[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

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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.)
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