Appendix - Department of Agriculture

[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)

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

Fund for Rural America

Program and Financing (in millions of dollars)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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

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)

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)

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

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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

[[Page 93]]

Salaries and Expenses

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

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.

Object Classification (in millions of dollars)

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)

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)

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)

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)

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

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)

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

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)

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)

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

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)

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)

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)

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

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)

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)

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)

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)

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)

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)

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)

[[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)

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)

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)

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)

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)

COMMODITY CREDIT CORPORATION

Corporations

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)

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)

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)

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)

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)

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

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)

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)

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)

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)

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)

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.

Apple Loans Direct Loan Financing Account

Program and Financing (in millions of dollars)

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)

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

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.

Emergency Boll Weevil Direct Loan Financing Account

Program and Financing (in millions of dollars)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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.

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)

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)

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)

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)

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)

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)

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)

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)

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.

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)

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)

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)

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)

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)

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)

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)

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

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)

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)

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)

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

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)

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)

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)

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)

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)

Rural Electrification and Telecommunications Direct Loan Financing
Account

Program and Financing (in millions of dollars)

Obligations by program activity:
Operating program:

00.01 Direct loans.................... 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
---------------------------------------------------------------------------

This account finances loan guarantee commitments.

Rural Electrification and Telecommunications Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Interest expense on certificates
of beneficial ownership......... 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)

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)

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)

Rural Telephone Bank Direct Loan Financing Account

Program and Financing (in millions of dollars)

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

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)

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)

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)

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

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)

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)

Local Television Loan Guarantee Financing Account

Program and Financing (in millions of dollars)

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)

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)

[[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)

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)

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)

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

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)

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)

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)

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)

P.L. 480 Direct Credit Financing Account

Program and Financing (in millions of dollars)

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)

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)

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

Sales of U.S. commodities under the credit portion of the Food for
Progress were made to Russia in 1993. The assistance is subject to
credit reform budgeting. No credit has been issued since.

P.L. 480 Title I Food for Progress Credits, Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Interest to Treasury on borrowings 12 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)

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)

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)

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)

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)

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)

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)

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

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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

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)

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)

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)

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)

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)

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

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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.)