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

                         THE BUDGET FOR FISCAL YEAR 2004

    [[Page 55]]

                            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, $10,068,000 of which $6,604,000 for cross-cutting trade
    negotiations and biotechnology resources may be transferred to agencies
    of the Department of Agriculture funded by this Act to support these
    activities: Provided, That the Appropriations Committees of both Houses
    of Congress are notified 15 days in advance of any transfer. 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, $793,000.

          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, $4,186,000: 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,
    $792,000.

       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; $791,000.

                  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, $792,000.

    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, $916,000.

       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, $918,000.

               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, $913,000.

     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,
    $786,000. (7 U.S.C. 2201-2202).

               Office of the Assistant Secretary for Civil Rights

        For necessary salaries and expenses of the Office of the Assistant
    Secretary for Civil Rights to carry out programs funded by this Act,
    $808,000.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9913-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Office of the Secretary...........           3          36          10
    00.02 Under/Assistant Secretaries.......           6           9          12
    00.03 Infoshare Program.................           9
    00.04 Homeland Security.................          49
    09.01 Reimbursable program..............           6
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          73          45          22
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          14          38          38
    22.00 New budget authority (gross)......          97          45          20
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         111          83          58
    23.95 Total new obligations.............         -73         -45         -22
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............          38          38          38
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          93          47          22
    41.00   Transferred to other accounts...          -2          -2          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          91          45          20
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           9
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -3
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......           6
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          97          45          20
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          10          46          21
    73.10 Total new obligations.............          73          45          22
    73.20 Total outlays (gross).............         -33         -70         -25
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           3

    [[Page 56]]

    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          -6
    74.40 Obligated balance, end of year....          46          21          18
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          28          35          15
    86.93 Outlays from discretionary
            balances........................           5          35          10
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          33          70          25
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -6
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           3
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          -3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          91          45          20
    90.00 Outlays...........................          29          70          25
    ---------------------------------------------------------------------------

        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.

        Funds are also proposed for the Office of the Secretary's account
    for negotiating and monitoring trade agreements; for technical trade
    support in the areas of, biotechnology, sanitary and phyto-sanitary
    issues.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9913-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           6           6           8
    12.1    Civilian personnel benefits.....           1           2           2
    25.2    Other services..................          60          37          12
                                               ---------   ---------  ----------
    99.0      Direct obligations............          67          45          22
    99.0  Reimbursable obligations..........           6
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          73          45          22
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9913-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          63          88          87
    ---------------------------------------------------------------------------

                             Fund for Rural America

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0012-0-1-999      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          34          23          14
    73.20 Total outlays (gross).............         -11          -9         -10
    74.40 Obligated balance, end of year....          23          14           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...          11           9          10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          11           9          10
    ---------------------------------------------------------------------------

        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 2002 Farm Bill (Farm
    Security and Rural Investment Act of 2002) repealed the Fund for Rural
    America.

                                   Trust Funds

                               Gifts and Bequests

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8203-0-7-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.00 Gifts and bequests................           1           1           1
        Appropriations:
    05.00 Gifts and bequests................          -1          -1          -1
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8203-0-7-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........                       1           1
                                               ---------   ---------  ----------
    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),

    [[Page 57]]

    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, $12,264,000.

                            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, $14,242,000.

                      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, $7,980,000. (7 U.S.C.
    2201, 2202; 42 U.S.C. 2000d).

                             Homeland Security Staff

        For necessary expenses of the Homeland Security Staff, including
    employment pursuant to the second sentence of section 706(a) of the
    Organic Act of 1944 (7 U.S.C. 2225), $1,479,000.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0705-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Chief Economist...................           9          12          12
    00.03 National Appeals Division.........          13          14          14
    00.04 Budget and program analysis.......           6           7           8
    00.05 Homeland Security Staff...........                                   1
    09.01 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          29          34          37
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          30          36          38
    23.95 Total new obligations.............         -29         -34         -37
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          28          33          35
          Mandatory:

    62.00   Transferred from other accounts.           1           2           2
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          30          36          38
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           5           5           5
    73.10 Total new obligations.............          29          34          37
    73.20 Total outlays (gross).............         -28         -36         -38
    74.40 Obligated balance, end of year....           5           5           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          24          30          32
    86.93 Outlays from discretionary
            balances........................           4           4           4
    86.97 Outlays from new mandatory
            authority.......................                       2           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          28          36          38
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................          29          35          37
    90.00 Outlays...........................          27          33          36
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           2           2           2
    99.01 Outlays...........................           2           2           2
    ---------------------------------------------------------------------------

        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

                                         2002 actual  2003 est.   2004 est.
    World Agricultural Supply and Demand
    Estimates Reports issued............          12          12          12
    Weekly Weather and Crop Bulletin
    issued..............................          52          52          52

        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

                                         2002 actual  2003 est.   2004 est.
    Regional or National Training.......           1           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.

        The Homeland Security Staff formulates emergency preparedness
    policies and objectives for the Department of Agriculture (USDA). The
    Staff directs and coordinates all of the Department's program activities
    that support USDA emergency programs and liaison functions with the
    Congress, the Department of Homeland Security, and other Federal
    departments and agencies involving homeland security, natural disasters,
    other emergencies, and agriculture-related international civil emergency
    planning and related activities.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0705-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          18          21          23
    12.1    Civilian personnel benefits.....           4           5           5
    21.0    Travel and transportation of
              persons.......................           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    24.0    Printing and reproduction.......                                   1
    25.2    Other services..................           4           4           4
    31.0    Equipment.......................                       1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          28          33          36
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          29          34          37
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0705-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         233         275         275
        Reimbursable:
    2001  Total compensable workyears:
            Civilian 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

    [[Page 58]]

    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, $7,902,000:
    Provided, That the Chief Financial Officer shall actively market and
    expand cross-servicing activities of the National Finance Center.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0014-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

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

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           8          10          10
    23.95 Total new obligations.............          -8         -10         -10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

    68.00   Offsetting collections (cash)...           2           2           2
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           1
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......           3           2           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           8          10          10
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           1           1
    73.10 Total new obligations.............           8          10          10
    73.20 Total outlays (gross).............          -9         -10         -10
    73.40 Adjustments in expired accounts
            (net)...........................           2           1           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          10          10
    86.93 Outlays from discretionary
            balances........................           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           9          10          10
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -2          -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           8           8
    90.00 Outlays...........................           8           8           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

                                         2002 actual  2003 est.   2004 est.
    Achieve an unqualified opinion on
    the USDA financial statements....... Preliminary Unqualified Unqualified
    Implement the Foundation financial
    information system USDA-wide: USDA
    employees served....................         98%        100%         N/A

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0014-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

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

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0014-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          51          80          80
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          12          12          12
    ---------------------------------------------------------------------------

                     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, $31,334,000.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0013-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Office of the Chief Information
              Officer.......................          10          31          31
    09.01 Reimbursable program..............          25           6           6
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          35          37          37
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          35          37          37
    23.95 Total new obligations.............         -35         -37         -37
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

    68.00   Offsetting collections (cash)...          10           6           6
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          15
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          25           6           6
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          35          37          37
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -2
    73.10 Total new obligations.............          35          37          37
    73.20 Total outlays (gross).............         -24         -37         -37
    73.40 Adjustments in expired accounts
            (net)...........................          -3
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -15
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           9
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          19          37          37

    [[Page 59]]

    86.93 Outlays from discretionary
            balances........................           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          24          37          37
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -13          -6          -6
          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..............           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          10          31          31
    90.00 Outlays...........................          10          31          31
    ---------------------------------------------------------------------------

        The Clinger-Cohen Act of 1996 required the establishment of a Chief
    Information Officer (CIO) for all major Federal agencies. The Act
    requires USDA to maximize the value of information technology
    acquisitions to improve the efficiency and effectiveness of USDA
    programs. 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).

        The CIO serves as the primary advisor to the Secretary and Mission
    Area Heads in these areas. OCIO provides leadership for the Department's
    information and information technology (IT) management activities in
    support of USDA's program delivery.

        OCIO is leading USDA's eGovernment efforts, in coordination with the
    Presidential eGovernment Initiatives, to transform the Department's
    delivery of information, programs, and services using eGovernment
    channels. OCIO is designating the Department's Enterprise Architecture
    to efficiently support USDA's move towards eGovernment by leveraging
    economies-of-scale to acquire and share data and supporting IT
    applications and infrastructure. OCIO is strengthening USDA's Computer
    Security Program to mitigate threats to USDA's information and IT assets
    and support the Department's Homeland Security efforts. OCIO continues
    to facilitate the USDA IT Capital Planning and Control investment review
    process by providing guidance and support to the Department's Executive
    IT Investment Review Board, which approves all major technology
    investments to ensure they economically and effectively support program
    delivery.

        Funded through the USDA Working Capital Fund, OCIO provides
    automated data processing (ADP) and wide-area telecommunications
    services to all USDA agencies through the National Information
    Technology Center and the Telecommunications Services and Operations
    organization, with locations in Ft. Collins, Colorado, Kansas City,
    Missouri, and Washington, D.C.

        OCIO also has direct management responsibility for the IT 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 supporting the Farm Service Agency, the
    Natural Resources Conservation Service, and Rural Development.

