    22.70 Balance of authority to borrow
            withdrawn.......................         -23
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         206         211          45
    23.95 Total new obligations.............        -201        -211         -45
    24.40 Unobligated balance carried
            forward, end of year............           6
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............         178         168          23
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          40          45          55
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           1           2          -2
    68.47   Portion applied to repay debt...         -12         -10         -31
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          29          37          22
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         207         205          45
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         904       1,001         989
    73.10 Total new obligations.............         201         211          45
    73.20 Total financing disbursements
            (gross).........................         -81        -220        -261
    73.45 Recoveries of prior year
            obligations.....................         -21
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1          -2           2
    74.40 Obligated balance, end of year....       1,001         989         774
    87.00 Total financing disbursements
            (gross).........................          81         220         261
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Payment from
                program account.............          -5          -2          -2
    88.25     Interest on uninvested funds..          -5          -3          -4
              Non-Federal sources:
    88.40       Principal received on loans.         -11         -14         -16
    88.40       Interest received on loans..         -16         -17         -23
    88.40       Sale of RTB Stock...........          -3          -9         -10
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -40         -45         -55
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          -1          -2           2
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         166         158          -8
    90.00 Financing disbursements...........          42         175         206
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4210-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         175         175
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         175         175
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         268         338         453
    1231  Disbursements: Direct loan
            disbursements...................          81         129         127
    1251  Repayments: Repayments and
            prepayments.....................         -11         -14         -16
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         338         453         564
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond. The amounts in
    this account are a means of financing and are not included in the budget
    totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4210-0-3-452    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....                         10
            Investments in US securities:
    1106      Receivables, net..............          19             16
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..         246            281
    1405    Allowance for subsidy cost (-)..          -9
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         237            281
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         256            307
        LIABILITIES:
          Federal liabilities:

    2103    Debt............................         221            291
    2105    Other...........................          15
          Non-Federal liabilities:

    2201    Accounts payable................           6             16
    2207    Other...........................          14
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         256            307
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         256            307
    -----------------------------------------------------------------------------------------------

                    Rural Telephone Bank Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4231-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Dividends.........................          21          21          23
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 43.0)...................          21          21          23
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         636         769         848
    22.00 New budget authority (gross)......         143         100          95
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          10

    [[Page 162]]

    22.21 Unobligated balance transferred to
            other accounts..................                                  -3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         789         869         940
    23.95 Total new obligations.............         -21         -21         -23
    24.40 Unobligated balance carried
            forward, end of year............         769         848         917
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    61.00   Transferred to other accounts...         -24         -23         -22
    69.00 Offsetting collections (cash).....         251         132         126
    69.47 Portion applied to repay debt.....         -84          -9          -9
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................         167         123         117
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         143         100          95
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         120         106          99
    73.10 Total new obligations.............          21          21          23
    73.20 Total outlays (gross).............         -25         -28         -29
    73.45 Recoveries of prior year
            obligations.....................         -10
    74.40 Obligated balance, end of year....         106          99          93
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          18          21          23
    86.98 Outlays from mandatory balances...           7           7           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          25          28          29
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.20     Interest on Federal securities         -55
              Non-Federal sources:
    88.40       Loans repaid................        -136         -78         -78
    88.40       Interest from loans.........         -60         -54         -48
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -251        -132        -126
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -108         -32         -31
    90.00 Outlays...........................        -227        -104         -97
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4231-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         924         795         724
    1231  Disbursements: Direct loan
            disbursements...................           7           7           6
    1251  Repayments: Repayments and
            prepayments.....................        -136         -78         -78
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         795         724         652
    ---------------------------------------------------------------------------

        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 salaries and expenses will be transferred from the
    unobligated balances in the RTB liquidating account in 2003.

        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. The President's budget proposes that the Rural
    Telephone Bank make no more Federally-funded loans.

        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]

                                         2001 actual  2002 est.   2003 est.
    Cumulative net loans................       2,506       2,481       2,461
    Cumulative loan funds, advanced.....       2,467       2,474       2,480
    Unadvanced loan funds, end of year..          85          78          72
    Cumulative principal repaid.........       1,673       1,751       1,829
    Cumulative interest paid............       2,291       2,345       2,393
    Number of borrowers.................         348         335         322
                                        ====================================

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4231-0-3-452    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         120            115            54             48
    0102  Expense...........................         -37             -1            -1             -1
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............          83            114            53             47
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4231-0-3-452    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         756            875           902            968
    1402  Net value of assets related to
            post-1991 direct loans
            receivable: Interest receivable.           2              3             2              2
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............         924            794           723            651
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -65             -6            -5             -4
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............         859            788           718            647
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................         859            788           718            647
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,617          1,666         1,622          1,617
        LIABILITIES:
          Federal liabilities:

    2103    Debt............................          74
    2104    Resources payable to Treasury...          83            114           196            156
    2207  Non-Federal liabilities: Other....         983          1,118           996          1,053
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,140          1,232         1,192          1,209
        NET POSITION:
    3300  Cumulative results of operations..         477            434           430            408
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         477            434           430            408
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,617          1,666         1,622          1,617
    -----------------------------------------------------------------------------------------------

                   Distance Learning and Telemedicine Program

        For the principal amount of direct distance learning and
    telemedicine loans, [$300,000,000] $50,000,000; and for the principal
    amount of broadband telecommunication loans, [$80,000,000] $79,535,000.
        For the cost of direct loans and grants, as authorized by 7 U.S.C.
    950aaa et seq., [$49,441,000] $31,049,000, to remain available until
    expended, to be available for loans and grants for telemedicine and
    distance learning services in rural areas: Provided, That [$22,500,000]
    $6,104,000 may be available for the continuation of a pilot project for
    a loan and grant program to finance broadband transmission and local
    dial-up Internet service in areas that meet the definition of ``rural
    area'' used for the Distance Learning and Telemedicine Program
    authorized by 7 U.S.C. 950aaa: Provided further, That the cost 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, 2002.)

    [[Page 163]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1232-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Grants............................          27          53          27
    00.03 Broadband loan subsidy............                                   4
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          27          53          31
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3           4
    22.00 New budget authority (gross)......          27          49          31
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          31          53          31
    23.95 Total new obligations.............         -27         -53         -31
    24.40 Unobligated balance carried
            forward, end of year............           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation grant budget
              authority.....................          27          49          31
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          42          58          95
    73.10 Total new obligations.............          27          53          31
    73.20 Total outlays (gross).............         -10         -16         -27
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.40 Obligated balance, end of year....          58          95          99
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       1           1
    86.93 Outlays from discretionary
            balances........................          10          15          26
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          10          16          27
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          27          49          31
    90.00 Outlays...........................          10          16          27
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1232-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Distance Learning and Telemedicine         300         300          50
    115002Broadband.........................         100          80          80
                                               ---------   ---------  ----------
    115901Total direct loan levels..........         400         380         130
        Direct loan subsidy (in percent):
    132001Direct loan levels................       -0.61       -0.07       -1.15
    132002Broadband.........................       -0.61       -0.07        5.16
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       -0.75        0.00        2.31
        Direct loan subsidy budget authority:
    133001Distance Learning and Telemedicine          -2                      -1
    133002Broadband.........................          -1                       4
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....          -3                       3
        Direct loan subsidy outlays:
    134001Direct loan levels................
    134002Direct loan levels................
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............
    ---------------------------------------------------------------------------

        The loan and grant program provides access to advanced
    telecommunications services for improved education and health care in
    rural areas throughout the country. The loans and grants help education
    and health care providers bring the most modern technology, level of
    care, and education to rural America so its citizens can compete
    regionally, nationally, and globally. Additionally, the budget proposes
    continuing 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 Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4146-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................         100         380         130
    00.02   Interest on Treasury borrowing..           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         101         381         131
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...         103         381         132
    23.95 Total new obligations.............        -101        -381        -131
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............         101         378         128
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           2           3           4
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         103         381         132
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          63         149         517
    73.10 Total new obligations.............         101         381         131
    73.20 Total financing disbursements
            (gross).........................         -15         -13         -25
    74.40 Obligated balance, end of year....         149         517         624
    87.00 Total financing disbursements
            (gross).........................          15          13          25
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..          -1          -1          -1
              Non-Federal sources:
    88.40       Repayment of principal......          -1          -1          -2
    88.40       Interest received on loans..                      -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -2          -3          -4
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         101         378         128
    90.00 Financing disbursements...........          13          10          21
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4146-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         400         380         130
    1142  Unobligated direct loan limitation
            (-).............................        -300
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         100         380         130
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           2          16          27
    1231  Disbursements: Direct loan
            disbursements...................          15          12          24
    1251  Repayments: Repayments and
            prepayments.....................          -1          -1          -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          16          27          49
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond. The amounts in
    this account are a means of financing and are not included in the budget
    totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4146-0-3-452    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................                          3
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..           1             14            26             48
    1402    Interest receivable.............                                        1              1
    1405    Allowance for subsidy cost (-)..                          1            -1             -1
                                            ------------ --------------  ------------  -------------

    [[Page 164]]

    1499      Net present value of assets
                related to direct loans.....           1             15            26             48
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           1             18            26             48
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................           1             18            26             48
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           1             18            26             48
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           1             18            26             48
    -----------------------------------------------------------------------------------------------

                [Local Television Loan Guarantee Program Account]

                         [(including transfer of funds)]

        [For gross obligations for the principal amount of guaranteed loans,
    as authorized by title X of Public Law 106-553 for the purpose of
    facilitating access to signals of local television stations for
    households located in nonserved areas and underserved areas,
    $258,065,000.]
        [For the cost of guaranteed loans, including the cost of modifying
    loans as defined in section 502 of the Congressional Budget Act of 1974,
    $20,000,000.]
        [In addition, for administrative expenses necessary to carry out the
    guaranteed loan program, $2,000,000, which shall be transferred to and
    merged with the appropriation for ``Rural Development, Salaries and
    Expenses''.] (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1233-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Loan guarantee subsidy............                      20
    00.09 Administrative expenses...........                       2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                      22
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                      22
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                  16
    73.10 Total new obligations.............                      22
    73.20 Total outlays (gross).............                      -6          -9
    74.40 Obligated balance, end of year....                      16           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       6
    86.93 Outlays from discretionary
            balances........................                                   9
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                       6           9
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      22
    90.00 Outlays...........................                       6           9
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1233-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Local television..................                     258
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......                     258
        Guaranteed loan subsidy (in percent):
    232001Loan guarantee levels.............                    7.75        0.00
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....                    7.75        0.00
        Guaranteed loan subsidy budget authority:
    233001Loan guarantee levels.............                      20
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....                      20
        Guaranteed loan subsidy outlays:
    234001Loan guarantee levels.............                       4           9
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............                       4           9
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................                       2
    358001Outlays from balances.............
    359001Outlays from new authority........                       2
    ---------------------------------------------------------------------------

        The President's budget proposes no federally funded loans for the
    Local Television Loan Guarantee program begun in 2002.

        The Local Television Loan program provides guaranteed loans to fund
    the provision of local television stations to rural residents.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the loan
    guarantees committed 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 12-1233-0-1-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................                       2
    41.0  Grants, subsidies, and
            contributions...................                      20
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                      22
    ---------------------------------------------------------------------------

                Local Television Loan Guarantee Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4220-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                                   4
    22.00 New financing authority (gross)...                       4          10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                       4          14
    24.40 Unobligated balance carried
            forward, end of year............                       4          14
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............                       4          10
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                      -4          -9
    88.25     Interest on uninvested funds..                                  -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                      -4         -10
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........                      -4         -10
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4220-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........                     258
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                     258

    [[Page 165]]

    2199  Guaranteed amount of guaranteed
            loan commitments................                     206
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........                                  52
    2231  Disbursements of new guaranteed
            loans...........................                      52         116
    2251  Repayments and prepayments........                                  -2
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........                      52         166
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                      41         133
    ---------------------------------------------------------------------------

        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 (including
    modifications of loan guarantees that resulted from commitments 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   12-4220-0-3-452    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....                                        4             14
            Investments in US securities:
    1106      Receivables, net..............                                       16              6
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1502    Interest receivable.............                                                       1
    1505    Allowance for subsidy cost (-)..                                       -1             -3
                                            ------------ --------------  ------------  -------------
    1599      Net present value of assets
                related to defaulted
                guaranteed loans............                                       -1             -2
    1901  Other Federal assets: Other assets                                                      19
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                       19             37
        LIABILITIES:
          Non-Federal liabilities:

    2204    Liabilities for loan guarantees.                                       12             37
    2207    Other...........................                                        7
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                                       19             37
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                       19             37
    -----------------------------------------------------------------------------------------------

              Rural Development Insurance Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4155-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investment:

    01.01   Interest on FFB borrowings......         429         249         123
    01.05   Interest on Treasury borrowings.          47          66          42
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 43.0)...................         476         315         165
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         476         315         165
    23.95 Total new obligations.............        -476        -315        -165
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................       1,328       1,606         208
    60.47   Portion applied to repay debt...        -852      -1,291         -43
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         476         315         165
    69.00 Offsetting collections (cash).....         388         354         332
    69.47 Portion applied to repay debt.....        -388        -354        -332
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         476         315         165
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         243         159          66
    73.10 Total new obligations.............         476         315         165
    73.20 Total outlays (gross).............        -560        -407        -170
    74.40 Obligated balance, end of year....         159          66          61
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         386         281         117
    86.98 Outlays from mandatory balances...         174         126          53
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         560         407         170
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Non-Federal sources.........        -200        -187        -176
    88.40       Repayments of guaranteed
                  loans purchased from
                  investors.................          -3          -3          -2
    88.40       Interest revenue............        -175        -164        -154
    88.40       Undistributed charges.......         -10
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -388        -354        -332
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          88         -39        -167
    90.00 Outlays...........................         172          53        -162
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4155-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       3,269       3,068       2,880
    1251  Repayments: Repayments and
            prepayments.....................        -200        -187        -176
    1263  Write-offs for default: Direct
            loans...........................          -1          -1          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       3,068       2,880       2,703
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4155-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         112          99          87
    2251  Repayments and prepayments........         -13         -12         -10
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          99          87          77
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          67          57          48
    ---------------------------------------------------------------------------

        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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         590            483           402            335

    [[Page 166]]

    0102  Expense...........................        -993           -732          -515           -365
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............        -403           -249          -113            -30
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4155-0-3-452    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         243            159            72             71
    1201  Non-Federal assets: Investments in
            non-Federal securities, net.....          34             34            34             34
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       3,269          3,068         2,880          2,703
    1602    Interest receivable.............          59             56            54             51
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -1,076         -1,026          -964           -904
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............       2,252          2,098         1,970          1,850
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       2,252          2,098         1,970          1,850
    1901  Other Federal assets: Other assets          20             18            15             13
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,549          2,309         2,091          1,968
        LIABILITIES:
          Federal liabilities:

    2103    Debt............................       4,306          3,066         1,421          1,046
    2104    Resources payable to Treasury...      -2,013           -930           592            849
          Non-Federal liabilities:

    2202    Interest payable................         243            158            66             61
    2204    Liabilities for loan guarantees.           2              2             2              2
    2207    Other...........................          11             13            10             10
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,549          2,309         2,091          1,968
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,549          2,309         2,091          1,968
    -----------------------------------------------------------------------------------------------

            Rural Communication Development Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4142-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Interest on Treasury borrowing....           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 43.0)...................           3           3           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           2
    22.00 New budget authority (gross)......           3           3           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           4           5           3
    23.95 Total new obligations.............          -3          -3          -3
    24.40 Unobligated balance carried
            forward, end of year............           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................           2           2           2
    69.00 Offsetting collections (cash).....           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           3           3           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 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 Obligated balance, end of year....           1           1           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           1           1           1
    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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           6           5           4
    1251  Repayments: Repayments and
            prepayments.....................          -1          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           5           4           4
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4142-0-3-452      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........           4           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, 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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................           3              3             3              2
    0102  Expense...........................          -5             -3            -3             -2
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............          -2
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4142-0-3-452    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           2              3             3              3
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............           6              5             4              4
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................          -1              1            -1             -1
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............           5              6             3              3
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................           5              6             3              3
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           7              9             6              6
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................           1              1             1              1
    2103    Debt............................          25             25            24             24
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.         -17            -17           -19            -19
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           9              9             6              6
        NET POSITION:
    3300  Cumulative results of operations..          -2
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          -2
                                            ------------ --------------  ------------  -------------

    [[Page 167]]

    4999  Total liabilities and net position           7              9             6              6
    -----------------------------------------------------------------------------------------------

                          FOREIGN AGRICULTURAL SERVICE

                                  Federal Funds

    General and special funds:

                              Salaries and expenses

                         (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 $158,000 for representation allowances and for expenses
    pursuant to section 8 of the Act approved August 3, 1956 (7 U.S.C.
    1766), [$121,813,000] $135,570,000: 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[: Provided further, That none of the funds
    appropriated in this account may be used to pay the salaries and
    expenses of personnel to disburse funds to any rice trade association
    under the market access program or the foreign market development
    program at any time when the applicable international activity agreement
    for such program is not in effect].
        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, 2002; additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2900-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Market access...................          29          31          33
    00.02   Market development..............          34          35          37
    00.03   Market intelligence.............          26          29          31
    00.04   Financial marketing assistance..           6           7          10
    00.05   Long-term market and
              infrastructure development....          23          24          25
    09.00 Reimbursable program..............          82          73          73
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         200         199         209
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          18          29          29
    22.00 New budget authority (gross)......         210         199         209
    22.22 Unobligated balance transferred
            from other accounts.............           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         229         228         238
    23.95 Total new obligations.............        -200        -199        -209
    24.40 Unobligated balance carried
            forward, end of year............          29          29          29
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         118         126         136
    42.00   Transferred from other accounts.          10
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         128         126         136
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          82          73          73
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         210         199         209
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          43          44          42
    73.10 Total new obligations.............         200         199         209
    73.20 Total outlays (gross).............        -209        -201        -210
    73.40 Adjustments in expired accounts
            (net)...........................          10
    74.40 Obligated balance, end of year....          44          42          41
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         201         189         198
    86.93 Outlays from discretionary
            balances........................           8          10          10
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         209         201         210
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -82         -73         -73
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         128         126         136
    90.00 Outlays...........................         127         128         137
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         125         122         132
    90.00 Outlays...........................         124         124         133
    ---------------------------------------------------------------------------

        The mission of the Foreign Agricultural Service (FAS) is to open,
    expand and maintain global market opportunities through international
    trade, cooperation, and sustainable development activities which secure
    the long-term economic vitality and global competitiveness of America's
    rural communities and related food and agricultural enterprises.

        FAS conducts a demand-driven export strategy, deploying five major
    policy objectives to execute the strategy, while integrating commodity
    and country market priorities for allocating scarce export assistance
    resources. These objectives include:

        Market access: FAS initiates, directs and coordinates the
    Department's formulation of trade policies and programs with the goal of
    maintaining and expanding world markets for U.S. agricultural products.
    It monitors international compliance with bilateral and multilateral
    trade agreements. It identifies restrictive tariff and trade practices
    which act as barriers to the import of U.S. agricultural commodities,
    then supports negotiations to remove them. It acts to counter and
    eliminate unfair trade practices of other countries that hinder U.S.
    agricultural exports to those markets. In virtually every foreign
    market, U.S. agricultural exports are subject to import duties and non-
    tariff trade restrictions. Trade information sent to Washington from FAS
    personnel overseas is used to map strategies for improving market
    access, pursuing U.S. rights under trade agreements, and developing
    programs and policies to make U.S. farm products more competitive.

        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 16 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 are 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. The Quality samples program provides
    samples of U.S. agricultural products to foreign importers to help
    overcome marketing trade barriers. 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

    [[Page 168]]

    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 leverage overseas market
    expansion for U.S. agricultural, fish, and forest products. These
    programs include CCC Export Credit Guarantee Programs, export subsidy
    programs, including the Export Enhancement Program and Dairy Export
    Incentive 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 by mobilizing expertise for
    agriculturally led economic growth in developing countries. FAS provides
    linkages to world resources and international organizations to
    facilitate new technologies that are vital to improving the agricultural
    demand base and producing new alternative products. Direct program
    activities include administering the Cochran Fellowship program and
    managing USDA's bilateral exchange and cooperative research programs
    with foreign governments and institutions.

        FAS also administers food assistance activities such as Public Law
    480, Title I; Food for Progress; and Section 416(b) programs. P.L. 480
    Title I food aid is designed to help developing nations make the
    transition from donations and concessional financing to cash purchases
    while assisting them in feeding their undernourished people. The
    Emerging Markets Program, under which technical assistance and related
    activities are carried out in emerging markets, is aimed at enhancing
    developing countries' food and rural business systems and expanding U.S.
    agricultural exports. Food for Progress provides food to developing
    countries and emerging democracies that have made commitments to
    introduce or expand free enterprise into their agricultural economies.
    Section 416(b) provides overseas donations of surplus commodities owned
    by the CCC to assist developing and friendly countries.

        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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2900-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          50          55          57
    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          55          60          62
    12.1    Civilian personnel benefits.....          18          20          20
    21.0    Travel and transportation of
              persons.......................           5           5           5
    22.0    Transportation of things........           1           1           1
    23.2    Rental payments to others.......           6           7           8
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           2           2
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          27          27          32
    25.8    Subsistence and support of
              persons.......................           1           1           1
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           1           1           3
                                               ---------   ---------  ----------
    99.0      Direct obligations............         118         126         136
    99.0  Reimbursable obligations..........          82          73          73
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         200         199         209
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2900-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         800         836         836
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         143         149         149
    ---------------------------------------------------------------------------

            Scientific Activities Overseas (Foreign Currency Program)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1404-0-1-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1           1
    24.40 Unobligated balance carried
            forward, end of year............           1           1           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           1           1
    73.20 Total outlays (gross).............          -1          -1
    74.40 Obligated balance, end of year....           1           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           1           1
    ----------------------------------------------------------------------------

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

    [[Page 169]]

    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 Title I Ocean Freight Differential Grants

                          (including transfer of funds)

        For ocean freight differential costs for the shipment of
    agricultural commodities under title I of the Agricultural Trade
    Development and Assistance Act of 1954 and under the Food for Progress
    Act of 1985, [$20,277,000] $28,000,000, to remain available until
    expended: Provided, That funds made available for the cost of agreements
    under title I of the Agricultural Trade Development and Assistance Act
    of 1954 and for title I ocean freight differential may be used
    interchangeably between the two accounts with prior notice to the
    Committees on Appropriations of both Houses of Congress. (7 U.S.C.
    1701b, 2209b; Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2271-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 P.L. 480 grant--Title I: Ocean
            freight differential (OFD)......          26          35          28
    09.00 Reimbursable program..............                       8
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          26          43          28
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                      15
    22.00 New budget authority (gross)......          20          28          28
    22.22 Unobligated balance transferred
            from other accounts.............          21
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          41          43          28
    23.95 Total new obligations.............         -26         -43         -28
    24.40 Unobligated balance carried
            forward, end of year............          15
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          20          20          28
          Mandatory:

    69.00   Offsetting collections (cash)...                       8
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          20          28          28
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                      25          20
    73.10 Total new obligations.............          26          43          28
    73.20 Total outlays (gross).............          -1         -48         -34
    74.40 Obligated balance, end of year....          25          20          14
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1          11          16
    86.93 Outlays from discretionary
            balances........................                      32          15
    86.97 Outlays from new mandatory
            authority.......................                       5
    86.98 Outlays from mandatory balances...                                   3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           1          48          34
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................          20          20          28
    90.00 Outlays...........................           1          40          34
    ---------------------------------------------------------------------------

        This account funds the title I ocean freight differential program.
    The Administration proposes an increase in funding to maintain the
    program level while eliminating reimbursements from the Maritime
    Administration. This approach will eliminate a time consuming
    intragovernmental transfer.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2271-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....          26          35          28
    99.0  Reimbursable obligations:
            Reimbursable obligations........                       8
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          26          43          28
    ---------------------------------------------------------------------------

                         Public Law 480 Title II Grants

        For expenses during the current fiscal year, not otherwise
    recoverable, and unrecovered prior years' costs, including interest
    thereon, under the Agricultural Trade Development and Assistance Act of
    1954, [$850,000,000, to remain available until expended,] for
    commodities supplied in connection with dispositions abroad under title
    II of said Act, $1,185,000,000, to remain available until expended, of
    which $34,000,000 may be used to carry out section 202(e),
    notwithstanding section 202(e)(1). (7 U.S.C. 1691, 1721-26a. 1727-27e,
    1731-36g-3, 1737, 2209b; Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2278-0-1-151      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Title I OFD.......................          94
    00.02 Title II..........................         851         999       1,185
    09.00 Reimbursable program..............          28          10
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         973       1,009       1,185
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         176          93          49
    22.00 New budget authority (gross)......         863         860       1,185
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          32          10
    22.21 Unobligated balance transferred to
            other accounts..................          -6
    22.22 Unobligated balance transferred
            from other accounts.............           1          95
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,066       1,058       1,234
    23.95 Total new obligations.............        -973      -1,009      -1,185
    24.40 Unobligated balance carried
            forward, end of year............          93          49          49
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         837         850       1,185
    40.35   Appropriation rescinded.........          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         835         850       1,185
          Mandatory:

    69.00   Offsetting collections
              (Reimbursements from the
              Maritime Administration)......          28          10
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         863         860       1,185
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         622         589         636
    73.10 Total new obligations.............         973       1,009       1,185
    73.20 Total outlays (gross).............        -975        -953      -1,063
    73.45 Recoveries of prior year
            obligations.....................         -32         -10
    74.40 Obligated balance, end of year....         589         636         758
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         413         446         622
    86.93 Outlays from discretionary
            balances........................         547         493         435
    86.97 Outlays from new mandatory
            authority.......................          15           5
    86.98 Outlays from mandatory balances...                       9           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         975         953       1,063
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -28         -10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         835         850       1,185
    90.00 Outlays...........................         947         943       1,063
    ---------------------------------------------------------------------------

        Note.--Includes $6 million in budget authority in 2003 for World Food
    Program activities previously financed from International Assistance
    Programs, Multilateral Assistance, International Organizations and Programs.

    [[Page 170]]

        This account funds the non-credit components of Public Law 480. The
    Administration is requesting an increase in annual appropriations for
    this account to ensure that the U.S. maintains leadership in
    international food aid while significantly reducing mandatory programs,
    consolidating programming through private voluntary organizations and
    the World Food Program, and eliminating reimbursements from the Maritime
    Administration.

        The Administration proposes to shift funding for several programs
    from mandatory to discretionary. In the case of all these programs,
    there is no inherent, programmatic justification to provide mandatory
    funding. Although no specific legislation is proposed, the
    Administration has increased the discretionary request and will
    constrain mandatory spending for international food aid. By doing so, a
    larger proportion of international food aid will be subject to the
    annual appropriations process, where Congress has discretion to
    scrutinize Federal spending and determine how to best allocate limited
    resources.

        In addition, the Administration is requesting funds in this account
    to cover the portion of cargo preference costs previously reimbursed by
    the Maritime Administration. This approach will eliminate a duplicative
    financing system and a time consuming intra-governmental transfer.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2278-0-1-151      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....         945         999       1,185
    99.0  Reimbursable obligations:
            Reimbursable obligations........          28          10
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         973       1,009       1,185
    ---------------------------------------------------------------------------

    Credit accounts:

                     Public Law 480 Title I Program Account

                          (including transfers of funds)

        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, and the Food for Progress Act of 1985, including
    the cost of modifying credit arrangements under said Acts,
    [$126,409,000] $98,904,000, 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, to the extent funds appropriated for Public Law 83-480 are
    utilized, [$2,005,000] $2,059,000, of which $1,033,000 may be
    transferred to and merged with the appropriation for ``Foreign
    Agricultural Service, Salaries and Expenses'', and of which [$972,000]
    $1,026,000 may be transferred to and merged with the appropriation for
    ``Farm Service Agency, Salaries and Expenses''. (7 U.S.C. 1691, 1701-04,
    1731-36g-3, 2209b; Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2277-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct credit subsidy.............         196         338          99
    00.05 Re-estimates of subsidy...........                     110
    00.06 Interest on re-estimates..........                      35
    00.09 Administrative expenses...........           2           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         198         485         101
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         371         294
    22.00 New budget authority (gross)......         255         191         101
    22.21 Unobligated balance transferred to
            other accounts..................         -16
    22.40 Capital transfer to general fund..        -118
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         492         485         101
    23.95 Total new obligations.............        -198        -485        -101
    24.40 Unobligated balance carried
            forward, end of year............         294
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         116         128         101
          Mandatory:

    60.00   Appropriation...................          82          63
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          57
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         255         191         101
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          91          64          67
    73.10 Total new obligations.............         198         485         101
    73.20 Total outlays (gross).............        -344        -482        -113
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................         119
    74.40 Obligated balance, end of year....          64          67          55
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          22          74          58
    86.93 Outlays from discretionary
            balances........................         322         263          55
    86.97 Outlays from new mandatory
            authority.......................                      63
    86.98 Outlays from mandatory balances...                      82
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         344         482         113
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -57
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         198         191         101
    90.00 Outlays...........................         287         482         113
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-2277-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001P. L. 480 title I loans...........         159         155         132
                                               ---------   ---------  ----------
    115901Total direct loan levels..........         159         155         132
        Direct loan subsidy (in percent):
    132001PL 480 Title I loans..............       71.51       81.73       75.11
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       71.51       81.73       75.11
        Direct loan subsidy budget authority:
    133001PL 480 Title I loans..............         114         127          99
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....         114         127          99
        Direct loan subsidy outlays:
    134001PL 480 Title I loans..............          52         335         111
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............          52         335         111
        Direct loan upward reestimate subsidy budget
                    authority:
    135001PL 480 Title I loans..............                     145
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................                     145
        Direct loan upward reestimate subsidy outlays:
    136001PL 480 Title I loans..............                     145
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...                     145
        Direct loan downward reestimate subsidy budget
                    authority:
    137001PL 480 Title I loans..............         -39
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................         -39
        Direct loan downward reestimate subsidy
                    outlays:
    138001PL 480 Title I loans..............         -39
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................         -39
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................           2           2           2
    358001Outlays from balances.............
    359001Outlays from new authority........           2           2           2
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for the P.L. 480 Program, the subsidy costs associated with the
    direct loans obligated in 1992 and beyond (including modifications of
    direct loans that resulted from obligation in any year), as well as
    administrative ex

    [[Page 171]]

    penses 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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................           2           2           2
    41.0  Grants, subsidies, and
            contributions...................         196         483          99
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         198         485         101
    ---------------------------------------------------------------------------

                    P.L. 480 Direct Credit Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4049-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................          60         514         132
    00.02   Interest on Treasury borrowing..                      37          41
                                               ---------   ---------  ----------
    00.91   Total, Operating program........          60         551         173
          Re-estimates:

    08.02   Payment of downward re-estimate
              to receipt account............          23
    08.04   Payment of interest on downward
              re-estimate to receipt account          16
                                               ---------   ---------  ----------
    08.91   Total, Re-estimates.............          39
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          99         551         173
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         158         159
    22.00 New financing authority (gross)...         287         669         192
    22.40 Capital transfer to general fund..                    -277         -19
    22.70 Balance of authority to borrow
            withdrawn.......................        -188
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         257         551         173
    23.95 Total new obligations.............         -99        -551        -173
    24.40 Unobligated balance carried
            forward, end of year............         159
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............         235         188          74
    69.00 Offsetting collections (cash).....         134         615         254
    69.10 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -82        -134        -136
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................          52         481         118
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         287         669         192
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..        -119          43          85
    73.10 Total new obligations.............          99         551         173
    73.20 Total financing disbursements
            (gross).........................        -180        -643        -326
    73.40 Adjustments in expired accounts
            (net)...........................         162
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          82         134         136
    74.40 Obligated balance, end of year....          43          85          68
    87.00 Total financing disbursements
            (gross).........................         180         643         326
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.         -52        -480        -111
    88.25     Interest on uninvested funds..         -16          -1          -1
              Non-Federal sources:
    88.40       Interest received on loans..         -35         -60         -62
    88.40       Principal received on loans.         -31         -74         -80
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -134        -615        -254
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          82         134         136
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         235         188          74
    90.00 Financing disbursements...........          46          28          72
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4049-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         160         155         132
    1121  Limitation available from carry-
            forward.........................         259         359
    1143  Unobligated limitation carried
            forward (P.L. 106-387) (-)......        -359
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          60         514         132
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       2,055       2,176       2,236
    1231  Disbursements: Direct loan
            disbursements...................         180         119         107
    1251  Repayments: Repayments and
            prepayments.....................         -59         -59         -73
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       2,176       2,236       2,270
    ---------------------------------------------------------------------------

        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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          17            203            44             44
            Investments in US securities:
    1106      Receivables, net..............          65             64            64             64
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       2,055          2,176         2,236          2,270
    1402    Interest receivable.............           8             24            24             24
    1405    Allowance for subsidy cost (-)..      -1,939         -1,603        -1,663         -1,697
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         124            597           597            597
    1901  Other Federal assets: Other assets         529            329           329            329
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         735          1,193         1,034          1,034
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................           8             31            31             31
    2103    Debt............................         518            753           753            753
    2105    Other...........................         209            409           250            250
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         735          1,193         1,034          1,034
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         735          1,193         1,034          1,034
    -----------------------------------------------------------------------------------------------

                        Debt Reduction--Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4143-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Payment to liquidating account....          15
    00.02 Interest on debt to Treasury......           2
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............          17
    08.02 Payment of downward re-estimate to
            receipt account.................                       1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          17           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          20          39
    22.00 New financing authority (gross)...          57          35          32
    22.40 Capital transfer to general fund..         -21         -31         -32
    22.60 Portion applied to repay debt.....                     -42
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          56           1

    [[Page 172]]

    23.95 Total new obligations.............         -17          -1
    24.40 Unobligated balance carried
            forward, end of year............          39
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          15           1
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          42          34          32
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          57          35          32
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                      -5
    73.10 Total new obligations.............          17           1
    73.20 Total financing disbursements
            (gross).........................         -35           4
    73.40 Adjustments in expired accounts
            (net)...........................          13
    74.40 Obligated balance, end of year....          -5
    87.00 Total financing disbursements
            (gross).........................          35          -4
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -33         -27         -25
    88.25     Interest on uninvested funds..          -2
    88.40     Non-Federal sources...........          -7          -7          -7
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -42         -34         -32
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          15           1
    90.00 Financing disbursements...........          -7         -38         -32
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4143-0-3-351      2001 actual   2002 est.   2003 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........          57         132         125
    1233  Disbursements: Purchase of loans
            assets from a liquidating
            account.........................          82
    1251  Repayments: Repayments and
            prepayments.....................          -7          -7          -7
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         132         125         118
    ---------------------------------------------------------------------------

        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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..          57            132           125            118
    1405    Allowance for subsidy cost (-)..         -24            -87           -87            -87
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          33             45            38             31
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          33             45            38             31
        LIABILITIES:
    2103  Federal liabilities: Debt.........          33             45            38             31
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          33             45            38             31
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          33             45            38             31
    -----------------------------------------------------------------------------------------------

           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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.05 Re-estimates of subsidy...........                      28
    00.06 Interest on re-estimates..........                      17
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                      45
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                      45
    23.95 Total new obligations.............                     -45
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                      45
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                      45
    73.20 Total outlays (gross).............                     -45
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                      45
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      45
    90.00 Outlays...........................                      45
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-2273-0-1-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct loan subsidy outlays:
    134001Subsidy outlays...................
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Upward reestimates subsidy budget
            authority.......................                      45
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................                      45
        Direct loan upward reestimate subsidy outlays:
    136001Upward reestimates subsidy outlays                      45
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...                      45
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................
    358001Outlays from balances.............
    359001Outlays from new authority........
    ---------------------------------------------------------------------------

        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)

    ----------------------------------------------------------------------------
    Identification code 12-4078-0-3-351      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Interest to Treasury on borrowings          12          11           7
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          12          11           7
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                      47
    22.00 New financing authority (gross)...          60         129          79
    22.40 Capital transfer to general fund..                    -165         -72
                                               ---------   ---------  ----------

    [[Page 173]]

    23.90   Total budgetary resources
              available for obligation......          60          11           7
    23.95 Total new obligations.............         -12         -11          -7
    24.40 Unobligated balance carried
            forward, end of year............          47
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............                      11           7
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          60         118          72
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          60         129          79
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............          12          11           7
    73.20 Total financing disbursements
            (gross).........................         -12         -11          -7
    87.00 Total financing disbursements
            (gross).........................          12          11           7
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                     -45
    88.25     Interest on uninvested funds..          -2
              Non-Federal sources:
    88.40       Principal collections.......         -39         -56         -56
    88.40       Interest collections........         -19         -17         -16
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -60        -118         -72
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                      11           7
    90.00 Financing disbursements...........         -47        -107         -65
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4078-0-3-351      2001 actual   2002 est.   2003 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........         504         465         409
    1251  Repayments: Repayments and
            prepayments.....................         -39         -56         -56
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         465         409         353
    ---------------------------------------------------------------------------

        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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..         504            465           409            353
    1402    Interest receivable.............          15             19            17             16
    1405    Allowance for subsidy cost (-)..        -328           -347          -347           -347
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         191            137            79             22
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         191            137            79             22
        LIABILITIES:
    2103  Federal liabilities: Debt.........         191            137            79             22
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         191            137            79             22
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         191            137            79             22
    -----------------------------------------------------------------------------------------------

       Expenses, Public Law 480, Foreign Assistance Programs, Agriculture
                               Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2274-0-1-151      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          77          77
    22.40 Capital transfer to general fund..                     -77
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          77
    24.40 Unobligated balance carried
            forward, end of year............          77
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

            Offsetting collections (cash):
    69.00     Offsetting collections (cash)
                (Principal and interest)....         460         438         432
    69.00     Offsetting collections (cash)
                (Federal sources)...........          26          32
    69.27   Capital transfer to general fund        -486        -470        -432
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources--debt
                reduction...................         -26         -32
    88.40     Principal and interest
                collections.................        -460        -438        -432
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -486        -470        -432
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -486        -470        -432
    90.00 Outlays...........................        -487        -470        -432
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2274-0-1-151      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       8,542       8,219       7,925
          Repayments:

            Repayments and prepayments:
    1251      Repayments and prepayments....        -297        -274        -278
    1251      Repayments and prepayments--
                debt reduction..............         -26         -20
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       8,219       7,925       7,647
    ---------------------------------------------------------------------------

                               Program Activities

                            [In millions of dollars]

                                         2001 actual  2002 est.   2003 est.
    Ocean freight differential (title I)         119          43          28
    Commodities supplied in connection
    with dispositions abroad (title II).         879       1,009       1,185
    Commodities supplied in connection
    with dispositions abroad (title III)
                                        ------------------------------------
          Total program level...........         998       1,052       1,213
                                        ====================================

    RECONCILIATION  OF  PROGRAM  LEVEL  TO  PROGRAM  COSTS  FUNDED  BY  P.L.
                                       480

                            [In millions of dollars]

                                         2001 actual  2002 est.   2003 est.
                   Title I

    Commodity credits...................          59         514         132
    Ocean freight differential and ocean
    transportation......................         119          43          28
                                        ------------------------------------
          Total program level, current
            year........................         178         557         160
    Prior year obligations financed.....         406         354         266
    Obligations financed in succeeding
    years...............................        -354        -266        -107
    Administrative costs................           2           2           2
                                        ------------------------------------
          Total program costs, funded
            program level...............         232         647         321
                                        ====================================
                  Title II

    Commodity costs.....................         415         486         555
    Ocean and inland transportation.....         464         523         630
                                        ------------------------------------
          Total program level, current
            year........................         879       1,009       1,185

    [[Page 174]]

    Prior year obligations financed.....         572         539         605
    Current year obligations financed in
    succeeding years....................        -539        -605        -727
                                        ------------------------------------
          Total program costs, funded
            program level...............         912         943       1,063
                                        ====================================
                  Title III

    Prior year obligations financed.....           5
                                        ------------------------------------
          Total program costs, funded
            program level...............           5
                                        ====================================

        Financing sales of agricultural commodities to developing countries
    for dollars on credit terms, or for local currencies (including for
    local currencies on credit terms) for use under sec. 104; and for
    furnishing commodities to carry out the Food for Progress Act of 1985,
    as amended (title I).--Funds appropriated for P.L. 480 are used to
    finance all sales made pursuant to agreements concluded under the
    authority of Title I. The Corporation may serve as the purchasing or
    shipping agent, or both, for the importing country or may award
    contracts for freight agent services on behalf of the Corporation to
    handle shipping of commodities under P.L. 480.

        Sales are made to developing countries as defined in section 402(4)
    of P.L. 480 and must not displace expected commercial sales (secs.
    403(e) and (h)). Agreements are made with developing countries for
    delivery in accordance with the terms of the agreement.

        When U.S.-flag vessels are required to ship commodities under this
    title, the Corporation will pay the difference between U.S.-flag rates
    and foreign-flag rates. In limited cases, full transportation costs to
    port-of-entry or point-of-entry abroad may be included along with the
    cost of the commodity in the amount financed by CCC in order to ensure
    that U.S. food aid can reach the most needy recipients.