                              Performance Measures

                                         2002 actual  2003 est.   2004 est.
    Percent of appropriate agency
    information collections from
    citizens include electronic
    alternatives........................        n.a.         TBD          75
    Number of USDA violations of the
    Paperwork Reduction Act outstanding.          32           0           0
    Number of enterprise-wide or
    interdepartmental software,
    hardware, and related services
    agreements issued...................           9          10          12
    Completed vulnerability assessments
    for USDA mission critical systems (%
    of systems completed)...............          80         100         100
    Percent of USDA mission critical
    systems with executable Disaster
    Recovery Plans......................          20          30         100

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0013-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           5           6           7
    12.1    Civilian personnel benefits.....           1           1           1
    25.2    Other services..................           2          21          21
    25.3    Other purchases of goods and
              services from Government
              accounts......................           1           1           1
    31.0    Equipment.......................                       1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............           9          30          31
    99.0  Reimbursable obligations..........          25           6           6
    99.5  Below reporting threshold.........           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          35          37          37
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0013-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          63          82          82
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           5           5           5
    ---------------------------------------------------------------------------

                          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, $177,714,000, 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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0113-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........          63         142         177
    09.01 Reimbursable program..............                      24          23
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          63         166         200
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          13           9
    22.00 New budget authority (gross)......          59         157         200
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          72         166         200
    23.95 Total new obligations.............         -63        -166        -200
    24.40 Unobligated balance carried
            forward, end of year............           9
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          59         133         177
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............                      24          23
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          59         157         200
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          34          42          40
    73.10 Total new obligations.............          63         166         200
    73.20 Total outlays (gross).............         -56        -168        -219
    74.40 Obligated balance, end of year....          42          40          21
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          50         132         168
    86.93 Outlays from discretionary
            balances........................           6          36          51
                                               ---------   ---------  ----------

    [[Page 60]]

    87.00   Total outlays (gross)...........          56         168         219
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                     -24         -23
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          59         133         177
    90.00 Outlays...........................          56         144         196
    ---------------------------------------------------------------------------

        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 $44.6 million is to fund increased costs for information
    technology investments by the Farm Service Agency, Rural Development,
    and the Risk Management Agency. 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

                                         2002 actual  2003 est.   2004 est.
    Operational SCMI Common Computing
    Environment.........................         90%        100%        100%
    Network Servers deployed and
    operational.........................        100%        100%        100%
    Telecommunications Network Updgrade.         50%        100%        100%
    Provide web Farm Infrastructure to
    meet eFile deadlines................        100%        100%        100%
    Acquire computer peripherals (GPS
    units, digital camerias, portable
    printers, scanners, etc.)...........         35%         70%        100%
    Replace original CCD workstations
    purchased in 1998...................        n.a.      12,600        n.a.
    Reduce percentage of successful
    intrusions at USDA attributed to
    service center agencies (SCA) to 5%
    by 2006.............................         30%         20%         10%
    Operate an efficient, effective, and
    diverse organization and provide
    electronic access...................        n.a.         90%         95%

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0113-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    23.3    Communications, utilities, and
              miscellaneous charges.........           3
    25.2    Other services..................           6          75         110
    26.0    Supplies and materials..........          22          11          20
    31.0    Equipment.......................          32          56          47
                                               ---------   ---------  ----------
    99.0      Direct obligations............          63         142         177
    99.0  Reimbursable obligations..........                      24          23
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          63         166         200
    ---------------------------------------------------------------------------

    Intragovernmental funds:

                              Working Capital Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4609-0-4-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    09.01   Administration..................          21          24          25
    09.02   Communications..................           5           5           5
    09.03   Finance and management..........         163         178         180
    09.04   Information technology..........          72          79          81
    09.05   Executive secretariat...........           2           3           3
    09.06   Corporate systems...............          35          39          39
                                               ---------   ---------  ----------
    09.09   Subtotal, operating expenses....         298         328         333
          Purchase of equipment:

    09.12   Finance and management..........           4           9           9
    09.13   Information technology..........           5           8           8
    09.15   Corporate systems...............           8          21
                                               ---------   ---------  ----------
    09.19   Subtotal, purchase of equipment.          17          38          17
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         315         366         350
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          25          63          54
    22.00 New budget authority (gross)......         348         357         336
    22.22 Unobligated balance transferred
            from other accounts.............           6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         379         420         390
    23.95 Total new obligations.............        -315        -366        -350
    24.40 Unobligated balance carried
            forward, end of year............          63          54          40
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                      21
    42.00   Transferred from other accounts.          16
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          16          21
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         345         336         336
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -13
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         332         336         336
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         348         357         336
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         -10          16          26
    73.10 Total new obligations.............         315         366         350
    73.20 Total outlays (gross).............        -302        -356        -336
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          13
    74.40 Obligated balance, end of year....          16          26          40
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          16         312         291
    86.93 Outlays from discretionary
            balances........................         286          44          45
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         302         356         336
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -345        -336        -336

    [[Page 61]]

          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          13
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          16          21
    90.00 Outlays...........................         -43          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, 2002. Earnings are kept at a low level
    through adjustments in rates charged for services to maintain as nearly
    as possible the nonprofit nature of the fund.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4609-0-4-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............         103         112         114
    11.3    Other than full-time permanent..           2           2           2
    11.5    Other personnel compensation....           5           3           3
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         110         117         119
    12.1  Civilian personnel benefits.......          24          24          25
    21.0  Travel and transportation of
            persons.........................           2           2           2
    22.0  Transportation of things..........           1           1           1
    23.1  Rental payments to GSA............           4           5           5
    23.2  Rental payments to others.........           2           2           2
    23.3  Communications, utilities, and
            miscellaneous charges...........          33          42          42
    24.0  Printing and reproduction.........           1           2           2
    25.2  Other services....................         107         121         123
    26.0  Supplies and materials............           9           9           9
    31.0  Equipment.........................          22          41          20
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         315         366         350
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-4609-0-4-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       2,080       2,125       2,033
    ---------------------------------------------------------------------------

                           DEPARTMENTAL ADMINISTRATION

                                  Federal Funds

    General and special funds:

                           Departmental Administration

                         (including transfers of funds)

        For Departmental Administration, $45,128,000, to provide for
    necessary expenses for management support services to offices of the
    Department and for general administration, security, 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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0120-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.08 Direct program....................          37          42          45
    09.01 Reimbursable program..............          14          22          18
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          51          64          63
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          51          64          63
    23.95 Total new obligations.............         -51         -64         -63
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          37          42          45
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           7          22          18
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           7
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          14          22          18
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          51          64          63
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -2         -10          -8
    73.10 Total new obligations.............          51          64          63
    73.20 Total outlays (gross).............         -54         -62         -63
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -7
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           4
    74.40 Obligated balance, end of year....         -10          -8         -10
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          49          60          58
    86.93 Outlays from discretionary
            balances........................           5           2           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          54          62          63
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -14         -22         -18
          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..............           7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          37          42          45
    90.00 Outlays...........................          39          40          45
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           2           2           2
    99.01 Outlays...........................           2           2           2
    ---------------------------------------------------------------------------

        Departmental Administration is comprised of activities that provide
    staff support to top policy officials and overall direction and
    coordination of the Department. These activities include Department-wide
    programs for human resource management, ethics, 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, 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

    [[Page 62]]

    regulations pertaining to administrative matters for the Secretary and
    general officers of the Department.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0120-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          24          29          30
    12.1    Civilian personnel benefits.....           5           6           6
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1
    25.2    Other services..................           3           3           5
    25.3    Other purchases of goods and
              services from Government
              accounts......................           2           3           3
                                               ---------   ---------  ----------
    99.0      Direct obligations............          35          42          44
    99.0  Reimbursable obligations..........          15          21          17
    99.5  Below reporting threshold.........           1           1           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          51          64          63
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0120-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         324         413         415
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          69          76          76
    ---------------------------------------------------------------------------

                         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., $15,713,000, 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.)

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0500-0-1-304      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          21          16          16
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          21          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)......          17          16          16
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          23          17          17
    23.95 Total new obligations.............         -21         -16         -16
    24.40 Unobligated balance carried
            forward, end of year............           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          17          16          16
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          18          18          15
    73.10 Total new obligations.............          21          16          16
    73.20 Total outlays (gross).............         -18         -18         -18
    73.45 Recoveries of prior year
            obligations.....................          -6
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           3
    74.40 Obligated balance, end of year....          18          15          15
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................          17          16          16
    90.00 Outlays...........................          16          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

                                         2002 actual  2003 est.   2004 est.
    Number of sites assessed/
    characterized on need for cleanup...         147          91          83
    Number of cleanup plans.............          32         116          33
    Number of non-mine CERCLA cleanups..          10          32           9
    Number of mine CERCLA cleanups......          19           6          23
    Number of UST and other RCRA
    cleanups............................           6          26          16
    Number of agreements reached with
    potentially responsible parties
    (PRPs)..............................          19          10          10
    Estimated value of cleanup/
    restoration work performed by PRP's
    ($ millions)........................       $14.6          $5          $5

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0500-0-1-304      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.2  Direct obligations: Other services          20          15          15
    99.5  Below reporting threshold.........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          21          16          16
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0500-0-1-304      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           6           6
    ---------------------------------------------------------------------------

            Agriculture Buildings and Facilities and Rental Payments

                         (including transfers of funds)

        For payment of space rental and related costs pursuant to Public Law
    92-313, including authorities pursuant to the 1984 delegation of
    authority from the Administrator of General Services to the Department
    of Agriculture under 40 U.S.C. 486, for programs and activities of the
    Department which are included in this Act, and for 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 the operation, maintenance,
    improvement, and repair of Agriculture buildings, $199,332,000, to
    remain available until expended: Provided, That not to exceed 5 percent
    of amounts which are made available for space rental and related costs
    for the Department of Agriculture in this Act may be transferred between
    such appropriations to cover the costs of new or replacement space 15
    days after notice thereof is transmitted to the Appropriations
    Committees of both Houses of Congress.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

    [[Page 63]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0117-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Rental payments to GSA: Non-
              recurring repairs.............         121         121         124
    00.02   Building operations and
              maintenance...................          31          33          41
    00.04   Strategic space plan............          14          34          34
    09.02 Reimbursable program..............           1           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         167         190         201
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          25          41          43
    22.00 New budget authority (gross)......         181         190         200
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2           2           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         208         233         245
    23.95 Total new obligations.............        -167        -190        -201
    24.40 Unobligated balance carried
            forward, end of year............          41          43          44
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         179         189         199
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           1           1           1
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           1
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......           2           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         181         190         200
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          46          24          22
    73.10 Total new obligations.............         167         190         201
    73.20 Total outlays (gross).............        -186        -190        -200
    73.45 Recoveries of prior year
            obligations.....................          -2          -2          -2
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1
    74.40 Obligated balance, end of year....          24          22          21
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         129         188         198
    86.93 Outlays from discretionary
            balances........................          57           2           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         186         190         200
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

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

        Net budget authority and outlays:
    89.00 Budget authority..................         179         189         199
    90.00 Outlays...........................         186         189         199
    ---------------------------------------------------------------------------

        This account finances the General Services Administration's fees for
    rental of space and related services. The appropriation covers all fees
    for all regular appropriated accounts within the Department of
    Agriculture with the exception of the Forest Service. This account also
    finances the operation and maintenance of four buildings in the
    Headquarters area.