        Financing sales of agricultural commodities for dollars on credit
    terms (title I).--Payment by developing countries or private entities
    may be made over a period of not more than 30 years with a deferral of
    principal payments for up to 5 years. Interest accrues at a concessional
    rate as determined appropriate.

        Section 411 of P.L. 480 authorizes the President to waive payments
    of principal and interest under dollar credit sales agreements for
    countries that meet certain enumerated requirements. Such debt relief
    may be provided only if the President notifies Congress and may not
    exceed the amount approved for such purpose in an Act appropriating
    funds to carry out P.L. 480.

        Financing sales of agricultural commodities for local currency,
    including for local currency on credit terms.--Payment by a recipient
    country may be made in local currencies for use in carrying out
    activities under section 104 of P.L. 480.

        Foreign currency received in payment for credit extended may be used
    for payment of U.S. obligations abroad, subject to the appropriation
    process. The P.L. 480 program is reimbursed for the dollar value of
    currencies so used.

        The financing of sales of agricultural commodities for local
    currencies on credit terms is subject to the same terms that are
    applicable to dollar credit financing.

        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]

                                         2001 actual  2002 est.   2003 est.
    Item:
      Expenses of shipments (Title I):
        Commodity costs:
          Long-term credit..............          59         514         132
                                        ------------------------------------
              Total commodity costs.....          59         514         132
                                        ====================================
        Ocean freight and freight
          differential (support of U.S.
          Merchant Marine):
          Long-term credit..............         119          43          28
                                        ------------------------------------
              Total ocean freight and
                freight differential....         119          43          28
                                        ------------------------------------
      Total expenses of shipments.......         178         557         160
                                        ====================================
    Appropriation--Title I loan subsidy.          98         126          99
                                        ====================================
    Appropriation--Ocean freight
    differential........................          41          20          28
                                        ====================================
    Title I credit not subsidized
    through appropriation...............         -39         388          33
                                        ====================================

        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 2001 Emergency Supplemental Appropriations Act for Recovery from
    and Response to Terrorist Attacks provided for disaster recovery
    activities and assistance. Title II had received $95 million from the
    fund as of December 31, 2001.

        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]

                                         2001 actual  2002 est.   2003 est.
    Item:
      Expenses of shipments:
        Commodity Credit Corporation
          stocks and other costs in
          connection with commodities
          supplied......................         415         486         555
        Ocean transportation............         464         523         630
                                        ------------------------------------
          Total program costs...........         879       1,009       1,185
                                        ====================================
          Appropriation or estimate.....         879       1,009       1,185
                                        ====================================

    [[Page 175]]

        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    2000 actual    2001 actual     2002 est.      2003 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       8,542          8,219         7,925          7,647
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       8,542          8,219         7,925          7,647
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       8,542          8,219         7,925          7,647
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............       8,542          8,219         7,925          7,647
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       8,542          8,219         7,925          7,647
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       8,542          8,219         7,925          7,647
    -----------------------------------------------------------------------------------------------

                         Miscellaneous Contributed Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8232-0-7-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.20 Deposits of miscellaneous
            contributed funds, International
            cooperation and development.....                       4           4
        Appropriations:
    05.00 Miscellaneous contributed funds...                      -4          -4
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8232-0-7-352      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

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

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4           4           5
    22.00 New budget authority (gross)......                       4           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           4           8           9
    23.95 Total new obligations.............                      -3
    24.40 Unobligated balance carried
            forward, end of year............           4           5           9
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......                       4           4
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           3           3           6
    73.10 Total new obligations.............                       3
    74.40 Obligated balance, end of year....           3           6           6
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................                       4           4
    90.00 Outlays...........................                       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, [$127,546,000] $155,855,000, of which $5,000,000
    shall be available only for simplifying procedures, reducing overhead
    costs, tightening regulations, improving food stamp benefit delivery,
    and assisting in the prevention, identification, and prosecution of
    fraud and other violations of law and of which not less than
    [$6,500,000] $11,000,000 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, 2002;
    additional authorizing legislation required.)

        Note.--The following schedule includes $2 million provided by section
    744, P.L. 106-387, for 2001 and $2 million provided by section 728, P.L.
    107-76, for 2002.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3508-0-1-605      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Food program administration.....         125         135         156
    00.03   Congressional hunger center
              fellowships...................           2           2
    09.01 Reimbursable administrative
            services provided to Federal
            agencies........................           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         128         137         156
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         128         137         156
    23.95 Total new obligations.............        -128        -137        -156
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         126         137         156
    42.00   Transferred from other accounts.           1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         127         137         156
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         128         137         156
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          13          15          15
    73.10 Total new obligations.............         128         137         156
    73.20 Total outlays (gross).............        -126        -137        -154
    74.40 Obligated balance, end of year....          15          15          17
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         114         123         140
    86.93 Outlays from discretionary
            balances........................          11          15          14
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         126         137         154
    ----------------------------------------------------------------------------

        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..................         127         137         156
    90.00 Outlays...........................         126         137         154
    ---------------------------------------------------------------------------

    [[Page 176]]

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         120         130         148
    90.00 Outlays...........................         119         130         146
    ---------------------------------------------------------------------------

        Food program administration funds the majority of the Federal
    operating expenses of the Food and Nutrition Service.

        Funds are provided for additional activities to identify and address
    error in the Food Stamp and Child Nutrition programs.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3508-0-1-605      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          80          87          95
    11.3    Other than full-time permanent..           1           1           1
    11.5    Other personnel compensation....           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          82          89          97
    12.1  Civilian personnel benefits.......          25          27          28
    21.0  Travel and transportation of
            persons.........................           2           2           2
    23.1  Rental payments to GSA............                                  11
    23.3  Communications, utilities, and
            miscellaneous charges...........           2           2           2
    25.2  Other services....................          11          13          14
    26.0  Supplies and materials............           2           1           1
    31.0  Equipment.........................           2           1           1
    41.0  Grants, subsidies, and
            contributions...................           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         128         137         156
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3508-0-1-605      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......       1,357       1,428       1,486
    ---------------------------------------------------------------------------

                               Food Stamp Program

        For necessary expenses to carry out the Food Stamp Act (7 U.S.C.
    2011 et seq.), [$22,991,986,000] $26,249,973,000, of which
    $2,000,000,000 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 of the funds made available under this
    heading and not already appropriated to the Food Distribution Program on
    Indian Reservations (FDPIR) established under section 4(b) of the Food
    Stamp Act of 1977 (7 U.S.C. 2013(b)), not to exceed $3,000,000 shall be
    used to purchase bison meat for the FDPIR from producer-owned
    cooperative organizations: Provided further,] 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 of funds that may be reserved by the Secretary
    for allocation to State agencies under section 16(h)(1) of such Act to
    carry out Employment and Training programs, not more than $145,000,000
    made available in previous years may be obligated in fiscal year 2002:]
    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[: Provided further, That funds
    provided under this heading may be used to procure food coupons
    necessary for program operations in this or subsequent fiscal years
    until electronic benefit transfer implementation is complete].
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2002; additional authorizing
    legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3505-0-1-605      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Benefits issued.................      15,418      18,841      20,231
    00.02   State administration............       1,994       2,042       2,098
    00.03   Employment and training program.         297         305         314
    00.04   Other program costs.............          67          73          59
    00.05   Puerto Rico.....................       1,296       1,351       1,377
    00.06   Food distribution program on
              Indian reservations
              (Commodities in lieu of food
              stamps).......................          53          53          56
    00.07   Food distribution program on
              Indian reservations
              (Cooperator administrative
              expense)......................          23          23          26
    00.08   The emergency food assistance
              program (commodities).........         100         100         100
    00.09   Modified food stamp program in
              American Samoa................           5           5           5
    00.10   Community food project..........           3           3           3
    00.11   Commonwealth of the Northern
              Mariannas Islands.............           6           6           6
    09.01 Reimbursable program..............          74         125         125
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      19,336      22,927      24,400
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          92         187         244
    22.00 New budget authority (gross)......      20,148      23,117      26,375
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         123          77          55
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      20,363      23,381      26,674
    23.95 Total new obligations.............     -19,336     -22,927     -24,400
    23.98 Unobligated balance expiring or
            withdrawn.......................        -841        -211      -2,000
    24.40 Unobligated balance carried
            forward, end of year............         187         244         273
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          16          17          17
          Mandatory:

    60.00   Appropriation...................      20,098      22,975      26,233
    60.36   Unobligated balance rescinded...         -40
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      20,058      22,975      26,233
    69.00 Offsetting collections (cash).....          74         125         125
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      20,148      23,117      26,375
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         995       1,026         953
    73.10 Total new obligations.............      19,336      22,927      24,400
    73.20 Total outlays (gross).............     -19,170     -22,923     -24,329
    73.40 Adjustments in expired accounts
            (net)...........................         -12
    73.45 Recoveries of prior year
            obligations.....................        -123         -77         -55
    74.40 Obligated balance, end of year....       1,026         953         971
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           8           6           6
    86.93 Outlays from discretionary
            balances........................          15          23          11
    86.97 Outlays from new mandatory
            authority.......................      18,606      21,891      23,370
    86.98 Outlays from mandatory balances...         541       1,003         942
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      19,170      22,923      24,329
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -74        -125        -125
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      20,074      22,992      26,250
    90.00 Outlays...........................      19,096      22,798      24,204
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2001 actual  2002 est.   2003 est.
    Enacted/requested:
      Budget Authority..................      20,074      22,992      26,250
      Outlays...........................      19,096      22,798      24,204
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                -215
      Outlays...........................                                  29
                                        ------------------------------------
    Total:
      Budget Authority..................      20,074      22,992      26,035
      Outlays...........................      19,096      22,798      24,233
                                        ====================================

    [[Page 177]]

        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
    administer 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)

    ----------------------------------------------------------------------------
    Identification code 12-3505-0-1-605      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           3           3           3
    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.......          13          19           9
    25.2    Other services..................          51          52          56
    26.0    Supplies and materials..........         155         155         157
    31.0    Equipment.......................           2           2           2
    41.0    Grants, subsidies, and
              contributions.................      19,033      22,566      24,043
                                               ---------   ---------  ----------
    99.0      Direct obligations............      19,262      22,802      24,275
    99.0  Reimbursable obligations..........          74         125         125
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      19,336      22,927      24,400
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3505-0-1-605      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          53          56          56
    ---------------------------------------------------------------------------

                               Food Stamp Program

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3505-4-1-605      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Benefits issued.................                                  32
    00.03   Employment and training program.                                  -3
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                  29
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                -215
    23.95 Total new obligations.............                                 -29
    24.40 Unobligated balance carried
            forward, end of year............                                -244
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                                  29
    60.36   Unobligated balance rescission
              proposal......................                                -244
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................                                -215
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                  29
    73.20 Total outlays (gross).............                                 -29
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                  29
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                -215
    90.00 Outlays...........................                                  29
    ---------------------------------------------------------------------------

        This legislative proposal would reauthorize the Food Stamp Program
    and modify program rules. The costs under this schedule are 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;
    [$10,087,246,000] $10,576,722,000, to remain available through September
    30, [2003] 2004, of which [$4,914,788,000] $5,382,732,000 is hereby
    appropriated and [$5,172,458,000] $5,193,990,000 shall be derived by
    transfer from funds available under section 32 of the Act of August 24,
    1935 (7 U.S.C. 612c): Provided, That none of the funds made available
    under this heading shall be used for studies and evaluations: [Provided
    further, That of the funds made available under this heading, $500,000
    shall be for a School Breakfast Program startup grant pilot program for
    the State of Wisconsin:] Provided further, That up to [$4,507,000]
    $5,080,000 shall be available for independent verification of school
    food service claims. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2002;
    additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3539-0-1-605      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          School lunch program:

    00.01   Above 185 of poverty............         392         416         439
    00.02   130-185 of poverty..............         672         712         753
    00.03   Below 130 of poverty............       4,671       4,949       5,228
                                               ---------   ---------  ----------
    00.91   Subtotal, school lunch program..       5,735       6,077       6,420
          School breakfast program:

    01.01   Above 185 of poverty............          47          51          54
    01.02   130-185 of poverty..............         111         119         126
    01.03   Below 130 of poverty............       1,310       1,404       1,481
                                               ---------   ---------  ----------
    01.91   Subtotal, school breakfast
              program.......................       1,468       1,574       1,661
          Child and adult care feeding program:

    02.01   Above 185 of poverty............         191         194         205
    02.02   130-185 of poverty..............         100         104         110
    02.03   Below 130 of poverty............       1,427       1,475       1,562
    02.04   Audits..........................          24          27          27
                                               ---------   ---------  ----------
    02.91   Subtotal, child and adult care
              feeding program...............       1,742       1,800       1,904
          Other mandatory activities:

    03.01   Summer food service program.....         292         312         335
    03.02   Special milk program............          17          17          16
    03.03   State administrative expenses...         127         130         134
    03.04   Commodity procurement...........         440         389         426
                                               ---------   ---------  ----------
    03.91   Subtotal, Other mandatory
              activities....................         876         848         911
          Discretionary activities:

    04.01   School meals initiative.........          14          10          10
    04.02   Coordinated review..............           4           5           5
    04.03   Computer support and processing.           8           9           9
    04.04   School breakfast demonstrations.           8
    04.05   Food safety education...........           2           2           1
                                               ---------   ---------  ----------
    04.91   Subtotal, discretionary
              activities....................          36          26          25
          Activities with permanent appropriations:

    05.01   Food service management
              institute and information
              clearinghouse.................           3           3           3
    05.02   Alternative meal count grants...           1
                                               ---------   ---------  ----------
    05.91   Subtotal, activities with
              permanent appropriations......           4           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       9,862      10,329      10,925
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         409         384         346
    22.00 New budget authority (gross)......       9,624      10,091      10,580
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         214         200
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      10,247      10,675      10,926
    23.95 Total new obligations.............      -9,862     -10,329     -10,925
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............         384         346           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          14           8           8
          Mandatory:

    60.00   Appropriation...................       4,482       4,911       5,378

    [[Page 178]]

    62.00   Transferred from other accounts.       5,128       5,172       5,194
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................       9,610      10,083      10,572
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       9,624      10,091      10,580
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,545       1,625       1,430
    73.10 Total new obligations.............       9,862      10,329      10,925
    73.20 Total outlays (gross).............      -9,561     -10,324     -10,836
    73.40 Adjustments in expired accounts
            (net)...........................          -7
    73.45 Recoveries of prior year
            obligations.....................        -214        -200
    74.40 Obligated balance, end of year....       1,625       1,430       1,519
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           8           5           5
    86.93 Outlays from discretionary
            balances........................           6           5           3
    86.97 Outlays from new mandatory
            authority.......................       7,593       8,500       9,401
    86.98 Outlays from mandatory balances...       1,954       1,814       1,427
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       9,561      10,324      10,836
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       9,624      10,091      10,580
    90.00 Outlays...........................       9,560      10,324      10,836
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       9,623      10,090      10,579
    90.00 Outlays...........................       9,560      10,323      10,835
    ---------------------------------------------------------------------------

        Payments are made for cash and commodity meal subsidies through the
    School Lunch, School Breakfast, Special Milk, Summer Food Service, and
    Child and Adult Care Food programs.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3539-0-1-605      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           6           7           7
    12.1  Civilian personnel benefits.......           2           2           2
    21.0  Travel and transportation of
            persons.........................           1           1           1
    24.0  Printing and reproduction.........           5           5           5
    25.2  Other services....................           5           5           5
    26.0  Supplies and materials
            (Commodities)...................         443         389         426
    41.0  Grants, subsidies, and
            contributions...................       9,400       9,920      10,479
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       9,862      10,329      10,925
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3539-0-1-605      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         121         130         130
    ---------------------------------------------------------------------------

    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), [$4,348,000,000] $4,751,000,000, to remain
    available through September 30, [2003] 2004, of which $150,000,000 shall
    be placed in reserve for use in only such amounts, and in such manner,
    as the Secretary determines necessary, not withstanding section 17(i) of
    the Child Nutrition Act, to provide funds to support participation,
    should costs or participation exceed budget estimates: 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 up to an additional $15,000,000 for the farmers' market nutrition
    program upon a determination by the Secretary that funds are available
    to meet caseload requirements: Provided further,] That notwithstanding
    section 17(h)(10)(A) of such Act, [$10,000,000] $14,000,000 shall be
    available for the purposes specified in section 17(h)(10)(B)[, and up to
    an additional $4,000,000 shall be available for the purposes specified
    in section 17(h)(10)(B) upon a determination by the Secretary that funds
    are available to meet caseload requirements]: Provided further, That
    $2,000,000 shall be available for the Food and Nutrition Service to
    conduct a study of WIC vendor practices: 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 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 such Act. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2002.)
        [For emergency expenses to respond to the September 11, 2001,
    terrorist attacks on the United States, for ``Special Supplemental
    Nutrition Program for Women, Infants, and Children (WIC)'', $39,000,000,
    to remain available until September 30, 2003, to be obligated from
    amounts made available in Public Law 107-38: Provided, That of the
    amounts provided in this Act and any amounts available for reallocation
    in fiscal year 2002, the Secretary shall reallocate funds under section
    17(g)(2) of the Child Nutrition Act of 1966 in the manner and under the
    formula the Secretary deems necessary to respond to the effects of
    unemployment and other conditions, and starting no later than March 1,
    2002, such reallocation shall occur no less frequently than every other
    month throughout the fiscal year.] (Emergency Supplemental Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3510-0-1-605      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................       4,220       4,465       4,862
    09.01 Reimbursable program..............          15
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       4,235       4,465       4,862
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           1
    22.00 New budget authority (gross)......       4,059       4,387       4,751
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         176          76         111
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       4,237       4,464       4,862
    23.95 Total new obligations.............      -4,235      -4,465      -4,862
    24.40 Unobligated balance carried
            forward, end of year............           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       4,052       4,387       4,751
    40.77   Reduction pursuant to P.L. 106-
              554 (0.22 percent)............          -9
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       4,043       4,387       4,751
          Mandatory:

    60.00   Appropriation...................           1
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          15
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       4,059       4,387       4,751
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         364         318         281
    73.10 Total new obligations.............       4,235       4,465       4,862
    73.20 Total outlays (gross).............      -4,092      -4,426      -4,727
    73.40 Adjustments in expired accounts
            (net)...........................         -13
    73.45 Recoveries of prior year
            obligations.....................        -176         -76        -111
    74.40 Obligated balance, end of year....         318         281         305
    ----------------------------------------------------------------------------

    [[Page 179]]

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       3,889       4,080       4,418
    86.93 Outlays from discretionary
            balances........................         203         346         307
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       4,092       4,426       4,727
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................       4,044       4,387       4,751
    90.00 Outlays...........................       4,077       4,426       4,727
    ---------------------------------------------------------------------------

        The Special Supplemental Nutrition Program for Women, Infants, and
    Children (WIC) provides low-income at-risk pregnant and post-partum
    women, infants, and children with vouchers for nutritious supplemental
    food packages, nutrition education and counseling, and health and
    immunization referrals. The proposed contingency fund will ensure that
    all eligible persons seeking benefits can be served.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3510-0-1-605      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....       4,220       4,465       4,862
    99.0  Reimbursable obligations:
            Reimbursable obligations........          15
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       4,235       4,465       4,862
    ---------------------------------------------------------------------------

                          Commodity Assistance Program

                            [(including rescission)]

        For necessary expenses to carry out the commodity supplemental food
    program as authorized by section 4(a) of the Agriculture and Consumer
    Protection Act of 1973 (7 U.S.C. 612c note) and the Emergency Food
    Assistance Act of 1983, [$152,813,000] $144,991,000, to remain available
    through September 30, [2003] 2004: Provided, That none of these funds
    shall be available to reimburse the Commodity Credit Corporation for
    commodities donated to the program[: Provided further, That of the total
    amount available, the Secretary shall provide $10,000,000 for senior
    farmers' market activities: Provided further, That notwithstanding
    section 5(a)(2) of the Agriculture and Consumer Protection Act of 1973
    (Public Law 93-86; 7 U.S.C. 612c note), $20,820,000 of this amount shall
    be available for administrative expenses of the commodity supplemental
    food program: Provided further, That $3,300,000 of unobligated balances
    available at the beginning of fiscal year 2002 are hereby rescinded].
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3507-0-1-605      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Commodity supplemental food program:

    00.01   Commodity procurement...........          68          81          76
    00.02   Administrative costs............          23          23          19
                                               ---------   ---------  ----------
    00.91   Subtotal, commodity supplemental
              food program..................          91         104          95
          The emergency food assistance program:

    02.01   Administrative costs............          45          50          50
    03.01 Senior farmers' market............                      10
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         136         164         145
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           7          15
    22.00 New budget authority (gross)......         140         150         145
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         151         165         145
    23.95 Total new obligations.............        -136        -164        -145
    24.40 Unobligated balance carried
            forward, end of year............          15
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         140         153         145
    40.36   Unobligated balance rescinded...                      -3
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         140         150         145
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          17          17          19
    73.10 Total new obligations.............         136         164         145
    73.20 Total outlays (gross).............        -132        -162        -145
    73.45 Recoveries of prior year
            obligations.....................          -4
    74.40 Obligated balance, end of year....          17          19          19
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         108         134         128
    86.93 Outlays from discretionary
            balances........................          24          28          19
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         132         162         145
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         140         150         145
    90.00 Outlays...........................         132         162         145
    ---------------------------------------------------------------------------

        The Commodity Assistance Program funds the Commodity Supplemental
    Food Program (CSFP) and the Emergency Food Assistance Program (TEFAP).

        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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3507-0-1-605      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    26.0  Supplies and materials
            (commodities)...................          68          82          76
    41.0  Grants, subsidies, and
            contributions...................          68          82          69
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         136         164         145
    ---------------------------------------------------------------------------

                             Food Donations Programs

        For necessary expenses to carry out section 4(a) of the Agriculture
    and Consumer Protection Act of 1973[;] and special assistance for the
    nuclear affected islands as authorized by section 103(h)(2) of the
    Compacts of Free Association Act of 1985[; and section 311 of the Older
    Americans Act of 1965, $150,749,000] $1,081,000, to remain available
    through September 30, [2003] 2004. (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, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3503-0-1-605      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Nutrition program for the elderly.         152         151
    00.02 Pacific island assistance.........           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         153         152           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1
    22.00 New budget authority (gross)......         151         151           1
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         155         152           1
    23.95 Total new obligations.............        -153        -152          -1
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         151         151           1
    ----------------------------------------------------------------------------

    [[Page 180]]

        Change in obligated balances:
    72.40 Obligated balance, start of year..          32          48          45
    73.10 Total new obligations.............         153         152           1
    73.20 Total outlays (gross).............        -134        -155         -44
    73.45 Recoveries of prior year
            obligations.....................          -3
    74.40 Obligated balance, end of year....          48          45           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         133         108           1
    86.93 Outlays from discretionary
            balances........................           1          47          44
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         134         155          44
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         151         151           1
    90.00 Outlays...........................         134         155          44
    ---------------------------------------------------------------------------

        In 2001 and 2002, Food Donations Programs include the Nutrition
    Services Incentive Program which provides cash and commodities for
    elderly persons served in senior citizens' centers and similar settings.
    Beginning in 2003, the budget consolidates this program with elderly
    meals programs in the Department of Health and Human Services.
    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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    26.0  Supplies and materials (grants of
            commodities to States)..........           3           1           1
    41.0  Grants, subsidies, and
            contributions...................         150         151
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         153         152           1
    ---------------------------------------------------------------------------

                                 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, [$1,331,439,000] $1,430,316,000, 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 [2002] 2003 shall be
    displayed by budget line item in the fiscal year [2003] 2004 budget
    justification: Provided further, That the Secretary may authorize the
    expenditure or transfer of such sums as necessary to the Department of
    the Interior, Bureau of Land Management for removal, preparation, and
    adoption of excess wild horses and burros from National Forest System
    lands: [Provided further, That of the funds provided under this heading
    for Forest Products, $5,000,000 shall be allocated to the Alaska Region,
    in addition to its normal allocation for the purposes of preparing
    additional timber for sale, to establish a 3-year timber supply and such
    funds may be transferred to other appropriations accounts as necessary
    to maximize accomplishment] Provided further, That the Secretary may
    transfer or reimburse not more than $15,000,000 to the Secretary of the
    Interior or the Secretary of Commerce, as appropriate, to expedite
    consultations required under the Endangered Species Act, 16 U.S.C. 1536.
    (Department of the Interior and Related Agencies Appropriations Act,
    2002; additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 National forest system............       1,355       1,395       1,396
    09.01 Reimbursable program..............         100          66          66
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,455       1,461       1,462
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          27         264         299
    22.00 New budget authority (gross)......       1,637       1,496       1,496
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          57
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,721       1,760       1,795
    23.95 Total new obligations.............      -1,455      -1,461      -1,462
    24.40 Unobligated balance carried
            forward, end of year............         264         299         335
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,381       1,394       1,430
    41.00   Transferred to other accounts...          -3
    42.00   Transferred from other accounts.         142           4
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,520       1,398       1,430
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         109          98          66
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           8
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         117          98          66
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,637       1,496       1,496
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         244         205         228
    73.10 Total new obligations.............       1,455       1,461       1,462
    73.20 Total outlays (gross).............      -1,435      -1,438      -1,491
    73.40 Adjustments in expired accounts
            (net)...........................           4
    73.45 Recoveries of prior year
            obligations.....................         -57
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -8
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           1
    74.40 Obligated balance, end of year....         205         228         199
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,241       1,296       1,291
    86.93 Outlays from discretionary
            balances........................         194         142         200
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,435       1,438       1,491
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                                 -14
    88.40     Non-Federal sources...........        -109         -98         -52
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -109         -98         -66
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,520       1,398       1,430
    90.00 Outlays...........................       1,327       1,340       1,425
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,460       1,335       1,366
    90.00 Outlays...........................       1,267       1,277       1,361
    ---------------------------------------------------------------------------

        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

    [[Page 181]]

    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, heritage, and wilderness; wildlife
    and fisheries habitat management; grazing management; forest products;
    vegetation and watershed management; minerals and geology management;
    landownership management; and law enforcement operations. These programs
    maintain the capability to manage natural resources in a manner
    consistent with ecological principles and responsibilities.

        To overcome inertia and an excessive decision-making structure, USDA
    will develop legislation to establish ``Charter Forests,'' certain
    forests or portions of forests administered outside the Forest Service
    structure and reporting to a local trust entity for oversight. The
    structure would eliminate inefficiencies and focus upon specific
    strengths. Pilot forests would establish and address land management
    objectives; comply with all Federal and State environmental laws;
    include a diverse and balanced group of stakeholders as well as
    appropriate Federal, tribal, state, county, and municipal government
    representatives in the design, implementation, and monitoring of the
    project; incorporate current scientific forest restoration information;
    and include a multiparty assessment to identify both the existing
    ecological condition of the proposed project area and the desired future
    condition.

        Furthering the President's management agenda, the budget includes
    significant restructuring of the Forest Service to improve performance.
    The Forest Service will complete 22 service-first collocations with the
    Bureau of Land Management by the end of 2005. Funds to support this
    effort are included in the Capital Improvement and Maintenance account.
    Secondly, the Forest Service will establish a target to reduce indirect
    expenses by 2005 to one-half its 2002 level, to approximately 10 percent
    of total spending. The Forest Service will also establish a hiring
    freeze until the required USDA workforce restructuring plan establishes
    measures and mileposts in mapping this reduction in indirect expenses
    and a target fixed-to-variable cost ratio of salary and expenses to
    total office expenses, including field units.

        Lastly, USDA will establish a Field Leadership Decisions Initiative,
    which will:

        --Reduce accounting codes by 20 percent in 2003 and 5 percent each
    year through 2005, to be accomplished without congressional
    restructuring of expanded budget line items;

        --Increase annual competitive sourcing of commercial activities by
    10 percent annually through 2005;

        --Increase contract fire readiness resources to 20 percent in 2002
    and by 5 percent annually thereafter through 2005;

        --Relocate/reassign 500 Washington office and 250 regional office
    employees, with indirect costs at Washington office capped at 7 percent
    in 2005;

        --Focus attrition of 2,500 FTEs annually through 2005, with half
    replaced in field locations; and

        --Identify a goal level of increasing cost-share resources to
    leverage from 2 percent to 5 percent of operating program.

        The Budget includes an additional $15 million for expedited
    endangered species consultations that may be utilized to reimburse
    responsible consulting federal agencies.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         584         610         610
    11.3      Other than full-time permanent          10          41          41
    11.5      Other personnel compensation..          27          29          29
    11.8      Special personal services
                payments....................           8           5           5
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         629         685         685
    12.1    Civilian personnel benefits.....         217         240         241
    13.0    Benefits for former personnel...           5           7           7
    21.0    Travel and transportation of
              persons.......................          65          58          58
    23.1    Rental payments to GSA..........          74          71          71
    24.0    Printing and reproduction.......           5           4           4
    25.2    Other services..................         266         232         232
    26.0    Supplies and materials..........          48          45          45
    31.0    Equipment.......................          30          43          43
    32.0    Land and structures.............           3           2           2
    41.0    Grants, subsidies, and
              contributions.................           7           3           3
    42.0    Insurance claims and indemnities           4           2           2
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,353       1,392       1,393
    99.0  Reimbursable obligations..........         100          67          67
          Allocation Account:

    11.1    Personnel compensation: Full-
              time permanent................           1           1           1
    25.2    Other services..................           1           1           1
                                               ---------   ---------  ----------
    99.0      Allocation account............           2           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,455       1,461       1,462
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......      14,865      15,251      15,261
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         484         496         497
        Allocation account:
    3001  Total compensable workyears: Full-
            time equivalent employment......          31          32          32
    ---------------------------------------------------------------------------

                       Capital Improvement and Maintenance

        For necessary expenses of the Forest Service, not otherwise provided
    for, [$546,188,000] $568,004,000, 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, of which,
    [$61,000,000] $50,866,000 is for conservation activities defined in
    section 250(c)(4)(E) of the Balanced Budget and Emergency Deficit
    Control Act of 1985, as amended, for the purposes of such Act[:
    Provided, That fiscal year 2001 balances in the Federal Infrastructure
    Improvement account for the Forest Service shall be transferred to and
    merged with this appropriation and shall remain available until
    expended: Provided further, 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 the Forest Service shall transfer
    $300,000, appropriated in Public Law 106-291 within the Capital
    Improvement and Maintenance appropriation, to the State and Private
    Forestry appropriation, and shall provide these funds in an advance
    direct lump sum payment to Purdue University for planning and
    construction of a hardwood tree improvement and generation facility:
    Provided further, That from funds provided to the Forest Service in
    Public Law 106-291, $500,000 is hereby transferred from the Capital
    Improvement and Maintenance appropriation to the State and Private
    Forestry appropriation] of which $10,000,000 is to support office
    collocations between the Forest Service and the Bureau of Land
    Management solely as a reimbursement for completed activities: Provided,
    That the Secretary may transfer to or reimburse the Secretary of the
    Interior any portion of this

    [[Page 182]]

    amount that the Secretary determines to be most economical and efficient
    means of completing collocations: Provided further, That these funds are
    available only after the USDA Chief Financial Officer has approved the
    streamlining and restructuring plans and cost benefit analyses of the
    Forest Service. (Department of the Interior and Related Agencies
    Appropriations Act, 2002; additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1103-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Reconstruction and construction...         565         587         628
    09.01 Reimbursable program..............          13           4           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         578         591         632
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         119         123         107
    22.00 New budget authority (gross)......         568         575         572
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          15
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         702         698         679
    23.95 Total new obligations.............        -578        -591        -632
    24.40 Unobligated balance carried
            forward, end of year............         123         107          47
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         543         561         568
    41.00   Transferred to other accounts...         -50
    42.00   Transferred from other accounts.          44          10
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         537         571         568
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           3           4           4
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          28
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          31           4           4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         568         575         572
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         166         231         187
    73.10 Total new obligations.............         578         591         632
    73.20 Total outlays (gross).............        -470        -635        -630
    73.45 Recoveries of prior year
            obligations.....................         -15
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -28
    74.40 Obligated balance, end of year....         231         187         189
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         335         437         434
    86.93 Outlays from discretionary
            balances........................         135         198         196
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         470         635         630
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -3
    88.40     Non-Federal sources...........                      -4          -4
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -3          -4          -4
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -28
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         537         571         568
    90.00 Outlays...........................         467         631         626
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         522         555         552
    90.00 Outlays...........................         452         615         610
    ---------------------------------------------------------------------------

        Funding provides for capital improvement 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. The budget
    includes funding for facility enhancements for antiterrorism protection
    and provides $51 million for deferred maintenance.

        $10 million is provided to support funding workforce and
    organizational streamlining and restructuring activities. The funds are
    available for Service-First, the joint effort of expanded customer
    service and administrative cost savings with the Bureau of Land
    Management (BLM). Requested funds will support collocating offices with
    BLM, and other expenses.

        Facilities.--Provides for capital improvement 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 Improvement includes: 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 improvement and maintenance of roads.
    The program also focuses on decommissioning unneeded roads and/or roads
    that are degrading the ecosystem. Capital improvement includes: 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 improvement and maintenance of trails.
    Capital improvement includes: 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.

        Infrastructure Improvement.--Ameliorates the backlog in deferred
    maintenance of National Forest System roads and trails as well as Forest
    Service fire, administrative, and recreation facilities. The funds focus
    on critical maintenance backlogs; i.e., these additional funds are for
    repair and rehabilitation of existing facilities and roads; funds may
    not be used for new and expanded facilities or roads.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1103-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         140         142         144

    [[Page 183]]

    11.3      Other than full-time permanent          16          17          18
    11.5      Other personnel compensation..           6           7           7
    11.8      Special personal services
                payments....................           2           2           2
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         164         168         171
    12.1    Civilian personnel benefits.....          61          60          63
    13.0    Benefits for former personnel...           2           2           2
    21.0    Travel and transportation of
              persons.......................          18          18          15
    23.1    Rental payments to GSA..........          24          24          23
    25.2    Other services..................         207         211         244
    26.0    Supplies and materials..........          27          30          30
    31.0    Equipment.......................          10          12          11
    32.0    Land and structures.............          50          60          66
    41.0    Grants, subsidies, and
              contributions.................           1           1           2
    42.0    Insurance claims and indemnities           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         565         587         628
    99.0  Reimbursable obligations..........          13           4           4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         578         591         632
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1103-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       3,591       3,980       3,983
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          13          13          13
    ---------------------------------------------------------------------------

                          Forest and Rangeland Research

        For necessary expenses of forest and rangeland research as
    authorized by law, [$241,304,000] $254,125,000, to remain available
    until expended: Provided, That the Chief of the Forest Service may make
    available by outlease agreements with other Federal agencies or non-
    Federal public or private entities any unused or underused portion or
    interest in any agency real and related personal property, and may
    retain and use the proceeds of such agreements in carrying out the
    research programs of the agency. Property proposed for outlease must not
    be property otherwise required to be reported excess under the Federal
    Property and Administrative Services of 1949, as amended. Outleases
    shall be made competitively, and be based on the fair market value of
    the property.

         Gifts, Donations and Bequests for Forest and Rangeland Research

        For expenses authorized by 16 U.S.C. 1643(b), [$92,000] $106,000, 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, 2002; additional authorizing legislation
    required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1104-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.06 Forest and rangeland research.....         237         268         251
    09.01 Reimbursable program..............          41          43          42
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         278         311         293
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           5          75          70
    22.00 New budget authority (gross)......         340         306         278
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           8
    22.22 Unobligated balance transferred
            from other accounts.............           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         354         381         348
    23.95 Total new obligations.............        -278        -311        -293
    24.40 Unobligated balance carried
            forward, end of year............          75          70          55
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         246         252         254
    42.00   Transferred from other accounts.          11          30
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         257         282         254
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          23          24          24
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          60
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          83          24          24
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         340         306         278
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          76          36          42
    73.10 Total new obligations.............         278         311         293
    73.20 Total outlays (gross).............        -250        -305        -286
    73.40 Adjustments in expired accounts
            (net)...........................          -2
    73.45 Recoveries of prior year
            obligations.....................          -8
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -60
    74.40 Obligated balance, end of year....          36          42          49
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         173         225         205
    86.93 Outlays from discretionary
            balances........................          77          80          81
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         250         305         286
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -23         -23         -22
    88.40     Non-Federal sources...........                      -1          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -23         -24         -24
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -60
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         257         282         254
    90.00 Outlays...........................         229         281         262
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         246         271         243
    90.00 Outlays...........................         218         270         251
    ---------------------------------------------------------------------------

        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. Research is the key to sustaining our
    forest and rangeland productivity and health while addressing natural
    resource needs. Forest and Rangeland Research is conducted through six
    Forest and Range Experiment Station headquarters and their research work
    units, the Forest Products Laboratory, and the International Institute
    of Tropical Forestry. New authority is requested to outlease space in
    order to ensure full capacity utilization.

        Priority continues on supporting the implementation of forest
    planning regulations. This includes developing measurement systems for
    assessing watershed integrity, applying measurement systems for
    watershed assessment, providing information about compatible forest uses
    and fire management control strategies. 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.

        The budget includes $10 million for new priority research, including
    $5 million for ``Sim Forest,'' a quantitative and analytic data
    visualization project and $5 million for biobased products and
    bioenergy. The Forest Service will comply with requirements for
    annualized inventories in the Forest Inven

    [[Page 184]]

    tory and Analysis program, providing 100 percent coverage at the end of
    2003.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1104-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         140         144         144
    11.3      Other than full-time permanent           2           2           2
    11.5      Other personnel compensation..           1           1           1
    11.8      Special personal services
                payments....................           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         144         148         148
    12.1    Civilian personnel benefits.....          29          30          28
    13.0    Benefits for former personnel...           1
    21.0    Travel and transportation of
              persons.......................           8           9          11
    23.1    Rental payments to GSA..........           7           7           7
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          33          54          37
    26.0    Supplies and materials..........           6           8           9
    31.0    Equipment.......................           5           5           6
    41.0    Grants, subsidies, and
              contributions.................           3           6           4
                                               ---------   ---------  ----------
    99.0      Direct obligations............         237         268         251
    99.0  Reimbursable obligations..........          41          43          42
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         278         311         293
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1104-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       2,509       2,240       2,241
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......         123         115         115
    ---------------------------------------------------------------------------

                           State and Private Forestry

        For necessary expenses of cooperating with and providing technical
    and financial assistance to States, territories, possessions, and
    others, and for forest health management, cooperative forestry, and
    education and land conservation activities and conducting an
    international program as authorized, [$291,221,000] $281,544,000, to
    remain available until expended, as authorized by law, of which
    [$65,000,000] $69,873,000 is for the Forest Legacy Program, [and
    $36,000,000] to be derived from the land and water conservation fund;
    $36,614,000 is for the Urban and Community Forestry Program, defined in
    section 250(c)(4)(E) of the Balanced Budget and Emergency Deficit
    Control Act of 1985, as amended, for the purposes of such Act[:
    Provided, That none of the funds provided under this heading for the
    acquisition of lands or interests in lands shall be available until the
    Forest Service notifies the House Committee on Appropriations and the
    Senate Committee on Appropriations, in writing, of specific acquisition
    of lands or interests in lands to be undertaken with such funds:
    Provided further, That notwithstanding any other provision of law, of
    the funds provided under this heading, $4,500,000 shall be made
    available to Kake Tribal Corporation as an advanced direct lump sum
    payment to implement the Kake Tribal Corporation Land Transfer Act
    (Public Law 106-283)]; $50,536,000, to be derived from the land and
    water conservation fund, is for the Forest Stewardship Program, defined
    in section 250(c)(4)(E) of such Act; and up to $11,968,000 may be used
    by the Secretary solely for: (1) rapid response to new introductions of
    non-native or invasive pests or pathogens in which no previous federal
    funding has been identified to address, or (2) for a limited number of
    instances in which any pest populations increase at over 150 percent of
    levels monitored for that species in the immediately preceding fiscal
    year and failure to suppress those populations would lead to a 10-
    percent increase of annual forest or stand mortality over ambient
    mortality levels. (Department of the Interior and Related Agencies
    Appropriations Act, 2002; additional authorizing legislation required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1105-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 State and private forestry........         429         355         347
    09.01 Reimbursable program..............          10           9           8
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         439         364         355
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          17          39          90
    22.00 New budget authority (gross)......         454         415         282
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         478         454         372
    23.95 Total new obligations.............        -439        -364        -355
    24.40 Unobligated balance carried
            forward, end of year............          39          90          19
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         291         295         160
    40.20   Appropriation (special fund)....          34                     120
    42.00   Transferred from other accounts.         118         118
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         443         413         280
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           6           2           2
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           5
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          11           2           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         454         415         282
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         211         372         293
    73.10 Total new obligations.............         439         364         355
    73.20 Total outlays (gross).............        -265        -443        -317
    73.45 Recoveries of prior year
            obligations.....................          -7
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -5
    74.40 Obligated balance, end of year....         372         293         331
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         208         313         213
    86.93 Outlays from discretionary
            balances........................          57         130         102
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         265         443         317
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -6          -2          -2
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         443         413         280
    90.00 Outlays...........................         259         441         315
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         439         409         276
    90.00 Outlays...........................         255         437         311
    ---------------------------------------------------------------------------

        State and private forestry programs provide assistance to manage,
    use, and protect forest resources on State, urban, and private lands to
    meet domestic and international demands for goods and services.
    Assistance is provided to a wide range of customers including all
    States, Puerto Rico, the Virgin Islands, Guam, the Northern Mariana
    Islands, and the Trust Terrority of the Pacific.