        Beginning in 1995, the account included funds for USDA's strategic
    space plan. Since then, funds were made available for the construction
    and occupancy of an office facility at the Beltsville Agricultural
    Research Center and the design and implementation of a long-term program
    to renovate and modernize the South Building.

                               WORKLOAD INDICATORS

                                         2002 actual  2003 est.   2004 est.
    Maintenance and Repairs:
      Minor repairs (number)............         400         800         800
      Maintenance (thousands of hours)..      19,500      19,250      19,000
      Service calls (thousands).........      11,000      10,750      10,500

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0117-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           6           6           6
    12.1    Civilian personnel benefits.....           2           2           2
    23.1    Rental payments to GSA..........         121         121         124
    23.3    Communications, utilities, and
              miscellaneous charges.........           5           5           5
    25.2    Other services..................          32          54          62
                                               ---------   ---------  ----------
    99.0      Direct obligations............         166         188         199
    99.0  Reimbursable obligations..........           1           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         167         190         201
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0117-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          89          94          94
    ---------------------------------------------------------------------------

                            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, $10,084,000,
    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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0150-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Public affairs....................           9          10          10
    09.01 Reimbursable program..............                       1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           9          11          11
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           9          11          11
    23.95 Total new obligations.............          -9         -11         -11
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           9          10          10
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............                       1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           9          11          11
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -2          -1
    73.10 Total new obligations.............           9          11          11
    73.20 Total outlays (gross).............          -9         -10         -11
    73.40 Adjustments in expired accounts
            (net)...........................           1           1           1
    74.40 Obligated balance, end of year....          -1
    ----------------------------------------------------------------------------

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

        Offsets:
          Against gross budget authority and outlays:

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

    [[Page 64]]

        Net budget authority and outlays:
    89.00 Budget authority..................           9          11          11
    90.00 Outlays...........................           9          10          10
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           1           1           1
    99.01 Outlays...........................           1           1           1
    ---------------------------------------------------------------------------

        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

                                         2002 actual  2003 est.   2004 est.
    Random surveys of selected
    communications initiatives reveal
    that intended audience received the
    material or information distributed.         95%         95%         95%

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0150-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           6           7           7
    12.1    Civilian personnel benefits.....           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............           9          10          10
    99.0  Reimbursable obligations..........                       1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           9          11          11
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0150-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          74          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, $81,895,000, 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; 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.)

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0900-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          71          78          82
    09.01 Reimbursable program..............           2           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          73          80          84
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           3           3
    22.00 New budget authority (gross)......          75          80          84
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          76          83          87
    23.95 Total new obligations.............         -73         -80         -84
    24.40 Unobligated balance carried
            forward, end of year............           3           3           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          71          78          82
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           1           2           2
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           3
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......           4           2           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          75          80          84
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           5
    73.10 Total new obligations.............          73          80          84
    73.20 Total outlays (gross).............         -74         -78         -83
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          70          73          76
    86.93 Outlays from discretionary
            balances........................           4           5           7
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          74          78          83
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -3
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          71          78          82
    90.00 Outlays...........................          72          76          81
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           5           5           5
    99.01 Outlays...........................           5           5           5
    ---------------------------------------------------------------------------

        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.

    [[Page 65]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0900-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          43          45          45
    11.5      Other personnel compensation..           4           4           4
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          47          49          49
    12.1    Civilian personnel benefits.....          13          14          15
    21.0    Travel and transportation of
              persons.......................           5           6           6
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           3
    25.2    Other services..................           2           5           6
    25.3    Other purchases of goods and
              services from Government
              accounts......................           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          69          76          80
    99.0  Reimbursable obligations..........           2           2           2
    99.5  Below reporting threshold.........           2           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          73          80          84
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0900-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         642         721         721
    ---------------------------------------------------------------------------

                          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,
    $37,328,000. (7 U.S.C. 2201; 2202, 2214a.)

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2300-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          33          36          37
    09.00 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          34          37          38
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          34          37          38
    23.95 Total new obligations.............         -34         -37         -38
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          33          36          37
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          34          37          38
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           2           2
    73.10 Total new obligations.............          34          37          38
    73.20 Total outlays (gross).............         -34         -37         -38
    74.40 Obligated balance, end of year....           2           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          32          35          36
    86.93 Outlays from discretionary
            balances........................           2           2           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          34          37          38
    ----------------------------------------------------------------------------

        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..................          34          37          38
    90.00 Outlays...........................          33          36          37
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           2           3           3
    99.01 Outlays...........................           2           3           3
    ---------------------------------------------------------------------------

        The Office of the General Counsel of the Department of Agriculture
    provides all legal advice, counsel, and services to the Secretary and to
    all agencies, offices, and corporations of the Department on all aspects
    of their operations. It represents the Department in administrative
    proceedings; nonlitigation debt collection proceedings; state water
    rights adjudications; proceedings before the Environmental Protection
    Agency, Interstate Commerce Commission, Federal Maritime Administration
    and International Trade Commission; and, in conjunction with the
    Department of Justice, in judicial proceedings and litigation. All
    attorneys and related support personnel devoted to those efforts are
    under the supervision of the General Counsel.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2300-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          25          27          28
    12.1    Civilian personnel benefits.....           6           6           6
    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............          33          36          37
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          34          37          38
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2300-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         315         351         351
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           9           8           8
    ---------------------------------------------------------------------------

                            ECONOMIC RESEARCH SERVICE

                                  Federal Funds

    General and special funds:

                            Economic Research Service

        For necessary expenses of the Economic Research Service in
    conducting economic research and analysis, as authorized by the
    Agricultural Marketing Act of 1946 (7 U.S.C. 1621-1627) and other laws,
    $76,657,000: 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. 292, 411, 427, 1441a, 1704, 1761-68,
    2201, 2202, 2225, 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.)

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1701-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          67          73          77
    09.00 Reimbursable program..............           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          70          76          80
    ----------------------------------------------------------------------------

    [[Page 66]]

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          70          76          80
    23.95 Total new obligations.............         -70         -76         -80
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          67          73          77
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           3           3           3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          70          76          80
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          26          23          24
    73.10 Total new obligations.............          70          76          80
    73.20 Total outlays (gross).............         -73         -75         -80
    74.40 Obligated balance, end of year....          23          24          26
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          55          66          70
    86.93 Outlays from discretionary
            balances........................          18           9          10
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          73          75          80
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................          67          73          77
    90.00 Outlays...........................          70          72          77
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           3           3           3
    99.01 Outlays...........................           3           3           3
    ---------------------------------------------------------------------------

        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 2004 request includes funding for costs associated with
    development of a security system to provide policy officials with
    information to respond to threats to U.S. agriculture and for an
    initiative on strengthening the economic information and analytical
    basis for genomics research, application, and education program
    decisions.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1701-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          35          38          39
    11.3      Other than full-time permanent           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          36          39          40
    12.1    Civilian personnel benefits.....           8           8           9
    21.0    Travel and transportation of
              persons.......................           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           2           3           5
    25.3    Other purchases of goods and
              services from Government
              accounts......................           7           8           8
    25.5    Research and development
              contracts.....................           8           9           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............          67          73          77
    99.0  Reimbursable obligations..........           3           3           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          70          76          80
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1701-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         476         501         504
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           4           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, 22049, and other laws, $136,182,000, of which up to
    $25,279,000 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, and not to exceed $100,000 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.)

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1801-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Agricultural estimates..........          85          95         107
    00.02   Statistical research and service           4           4           4
    00.03   Census of Agriculture...........          26          41          25
    09.01 Reimbursable program..............          12          16          16
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         127         156         152
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1
    22.00 New budget authority (gross)......         127         157         152
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         128         157         152
    23.95 Total new obligations.............        -127        -156        -152
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         115         141         136
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          12          16          16
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         127         157         152
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           9           6          15
    73.10 Total new obligations.............         127         156         152
    73.20 Total outlays (gross).............        -127        -147        -152
    73.40 Adjustments in expired accounts
            (net)...........................          -3
    74.40 Obligated balance, end of year....           6          15          15
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         121         141         137
    86.93 Outlays from discretionary
            balances........................           6           6          15
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         127         147         152
    ----------------------------------------------------------------------------

    [[Page 67]]

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -8         -13         -13
    88.40     Non-Federal sources...........          -4          -3          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -12         -16         -16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         115         141         136
    90.00 Outlays...........................         115         131         136
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           5           5           5
    99.01 Outlays...........................           5           5           5
    ---------------------------------------------------------------------------

        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 2004
    program includes funding related to the restoration and modernization of
    the Agricultural Estimates program, the continuing development of a
    locality based agricultural county estimates/small area estimation
    program, and e-government data dissemination and electronic data
    reporting.

        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 decrease 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).