        Forest Health Management.--Includes Federal lands, and cooperative
    lands and proposed funding to address emergency pests and pathogens.

    [[Page 185]]

        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.

        Cooperative Forestry.--Includes forest stewardship, the forest
    legacy program, urban and community forestry and forest resources and
    information analysis.

        Within the Forest stewardship program, $10 million is provided for a
    small diameter and underutilized wood biomass cooperating fund to foster
    enhanced management and utilization of these resources on private lands.
    Also included is $6 million to be focused in those priority locations
    identified by states situated within national priority areas identified
    by USDA. These focused funds will be allocated competitively on the
    basis of performance measures that clearly indicate the environmental
    effect of selected projects upon the landscape.

        The Budget does not include funding for the Economic action program
    (EAP) or the Pacific northwest assistance program (PNW). Increased
    funding has been provided to rural counties through the new payments to
    states legislation that offers rural counties payment equal to the
    higher payments received over the past 15 years. Priority needs for
    rural development can be addressed through USDA's rural development
    programs. These programs include Business and Industry (B&I) guaranteed
    loans and Rural business enterprise grants (RBEG) to encourage the
    development of jobs in rural communities. USDA also offers small grant
    and loan programs, such as the Intermediary Relending program (IRP), the
    Rural Business Opportunity Grant program (RBOG), and Cooperative
    development grants that can enable farmers to invest in other crops or
    businesses.

        As described under the National Forest System, Forest Service will
    expand the pool of funds available for contracting out. Also, Forest
    Service will expand outsourcing opportunities. These efforts will be
    supplemental by a new section 310 (at the end of the Department of the
    Interior (DOI) chapter) that would allow DOI and USDA to provide a
    preference for local contractors in disadvantaged areas for ecosystem
    restoration and fuels reduction work. This provision is intended to
    replace preferences provided by Sections 311 and 326 of the 2002
    Interior and Related Agencies Appropriations Act, while providing the
    basis for a broader, national program. The 2002 provisions provided
    broad waivers of federal procurement laws in order to promote local
    contracting for watershed restoration and other activities. The proposed
    change will avoid the appearance of conflicts or potential abuses by
    reinstated procurement laws and requiring accountable decisionmaking
    when considering preferences authorized by this section. This change
    will also promote greater consistency in the use of preferences for
    local contractors through the application of one, rather than multiple,
    authorities. One provision will govern local preferences nationwide,
    rather than separate provisions governing different geographic locations
    or activities.

        International Programs.--The programs will emphasize habitat
    protection for migratory birds along the length of flyways, preventing
    the introduction of new invasive species, and sustainable forestry
    techniques development for other timber exporting nations.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1105-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          39          42          42
    11.3      Other than full-time permanent           3           2           2
    11.5      Other personnel compensation..           2           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          44          45          45
    12.1    Civilian personnel benefits.....          13          14          14
    21.0    Travel and transportation of
              persons.......................           9           7           7
    23.1    Rental payments to GSA..........           4           3           3
    25.2    Other services..................          47          34          33
    26.0    Supplies and materials..........           5           4           4
    31.0    Equipment.......................           2           2           2
    41.0    Grants, subsidies, and
              contributions.................         301         242         235
    42.0    Insurance claims and indemnities           3           3           3
                                               ---------   ---------  ----------
    99.0      Direct obligations............         428         354         346
    99.0  Reimbursable obligations..........          10           9           8
    25.2  Allocation Account: Other services           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         439         364         355
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1105-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......         808         723         724
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          21          26          26
    ---------------------------------------------------------------------------

            Management of National Forest Lands for Subsistence Uses

        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), [$5,488,000]
    $5,655,000, to remain available until expended. (Department of the
    Interior and Related Agencies Appropriations Act, 2002.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1119-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations (object
            class 25.2).....................           5           5           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       1           1
    22.00 New budget authority (gross)......           6           5           6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           6           6           7
    23.95 Total new obligations.............          -5          -5          -6
    24.40 Unobligated balance carried
            forward, end of year............           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           6           5           6
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           5           3
    73.10 Total new obligations.............           5           5           6
    73.20 Total outlays (gross).............          -2          -5          -6
    74.40 Obligated balance, end of year....           5           3           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           5           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           6           5           6
    90.00 Outlays...........................           2           5           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,
    hazardous fuel reduction on or adjacent to such lands, and for emer

    [[Page 186]]

    gency rehabilitation of burned-over National Forest System lands and
    water, [$1,214,349,000] $1,425,723,000, to remain available until
    expended: Provided, That such funds including unobligated balances under
    this head, 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 2001 shall be transferred, as repayment for
    past 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,
    $8,000,000 of funds appropriated under this appropriation shall 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 and Rangeland Research appropriation, are also
    available in the utilization of these funds for Fire Science Research:
    Provided further, That funds provided shall be available for emergency
    rehabilitation and restoration, hazard reduction activities in the
    urban-wildland interface, support to Federal emergency response, and
    wildfire suppression activities of the Forest Service[;] Provided
    further, That of the funds provided, [$209,010,000] Provided further,
    That of the funds provided, $19,947,000 is for the purchase of fireplain
    easements or for grants to States to acquire perpetual easements from
    willing sellers within state-identified fireplain areas within or
    adjacent to national forest system lands where potential fire
    suppression costs are estimated to exceed the estimated value of private
    land upon which the easement is located: Provided further, That the
    Federal government or States shall pay no more than the value of
    improvements on the land or the fair market value of the land, which
    ever is less: Provided further, That each fireplain area shall be
    designated only when the development of a fireplain area plan has been
    coordinated with fire management plans of relevant units of the National
    Forest System or through other consultations with the Forest Service, as
    appropriate: Provided further, That funding is made available to a State
    fireplain area in consultation with the Forest Service: Provided
    further, That the Federal share of the purchase price of an easement
    acquired through a State grant shall not exceed 75 percent, with the
    balance cost-shared among participating entities: Provided further, That
    the rights under any fireplain easement shall run to the benefit of all
    or any Federal, state and local governments, and their agencies,
    contractors and assigns engaged in fire suppression or emergency
    services, and, under a fireplain easement, the property owner must agree
    to hold harmless the United States, States and local governments from
    any and all duties and liability associated with the suppression or
    nonsuppression of fires on the encumbered property $234,673,000 is for
    hazardous fuel treatment, $4,644,000 is for rehabilitation and
    restoration, [$10,376,000 is for capital improvement and maintenance of
    fire facilities, $22,265,000] $21,761,000 is for research activities and
    to make competitive research grants pursuant to the Forest and Rangeland
    Renewable Resources Research Act, as amended (16 U.S.C. 1641 et seq.),
    [$50,383,000] $46,456,000 is for state fire assistance, [$8,262,000]
    $8,246,000 is for volunteer fire assistance [$11,974,000] and
    $12,107,000 is for forest health activities on state, private, and
    Federal lands[, and $12,472,000 is for economic action programs]:
    Provided further, That amounts in this paragraph may be transferred to
    the ``State and Private Forestry,'' ``National Forest System,'' and
    ``Forest and Rangeland Research'' [and ``Capital Improvement and
    Maintenance''] accounts to fund state fire assistance, volunteer fire
    assistance, and forest health management, vegetation and watershed
    management, heritage site rehabilitation, wildlife and fish habitat
    management[, trails and facilities maintenance] and restoration:
    Provided further, That notice of transfers of any amounts in excess of
    those authorized in this paragraph, shall [require approval of] be
    transmitted to the House and Senate Committees on Appropriations [in
    compliance with reprogramming procedures contained in House Report No.
    105-163]: Provided further, That the costs of implementing any
    cooperative agreement between the Federal government and any non-Federal
    entity may be shared, as mutually agreed on by the affected parties:
    Provided further, That in entering into such grants or cooperative
    agreements, the Secretary may consider the enhancement of local and
    small business employment opportunities for rural communities, and that
    in entering into procurement contracts under this section on a best
    value basis, the Secretary may take into account the ability of an
    entity to enhance local and small business employment opportunities in
    rural communities, and that the Secretary may award procurement
    contracts, grants, or cooperative agreements under this section to
    entities that include local non-profit entities, Youth Conservation
    Corps or related partnerships with State, local or non-profit youth
    groups, or small or disadvantaged businesses: Provided further, That in
    addition to funds provided for State Fire Assistance programs, and
    subject to all authorities available to the Forest Service under the
    State and Private Forestry Appropriations, up to $15,000,000 may be used
    on adjacent non-Federal lands for the purpose of protecting communities
    when hazard reduction activities are planned on national forest lands
    that have the potential to place such communities at risk: Provided
    further, That [included in funding for hazardous fuel reduction is
    $5,000,000 for implementing the Community Forest Restoration Act, Public
    Law 106-393, title VI, and any portion of such funds shall be available
    for use on non-Federal lands in accordance with authorities available to
    the Forest Service under the State and Private Forestry Appropriation:
    Provided further, That]:
            [(1) In] in expending the funds provided with respect to this
        Act for hazardous fuels reduction, the Secretary of the Interior and
        the Secretary of Agriculture may conduct fuel reduction treatments
        on Federal lands using all contracting and hiring authorities
        available to the Secretaries applicable to hazardous fuel reduction
        activities under the wildland fire management accounts.
        [Notwithstanding Federal government procurement and contracting
        laws, the Secretaries may conduct fuel reduction treatments on
        Federal lands using grants and cooperative agreements.
        Notwithstanding Federal government procurement and contracting laws,
        in order to provide employment and training opportunities to people
        in rural communities, the Secretaries may award contracts, including
        contracts for monitoring activities, to--
                (A) local private, nonprofit, or cooperative entities;
                (B) Youth Conservation Corps crews or related partnerships,
            with State, local and non-profit youth groups;
                (C) small or micro-businesses; or
                (D) other entities that will hire or train a significant
            percentage of local people to complete such contracts. The
            authorities described above relating to contracts, grants, and
            cooperative agreements are available until all funds provided in
            this title for hazardous fuels reduction activities in the urban
            wildland interface are obligated.]
            [(2)](A) The Secretary of Agriculture may transfer or reimburse
        funds to the United States Fish and Wildlife Service of the
        Department of the Interior, or the National Marine Fisheries Service
        of the Department of Commerce, for the costs of carrying out their
        responsibilities under the Endangered Species Act of 1973 (16 U.S.C.
        1531 et seq.) to consult and conference as required by section 7 of
        such Act in connection with wildland fire management activities in
        fiscal years [2001] 2002 and [2002] 2003.
            (B) Only those funds appropriated for fiscal years [2001] 2002
        and [2002] 2003 to Forest Service (USDA) for wildland fire
        management are available to the Secretary of Agriculture for such
        transfer or reimbursement.
            (C) The amount of the transfer of reimbursement shall be as
        mutually agreed by the Secretary of Agriculture and the Secretary of
        the Interior or Secretary of Commerce, as applicable, or their
        designees. The amount shall in no case exceed the actual costs of
        consultation and conferencing in connection with wildland fire
        management activities affecting National Forest System lands.
        [For an additional amount to cover necessary expenses for emergency
    rehabilitation, wildfire suppression and other fire operations of the
    Forest Service, $346,000,000, to remain available until expended, of
    which $200,000,000 is for repayment of prior year advances for other
    appropriations and accounts within the Wildland Fire appropriation
    previously transferred for fire suppression, $66,000,000 is for wildfire
    suppression operations, $59,000,000 is for land rehabilitation and
    restoration, $5,000,000 is for research activities and to make
    competitive research grants pursuant to the Forest and Rangeland
    Renewable Resources Research Act, as amended (16 U.S.C. 1641 et seq.),
    $10,000,000 is for capital improvement and maintenance of fire
    facilities, $6,000,000 is for state fire assistance: Provided, That the
    Congress designates the entire amount 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
    $346,000,000 shall be available only to the extent that an official
    budget request, that includes designation of the $346,000,000 as an
    emergency requirement as defined in the

    [[Page 187]]

    Balanced Budget and Emergency Deficit Control Act of 1985, as amended,
    is transmitted by the President to the Congress.
        For an additional amount, to liquidate obligations previously
    incurred, $274,147,000]. (Department of the Interior and Related
    Agencies Appropriations Act, 2002; additional authorization legislation
    required.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1115-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Fire management...................       1,307       1,308       1,313
    09.01 Reimbursable program..............          90          16          16
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,397       1,324       1,329
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........        -274          96         248
    22.00 New budget authority (gross)......       1,694       1,476       1,452
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          74
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,494       1,572       1,700
    23.95 Total new obligations.............      -1,397      -1,324      -1,329
    24.40 Unobligated balance carried
            forward, end of year............          96         248         371
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,929       1,886       1,426
    40.48   Portion applied to liquidate
              deficiencies..................                    -274
    41.00   Transferred to other accounts...        -314        -162
    42.00   Transferred from other accounts.          50
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,665       1,450       1,426
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         139          26          26
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................        -110
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          29          26          26
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,694       1,476       1,452
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         225         376         188
    73.10 Total new obligations.............       1,397       1,324       1,329
    73.20 Total outlays (gross).............      -1,283      -1,512      -1,455
    73.45 Recoveries of prior year
            obligations.....................         -74
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         110
    74.40 Obligated balance, end of year....         376         188          62
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,332       1,336       1,315
    86.93 Outlays from discretionary
            balances........................         -49         176         140
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,283       1,512       1,455
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -139         -26         -26
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         110
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,665       1,450       1,426
    90.00 Outlays...........................       1,143       1,486       1,429
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    91.90 Unpaid obligations, end of year:
            Deficiency......................         274
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,616       1,398       1,369
    90.00 Outlays...........................       1,094       1,434       1,372
    ---------------------------------------------------------------------------

        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.

        The budget places additional emphasis on economic opportunities for
    rural communities who have experienced job losses from federal timber
    harvest reductions coupled with an increased threat of wildfire. The
    budget increases the availability of funds for contracts, expands
    competitive outsourcing, and provides an expanded authority for local
    preference.

        This year, USDA is working with the Department of the Interior to
    review fire suppression tactics and expenses to assess why costs have
    risen so significantly per fire and per acre. The review will determine
    whether there are ways to restrain costs in firefighting without
    endangering firefighters or communities.

        The budget includes $20 million for the Forest Service to work with
    state and local governments in identifying areas to pilot test
    ``fireplain easements.'' Under the program, State officials, in
    consultation with the Secretary, shall identify areas within and
    adjacent to National Forest System lands were potential fire suppression
    expenditures may exceed the estimated value of the private land,
    considering factors relevant to fire suppression strategies including
    fuels, location, topography, access, and improvements. Within identified
    areas, and after consultation with the Secretary, State may use grant
    funds to acquire, on a ``willing seller'' basis, perpetual easements to
    permit the implementation of fire suppression strategies, including
    allowing fires to burn without suppression activities. The goal would be
    to test the efficacy of avoiding extraordinary protection of outlying
    structures while providing States an incentive to minimize additional
    encroachment into such vulnerable areas. The program can help protect
    firefighters from dangerous situations by relying more on natural
    contours, while savings fire suppression funding in the process.

        This budget provides more than $234 million for Hazardous Fuels
    Treatment and directs over 70 percent of funds to the wildland-urban
    interface as the most effective method to protect communities and lower
    suppression costs over time.

        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 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

    [[Page 188]]

    preparedness when predicted or actual burning conditions exceed normal
    levels and are also used to support the joint fire sciences program.

        The funds provided continue a strong focus on implementation of the
    National fire plan to protect and manage the impact of wildfires on
    communities and the environment. In addition to funds specifically for
    hazardous fuels reduction, fire suppression, and fire readiness
    additional funding is provided to continue fire research, and
    rehabilitation activities. Additionally, funds are provided to enhance
    state and private programs that will contribute to cooperative fire
    assistance, increased fire department readiness, and forest health
    programs to reduce fire risk. Funds would also be available to support
    Fish and Wildlife Service and National Marine Fisheries Service
    consultation for project and Endangered Species Act review.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1115-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         245         250         250
    11.3      Other than full-time permanent          47          49          49
    11.5      Other personnel compensation..         127         201         201
    11.8      Special personal services
                payments....................          30          46          46
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         449         546         546
    12.1    Civilian personnel benefits.....         139         143         148
    13.0    Benefits for former personnel...           6          12          12
    21.0    Travel and transportation of
              persons.......................          60          57          57
    23.1    Rental payments to GSA..........          32          26          26
    23.2    Rental payments to others.......           6
    23.3    Communications, utilities, and
              miscellaneous charges.........          16
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................         482         449         449
    26.0    Supplies and materials..........          67          58          58
    31.0    Equipment.......................          47          15          15
    32.0    Land and structures.............           1
    41.0    Grants, subsidies, and
              contributions.................           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,307       1,308       1,313
    99.0  Reimbursable obligations..........          90          16          16
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,397       1,324       1,329
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1115-0-1-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears: Full-
            time equivalent employment......       9,601       8,111       6,866
        Reimbursable:
    2001  Total compensable workyears: Full-
            time equivalent employment......          11           9           9
    ---------------------------------------------------------------------------

                     Southeast Alaska Economic Disaster Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1108-0-1-451      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations (object
            class 41.0).....................          12           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          12           5
    22.00 New budget authority (gross)......           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          17           5
    23.95 Total new obligations.............         -12          -5
    24.40 Unobligated balance carried
            forward, end of year............           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..                       6           6
    73.10 Total new obligations.............          12           5
    73.20 Total outlays (gross).............          -6          -7          -3
    74.40 Obligated balance, end of year....           6           6           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1
    86.93 Outlays from discretionary
            balances........................           5           7           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           6           7           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           5
    90.00 Outlays...........................           6           7           3
    ---------------------------------------------------------------------------

        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. The program established direct payments to these and other
    localities in Southeast Alaska. Distribution to the unorganized boroughs
    was based on the proportion of 1995 timber receipts from each borough.
    No funding was appropriated for 2002 and none is requested for 2003.

                              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, 2002.)

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............           2           2           2
        Receipts:
    02.20 Cooperative range improvements....           3           3           3
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           5           5           5
        Appropriations:
    05.00 Range betterment fund.............          -3          -3          -3
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           2           2           2
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations.............           3           3           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           1           1
    22.00 New budget authority (gross)......           3           3           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           5           4           4
    23.95 Total new obligations.............          -3          -3          -3
    24.40 Unobligated balance carried
            forward, end of year............           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (special fund)....           3           3           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           1           1
    73.10 Total new obligations.............           3           3           3
    73.20 Total outlays (gross).............          -3          -3          -3

    [[Page 189]]

    74.40 Obligated balance, end of year....           1           1           1
    ----------------------------------------------------------------------------

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

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

        Fifty percent of grazing fees from National Forests in the 16
    western States, once appropriated, are used to protect and improve
    rangeland productivity primarily through revegetation, construction and
    reconstruction, and maintenance of improvements under authority of the
    Federal Land Policy and Management Act of 1976 (43 U.S.C. 1751), as
    amended.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           1           1           1
    25.2  Other services....................           1           1           1
    26.0  Supplies and materials............           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           3           3           3
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......          29          33          33
    ---------------------------------------------------------------------------

                                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, [$149,742,000] $131,104,000,
    to be derived from the Land and Water Conservation Fund, to remain
    available until expended, and to be for the conservation activities
    defined in section 250(c)(4)(E) of the Balanced Budget and Emergency
    Deficit Control Act of 1985, as amended, for the purposes of such Act.

             acquisition of lands for national forests special acts

        For acquisition of lands within the exterior boundaries of the
    Cache, Uinta, and Wasatch National Forests, Utah; the Toiyabe National
    Forest, Nevada; and the Angeles, San Bernardino, Sequoia, and Cleveland
    National Forests, California, as authorized by law, $1,069,000, to be
    derived from forest receipts.

                 acquisition of lands to complete land exchanges

        For acquisition of lands, such sums, to be derived from funds
    deposited by State, county, or municipal governments, public school
    districts, or other public school authorities pursuant to the Act of
    December 4, 1967, as amended (16 U.S.C. 484a), to remain available until
    expended. (16 U.S.C. 4601-4-11, 4601-516-617a, 555a; P.L. 96-586; P.L.
    76-589, 76-591; 78-310, and 16 U.S.C. 484a; Department of the Interior
    and Related Agencies Appropriations Act, 2002; additional authorizing
    legislation required.)