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1801-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          55          74          77
    11.3      Other than full-time permanent           1           1           1
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          57          76          79
    12.1    Civilian personnel benefits.....          15          19          20
    21.0    Travel and transportation of
              persons.......................           1           2           2
    22.0    Transportation of things........           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           5           7           5
    24.0    Printing and reproduction.......                       1           1
    25.2    Other services..................          22          18          15
    25.3    Other purchases of goods and
              services from Government
              accounts......................           7          11           7
    25.7    Operation and maintenance of
              equipment.....................           2           1           1
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           3           4           4
                                               ---------   ---------  ----------
    99.0      Direct obligations............         114         141         136
    99.0  Reimbursable obligations..........          11          15          16
    99.5  Below reporting threshold.........           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         127         156         152
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1801-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         981       1,252       1,262
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         106         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, $987,303,000: 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: 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 2004, 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)

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

    [[Page 68]]

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1400-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............           5           5           5
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           5           5           5
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1400-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Research on soil, water and air
              science.......................         103         102         103
    00.02   Research on plant science.......         365         346         356
    00.03   Research on animal science......         179         177         183
    00.04   Research on commodity conversion
              and delivery..................         169         177         186
    00.05   Human nutrition research........          75          77          77
    00.06   Integration of agricultural
              systems.......................          37          39          41
    00.07   Repair and maintenance of
              facilities....................          18          18          18
    00.08   Homeland security...............           9          22
    00.09   Collaborative research program..           2           5
    00.10   Agricultural information and
              library science...............          22          22          23
    00.11   Construction/Miscellaneous Fees.                       2
    09.00 Reimbursable program..............          50          60          60
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,029       1,047       1,047
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3          29           4
    22.00 New budget authority (gross)......       1,056       1,021       1,051
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,059       1,050       1,055
    23.95 Total new obligations.............      -1,029      -1,047      -1,047
    23.98 Unobligated balance expiring or
            withdrawn.......................          -3
    24.40 Unobligated balance carried
            forward, end of year............          29           4           8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,002         957         987
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -1
    42.00   Transferred from other accounts.           5
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,006         957         987
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          50          64          64
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,056       1,021       1,051
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         277         301         270
    73.10 Total new obligations.............       1,029       1,047       1,047
    73.20 Total outlays (gross).............      -1,005      -1,078      -1,049
    74.40 Obligated balance, end of year....         301         270         268
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         820         829         854
    86.93 Outlays from discretionary
            balances........................         185         249         195
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,005       1,078       1,049
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -43         -55         -55
    88.40     Non-Federal sources...........          -7          -9          -9
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -50         -64         -64
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,006         957         987
    90.00 Outlays...........................         955       1,014         985
    ---------------------------------------------------------------------------

        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 2004, the Service proposes increased emphases for critical
    research needs in agriculture, such as: biosecurity; emerging and exotic
    diseases of plants and animals; sequencing and bioinformatics; and
    information technology cyber security. Consistent with the 2003 budget,
    the 2004 budget also proposes to eliminate funding for unrequested
    Congressional earmarks added in 2001 and 2002, as well as some less
    critical base programs. In 2002, the Service submitted 68 new patent
    applications, participated in 61 new Cooperative research and
    development agreements (CRADAs), licensed 24 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

    [[Page 69]]

    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.

        A portion of funds related to the operation and programs at the Plum
    Island Animal Disease Center is included in the budget of the Department
    of Homeland Security, to which the facility was transferred.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1400-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         405         433         454
    11.3      Other than full-time permanent          17          19          20
    11.5      Other personnel compensation..          12          12          12
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         434         464         486
    12.1    Civilian personnel benefits.....         104         112         118
    21.0    Travel and transportation of
              persons.......................          18          16          15
    22.0    Transportation of things........           1           1           1
    23.2    Rental payments to others.......           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........          36          31          31
    24.0    Printing and reproduction.......           1           1           1
    25.1    Advisory and assistance services           1           1           1
    25.2    Other services..................          18          19          15
    25.3    Other purchases of goods and
              services from Government
              accounts......................           1           1           1
    25.4    Operation and maintenance of
              facilities....................          20          18          18
    25.5    Research and development
              contracts.....................         148         144         127
    25.7    Operation and maintenance of
              equipment.....................           6           5           5
    25.8    Subsistence and support of
              persons.......................           2           2           2
    26.0    Supplies and materials..........          96          88          84
    31.0    Equipment.......................          55          50          48
    32.0    Land and structures.............          12          10          10
    41.0    Grants, subsidies, and
              contributions.................          25          23          23
                                               ---------   ---------  ----------
    99.0      Direct obligations............         979         987         987
    99.0  Reimbursable obligations..........          50          60          60
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,029       1,047       1,047
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1400-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       7,923       8,117       8,247
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         161         161         161
    ---------------------------------------------------------------------------

                            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, $24,000,000, 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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1401-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Building and facilities projects..          51          81          50
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          51          81          50
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         127         266         198
    22.00 New budget authority (gross)......         190          15          24
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         318         281         222
    23.95 Total new obligations.............         -51         -81         -50
    24.40 Unobligated balance carried
            forward, end of year............         266         198         172
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         190          15          24
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          50          59          81
    73.10 Total new obligations.............          51          81          50
    73.20 Total outlays (gross).............         -42         -59         -78
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.40 Obligated balance, end of year....          59          81          53
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           2           3
    86.93 Outlays from discretionary
            balances........................          40          57          75
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          42          59          78
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         190          15          24
    90.00 Outlays...........................          42          59          78
    ---------------------------------------------------------------------------

        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 2004 request provides for biosecurity upgrades of a number of
    Agricultural Research Service facilities as well as continuing
    modernization of the National Agricultural Library.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1401-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          47          75          46
    32.0  Land and structures...............           4           6           4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          51          81          50
    ---------------------------------------------------------------------------

                                   Trust Funds

                         Miscellaneous Contributed Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.20 Science and education contributed
            funds...........................          18          20          23
        Appropriations:
    05.00 Miscellaneous contributed funds...         -18         -20         -23
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Miscellaneous contributed funds...          20          20          23
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          20          20          23
    ----------------------------------------------------------------------------

    [[Page 70]]

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          19          17          17
    22.00 New budget authority (gross)......          18          20          23
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          37          37          40
    23.95 Total new obligations.............         -20         -20         -23
    24.40 Unobligated balance carried
            forward, end of year............          17          17          17
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......          18          20          23
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          12          12          12
    73.10 Total new obligations.............          20          20          23
    73.20 Total outlays (gross).............         -20         -20         -22
    74.40 Obligated balance, end of year....          12          12          13
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           6          10          12
    86.98 Outlays from mandatory balances...          14          10          10
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          20          20          22
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          18          20          23
    90.00 Outlays...........................          20          20          22
    ---------------------------------------------------------------------------

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           5           5           5
    12.1  Civilian personnel benefits.......           1           1           1
    25.2  Other services....................           2           2           5
    25.5  Research and development contracts           7           7           7
    26.0  Supplies and materials............           3           3           3
    31.0  Equipment.........................           1           1           1
    41.0  Grants, subsidies, and
            contributions...................           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          20          20          23
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          96          96          96
    ---------------------------------------------------------------------------

          COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION SERVICE

                                  Federal Funds

    General and special funds:

                              Integrated Activities

        For the integrated research, education, and extension grants
    programs, including necessary administrative expenses, $62,865,000 as
    follows: for competitive grants program authorized under section 406 of
    the Agricultural Research, Extension, and Education Reform Act of 1998,
    $41,852,000, including $12,971,000 for the water quality program,
    $14,967,000 for the food safety program, $4,531,000 for the regional
    pest management centers program, $4,889,000 for the Food Quality
    Protection Act risk mitigation program for major food crop systems,
    $1,497,000 for the crops affected by Food Quality Protection Act
    implementation, $2,498,000 for the methyl bromide transition program,
    and $499,000 for the organic transition program; for a competitive
    international science and education grants program authorized under
    section 1459A of the National Agricultural Research, Extension, and
    Teaching Policy Act of 1977, to remain available until expended,
    $1,000,000; for grants programs authorized under section 2(c)(1)(B) of
    Public Law 89-106, as amended, $4,013,000, including $2,500,000, to
    remain available until September 30, 2005, for the critical issues
    program, and $1,513,000 for the regional rural development centers
    program; and $16,000,000 for the homeland security program authorized
    under section 1484 of the National Agricultural Research, Extension, and
    Teaching Act of 1977, to remain available until September 30, 2005. (7
    U.S.C. 450i(c)(1)(B), 3292b, 3351, 7626.)

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1502-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.20   Water quality...................          13          13          13
    00.30   Food safety.....................          15          15          15
    00.40   Regional pest management centers           5           5           5
    00.50   Crops at risk from Food Quality
              Protection Act implementation.           1           1           1
    00.60   Food Quality Protection Act risk
              mitigation program............           5           5           5
    00.70   Methyl bromide transition
              program.......................           2           2           2
    00.71   Homeland Security...............                                  16
    00.86   International science and
              education grants..............                       1           1
    00.87   Rural development centers.......                       1           2
    00.88   Organic transition..............           2           1           1
    00.89   Critical issues--plant and
              animal dseases................                       1           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          43          45          63
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          43          45          63
    23.95 Total new obligations.............         -43         -45         -63
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          43          45          63
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          73          97         111
    73.10 Total new obligations.............          43          45          63
    73.20 Total outlays (gross).............         -19         -31         -42
    74.40 Obligated balance, end of year....          97         111         132
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1           2          10
    86.93 Outlays from discretionary
            balances........................          18          29          32
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          19          31          42
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          43          45          63
    90.00 Outlays...........................          19          31          42
    ---------------------------------------------------------------------------
        Note.--2004 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.

    [[Page 71]]

        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.

        Homeland security program.--This program provides support to an
    unified network of public agricultural institutions to identify and
    respond to high risk biological pathogens in the food and agricultural
    system.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1502-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           1           1           1
    41.0  Grants, subsidies, and
            contributions...................          42          44          62
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          43          45          63
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1502-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           8           8           8
    ---------------------------------------------------------------------------

               Initiative for Future Agriculture and Food Systems

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1503-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................
    40.35   Appropriation rescinded.........        -120        -120        -120
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............        -120        -120        -120
          Mandatory:

    60.00   Appropriation...................         120         240
    60.35   Appropriation deferred..........                    -120
    62.00   Transferred from other accounts.                                 120
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         120         120         120
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         201         172         131
    73.20 Total outlays (gross).............         -39         -41         -45
    73.40 Adjustments in expired accounts
            (net)...........................          10
    74.40 Obligated balance, end of year....         172         131          86
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                      -6          -6
    86.93 Outlays from discretionary
            balances........................                                 -42
    86.97 Outlays from new mandatory
            authority.......................                       6           6
    86.98 Outlays from mandatory balances...          39          41          87
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          39          41          45
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          39          41          45
    ---------------------------------------------------------------------------

        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. The Farm
    Security and Rural Investment Act of 2002 authorizes $120 million for
    2004. 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 that
    would block implementation of the program during 2003. This action is
    continued in the FY 2004 budget.

                        Research and Education Activities

        For payments to agricultural experiment stations, for cooperative
    forestry and other research, for facilities, and for other expenses,
    $514,228,000, as follows: to carry out the provisions of the Hatch Act
    of 1887, $180,148,000; for grants for cooperative forestry research,
    $21,884,000; for payments to the 1890 land-grant colleges, including
    Tuskegee University and West Virginia State College, $36,000,000, 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, $3,341,000; for special
    grants for agricultural research on improved pest control, $15,006,000;
    for competitive research grants, $200,000,000; for the support of animal
    health and disease programs, $5,098,000; for the 1994 research grants
    program for 1994 institutions pursuant to Section 536 of Public Law 103-
    382, $998,000, to remain available until expended; for higher education
    graduate fellowship grants, $4,500,000, to remain available until
    expended; for higher education challenge grants, $5,500,000; for a
    higher education multicultural scholars program, $998,000, to remain
    available until expended; for an education grants program for Hispanic-
    serving Institutions, $3,492,000; for noncompetitive grants for the
    purpose of carrying out all provisions of 7 U.S.C. 3242 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, $1,000,000; for aquaculture
    grants, $3,996,000; for sustainable agriculture research and education
    (7 U.S.C. 5811), $9,230,000; for a program of capacity building grants
    to colleges eligible to receive funds under the Act of August 30, 1890,
    including Tuskegee University and West Virginia State College,
    $9,479,000, to remain available until expended; for payments to the 1994
    Institutions pursuant to section 534(a)(1) of Public Law 103-382,
    $2,250,000; 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, $8,311,000.
        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. (7 U.S.C. 301 note, 321-26, 328, 361a-

    [[Page 72]]

    i, 450i(b)-(c), 2209b, 3152(b)(1) and (4)-(6), 3152(j), 3195, 3222,
    3241, 3322, 5811; 16 U.S.C. 582-a7.)

                   Native American Institutions Endowment Fund

        For the Native American Institutions Endowment Fund authorized by
    Public Law 103-382 (7 U.S.C. 301 note), $9,000,000.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............          32          39          46
        Receipts:
    02.40 Federal payment, Native American
            Institutions Endowment Fund.....           7           7           9
    02.41 Earnings on investments...........           2           2           3
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..           9           9          12
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          41          48          58
        Appropriations:
    05.00 Cooperative state research
            activities......................          -2          -2          -3
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............          39          46          55
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Payments under the Hatch Act....         180         180         180
    00.02   Cooperative forestry research...          22          22          22
    00.03   Payments to 1890 colleges and
              Tuskegee University...........          35          35          36
    00.04   Special research grants.........         131          33          33
    00.05   National research initiative
              competitive grants............         150         240         200
    00.06   Animal health and disease
              research......................           5           5           5
    00.07   Federal administration..........          22          10          10
    00.08   Higher education................          27          29          30
    00.09   Native American Institutions
              Endowment Fund................           9           9          11
    09.00 Reimbursable program..............          12          16          16
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         593         579         543
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         116          86          83
    22.00 New budget authority (gross)......         563         576         542
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         679         662         625
    23.95 Total new obligations.............        -593        -579        -543
    24.40 Unobligated balance carried
            forward, end of year............          86          83          82
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         549         558         523
    40.20   Appropriation (special fund)....           2           2           3
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         551         560         526
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          15          16          16
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -3
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          12          16          16
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         563         576         542
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         482         543         562
    73.10 Total new obligations.............         593         579         543
    73.20 Total outlays (gross).............        -527        -560        -544
    73.40 Adjustments in expired accounts
            (net)...........................         -19
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           3
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          11
    74.40 Obligated balance, end of year....         543         562         561
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         213         303         286
    86.93 Outlays from discretionary
            balances........................         307         252         256
    86.98 Outlays from mandatory balances...           7           5           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         527         560         544
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -12         -16         -16
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           3
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          -3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         551         560         526
    90.00 Outlays...........................         515         544         528
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...          28          30
    92.02 Total investments, end of year:
            Federal securities: Par value...          30
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           1           1           1
    99.01 Outlays...........................           1           1           1
    ---------------------------------------------------------------------------
        Note.--In 2004 funding for critical issues and rural development centers
    is included in the account for integrated activities.

        Cooperative State Research, Education, and Extension Service
    participates in a nationwide system of agricultural re- search and
    education program planning and coordination between State institutions
    and the U.S. Department of Agriculture. It assists in maintaining
    cooperation among the State institutions, and between the State
    institutions and their Federal research partners. The Agency administers
    grants and payments to State institutions to supplement State and local
    funding for agricultural research and higher education.

        Payments under the Hatch Act.--Funds under the Hatch Act are
    allocated on a formula basis to agricultural experiment stations of the
    land-grant colleges in the 50 States, the District of Columbia, Puerto
    Rico, Guam, the Virgin Islands, American Samoa, Micronesia, and Northern
    Mariana Islands.

        Cooperative forestry research.--These funds are allocated by formula
    to land-grant colleges or agricultural experiment stations in the 50
    States, Puerto Rico, Guam, the Virgin Islands, and other State-supported
    colleges and universities having a forestry school and offering graduate
    training in forestry sciences.

        Payments to 1890 colleges and Tuskegee University and West Virginia
    State College.--Funds allocated on a formula basis support agricultural
    research and broaden the curricula at the eighteen 1890 land-grant
    colleges, including Tuskegee University and West Virginia State College.

        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.

    [[Page 73]]

    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 2004 budget eliminates funding for unrequested
    earmarks.

        National research initiative competitive grants.--Funding is being
    proposed for the National Research Initiative (NRI). Research scientists
    throughout the U.S. scientific community compete for funding under this
    program. The performance goal has been to attract the widest possible
    involvement of U.S. scientists in agricultural research to increase the
    knowledge base related to U.S. agriculture, food, and the environment
    and maintain world leadership in agricultural science and engineering.
    NRI funding has resulted in increased participation by universities
    which are not traditionally considered agricultural schools and of
    highly skilled researchers in projects addressing agricultural issues.
    The outcomes include the efficient communication of research results to
    scientific, engineering, and community user groups. These grants support
    research in plants and animals; natural resources and the environment;
    nutrition, food safety, and health; markets, trade, and rural
    development; and processing for adding value or developing new products.

        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 2004 budget includes increases for
    Graduate fellowship grants and the 1994 Institutions 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 (31 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. The 2004 budget
    includes an increase for the endowment fund.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          11          11          11
    12.1    Civilian personnel benefits.....           2           2           2
    21.0    Travel and transportation of
              persons.......................           1           1           1
    25.2    Other services..................           1           1           1
    25.3    Other purchases of goods and
              services from Government
              accounts......................           4           4           4
    26.0    Supplies and materials..........           1           1           1
    41.0    Grants, subsidies, and
              contributions.................         561         543         507
                                               ---------   ---------  ----------
    99.0      Direct obligations............         581         563         527
    99.0  Reimbursable obligations..........          12          16          16
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         593         579         543
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         181         216         216
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           9           9           9
    ---------------------------------------------------------------------------

                            buildings and facilities

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1501-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3           3           3
    24.40 Unobligated balance carried
            forward, end of year............           3           3           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          41          17          13
    73.20 Total outlays (gross).............         -24          -4          -4
    74.40 Obligated balance, end of year....          17          13           9
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          24           4           4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          24           4           4
    ---------------------------------------------------------------------------

        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 2004.

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1501-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian 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 Amer

    [[Page 74]]

    ican Samoa, $422,268,000, 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 208(c) of Public Law 93-471, for
    retirement and employees' compensation costs for extension agents,
    $275,940,000; payments for extension work at the 1994 Institutions under
    the Smith-Lever Act, $3,273,000; payments for the nutrition and family
    education program for low-income areas under section 3(d) of the Act,
    $60,909,000; payments for the pest management program under section 3(d)
    of the Act, $10,759,000; payments to upgrade research, extension, and
    teaching facilities at the 1890 land-grant colleges, including Tuskegee
    University and West Virginia State College, as authorized by section
    1447 of Public Law 95-113, $13,500,000, to remain available until
    expended; payments for youth-at-risk programs under section 3(d) of the
    Smith-Lever Act, $8,481,000; for youth farm safety education and
    certification extension grants, to be awarded competitively under
    section 3(d) of the Smith-Lever 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 Smith-Lever Act, $1,996,000; payments for sustainable agriculture
    programs under section 3(d) of the Act, $3,792,000; payments for
    cooperative extension work by the colleges receiving the benefits of the
    second Morrill Act and Tuskegee University and West Virginia State
    College, $32,117,000, 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 necessary expenses of Extension Activities,
    $6,909,000. (7 U.S.C. 343(b)(3), 7 U.S.C. 3222(b), 16 U.S.C. 1671 et
    seq.; 7 U.S.C. 321-326 and 328).