        Note.--Title VIII of the Department of the Interior and Related Agencies
    Appropriations Act, 2001, includes an additional $49 million for land
    acquisition.

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............                       1           1
        Receipts:
    02.20 Offsetting receipts (proprietary).           3           1           1
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           3           2           2
        Appropriations:
    05.00 Land acquisition..................          -2          -1          -1
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           1           1           1
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Land acquisition..................         118         130         120
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         119         131         121
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          99         126         147
    22.00 New budget authority (gross)......         149         152         132
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         250         278         279
    23.95 Total new obligations.............        -119        -131        -121
    23.98 Unobligated balance expiring or
            withdrawn.......................          -5
    24.40 Unobligated balance carried
            forward, end of year............         126         147         158
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          50           1           1
            Appropriation (special fund):
    40.20     Appropriation (Conservation)..          98         150         130
    40.20     Appropriation (special act)...           2           1           1
    42.00   Transferred from other accounts.           3
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         153         152         132
    68.10 Spending authority from offsetting
            collections: Change in
            uncollected customer payments
            from Federal sources (unexpired)          -4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         149         152         132
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           7          10          40
    73.10 Total new obligations.............         119         131         121
    73.20 Total outlays (gross).............        -117        -101        -138
    73.45 Recoveries of prior year
            obligations.....................          -2
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           4
    74.40 Obligated balance, end of year....          10          40          23
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          97         101          88
    86.93 Outlays from discretionary
            balances........................          20                      51
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         117         101         138
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         153         152         132
    90.00 Outlays...........................         117         101         138
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         152         151         131
    90.00 Outlays...........................         116         100         137
    ---------------------------------------------------------------------------

        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.

        Acquisition of Lands of National Forests, Special Acts.--To acquire
    lands within critical watersheds to provide soil stabilization and
    restoration of vegetation. Public Laws 76-

    [[Page 190]]

    589, 76-591 and 78-310 (54 Stat. 297, 298, 299, and 402; and 58 Stat.
    227-228) authorize appropriations for the purchase of lands to minimize
    erosion and flood damage to critical watersheds within the following
    National Forests: the Cache, Uinta, and Wasatch, Utah; the Toiyabe,
    Nevada; and the Angeles, Cleveland, San Bernardino, and Sequoia,
    California. Appropriations are made from receipts on these National
    Forests.

        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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           6           7           7
    12.1  Civilian personnel benefits.......           2           2           2
    23.1  Rental payments to GSA............           1           1           1
    25.2  Other services....................           2           1           1
    32.0  Land and structures...............         108         120         110
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         119         131         121
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......         108         111         111
    ---------------------------------------------------------------------------

                     Forest Service Permanent Appropriations

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............         278                      13
        Receipts:
    02.20 National forests fund, Agriculture        -194
    02.21 Payments to states................         207         384         389
    02.22 Timber roads, purchaser elections.          12           2           2
    02.23 Road and trails for States,
            National forest fund............          43          45          45
    02.24 Timber salvage sales..............          60          68          65
    02.25 Deposits, brush disposal..........          12          15          15
    02.26 Rents and charges for quarters....           8           8           8
    02.27 Timber sales pipeline restoration
            fund............................           4           2           3
    02.28 Recreational fee demonstration
            program.........................          31          38          40
    02.29 Midwin national tallgrass prairie
            rental fees.....................           1           1           1
    02.30 National grasslands...............         -12           6           6
    02.31 Miscellaneous special funds,
            Forest Service..................           3           2           2
    02.32 National forests fund, Interior...          11          10          10
    02.34 Miscellaneous collections.........                                   1
    02.35 Charges, user fees, and natural
            resource utilization............           6           4           4
    02.80 Forest Service permanent
            appropriations, offsetting
            collections.....................           7
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         199         585         591
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         477         585         604
        Appropriations:
    05.00 Forest Service permanent
            appropriations..................        -477        -572        -581
                                               ---------   ---------  ----------
    05.99   Total appropriations............        -477        -572        -581
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............                      13          23
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Payments to States, National
              forest fund...................          78          13          13
    00.02   Payment to Minnesota............           2           1           1
    00.03   Payments to counties, National
              grasslands....................                       6           6
    00.04   Recreation fee collection costs.           1           1           1
    00.05   Recreation fee demonstration
              project.......................          29          29          29
    00.06   Timber purchaser roads
              constructed by Forest Service.          25           6           6
    00.07   Timber salvage sales............          63         116         119
    00.08   Roads and trails for States.....          19          30          32
    00.09   Expenses, brush disposal........          13          20          21
    00.10   Restoration of forest lands and
              improvements..................          11           4           4
    00.11   Operation and maintenance of
              quarters......................           7           7           7
    00.12   Miscellaneous special funds.....           1           1           1
    00.13   Pipeline restoration fund.......          -6           6           6
    00.14   Land between the lakes..........                       4           4
    00.16   Payments to States, Spotted owl.         111
    00.17   Full community stabilization
              payments......................                     371         371
    00.18   Accrued Federal employee
              pensions and annuitant health
              benefits......................           8           8           8
    09.01 Reimbursable program..............           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         366         623         629
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         236         362         326
    22.00 New budget authority (gross)......         483         587         582
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           9
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         728         949         908
    23.95 Total new obligations.............        -366        -623        -629
    24.40 Unobligated balance carried
            forward, end of year............         362         326         281
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.20   Appropriation (special fund)....         478         580         581
    62.00   Transferred from other accounts.           9           7           1
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         487         587         582
    69.00 Offsetting collections (cash).....           7
    69.10 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -11
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................          -4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         483         587         582
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          47           6          38
    73.10 Total new obligations.............         366         623         629
    73.20 Total outlays (gross).............        -409        -591        -584
    73.45 Recoveries of prior year
            obligations.....................          -9
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          11
    74.40 Obligated balance, end of year....           6          38          83
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         353         550         547
    86.98 Outlays from mandatory balances...          56          41          37
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         409         591         584
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -7
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          11
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         487         587         582
    90.00 Outlays...........................         402         591         584
    ---------------------------------------------------------------------------

    [[Page 191]]

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         479         579         574
    90.00 Outlays...........................         394         583         576
    ---------------------------------------------------------------------------

        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.

        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).

        Payments to Counties, National Grasslands.--This program provides an
    annual payment to counties in which Title III--Bankhead-Jones Acquired
    Lands are located for funding public schools and roads. Of the net
    revenues for use of Title III--Bankhead-Jones Farm Tenant Act lands, 25
    percent is paid to the counties in which such lands are located for
    public school and road purposes (7 U.S.C. 1012).

        Payments to States.--The Secure Rural Schools and Community Self-
    Determination Act of 2000 (P.L. 106-393 dated October 30, 2000) provides
    stabilized education and road maintenance funding through predictable
    payments to counties, job creation in those counties and other
    opportunities associated with the restoration, maintenance and
    stewardship of Federal lands. Under P.L. 106-393, counties may elect one
    of two methods to calculate Payments to States funding they receive.
    Counties can either choose to continue receiving funds established by
    the 25 percent fund or they can receive their share of the State's
    ``full payment amount.'' Full payment amount is the average of the
    highest three years of payments to the State under the 25 percent fund
    through the years 1986-1999. A county's share of that amount is
    generally determined by the State in cooperation with the affected
    counties.

        Expenses, brush disposal.--Funds from payments by purchasers of
    National Forest timber to dispose of or treat slash and other debris
    that result from cutting operations (16 U.S.C. 490).

        Licensee programs, Forest Service.--Funds from fees for the use of
    characters by private enterprises are collected under regulations
    promulgated by the Secretary as follows:
            Smokey Bear.--For furthering the nationwide forest fire
        prevention campaign (16 U.S.C. 580(2)).
            Woodsy Owl.--For promoting wise use of the environment and
        programs which foster maintenance and improvement of environmental
        quality (16 U.S.C. 580(1)).

        Restoration of 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.

        Valles Caldera Fund established under the Valles Caldera
    Preservation Act (Public Law 106-248) provides funds, which shall be
    available without further appropriation for any purpose consistent with
    the purposes of the Act. Notwithstanding sections 1341 and 3302 of title
    31 of the United States Code, all monies received from donations under
    subsection (g) or from the management of the Preserve shall be retained
    and shall be available, without further appropriation, for the
    administration, preservation, restoration, operation and maintenance,
    improvement, repair, and related expenses incurred with respect to
    properties under its management jurisdiction.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          78          68          68
    11.3      Other than full-time permanent          12           9           9
    11.5      Other personnel compensation..           5           4           4
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          95          81          81
    12.1    Civilian personnel benefits.....          29          26          26
    13.0    Benefits for former personnel...           1           1           1
    21.0    Travel and transportation of
              persons.......................           4           7           7
    23.1    Rental payments to GSA..........           8           7           7
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          65          41          43
    26.0    Supplies and materials..........          10          10          10
    31.0    Equipment.......................           2           4           4
    32.0    Land and structures.............          13           9           9
    41.0    Grants, subsidies, and
              contributions.................         134         436         440
                                               ---------   ---------  ----------

    [[Page 192]]

    99.0      Direct obligations............         362         623         629
    99.0  Reimbursable obligations..........           4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         366         623         629
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......       2,028       2,519       2,521
    ---------------------------------------------------------------------------

                     Forest Service Permanent Appropriations

                    (Legislative proposal, subject to PAYGO)

        A Recreation Fee Program is proposed, generally consistent with the
    existing recreation fee demonstration program, that would permanently
    authorize the direct expenditure of recreation fees collected by the
    Forest Service and the Department of the Interior agencies beginning in
    2005.

        A proposal to enhance timber sale competition would amend the
    National Forest Management Act to require the use of sealed bids, rather
    than open bids for timber sales. This will encourage consistency across
    the National Forest System--both the eastern and southern U.S. use
    sealed bidding for timber sales--and increased competition in bidding.
    Increased funds collected are available for repayment of the KV fund
    borrowings. Reinstates the original requirements in National Forest
    Management Act for sealed bids.

        This proposal would permit non-timber interests, such as
    environmental, or recreation groups to bid on timber sales, and to not
    harvest the trees if successful in their bid. This reform would open up
    the bidding process, increasing the timber sales competition, and
    increasing receipts to the government. The proposal would amend the
    National Forest Management Act to alter the requirement that winning
    bids must proceed to harvest within a short period of time--winning non-
    timber interest bids would be permitted to limit timber harvests over
    the course of the normal rotational period described in the forest plan.
    Receipts collected from winning bids by non-timber interests may be used
    for local forest restoration projects targeted to generate local
    employment.

        Consistent with the Government-wide goals to receive market value
    for the use of government assets (see OMB Circular A-25), a proposal
    would require the receipt of fair market value from use and occupancy of
    ski resorts on national forest lands. The proposal would amend the
    Omnibus Parks and Public Lands Management Act (P.L. 104-333), which
    established a new fee schedule for ski resorts on National Forest System
    lands. The amendment would adjust percentages of gross revenue that
    determine fees to the government. Increased funds collected are
    available for forest restoration of landscapes impacted by ski resorts.

    Intragovernmental funds:

                              Working Capital Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4605-0-4-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    10.00 Total new obligations.............         278         157         134
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          99          23
    22.00 New budget authority (gross)......         195         134         134
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         300         157         134
    23.95 Total new obligations.............        -278        -157        -134
    24.40 Unobligated balance carried
            forward, end of year............          23
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         193         134         134
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           2
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         195         134         134
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          74         110         133
    73.10 Total new obligations.............         278         157         134
    73.20 Total outlays (gross).............        -234        -134        -134
    73.45 Recoveries of prior year
            obligations.....................          -6
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -2
    74.40 Obligated balance, end of year....         110         133         133
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         135         134         134
    86.98 Outlays from mandatory balances...          99
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         234         134         134
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -193        -134        -134
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -2
    ----------------------------------------------------------------------------

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

        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:

    [[Page 193]]

        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................         104          75          65
    31.0  Equipment.........................         174          82          69
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         278         157         134
    ---------------------------------------------------------------------------
        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      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.00 Transfers from general fund of
            amounts equal to certain customs
            duties..........................          30          30          30
    02.20 Forest Service cooperative fund...          94         155         163
    02.40 Transfer from TVA for land between
            the lakes trust fund............                       1           1
    02.80 Forest Service trust funds,
            offsetting collections..........          23
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         147         186         194
        Appropriations:
    05.00 Forest Service trust funds........        -147        -186        -194
                                               ---------   ---------  ----------
    05.99   Total appropriations............        -147        -186        -194
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9974-0-7-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................         137         231         231
    09.00 Reimbursable program..............          21
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         158         231         231
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         142         143         102
    22.00 New budget authority (gross)......         150         191         194
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         302         334         296
    23.95 Total new obligations.............        -158        -231        -231
    24.40 Unobligated balance carried
            forward, end of year............         143         102          65
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......         129         191         194
    69.00 Offsetting collections (cash).....          23
    69.10 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -2
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................          21
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         150         191         194
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         282          29          53
    73.10 Total new obligations.............         158         231         231
    73.20 Total outlays (gross).............        -403        -207        -193
    73.45 Recoveries of prior year
            obligations.....................         -10
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           2
    74.40 Obligated balance, end of year....          29          53          91
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         150         154         156
    86.98 Outlays from mandatory balances...         252          53          37
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         403         207         193
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -23
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         129         191         194
    90.00 Outlays...........................         380         207         193
    ---------------------------------------------------------------------------

      Budget Authority and Outlays Excluding Full Funding for Federal Retiree
                           Costs (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         124         186         189
    90.00 Outlays...........................         375         202         188
    ---------------------------------------------------------------------------

        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)

    ----------------------------------------------------------------------------
    Identification code 12-9974-0-7-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          49          61          61
    11.3      Other than full-time permanent           5           9           9
    11.5      Other personnel compensation..           3           4           4
    11.8      Special personal services
                payments....................           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          58          75          75
    12.1    Civilian personnel benefits.....          15          22          22
    13.0    Benefits for former personnel...           1           2           2
    21.0    Travel and transportation of
              persons.......................           2           3           3
    23.1    Rental payments to GSA..........           5           4           4
    25.2    Other services..................          36         122         122
    26.0    Supplies and materials..........          13           2           2
    31.0    Equipment.......................           1           1           1
    32.0    Land and structures.............           6
                                               ---------   ---------  ----------
    99.0      Direct obligations............         137         231         231
    99.0  Reimbursable obligations..........          21
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         158         231         231
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9974-0-7-302      2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears: Full-
            time equivalent employment......       1,168       1,731       1,733
    ---------------------------------------------------------------------------

    [[Page 194]]

             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.
                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.

                    ADMINISTRATIVE PROVISIONS, FOREST SERVICE

        Appropriations to the Forest Service for the current fiscal year
    shall be available for: (1) purchase of not to exceed [132] 113
    passenger motor vehicles, of which [eight] 10 will be used primarily for
    law enforcement purposes and of which [130] 113 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 seven for replacement only, and
    acquisition of sufficient aircraft from excess sources] to maintain the
    operable fleet at 195 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 available to the Forest Service shall be transferred to
    the Working Capital Fund of the Department of Agriculture that exceed
    the total amount transferred during fiscal year 2000 for such purposes
    without the advance approval of the House and Senate Committees on
    Appropriations.]
        Funds available to the Forest Service shall be available to conduct
    a program of not less than $2,000,000 for high priority projects within
    the scope of the approved budget which shall be carried out by the Youth
    Conservation Corps, defined in section 250(c)(4)(E) of the Balanced
    Budget and Emergency Deficit Control Act of 1985, as amended, for the
    purposes of such Act.
        Of the funds available to the Forest Service, $2,500 is available to
    the Chief of the Forest Service for official reception and
    representation expenses.
        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 section 403(a) of the National Forest Foundation Act (16
    U.S.C. 583j-1(a)) is amended by inserting after the first sentence the
    following new sentence: ``At the discretion of the Secretary of
    Agriculture, the Secretary may increase the number of Directors to not
    more than twenty.'': 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]
    authorized investments of Federal funds held by the Foundation may be
    made only in interest-bearing obligations of the United States or in
    obligations guaranteed as to both principal and interest by the United
    States.
        Pursuant to section 2(b)(2) of Public Law 98-244, up to $2,650,000
    of the funds available to the Forest Service shall be available for
    matching funds to the National Fish and Wildlife Foundation, as
    authorized by 16 U.S.C. 3701-3709, and may be advanced in a lump sum as
    Federal financial assistance, without regard to when expenses are
    incurred, for projects on or benefitting National Forest System lands or
    related to Forest Service programs: Provided, That the Foundation shall
    obtain, by the end of the period of Federal financial assistance,
    private contributions to match on at least one-for-one basis funds
    advanced by the Forest Service: Provided further, That the Foundation
    may transfer Federal funds to a non-Federal recipient for a project at
    the same rate that the recipient has obtained the non-Federal matching
    funds.
        Funds appropriated to the Forest Service shall be available for
    interactions with and providing technical assistance to rural
    communities for sustainable rural development purposes.
        [Notwithstanding any other provision of law, 80 percent of the funds
    appropriated to the Forest Service in the ``National Forest System'' and
    ``Capital Improvement and Maintenance'' accounts and planned to be
    allocated to activities under the ``Jobs in the Woods'' program for
    projects on National Forest land in the State of Washington may be
    granted directly to the Washington State Department of Fish and Wildlife
    for accomplishment of planned projects. Twenty percent of said funds
    shall be retained by the Forest Service for planning and administering
    projects. Project selection and prioritization shall be accomplished by
    the Forest Service with such consultation with the State of Washington
    as the Forest Service deems appropriate.]
        Funds appropriated to the Forest Service shall be available for
    payments to counties within the Columbia River Gorge National Scenic
    Area, pursuant to sections 14(c)(1) and (2), and section 16(a)(2) of
    Public Law 99-663.
        The Secretary of Agriculture is authorized to enter into grants,
    contracts, and cooperative agreements as appropriate with the Pinchot
    Institute for Conservation, as well as with public and other private
    agencies, organizations, institutions, and individuals, to provide for
    the development, administration, maintenance, or restoration of land,
    facilities, or Forest Service programs, at the Grey Towers National
    Historic Landmark: Provided, That, subject to such terms and conditions
    as the Secretary of Agriculture may prescribe, any such public or
    private agency, organization, institution, or individual

    [[Page 195]]

    may solicit, accept, and administer private gifts of money and real or
    personal property for the benefit of, or in connection with, the
    activities and services at the Grey Towers National Historic Landmark:
    Provided further, That such gifts may be accepted notwithstanding the
    fact that a donor conducts business with the Department of Agriculture
    in any capacity.
        Funds appropriated to the Forest Service shall be available, as
    determined by the Secretary, for payments to Del Norte County,
    California, pursuant to sections 13(e) and 14 of the Smith River
    National Recreation Area Act (Public Law 101-612).
        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.]
        The Forest Service shall fund indirect expenses, that is expenses
    not directly related to specific programs or to the accomplishment of
    specific [work] on-the-ground work, from any funds available to the
    Forest Service: 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, That during fiscal year 2002
    the Secretary shall limit total annual indirect obligations from the
    Brush Disposal, Knutson-Vandenberg, Reforestation, Salvage Sale, and
    Roads and Trails funds to 20 percent of the total obligations from each
    fund. Obligations in excess of 20 percent which would otherwise be
    charged to the above funds may be charged to appropriated funds
    available to the Forest Service subject to notification of the
    Committees on Appropriations of the House and Senate.]
        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 $750,000].
        The Secretary of Agriculture may authorize the sale of excess
    buildings, facilities, and other properties owned by the Forest Service
    and located on the Green Mountain National Forest, the revenues of which
    shall be retained by the Forest Service and available to the Secretary
    without further appropriation and until expended for maintenance and
    rehabilitation activities on the Green Mountain National Forest.
    (Department of the Interior and Related Agencies Appropriations Act,
    2002.)