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0502-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Smith-Lever Act, 3(b) and 3(c)..         276         276         276
    00.02   Youth at risk...................           8           8           8
    00.04   Expanded food and nutrition
              education program (EFNEP).....          59          59          61
    00.05   Pest management.................          11          11          11
    00.06   Farm safety.....................           5
    00.09   Indian reservation extension
              agents........................           2           2           2
    00.12   Rural development...............           1
    00.13   Payments to 1890 colleges and
              Tuskegee University...........          31          31          32
    00.15   Renewable resources extension
              act...........................           4           4           4
    00.16   Federal administration..........          17           8           7
    00.18   Rural health and safety
              education.....................           3
    00.19   1890 facilities (section 1447)..           4          14          14
    00.21   Sustainable agriculture.........           5           4           4
    00.22   1994 institutions activities....           3           3           3
    00.23   Youth Farm Safety Program.......           1           1           1
    00.24   Agricultural Risk Grants........           2
    00.25   Grants to Youth Serving
              Organizations.................           8
    09.00 Reimbursable program..............          17          25          25
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         457         446         448
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           6          15          12
    22.00 New budget authority (gross)......         466         443         447
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         472         458         459
    23.95 Total new obligations.............        -457        -446        -448
    24.40 Unobligated balance carried
            forward, end of year............          15          12          11
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         439         418         422
          Mandatory:

    62.00   Transferred from other accounts.          10
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................          10
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          17          25          25
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         466         443         447
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         244         223         204
    73.10 Total new obligations.............         457         446         448
    73.20 Total outlays (gross).............        -449        -465        -473
    73.40 Adjustments in expired accounts
            (net)...........................         -28
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          -1
    74.40 Obligated balance, end of year....         223         204         179
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         273         275         278
    86.93 Outlays from discretionary
            balances........................         173         189         195
    86.98 Outlays from mandatory balances...           3           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         449         465         473
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -17         -25         -25
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         449         418         420
    90.00 Outlays...........................         432         440         448
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           1           1           1
    99.01 Outlays...........................           1           1           1
    ---------------------------------------------------------------------------

        Note.--In 2004 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.

        Programs supported with 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. These programs are the foundation of the
    Extension organization and partnership that are intended to increase the
    number of community-based projects, families, and individuals reached to
    disseminate research findings as widely and quickly as possible. The use
    of electronic mail, satellite transmission of courses, and computer-
    assisted instruction are encouraged to communicate ideas.

        Extension resources are provided to the States by these formula
    funds and competitively-awarded programs such as sustainable
    agriculture. Smith-Lever 3(b) and (c) funds and payments to the 1890
    colleges and Tuskegee University and West Virginia State College 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.

        In 2004 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

    [[Page 75]]

    Indian reservations, sustainable agriculture, and 1994 (Native American)
    institutions.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0502-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          10          10          10
    12.1    Civilian personnel benefits.....           2           2           2
    21.0    Travel and transportation of
              persons.......................           1           1           1
    25.2    Other services..................           4           4           4
    25.3    Other purchases of goods and
              services from Government
              accounts......................           3           3           3
    41.0    Grants, subsidies, and
              contributions.................         420         401         403
                                               ---------   ---------  ----------
    99.0      Direct obligations............         440         421         423
    99.0  Reimbursable obligations..........          17          25          25
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         457         446         448
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0502-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         175         215         215
    ---------------------------------------------------------------------------

                   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),
    $4,003,000, to remain available until expended.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0601-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

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

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       4           4
    22.00 New budget authority (gross)......           3           3           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           3           7           8
    23.95 Total new obligations.............                      -3          -4
    24.40 Unobligated balance carried
            forward, end of year............           4           4           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           2
    73.10 Total new obligations.............                       3           4
    73.20 Total outlays (gross).............                      -3          -4
    74.40 Obligated balance, end of year....           2           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       3           4
    ----------------------------------------------------------------------------

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

        Outreach for Socially Disadvantaged Farmers Grants.--This
    competitive program is authorized under section 2501 of Title XXV of the
    Food, Agriculture, Conservation, and Trade Act of 1990. The Secretary of
    Agriculture is authorized to make grants to eligible institutions and
    organizations so that they may provide outreach and technical assistance
    to encourage and assist socially disadvantaged farmers and ranchers to
    own and operate farms and ranches and to participate in agricultural
    programs.

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0601-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           3           3           3
    ---------------------------------------------------------------------------

                   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, necessary to prevent,
    control, and eradicate pests and plant and animal diseases; to carry out
    inspection, quarantine, and regulatory activities; and to protect the
    environment, as authorized by law, $694,897,000, of which $4,139,000
    shall be available for the control of outbreaks of insects, plant
    diseases, animal diseases and for control of pest animals and birds to
    the extent necessary to meet emergency conditions: Provided, That no
    funds shall be used to formulate or administer a brucellosis eradication
    program for the current fiscal year that does not require minimum
    matching by the States of at least 40 percent: Provided further, That
    this appropriation shall be available for field employment pursuant to
    the second sentence of section 706(a) of the Organic Act of 1944 (7
    U.S.C. 2225), and not to exceed $40,000 shall be available for
    employment under 5 U.S.C. 3109: Provided further, That this
    appropriation shall be available for the operation and maintenance of
    aircraft and the purchase of not to exceed four, of which two shall be
    for replacement only: Provided further, That 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 2004, 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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............         170         185         185
        Receipts:
    02.00 Agricultural quarantine inspection
            fees............................         231         331         285
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         401         516         470
        Appropriations:
    05.00 Salaries and expenses.............        -216        -331        -285
                                               ---------   ---------  ----------
    05.99   Total appropriations............        -216        -331        -285
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............         185         185         185
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Pest and disease exclusion......         192         193         195
    00.02   Plant and animal health
              monitoring....................          92         141         141

    [[Page 76]]

    00.03   Pest and disease management
              programs......................         220         323         296
    00.04   Animal care.....................          16          15          15
    00.05   Scientific and technical
              services......................          55          66          72
    00.06   Contingencies...................           6           4           4
    00.07   Emergency program funding.......         191         172
    00.09   Supplemental Appropriations.....          40          65
    00.10   Regional Office Consolidation...           6
    00.11   Physical/Operational Security...                                   6
                                               ---------   ---------  ----------
    01.00   Total direct program............         818         979         729
    09.01 Reimbursable program..............          96          88          82
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         914       1,067         811
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         312         346         211
    22.00 New budget authority (gross)......         945         932         885
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           9
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,266       1,278       1,096
    23.95 Total new obligations.............        -914      -1,067        -811
    23.98 Unobligated balance expiring or
            withdrawn.......................          -6
    24.40 Unobligated balance carried
            forward, end of year............         346         211         285
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         523         692         695
    40.20   Appropriation (special fund)....          85
    42.00   Transferred from other accounts.         200
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         808         692         695
          Mandatory:

    60.20   Appropriation (special fund)....         131         331         285
    61.00   Transferred to other accounts...         -90        -179        -177
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................          41         152         108
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).          74          88          82
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          22
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....          96          88          82
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         945         932         885
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         145         214         125
    73.10 Total new obligations.............         914       1,067         811
    73.20 Total outlays (gross).............        -821      -1,156        -898
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    73.45 Recoveries of prior year
            obligations.....................          -9
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -22
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           8
    74.40 Obligated balance, end of year....         214         125          38
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         536         676         673
    86.93 Outlays from discretionary
            balances........................         256         322         114
    86.97 Outlays from new mandatory
            authority.......................          29         144         103
    86.98 Outlays from mandatory balances...                      14           8
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         821       1,156         898
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -84         -88         -82
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -22
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         849         844         803
    90.00 Outlays...........................         737       1,068         816
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................          13          16          16
    99.01 Outlays...........................          13          16          16
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2002 actual  2003 est.   2004 est.
    Enacted/requested:
      Budget Authority..................         849         844         803
      Outlays...........................         737       1,068         816
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                  -8
      Outlays...........................                                  -8
                                        ------------------------------------
    Total:
      Budget Authority..................         849         844         795
      Outlays...........................         737       1,068         808
                                        ====================================

        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 develops protocols for trade
    and travel to prevent the entry of plant or animal pests and diseases
    into the United States and conducts quarantines and treatments of
    regulated products. 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. The 2004 budget proposes significant increases to enhance
    overseas surveillance and eradication efforts and to identify exotic
    animal diseases more effectively.

        Plant and animal health monitoring.--The Agency conducts programs to
    assess animal and plant health and to detect endemic and exotic diseases
    and pests. The plant and animal health monitoring programs are primarily
    cooperative efforts of the Federal and State governments, and industry.
    The Agency also carries out surveys in cooperation with the States to
    detect harmful plant and animal pests and diseases and to determine if
    there is a need for pest eradication programs.

        Pest and disease management programs.--The Agency carries out
    programs to control and eradicate infestations and animal diseases that
    threaten the United States; to reduce agricultural losses caused by
    predatory animals, birds, and rodents; to provide technical assistance
    to States, counties, farmer or rancher groups, and foundations; and to
    ensure compliance with interstate movement and disease control
    regulations. Interstate shipments of plants, livestock, and related
    materials are monitored and regulated to prevent the spread of disease.
    APHIS protects agriculture from detrimental animal predators through
    identification, demonstration, and application of the most appropriate
    methods of control. The budget implements a consistent set of cost-share
    criteria among Federal and non-Federal partners to respond to a plant
    and animal infestation. In addition, the 2004 budget includes a
    significant increase to expand surveillance of chronic wasting disease
    in captive and free-ranging cervids and to increase security measures
    for hazardous materials used to control wildlife.