                          General Fund Receipt Accounts

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      12-181100  National grasslands........          18          20          21
      12-222100  National forest fund.......          88         108         108
        Legislative proposal, subject to
          PAYGO.............................
      12-270110  Agriculture credit
        insurance, Negative subsidies.......           2           2           2
      12-270130  Agriculture credit
        insurance, Downward reestimates of
        subsidies...........................         923          49
      12-270210  Rural electrification and
        telephone loans, Negative subsidies.          19          17          20
      12-270230  Rural electrification and
        telephone loans, Downward
        reestimates of subsidies............         410
      12-270330  Rural water and waste
        disposal, Downward reestimates of
        subsidies...........................         108
      12-270530  Rural community facility,
        Downward reestimates of subsidies...          20
      12-270630  Rural housing insurance,
        Downward reestimates of subsidies...         334
      12-270710  Rural business and
        industry, Negative subsidies........           2
      12-270730  Rural business and
        industry, Downward reestimates of
        subsidies...........................          26
      12-270830  P.L. 480 loan program,
        Downward reestimates of subsidies...          39
      12-271030  Rural development loans,
        Downward reestimates of subsidies...           4
      12-271130  Rural telephone bank loans,
        Downward reestimates of subsidies...           6
      12-271330  Economic development loans,
        Downward reestimates of subsidies...           3
      12-275430  Apple loan program,
        downward reestimates of subsidies...                       1
      12-275630  Farm storage facility
        loans, Downward reestimate of
        subsidies...........................                       2
      12-275730  Commodity Credit
        Corporation export guarantee
        financing, Downward reestimate of
        subsidies...........................                     126
                                               ---------   ---------  ----------
    General Fund Offsetting receipts from
     the public.............................       2,002         325         151
    ---------------------------------------------------------------------------

                       Other Consolidated Receipt Accounts

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2001 actual   2002 est.   2003 est.
    ----------------------------------------------------------------------------
      12-977210  Miscellaneous contributed
        funds...............................           1           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 fiscal
    year [2002] 2003 under this Act shall be available for the purchase, in
    addition to those specifically provided for, of not to exceed [379] 374
    passenger motor vehicles, of which [378] 372 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 sections 1 and 10 of the Act of June 29, 1935 (7 U.S.C.
    427, 427i; commonly known as the Bankhead-Jones Act), subtitle A of
    title II and section 302 of the Act of August 14, 1946 (7 U.S.C. 1621 et
    seq.), and chapter 63 of title 31, United States Code, shall be
    available for contracting in accordance with such Acts and chapter.
        Sec. 704. The Secretary of Agriculture may transfer unobligated
    balances of discretionary funds appropriated by this Act or other
    available unobligated discretionary balances of the Department of
    Agriculture to the Working Capital Fund for the acquisition of plant and
    capital equipment necessary for the delivery of financial,
    administrative, and information technology services of primary benefit
    to the agencies of the Department of Agriculture: Provided, That none of
    the funds made available by this Act or any other Act shall be
    transferred to the Working Capital Fund without the prior approval of
    the agency administrator: Provided further, That none of the funds
    transferred to the Working Capital Fund pursuant to this section shall
    be available for obligation without [the prior approval of] advance
    notice transmitted to the Committees on Appropriations of both Houses of
    Congress.
        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, emerging plant pests,
    integrated systems acquisition project, boll weevil program, up to 25
    percent of the screwworm program, and up to $2,000,000 for costs
    associated with collocating regional offices; Food Safety and Inspection
    Service, field automation and information management project;
    Cooperative State Research, Education, and Extension Serv

    [[Page 196]]

    ice, funds for competitive research grants (7 U.S.C. 450i(b)), funds for
    the Research, Education and Economics Information System (REEIS), and
    funds for the Native American Institutions Endowment Fund; Farm Service
    Agency, salaries and expenses funds made available to county committees;
    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 section 606C
    of the Act of August 28, 1954 (7 U.S.C. 1766b).
        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. 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. 710. 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 section 9
    of the Small Business Act (15 U.S.C. 638).
        Sec. 711. Notwithstanding any other provision of this Act, all loan
    levels provided in this Act shall be considered estimates, not
    limitations.
        Sec. 712. Appropriations to the Department of Agriculture for the
    cost of direct and guaranteed loans made available in fiscal year [2002]
    2003 shall remain available until expended to cover obligations made in
    fiscal year [2002] 2003 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 Local Television Loan Guarantee program;] the Rural
    Housing Insurance Fund program account; and the Rural Economic
    Development Loans program account.
        Sec. 713. Notwithstanding chapter 63 of title 31, United States
    Code, marketing services of the Agricultural Marketing Service; the
    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. 714. 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. 715. 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.]
        Sec. [716] 714. None of the funds appropriated by this Act may be
    used to carry out section 410 of the Federal Meat Inspection Act (21
    U.S.C. 679a) or section 30 of the Poultry Products Inspection Act (21
    U.S.C. 471).
        [Sec. 717. 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. 718. 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. [719] 715. None of the funds made available to the Department
    of Agriculture by this Act may be used to acquire new information
    technology systems or significant upgrades, as determined by the Office
    of the Chief Information Officer, without the approval of the Chief
    Information Officer and the concurrence of the Executive Information
    Technology Investment Review Board: Provided, That notwithstanding any
    other provision of law, none of the funds appropriated or otherwise made
    available by this Act may be transferred to the Office of the Chief
    Information Officer without the prior [approval] notification of the
    Committees on Appropriations of both Houses of Congress.
        [Sec. 720. (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 2002, 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
    Committees 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 2002, 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
    Committees on Appropriations of both Houses of Congress are notified 15
    days in advance of such reprogramming of funds.
        (c) The Secretary of Agriculture shall notify the Committees on
    Appropriations of both Houses of Congress before implementing a program
    or activity not carried out during the previous fiscal year unless the
    program or activity is funded by this Act or specifically funded by any
    other Act.]
        Sec. [721] 716. With the exception of funds needed to administer and
    conduct oversight of grants awarded and obligations incurred prior to
    [enactment of this Act] November 28, 2001, none of the funds
    appropriated or otherwise made available by this or any other Act may be
    used to pay the salaries and expenses of personnel to carry out section
    793 of Public Law 104-127, the Fund for Rural America (7 U.S.C. 2204f).

    [[Page 197]]

        Sec. [722] 717. With the exception of funds needed to administer and
    conduct oversight of grants awarded and obligations incurred prior to
    [enactment of this Act] November 28, 2001, none of the funds
    appropriated or otherwise made available by this or any other Act may be
    used to pay the salaries and expenses of personnel to carry out the
    provisions of section 401 of Public Law 105-185, the Initiative for
    Future Agriculture and Food Systems (7 U.S.C. 7621).
        [Sec. 723. 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 1240M of the Food Security Act of 1985 (16 U.S.C. 3839bb).]
        [Sec. 724. None of the funds made available to the Food and Drug
    Administration by this Act 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, except that field
    laboratory personnel shall be 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. 725. 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, Food and Drug Administration, 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 user fees proposals are not enacted prior to the date of the
    convening of a committee of conference for the fiscal year 2003
    appropriations Act.]
        [Sec. 726. None of the funds made available by this Act or any other
    Act may be used to close or relocate a state Rural Development office
    unless or until cost effectiveness and enhancement of program delivery
    have been determined.]
        [Sec. 727. Of any shipments of commodities made pursuant to section
    416(b) of the Agricultural Act of 1949 (7 U.S.C. 1431(b)), the Secretary
    of Agriculture shall, to the extent practicable, direct that tonnage
    equal in value to not more than $25,000,000 shall be made available to
    foreign countries to assist in mitigating the effects of the Human
    Immunodeficiency Virus and Acquired Immune Deficiency Syndrome on
    communities, including the provision of--
            (1) agricultural commodities to--
                    (A) individuals with Human Immunodeficiency Virus or
                Acquired Immune Deficiency Syndrome in the communities; and
                    (B) households in the communities, particularly
                individuals caring for orphaned children; and
            (2) agricultural commodities monetized to provide other
        assistance (including assistance under microcredit and
        microenterprise programs) to create or restore sustainable
        livelihoods among individuals in the communities, particularly
        individuals caring for orphaned children.]
        [Sec. 728. In addition to amounts otherwise appropriated or made
    available by this Act, $2,496,000 is appropriated for the purpose of
    providing Bill Emerson and Mickey Leland Hunger Fellowships through the
    Congressional Hunger Center.]
        [Sec. 729. Hereafter, refunds or rebates received on an on-going
    basis from a credit card services provider under the Department of
    Agriculture's charge card programs may be deposited to and retained
    without fiscal year limitation in the Department's Working Capital Fund
    established under 7 U.S.C. 2235 and used to fund management initiatives
    of general benefit to the Department of Agriculture bureaus and offices
    as determined by the Secretary of Agriculture or the Secretary's
    designee.]
        Sec. [730] 718. Notwithstanding section 412 of the Agricultural
    Trade Development and Assistance Act of 1954 (7 U.S.C. 1736f), any
    balances available to carry out title III of such Act as of the date of
    enactment of this Act, and any recoveries and reimbursements that become
    available to carry out title III of such Act, may be used to carry out
    title II of such Act.
        [Sec. 731. Section 375(e)(6)(B) of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 2008j(e)(6)(B)) is amended by striking
    ``$25,000,000'' and inserting ``$26,000,000''.]
        [Sec. 732. None of the funds appropriated or made available by this
    Act shall be used to issue a proposed rule for which the comment period
    would close prior to September 30, 2002, final, or interim final rule
    pursuant to notice and comment rulemaking in relation to any change or
    modification of the definition of ``animal'' in existing regulations
    pursuant to the Animal Welfare Act.]
        [Sec. 733. Notwithstanding any other provision of law, the City of
    Cabot, Arkansas, the City of Berlin, New Hampshire, and the City of
    Coachella, California, shall be eligible for loans and grants provided
    through the Rural Community Advancement Program.]
        [Sec. 734. Notwithstanding any other provision of law, the Secretary
    shall consider the City of Casa Grande, Arizona, as meeting the
    requirements of a rural area in section 520 of the Housing Act of 1949
    (42 U.S.C. 1490).]
        [Sec. 735. Of the funds made available under section 27(a) of the
    Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), the Secretary may use up
    to $5,000,000 for administrative costs associated with the distribution
    of commodities.]
        [Sec. 736. Notwithstanding any other provision of law, the Secretary
    may transfer up to $13,000,000 in funds provided for the Environmental
    Quality Incentives Program authorized by chapter 4, subtitle D, title
    XII of the Food Security Act of 1985, for technical assistance to
    implement the Conservation Reserve Program authorized by subchapter B,
    chapter 1, title XII of the Food Security Act of 1985, with funds to
    remain available until expended.]
        [Sec. 737. Notwithstanding any other provision of law, the City of
    St. Joseph, Missouri, shall be eligible for grants and loans
    administered by the rural development mission area of the Department of
    Agriculture relating to an application submitted to the Department by a
    farmer-owned cooperative, a majority of whose members reside in a rural
    area, as determined by the Secretary, and for the purchase and operation
    of a facility beneficial to the purpose of the cooperative.]
        [Sec. 738. Notwithstanding any other provision of law, the Secretary
    of Agriculture shall consider the City of Hollister, California, as
    meeting the requirements of a rural area for the purposes of housing
    programs in the rural development mission areas of the Department of
    Agriculture.]
        [Sec. 739. None of the funds appropriated or otherwise made
    available by this Act may be used to maintain, modify, or implement any
    assessment against agricultural producers as part of a commodity
    promotion, research, and consumer information order, known as a check-
    off program, that has not been approved by the affected producers in
    accordance with the statutory requirements applicable to the order.]
        [Sec. 740. 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 (recently renamed the Division of Pharmaceutical Analysis)
    in St. Louis, Missouri, except that funds could be used to plan a
    possible relocation of this Division within the city limits of St.
    Louis, Missouri.]
        [Sec. 741. Market Loss Assistance for Apple Producers (a) Assistance
    Available.--The Secretary of Agriculture shall use $75,000,000 of funds
    of the Commodity Credit Corporation to make payments as soon as possible
    after the date of the enactment of this Act to apple producers to
    provide relief for the loss of markets for their 2000 crop.
        (b) Payment Basis.--The amount of the payment to a producer under
    subsection (a) shall be made on a per pound basis equal to each
    qualifying producer's 2000 production of apples, except that the
    Secretary shall not make payments for that amount of a particular farm's
    apple production that is in excess of 20,000,000 pounds.
        (c) Duplicative Payments.--A producer shall be ineligible for
    payments under this section with respect to a market loss for apples to
    the extent of that amount that the producer received as compensation or
    assistance for the same loss under any other Federal program, other than
    under the Federal Crop Insurance Act (7 U.S.C. 1501 et seq.).
        (d) Other Terms and Conditions.--The Secretary shall not establish
    any terms or conditions for producer eligibility, such as limits based
    upon gross income, other than those specified in this section.
        (e) Applicability.--This section applies only with respect to the
    2000 crop of apples and producers of that crop.]

    [[Page 198]]

        Sec. [742.] 719. No funds appropriated or otherwise made available
    under this Act shall be made available to any person or entity that has
    been convicted of violating the Act of March 3, 1933 (41 U.S.C. 10a-10c;
    popularly known as the ``Buy American Act'').
        [Sec. 743. Section 17(a)(2)(B) of the Richard B. Russell National
    School Lunch Act (42 U.S.C. 1766(a)(2)(B)) is amended by striking
    ``2001'' and inserting ``2002''.]
        [Sec. 744. Notwithstanding any other provision of law, the Natural
    Resources Conservation Service shall provide financial and technical
    assistance in the amount of $150,000 to the Mallard Pointe project in
    Madison County, Mississippi.]
        [Sec. 745. Notwithstanding any other provision of law, the Secretary
    of Agriculture shall, in cooperation with the State of Illinois, develop
    and implement a pilot project utilizing conservation programs of the
    Department of Agriculture for soil, water, wetlands, and wildlife
    habitat enhancement in the Illinois River Basin: Provided, That no funds
    shall be made available to carry out this section unless they are
    expressly provided for a program in this Act or any other Act for
    obligation in fiscal year 2002: Provided further, That any conservation
    reserve program enrollments made pursuant to this section shall be
    subject to section 734 of this Act.]
        [Sec. 746. Notwithstanding any other provision of law, the Natural
    Resources Conservation Service shall provide $250,000 for a wetlands
    restoration and water conservation project in the vicinity of Jamestown,
    Rhode Island.]
        [Sec. 747. Notwithstanding any other provision of law, $3,000,000
    shall be made available from funds under the rural business and
    cooperative development programs of the Rural Community Advancement
    Program for a grant for an integrated ethanol plant, feedlot, and animal
    waste digestion unit, to the extent matching funds from the Department
    of Energy are provided if a commitment for such matching funds is made
    prior to July 1, 2002: Provided, That such funds shall be released to
    the project after the farmer-owned cooperative equity is in place, and a
    formally executed commitment from a qualified lender based upon receipt
    of necessary permits, contract, and other appropriate documentation has
    been secured by the project.]
        [Sec. 748. Hereafter, notwithstanding any other provision of law,
    the Administrator of the Rural Utilities Service shall use the
    authorities provided in the Rural Electrification Act of 1936 to finance
    the acquisition of existing generation, transmission and distribution
    systems and facilities serving high cost, predominantly rural areas by
    entities capable of and dedicated to providing or improving service in
    such areas in an efficient and cost effective manner.]
        [Sec. 749. Notwithstanding subsection (f) of section 156 of the
    Agricultural Market Transition Act (7 U.S.C. 7272(f)), any assessment
    imposed under that subsection for marketings of raw cane sugar or beet
    sugar for the 2002 fiscal year shall not be required to be remitted to
    the Commodity Credit Corporation before September 2, 2002.]
        [Sec. 750. Notwithstanding any other provision of law, the Secretary
    of Agriculture, acting through the Natural Resources Conservation
    Service, shall provide financial assistance from available funds from
    the Emergency Watershed Protection Program in Arkansas, in an amount not
    to exceed $400,000 for completion of the current construction phase of
    the Kuhn Bayou (Point Remove) Project.]
        [Sec. 751. (a) Temporary Use of Existing Payments to States Table.--
    Notwithstanding section 101(a)(1) of the Secure Rural Schools and
    Community Self-Determination Act of 2000 (Public Law 106-393; 16 U.S.C.
    500 note), for the purpose of making the fiscal year 2001 payments under
    section 102 of such Act to eligible States and eligible counties, the
    full payment amount for each eligible State and eligible county shall be
    deemed to be equal to the full payment amount calculated for that
    eligible State or eligible county in the Forest Service document
    entitled ``P.L. 106-393, Secure Rural Schools and Community Self-
    Determination Act'' and dated July 31, 2001, subject to the adjustment
    required by section 101(b) of such Act.
        (b) Revision of Table.--For the purpose of making payments under
    section 102 of such Act to eligible States and eligible counties for
    fiscal years 2002 through 2006, as required by section 101(a)(1) of such
    Act, the Secretary of Agriculture shall revise the table referred to in
    subsection (a) to accurately reflect, to the maximum extent practicable,
    each eligible State's and eligible county's historic share of the 25-
    percent payments and safety net payments made for the fiscal years of
    the eligibility period.
        (c) Reporting Requirement.--Not later than March 1, 2002, the
    Secretary of Agriculture shall submit to the Committee on Energy and
    Natural Resources of the Senate and the Committee on Agriculture of the
    House of Representatives a report containing the revisions made to the
    table referred to in subsection (a), as required by subsection (b).
        (d) Additional Eligible County Election.--Notwithstanding section
    102(b)(2) of such Act, if the revision pursuant to subsection (b) of the
    table referred to in subsection (a) results in a reduced full payment
    amount for an eligible county that elected under section 102(b) of such
    Act to receive the full payment amount, the eligible county shall have a
    90-day period, beginning on the date the revised table is first
    available to the public, during which to reconsider and change its
    election. The eligible county shall notify the Secretary of Agriculture
    of any change in its election before the end of such period. If an
    eligible county elects under this subsection to receive the 25-percent
    payment in place of the full payment amount, the election shall be
    effective for 1 year.
        (e) Treatment of Certain Mineral Leasing Receipts.--(1) An eligible
    county that elects under section 102(b) of such Act to receive its share
    of an eligible State's full payment amount shall continue to receive its
    share of any payments made to that State from a lease for mineral
    resources issued by the Secretary of the Interior under the last
    paragraph under the heading ``forest service.'' in the Act of March 4,
    1917 (Chapter 179; 16 U.S.C. 520).
        (2) Section 6(b) of the Mineral Leasing Act for Acquired Lands (30
    U.S.C. 355(b)) is amended by inserting after the first sentence the
    following new sentence: ``The preceding sentence shall also apply to any
    payment to a State derived from a lease for mineral resources issued by
    the Secretary of the Interior under the last paragraph under the heading
    `forest service.' in the Act of March 4, 1917 (Chapter 179; 16 U.S.C.
    520).''.
        (f) Definitions.--In this section, the terms ``eligible State'',
    ``eligible county'', ``eligibility period'', ``full payment amount'',
    ``25-percent payment'', and ``safety net payments'' have the meanings
    given such terms in section 3 of such Act, and the term ``such Act''
    means the Secure Rural Schools and Community Self-Determination Act of
    2000 (Public Law 106-393; 16 U.S.C. 500 note).]
        [Sec. 752. Alaska Permanent Fund. Section 501(b) of the Housing Act
    of 1949 (42 U.S.C. 1471) is amended in paragraph (5)--
            (1) by striking ``(5)'' and inserting ``(5)(A)''; and
            (2) by adding at the end the following:
            ``(B) For purposes of this title, for fiscal years 2002 and
        2003, the term `income' does not include dividends received from the
        Alaska Permanent Fund by a person who was under the age of 18 years
        when that person qualified for the dividend.''.]
        [Sec. 753. Hereafter, any provision of any Act of Congress relating
    to colleges and universities eligible to receive funds under the Act of
    August 30, 1890, including Tuskegee University, shall apply to West
    Virginia State College at Institute, West Virginia: Provided, That the
    Secretary may waive the matching funds' requirement under section 1449
    of the National Agricultural Research, Extension, and Teaching Policy
    Act of 1977 (7 U.S.C. 3222d) for fiscal year 2002 for West Virginia
    State College if the Secretary determines the State of West Virginia
    will be unlikely to satisfy the matching requirement.]
        [Sec. 754. Notwithstanding any other provision of law, the
    Secretary, acting through the Natural Resources Conservation Service,
    shall provide financial and technical assistance relating to the Tanana
    River bordering the Big Delta State Historical Park.]
        [Sec. 755. None of the funds appropriated or otherwise made
    available by this Act to the Food and Drug Administration shall be used
    to allow admission of fish or fish products labeled wholly or in part as
    ``catfish'' unless the products are taxonomically from the family
    Ictaluridae.]
        [Sec. 756. The Secretary of Agriculture is authorized to accept any
    unused funds transferred to the Alaska Railroad Corporation for
    avalanche control and retransfer up to $499,000 of such funds as a
    direct lump sum payment to the City of Valdez to construct an avalanche
    control wall to protect a public school.]
        [Sec. 757. The Secretary of Agriculture may use not more than
    $5,000,000 of funds of the Commodity Credit Corporation to pay claims of
    crop damage, upon consultation with the Secretary of the Interior, that
    resulted from the Bureau of Land Management's use of herbicides during
    the 2001 calendar year in the State of Idaho: Provided, That if the
    amount provided in this section is not sufficient to pay all approved
    claims the Secretary of Agriculture shall reduce all approved claims on
    a pro rata basis related to the degree of loss in production: Provided
    further, That nothing in this section shall be construed to constitute
    an admission of liability by the United States arising from the use by
    the Bureau of Land Manage

    [[Page 199]]

    ment of the herbicide Oust: Provided further, That the issuance of
    regulations promulgated pursuant to this section shall be made without
    regard to: (1) the notice and comment provisions of section 553 of title
    5, United States Code; (2) the Statement of Policy of the Secretary of
    Agriculture effective July 24, 1971 (36 Fed. Reg. 13804), relating to
    notices of proposed rulemaking and public participation in rulemaking;
    and (3) chapter 35 of title 44, United States Code (commonly known as
    the ``Paperwork Reduction Act''): Provided further, That in carrying out
    this section, the Secretary shall use the authority provided under
    section 808 of title 5, United States Code.]
        [Sec. 758. Pilot Program for Enrollment of Wetland and Buffer
    Acreage in Conservation Reserve. (a) In General.--Section 1231(h)(4)(B)
    of the Food Security Act of 1985 (16 U.S.C. 3831(h)(4)(B)) is amended by
    inserting ``(which may include emerging vegetation in water)'' after
    ``vegetative cover''.
        (b) Conforming Amendment.--Section 1232(a)(4) of the Food Security
    Act of 1985 (16 U.S.C. 3832(a)(4)) is amended by inserting ``(which may
    include emerging vegetation in water)'' after ``vegetative cover''.]
        [Sec. 759. Speciality Crops. (a) Grading of Tobacco.--
            (1) In general.--Not later than March 31, 2002, the Secretary of
        Agriculture (referred to in this section as the ``Secretary'') shall
        conduct referenda among producers of each kind of tobacco that is
        eligible for price support under the Agricultural Act of 1949 (7
        U.S.C. 1421 et seq.) to determine whether such producers favor the
        mandatory grading of that kind of tobacco by the Secretary.
            (2) Mandatory grading.--
                    (A) In general.--If the Secretary determines that
                mandatory grading is favored by a majority of the producers
                of a kind of tobacco voting in the referendum, the Secretary
                is authorized and directed to ensure that the kind of
                tobacco is graded at the time of sale effective for the 2002
                and subsequent marketing years.
                    (B) Fees.--To the maximum extent practicable, the
                Secretary shall establish, collect, and use fees for the
                grading of tobacco required under this subsection in the
                same manner as user fees for the grading of tobacco sold at
                auction authorized under the Tobacco Inspection Act (7
                U.S.C. 511 et seq.).
            (3) Judicial review.--A determination by the Secretary under
        this subsection shall not be subject to judicial review.
        (b) Quota Reduction for Conservation Reserve Acreage.--
            (1) In general.--Section 1236 of the Food Security Act of 1985
        (16 U.S.C. 3836) is amended--
                    (A) by striking subsection (a);
                    (B) by redesignating subsections (b), (c), and (d) as
                subsections (a), (b), and (c), respectively;
                    (C) in subsection (b) (as so redesignated), by striking
                ``subsection (b)'' and inserting ``subsection (a)''; and
                    (D) in subsection (c) (as so redesignated), by striking
                ``subsection (c)'' and inserting ``subsection (b)''.
            (2) Conforming amendment.--Section 1232(a)(5) of the Food
        Security Act of 1985 (16 U.S.C. 3832(a)(5)) is amended by striking
        ``section 1236(d)'' and inserting ``section 1236(c)''.
            (3) Application.--The amendments made by this subsection shall
        apply beginning with the 2002 crop.
        (c) Horse Breeder Loans.--
            (1) Definition of horse breeder.--In this subsection, the term
        ``horse breeder'' means a person that, as of the date of enactment
        of this Act, derives more than 70 percent of the income of the
        person from the business of breeding, boarding, raising, training,
        or selling horses, during the shorter of--
                    (A) the 5-year period ending on January 1, 2001; or
                    (B) the period the person has been engaged in such
                business.
            (2) Loan authorization.--The Secretary shall make loans to
        eligible horse breeders to assist the horse breeders for losses
        suffered as a result of mare reproductive loss syndrome.
            (3) Eligibility.--A horse breeder shall be eligible for a loan
        under this subsection if the Secretary determines that, as a result
        of mare reproductive loss syndrome--
                    (A) during the period beginning January 1 and ending
                October 1 of any of calendar years 2000, 2001, or 2002--
        (i) 30 percent or more of the mares owned by the horse breeder
    failed to conceive, miscarried, aborted, or otherwise failed to produce
    a live healthy foal; or
        (ii) 30 percent or more of the mares boarded on a farm owned,
    operated, or leased by the horse breeder failed to conceive, miscarried,
    aborted, or otherwise failed to produce a live healthy foal;
                    (B) the horse breeder is unable to meet the financial
                obligations, or pay the ordinary and necessary expenses, of
                the horse breeder incurred in connection with breeding,
                boarding, raising, training, or selling horses; and
                    (C) the horse breeder is not able to obtain sufficient
                credit elsewhere, in accordance with subtitle C of the
                Consolidated Farm and Rural Development Act (7 U.S.C. 1961
                et seq.).
            (4) Amount.--
                    (A) In general.--Subject to subparagraph (B), the amount
                of a loan made to a horse breeder under this subsection
                shall be determined by the Secretary on the basis of the
                amount of losses suffered by the horse breeder, and the
                financial needs of the horse breeder, as a result of mare
                reproductive loss syndrome.
                    (B) Maximum amount.--The amount of a loan made to a
                horse breeder under this subsection shall not exceed the
                maximum amount of an emergency loan under section 324(a) of
                the Consolidated Farm and Rural Development Act (7 U.S.C.
                1964(a)).
            (5) Term.--
                    (A) In general.--Subject to subparagraph (B), the term
                for repayment of a loan made to a horse breeder under this
                subsection shall be determined by the Secretary based on the
                ability of the horse breeder to repay the loan.
                    (B) Maximum term.--The term of a loan made to a horse
                breeder under this subsection shall not exceed 20 years.
            (6) Interest rate.--The interest rate for a loan made to a horse
        breeder under this subsection shall be the interest rate for
        emergency loans prescribed under section 324(b)(1) of the
        Consolidated Farm and Rural Development Act (7 U.S.C. 1964(b)(1)).
            (7) Security.--A loan to a horse breeder under this subsection
        shall be made on the security required for emergency loans under
        section 324(d) of the Consolidated Farm and Rural Development Act (7
        U.S.C. 1964(d)).
            (8) Application.--To be eligible to obtain a loan under this
        subsection, a horse breeder shall submit an application for the loan
        to the Secretary not later than September 30, 2002.
            (9) Funding.--The Secretary shall carry out this subsection
        using funds made available to make emergency loans under subtitle C
        of the Consolidated Farm and Rural Development Act (7 U.S.C. 1961 et
        seq.).
            (10) Termination.--The authority provided by this subsection to
        make a loan terminates effective September 30, 2003.]
        [Sec. 760. During fiscal year 2002, subsection (a)(2) of section 508
    of the Federal Crop Insurance Act (7 U.S.C. 1508) shall be applied as
    though the term ``and potatoes'' read as follows: ``, potatoes, and
    sweet potatoes''.]
        [Sec. 761. Citrus Canker Eradication. (a) In General.--Section 810
    of the Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2001 (114 Stat. 1549A-52) is
    amended--
            (1) in subsection (a) by striking ``The'' and inserting
        ``Subject to subsection (e), the''; and
            (2) in subsection (c), by striking ``2001'' and inserting
        ``2002''.
        (b) Effective Date.--The amendments in subsection (a) shall take
    effect as if enacted on September 30, 2001.]
        [Sec. 762. Section 306(a)(20) of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1926(a)(20)) is amended by adding at the end
    the following new subparagraph:
                    ``(E) Rural broadband.--Notwithstanding subparagraph
                (C), the Secretary may make grants to state agencies for use
                by regulatory commissions in states with rural communities
                without local dial-up Internet access or broadband service
                to establish a competitively, technologically neutral grant
                program to telecommunications carriers or cable operators
                that establish common carrier facilities and services which,
                in the commission's determination, will result in the long-
                term availability to such communities of affordable
                broadband services which are used for the provision of high
                speed Internet access.''.]
        [Sec. 763. In accordance with the Farmland Protection Program, a
    total of $720,000 shall be made available to purchase conservation
    easements or other interests in land, not to exceed 235 acres, in Adair,
    Green, and Taylor Counties, Kentucky: Provided, That $490,000 of this
    amount shall be from funds made available to the Conservation Reserve
    Enhancement Program for the State of Kentucky.]
        [Sec. 764. Notwithstanding any other provision of law, the City of
    Caldwell, Idaho, shall be eligible for grants and loans administered

    [[Page 200]]

    by the Rural Housing Service of the United States Department of
    Agriculture for a period not to exceed 1 year from the date of enactment
    of this Act.]
        [Sec. 765. Section 8c(1) of the Agricultural Marketing Agreement Act
    of 1937 is amended by adding the following provision at the end of the
    penultimate sentence:
            ``The Secretary is authorized to implement a producer allotment
        program and a handler withholding program under the cranberry
        marketing order in the same crop year through informal rulemaking
        based on a recommendation and supporting economic analysis submitted
        by the Cranberry Marketing Committee. Such recommendation and
        analysis shall be submitted by the Committee no later than March 1
        of each year.''.]
        [Sec. 766. Section 11(f) of the Richard B. Russell National School
    Lunch Act (42 U.S.C. 1759a(f)) is amended by--
            (1) in paragraph (1)(E), by striking ``2001'' and inserting
        ``2003''; and
            (2) in paragraph (2)--
                    (A) by striking subparagraph (A) and inserting the
                following:
                    ``(A) In general.--The Secretary shall submit to the
                Committee on Education and the Workforce of the House of
                Representatives and the Committee on Agriculture, Nutrition,
                and Forestry of the Senate--
        ``(i) not later than January 1, 2003, an interim report on the
    activities of the State agencies receiving grants under this subsection;
    and
        ``(ii) not later than January 1, 2004, a final report on the
    activities of the State agencies receiving grants under this
    subsection.''; and
                    (B) in subparagraph (B), by striking ``report'' and
                inserting ``reports''.]
        [Sec. 767. Notwithstanding any other provision of law, the City of
    Mt. Vernon, Washington, shall be eligible for grants and loans
    administered by the Rural Housing Service of the United States
    Department of Agriculture for a period not to exceed 1 year from the
    date of enactment of this Act.]
        [Sec. 768. Notwithstanding any other provision of law, the Natural
    Resources Conservation Service shall provide financial and technical
    assistance to DuPage County, Illinois, from funds available for the
    Watershed and Flood Prevention Operations program, not to exceed
    $1,400,000.]
        [Sec. 769. Notwithstanding any other provision of law, from funds
    previously appropriated for Watershed and Flood Prevention Operations of
    the Natural Resource and Conservation Service, the Secretary of
    Agriculture shall provide technical and financial assistance, but not to
    exceed $1,000,000, in connection with a lake level stabilization project
    carried out as part of local efforts to restore and repair watersheds
    damaged by the 2001 tornado and storms in Burnett and Washburn Counties,
    Wisconsin: Provided, That the Secretary shall waive the cost share
    requirement of the local sponsors of such efforts in Burnett and
    Washburn Counties, Wisconsin.]
        [Sec. 770. Nowithstanding any other provision of law, from the funds
    appropriated to the Rural Utilities Service by this Act, any current
    Rural Utilities Service borrower within 100 miles of New York City shall
    be eligible for additional financing, refinancing, collateral
    flexibility, and deferrals on an expedited basis without regard to
    population limitations for any financially feasible telecommunications,
    energy or water project that assists endeavors related to the
    rehabilitation, prevention, relocation, site preparation, or relief
    efforts resulting from the terrorist events of September 11, 2001.]
        [Sec. 771. Section 17(r)(5) of the Richard B. Russell National
    School Lunch Act (42 U.S.C. 1766(r)(5)) is amended--
            (1) by striking ``six'' and inserting ``seven'';
            (2) by striking ``four'' and inserting ``five''; and
            (3) by inserting ``Illinois,'' after the first instance of
        ``States shall be''.]
        [Sec. 772. (a) Extension.--Section 141 of the Agricultural Market
    Transition Act (7 U.S.C. 7251) is amended--
            (1) in subsection (b), by adding at the end the following new
        paragraph:
            ``(5) During the period beginning on January 1, 2002, and ending
        on May 31, 2002, $9.90.''; and
            (2) in subsection (h), by striking ``December 31, 2001'' both
        places it appears and inserting ``May 31, 2002''.
        (b) Conforming Amendment.--Section 142 of the Agricultural Market
    Transition Act (7 U.S.C. 7252) is repealed.]
        [Sec. 773. The Secretary shall transfer to the Southern Minnesota
    Beet Sugar Co-op, refined sugar, acquired by the Commodity Credit
    Corporation, in the amount of 10,000 tons to compensate sugar producers
    in Minnesota for losses incurred beyond those that may be compensated
    under existing programs administered by the Secretary: Provided, That
    this amount of sugar shall be provided in installments starting on the
    day that is 30 days after the date of enactment of this Act and on the
    first day of each of the following 7 months after that day.]
        [Sec. 774. (a) Definitions.--In this section:
            (1) The term ``eligible person'' means a person that--
                    (A) owns a farm for which, irrespective of temporary
                transfers or undermarketings, a basic quota or allotment for
                eligible tobacco is established for the 2001 crop year under
                part I of subtitle B of title III of the Agricultural
                Adjustment Act of 1938 (7 U.S.C. 1311 et seq.);
                    (B) controls the farm from which, under the quota or
                allotment for the relevant period, eligible tobacco is
                marketed, could have been marketed, or can be marketed,
                taking into account temporary transfers; or
                    (C) grows, could have grown, or can grow eligible
                tobacco that is marketed, could have been marketed, or can
                be marketed under the quota or allotment for the 2001 crop
                year, taking into account temporary transfers.
            (2) The term ``eligible tobacco'' means each of the following
        kinds of tobacco:
                    (A) Fire-cured tobacco, comprising types 22 and 23.
                    (B) Dark air-cured tobacco, comprising types 35 and 36.
                    (C) Virginia sun-cured tobacco, comprising type 37.
        (b) Payments.--Not later than March 31, 2002, the Secretary of
    Agriculture (referred to in this section as the ``Secretary'') shall use
    funds of the Commodity Credit Corporation to make payments under this
    section.
        (c) Poundage Payment Quantities.--For the purposes of this section,
    in the case of each kind of eligible tobacco, individual tobacco quotas
    and allotments shall be converted to poundage payment quantities by
    multiplying--
            (1) the number of acres that may, irrespective of temporary
        transfers or undermarketings, be devoted, without penalty, to the
        production of the kind of tobacco under the allotment under part I
        of subtitle B of title III of the Agricultural Adjustment Act of
        1938 (7 U.S.C. 1311 et seq.) for the 2001 crop year; by
            (2)(A) in the case of fire-cured tobacco (types 22 and 23),
        2,601 pounds per acre;
            (B) in the case of dark air-cured tobacco (types 35 and 36),
        2,337 pounds per acre; and
            (C) in the case of Virginia sun-cured tobacco (type 37), 1,512
        pounds per acre.
        (d) Available Payment Amounts.--In the case of each kind of eligible
    tobacco, the available payment amount for pounds of a payment quantity
    under subsection (c) shall be equal to 10 cents per pound.
        (e) Division of Payments Among Eligible Persons.--Payments available
    with respect to a pound of payment quantity, as determined under
    subsection (d), shall be made available to eligible persons in
    accordance with this subsection. In the case of payments made available
    in a State under this section for each kind of eligible tobacco, the
    Secretary shall distribute (as determined by the Secretary)--
            (1) 33\1/3\ percent of the payments to eligible persons that are
        owners described in subsection (a)(1)(A);
            (2) 33\1/3\ percent of the payments to eligible persons that are
        controllers described in subsection (a)(1)(B); and
            (3) 33\1/3\ percent of the payments to eligible persons that are
        growers described in subsection (a)(1)(C).
        (f) Standards.--In carrying out this section, the Secretary shall
    use, to the maximum extent practicable, the same standards for payments
    that were used for making payments under section 204(b) of the
    Agricultural Risk Protection Act of 2000 (7 U.S.C. 1421 note; Public Law
    106-224).
        (g) Judicial Review.--A determination by the Secretary under this
    section shall not be subject to judicial review.
        (h) Regulations.--As soon as practicable after the date of enactment
    of this Act, the Secretary and the Commodity Credit Corporation, as
    appropriate, shall promulgate such regulations as are necessary to
    implement this section. The promulgation of the regulations and
    administration of this section shall be made without regard to--
            (1) the notice and comment provisions of section 553 of title 5,
        United States Code;
            (2) the Statement of Policy of the Secretary of Agriculture
        effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of
        proposed rulemaking and public participation in rulemaking; and

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            (3) chapter 35 of title 44, United States Code (commonly known
        as the ``Paperwork Reduction Act'').
        (i) Congressional Review of Agency Rulemaking.--In carrying out
    subsection (h), the Secretary shall use the authority provided under
    section 808 of title 5, United States Code.]
        [Sec. 775. The Competitive, Special, and Facilities Research Grant
    Act (7 U.S.C. 450i) is amended:
            (1) in subsection (b)(3) by adding at the end the following:
                    ``(G) Grants may be awarded to improve research
                capabilities in States (as defined in the National
                Agricultural Research, Extension, and Teaching Policy Act of
                1977, as amended) in which institutions have been less
                successful in receiving funding under this subsection, based
                on a three-year rolling average of funding levels.''; and
            (2) in subsections (b)(10)(C) by striking ``and (F) of paragraph
        (3) for awarding grants in'' and inserting ``, (F), and (G) of
        paragraph (3) for''.]
        [Sec. 776. None of the funds made available in this Act may be used
    to pay the salaries of personnel of the Department of Agriculture who
    carry out the programs authorized by section 524(a) of the Federal Crop
    Insurance Act (7 U.S.C. 1524) in excess of a total of $4,000,000 for all
    such programs for fiscal year 2002.]
        [Sec. 777. Section 501 of the Agricultural Trade Development and
    Assistance Act of 1954 (7 U.S.C. 1737) is amended--
            (1) in the section heading, by inserting ``john ogonowski''
        before ``farmer-to-farmer program''; and
            (2) by adding at the end the following new subsection:
        ``(d) Designation of Program.--The program of farmer-to-farmer
    assistance authorized by this section shall be known and designated as
    the `John Ogonowski Farmer-to-Farmer Program'.'']
        Sec. 720. Section 442 of Public Law 106-224 is amended by adding the
    following new subsections at the end:
        ``(c) Preconditions for a Transfer Availability.--Funds may be
    transferred to combat emergencies only for infestations that were not
    funded in the previous fiscal year.
        ``(d) Definitions.--For purposes of this section, an ``emergency''
    is an unanticipated event that requires a necessary expenditure that is
    sudden, urgent, and unforeseen.''.
        Sec. 721. The Administrator of the Agricultural Research Service may
    make available by outlease agreements with other Federal agencies or
    non-Federal public or private entities any unused or underused portion
    or interest of or interest in any agency real and related personal
    property, and may retain and use the proceeds of such agreements in
    carrying out the programs of the agency. Property proposed for outlease
    must not be property otherwise required to be reported excess under the
    Federal Property and Administrative Services Act of 1949, as amended.
    Outleases shall be made competitively, and be based on the fair market
    value of the property.
        Sec. 722. Section 508(k) of the Federal Crop Insurance Act (7 U.S.C.
    1508 et seq.) is amended by adding the following new paragraph at the
    end:
            ``(8) Underwriting Gains.--The terms and conditions of the
        Corporation's Standard Reinsurance Agreement for the 2003 and
        succeeding reinsurance years, shall be adjusted such that the
        expected ratio of overall underwriting gains to retained net book
        premium for all reinsured companies combined shall not exceed 12.5
        percent. For purposes of section 148 of the Agriculture Risk
        Protection Act of 2000, application of this paragraph shall not
        constitute the renegotiation of the Standard Reinsurance
        Agreement.''. (Agriculture, Rural Development, Food and Drug
        Administration, and Related Agencies Appropriations Act, 2002.)