        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

    [[Page 77]]

    Act, which prohibits the showing, selling, or exhibition of sore horses.

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

        The 2004 budget proposes significant increases to continue enhanced
    biosecurity efforts and laboratory network activities implemented with
    2002 emergency supplemental funds in response to the September 11, 2001,
    terrorist attacks.

        Funding to support inspections of people, cargo and transport from
    overseas related to agricultural products and a portion of funds for the
    Plum Island Animal Disease Center is included in the budget of the
    Department of Homeland Security.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         151         246         217
    11.3      Other than full-time permanent           1
    11.5      Other personnel compensation..          47          59          62
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         199         305         279
    12.1    Civilian personnel benefits.....          65          86          86
    13.0    Benefits for former personnel...           1           1           1
    21.0    Travel and transportation of
              persons.......................          31          27          27
    22.0    Transportation of things........           7           9           9
    23.2    Rental payments to others.......           8          15          15
    23.3    Communications, utilities, and
              miscellaneous charges.........          18          10          10
    24.0    Printing and reproduction.......           2           3           3
    25.2    Other services..................         329         333         166
    26.0    Supplies and materials..........          47          56          34
    31.0    Equipment.......................          34          71          48
            Grants, subsidies, and
                contributions:
    41.0      United States-Colombia
                Commission to Prevent Foot-
                and-Mouth Disease...........           1           2           1
    41.0      Joint Screwworm eradication
                programs....................           9          12           9
    41.0      Joint Commission on the
                Mediterranean Fruit Fly.....           6          14           6
    41.0      Other grants, subsidies, and
                contributions...............          27          34          34
    42.0    Other insurance claims and
              indemnities...................          34           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         818         979         729
    99.0  Reimbursable obligations..........          96          88          82
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         914       1,067         811
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       4,359       5,122       4,573
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         748         748         725
    ---------------------------------------------------------------------------

                              Salaries and Expenses

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-2-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.04   Animal care.....................                                  -8
                                               ---------   ---------  ----------
    01.00   Total direct program............                                  -8
    09.01 Reimbursable program..............                                   8
                                               ---------   ---------  ----------
    10.00   Total new obligations...........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                  -8
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............                                   8
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....                                  -8
    ----------------------------------------------------------------------------

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-2-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........                                  -4
    11.3      Other than full-time permanent                                  -3
    11.5      Other personnel compensation..                                  -1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation                                  -8
    99.0  Reimbursable obligations:
            Reimbursable obligations........                                   8
                                               ---------   ---------  ----------
    99.9    Total new obligations...........
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1600-2-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................                                 -78
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................                                  78
    ---------------------------------------------------------------------------

                            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, $4,996,000, to
    remain available until expended.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1601-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........           8          10           5
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................           8          10           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          12          22          22

    [[Page 78]]

    22.00 New budget authority (gross)......          18          10           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          30          32          27
    23.95 Total new obligations.............          -8         -10          -5
    24.40 Unobligated balance carried
            forward, end of year............          22          22          22
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          18          10           5
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          11          17           9
    73.10 Total new obligations.............           8          10           5
    73.20 Total outlays (gross).............          -2         -18          -9
    74.40 Obligated balance, end of year....          17           9           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1           2           1
    86.93 Outlays from discretionary
            balances........................           1          16           8
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           2          18           9
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          18          10           5
    90.00 Outlays...........................           2          18           9
    ---------------------------------------------------------------------------

        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 2004 budget proposes $5 million for this program, which consists
    of repairs, alterations, preventive maintenance, and renovations for
    currently owned APHIS facilities

                                   Trust Funds

                            Miscellaneous Trust Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.20 Miscellaneous contributed funds...          15          13          13
        Appropriations:
    05.00 Miscellaneous trust funds.........         -15         -13         -13
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........          26          14          14
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          26          14          14
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          19           8           8
    22.00 New budget authority (gross)......          15          13          13
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          34          21          21
    23.95 Total new obligations.............         -26         -14         -14
    24.40 Unobligated balance carried
            forward, end of year............           8           8           8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......          15          13          13
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         -10           2           2
    73.10 Total new obligations.............          26          14          14
    73.20 Total outlays (gross).............         -13         -12         -13
    74.40 Obligated balance, end of year....           2           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           8           7           8
    86.98 Outlays from mandatory balances...           5           5           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          13          12          13
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          15          13          13
    90.00 Outlays...........................          13          12          13
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                       1           1
    99.01 Outlays...........................                       1           1
    ---------------------------------------------------------------------------

        The following services are financed by fees and miscellaneous
    contributions advanced by importers, manufacturers, States,
    organizations, individuals, and others:

         Miscellaneous contributed funds.--Funds are received from States,
    local organizations, individuals, and others and are available for plant
    and animal quarantine inspection and cooperative plant and animal
    disease and pest control activities (7 U.S.C. 450b, 2220). Commencing in
    1979, fees were collected for the importation of commercial birds.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............           4           5           5
    11.3    Other than full-time permanent..           3           1           1
    11.5    Other personnel compensation....           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..           8           7           7
    12.1  Civilian personnel benefits.......          15           4           4
    21.0  Travel and transportation of
            persons.........................           1           1           1
    25.2  Other services....................           1           1           1
    26.0  Supplies and materials............           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          26          14          14
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian 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), $797,149,000, of which no
    less than $713,677,000 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 1327 of the Food, Agriculture, Conservation, and
    Trade Act of 1990 (7 U.S.C. 1387): 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.)

    [[Page 79]]

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-0-1-554      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................         704         763         797
    09.01 Reimbursable program..............          99          99          99
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         803         862         896
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          10          29          22
    22.00 New budget authority (gross)......         832         855         896
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         842         884         918
    23.95 Total new obligations.............        -803        -862        -896
    23.98 Unobligated balance expiring or
            withdrawn.......................         -12
    24.40 Unobligated balance carried
            forward, end of year............          29          22          22
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

            Appropriation:
    40.00     Appropriation.................         731         756         797
    40.00     Appropriation.................
    40.76   Reduction pursuant to P.L. 107-
              206...........................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         730         756         797
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............         102          99          99
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         832         855         896
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          69          73          83
    73.10 Total new obligations.............         803         862         896
    73.20 Total outlays (gross).............        -814        -852        -896
    73.40 Adjustments in expired accounts
            (net)...........................          15
    74.40 Obligated balance, end of year....          73          83          83
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         764         835         876
    86.93 Outlays from discretionary
            balances........................          50          17          20
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         814         852         896
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -1
    88.40     Non-Federal sources...........        -101         -99         -99
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -102         -99         -99
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         730         756         797
    90.00 Outlays...........................         713         753         797
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................          53          41          41
    99.01 Outlays...........................          53          41          41
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2002 actual  2003 est.   2004 est.
    Enacted/requested:
      Budget Authority..................         730         756         797
      Outlays...........................         712         753         797
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                -122
      Outlays...........................                                -122
                                        ------------------------------------
    Total:
      Budget Authority..................         730         756         675
      Outlays...........................         712         753         675
                                        ====================================

        The primary objectives of the Food Safety and Inspection Service
    (FSIS) 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 2004 budget proposes a $41 million increase for inspection of meat,
    poultry, shell egg and egg products. 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.
    In addition to the current risk-based food safety pilot program, FSIS
    will move beyond the pilot by expanding opportunities to participate in
    the program to all poultry plants on a voluntary basis.

        Legislation will be proposed to charge user fees to reimburse all
    inspection beyond a primary 8 hour shift at all establishments inspected
    by the Food Safety and Inspection Service (FSIS). Currently, fees to
    reimburse the cost of overtime inspection required at some FSIS
    inspected establishments, but not at others. The Federal government
    would continue to pay the full costs for a primary, eight hour
    inspection shift.

                     FEDERALLY FUNDED INSPECTION ACTIVITIES

                                         2002 actual  2003 est.   2004 est.
    Federally inspected establishments:
      Slaughter plants..................         118         128         128
      Processing plants.................       4,152       4,175       4,175
      Combination slaughter and
        processing plants...............         964         980         980
      Talmadge-Aiken plants.............         359         329         329
      Import establishments.............         118         115         115
      Egg plants........................          74          72          72
      Other plants......................         575         580         580
    Federally inspected and passed
        production (millions of pounds):
      Meat slaughter....................      42,237      45,000      45,000
      Poultry slaughter.................      50,444      51,300      52,300
      Egg products......................       3,727       3,750       3,800
    Import/export activity (millions of
        pounds):
      Meat and poultry imported.........       3,910       4,105       4,310
      Meat and poultry exported.........      11,252      11,814      12,405
    Inspection Review:
      Consumer safety officer
        assessments.....................         900       2,000       2,500
      In-depth verification reviews.....          21          23          25
    States and territories with
        cooperative programs:
        a
      Intrastate inspection.............          28          28          28
      Talmadge-Aiken inspection.........           9           9           9
      Number of slaughter and/or
        processing plants (excludes
        exempt plants)..................       2,081       2,100       2,100
      Pounds inspected slaughter
        (millions)......................         502         502         502
    Compliance activities:
      Corrective action reviews.........      29,199      29,000      30,000
      Corrective actions completed......         536         500         500
    Product Testing (samples analyzed):
      Food chemistry....................       6,436       6,500       6,500
      Food microbiology.................      83,797      85,000      86,000
      Chemical residues.................      45,509      46,000      46,000
      Antibiotic residues...............     252,599     253,000     253,000
      Pathology samples.................       5,877       5,900       5,900
    Egg Products:
      Food microbiology.................       1,767       1,800       1,800
      Chemical residues.................       1,632       1,600       1,600
    Consumer Education and public
        outreach:
      Meat and poultry hotline calls
        received........................      85,572      86,000      86,500
      Website visits....................     980,787     982,000     983,000
      Electronic messages received......       6,955       7,000       7,100
      Publication subscriptions.........      17,343      17,400      17,500
    Epidemiological Investigations:
      Cooperative efforts with State and
        public health offices...........          37          37          37
      Illnesses reported and treated
        b....................         770         800         800
    Field Automation and Information
        Management Project:
      Number of computers to be provided
        to federal field inspection
        staff...........................         568       1,750         725
      Number of computers to be provided
        to state field inspection staff.          26          40         740
        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.

    [[Page 80]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-0-1-554      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         398         419         437
    11.3      Other than full-time permanent          15          16          17
    11.5      Other personnel compensation..          20          20          21
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         433         455         475
    12.1    Civilian personnel benefits.....         136         135         145
    13.0    Benefits for former personnel...           2           1           2
    21.0    Travel and transportation of
              persons.......................          26          26          30
    22.0    Transportation of things........           4           2           3
    23.1    Rental payments to GSA..........           1           1           1
    23.2    Rental payments to others.......           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           9          10          11
    24.0    Printing and reproduction.......           1           2           2
    25.1    Advisory and assistance services           8          11          13
    25.2    Other services..................          12           6           7
    25.3    Other purchases of goods and
              services from Government
              accounts......................          13          26          25
    25.4    Operation and maintenance of
              facilities....................                       2           2
    25.7    Operation and maintenance of
              equipment.....................                       1
    25.8    Subsistence and support of
              persons.......................                       1           1
    26.0    Supplies and materials..........           9          12          11
    31.0    Equipment.......................           9          28          26
    41.0    Grants, subsidies, and
              contributions.................          39          43          42
                                               ---------   ---------  ----------
    99.0      Direct obligations............         703         763         797
    99.0  Reimbursable obligations..........          99          99          99
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         803         862         896
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3700-0-1-554      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       9,259       9,428       9,582
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         286         216         216
    ---------------------------------------------------------------------------

                              Salaries and Expenses

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-2-1-554      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................                                -122
    09.01 Reimbursable program..............                                 122
                                               ---------   ---------  ----------
    10.00   Total new obligations...........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                -122
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............                                 122
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....                                -122
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                -122
    90.00 Outlays...........................                                -122
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-2-1-554      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........                                 -68
    11.3      Other than full-time permanent                                  -3
    11.5      Other personnel compensation..                                  -3
                                               ---------   ---------  ----------
    11.9        Total personnel compensation                                 -74
    12.1    Civilian personnel benefits.....                                 -21
    21.0    Travel and transportation of
              persons.......................                                  -5
    23.3    Communications, utilities, and
              miscellaneous charges.........                                  -2
    25.1    Advisory and assistance services                                  -9
    25.2    Other services..................                                  -1
    25.3    Other purchases of goods and
              services from Government
              accounts......................                                  -4
    26.0    Supplies and materials..........                                  -3
    31.0    Equipment.......................                                  -3
                                               ---------   ---------  ----------
    99.0      Direct obligations............                                -122
    99.0  Reimbursable obligations..........                                 122
                                               ---------   ---------  ----------
    99.9    Total new obligations...........
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3700-2-1-554      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................                              -1,592
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................                               1,592
    ---------------------------------------------------------------------------

                                   Trust Funds

         Expenses and Refunds, Inspection and Grading of Farm Products

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.20 Fees for inspection and grading of
            farm products...................                       3           3
        Appropriations:
    05.00 Expenses and refunds, inspection
            and grading of farm products....                      -3          -3
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........           5           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           5           3           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           7           1
    22.00 New budget authority (gross)......                       3           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           7           4           3
    23.95 Total new obligations.............          -5          -3          -3
    24.40 Unobligated balance carried
            forward, end of year............           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..                       1           1
    73.10 Total new obligations.............           5           3           3
    73.20 Total outlays (gross).............          -5          -3          -3
    74.40 Obligated balance, end of year....           1           1           1
    ----------------------------------------------------------------------------

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

    [[Page 81]]

    86.98 Outlays from mandatory balances...           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           5           3           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                       3           3
    90.00 Outlays...........................           5           3           3
    ---------------------------------------------------------------------------

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........           2           1           1
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation           2           2           2
    12.1    Civilian personnel benefits.....           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............           4           2           2
    99.5  Below reporting threshold.........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           5           3           3
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          34          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, $41,688,000: 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)

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Standardization...................           4           5           5
    00.02 Compliance........................           5           6           6
    00.03 Methods development...............           6           7           7
    00.04 Packers and stockyards program....          18          22          24
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          33          40          42
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          33          40          42
    23.95 Total new obligations.............         -33         -40         -42
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          33          40          42
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           7           5           6
    73.10 Total new obligations.............          33          40          42
    73.20 Total outlays (gross).............         -33         -39         -42
    73.40 Adjustments in expired accounts
            (net)...........................          -2
    74.40 Obligated balance, end of year....           5           6           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          28          34          36
    86.93 Outlays from discretionary
            balances........................           5           5           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          33          39          42
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          33          40          42
    90.00 Outlays...........................          32          39          42
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           2           2           2
    99.01 Outlays...........................           2           2           2
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2002 actual  2003 est.   2004 est.
    Enacted/requested:
      Budget Authority..................          33          40          42
      Outlays...........................          33          39          42
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                     -27         -29
      Outlays...........................                     -27         -29
                                        ------------------------------------
    Total:
      Budget Authority..................          33          13          13
      Outlays...........................          33          12          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.

    [[Page 82]]

        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 2004, 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

                                         2002 actual  2003 est.   2004 est.
    U.S. standards in effect at end of
    year................................          19          19          19
    Standards reviews in progress.......           3           3           3
    Standards reviews completed.........           3           3           3
    Inspection techniques developed.....          63          80          40
    On-site investigations..............           8           7           7
    Designations renewed................          20          20          18
    Registration certificates issued....          83          83          81
    Investigations......................       1,435       1,550       1,550
    Market agencies/dealers registered..       6,024       6,050       6,050
    Stockyards posted...................       1,510       1,435       1,435
    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      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          20          22          23
    12.1  Civilian personnel benefits.......           5           6           6
    21.0  Travel and transportation of
            persons.........................           1           2           2
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           2
    25.2  Other services....................           3           5           5
    26.0  Supplies and materials............           1           1           1
    31.0  Equipment.........................           2           3           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          33          40          42
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2400-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         327         375         375
    ---------------------------------------------------------------------------

                              Salaries and Expenses

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-2-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Standardization...................                      -5          -5
    00.04 Packers and stockyards program....                     -22         -24
    09.01 Reimbursable program..............                      27          29
                                               ---------   ---------  ----------
    10.00   Total new obligations...........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                     -27         -29
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............                      27          29
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....                     -27         -29
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     -27         -29
    90.00 Outlays...........................                     -27         -29
    ---------------------------------------------------------------------------

        Legislation will be proposed to establish a fee for the
    standardization activities of the Grain Inspection, Packers and
    Stockyards Administration, and a licensing fee to cover the costs of
    administering meat packers and stockyards activities.

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-2-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................                     -14         -16
    12.1    Civilian personnel benefits.....                      -5          -5
    21.0    Travel and transportation of
              persons.......................                      -1          -1
    23.3    Communications, utilities, and
              miscellaneous charges.........                      -1          -1
    25.2    Other services..................                      -3          -3
    26.0    Supplies and materials..........                      -1          -1
    31.0    Equipment.......................                      -2          -2
                                               ---------   ---------  ----------
    99.0      Direct obligations............                     -27         -29
    99.0  Reimbursable obligations..........                      27          29
                                               ---------   ---------  ----------
    99.9    Total new obligations...........
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2400-2-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................                    -252        -252
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................                     252         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)

    [[Page 83]]

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4050-0-3-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.00 Reimbursable program..............          34          42          42
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          34          42          42
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           5           4           4
    22.00 New budget authority (gross)......          34          42          42
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          39          46          46
    23.95 Total new obligations.............         -34         -42         -42
    24.40 Unobligated balance carried
            forward, end of year............           4           4           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          34          42          42
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -3          -4          -4
    73.10 Total new obligations.............          34          42          42
    73.20 Total outlays (gross).............         -34         -42         -42
    74.40 Obligated balance, end of year....          -4          -4          -4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          34          42          42
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -34         -42         -42
    ----------------------------------------------------------------------------

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

        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).

                                         2002 actual  2003 est.   2004 est.
    Export grain inspected and/or
        weighed (million metric tons):
      By Federal personnel..............        81.6        81.7        85.9
      By delegated States...............        24.3        24.3        25.5
    Quantity of grain inspected (all
    official inspections) domestically
    million metric tons.................       131.1       119.0       133.3
    Number of inspections and
        reinspections:
      By Federal personnel..............     101,568     100,000     100,000
      By delegated state/official agency
        licenses........................   1,728,016   1,700,000   1,700,000
    Number of appeals...................       3,700       3,700       3,700
    Number of appeals carried to the
    Board of Appeals and Review.........         530         530         530
    Quantity of rice inspected (million
    metric tons)........................         2.8         2.9         2.8
    Quantity of rice exports (million
    metric tons)........................         3.5         3.6         2.8

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4050-0-3-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          17          22          22
    11.3    Other than full-time permanent..           1           1           1
    11.5    Other personnel compensation....           5           6           6
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          23          29          29
    12.1  Civilian personnel benefits.......           5           6           6
    21.0  Travel and transportation of
            persons.........................           1           1           1
    23.1  Rental payments to GSA............           1           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.2  Other services....................           2           3           3
    26.0  Supplies and materials............           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          34          42          42
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-4050-0-3-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         408         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, $75,071,000, 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. (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 $62,577,000 (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)

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2500-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Market news service.............          29          30          30
    00.02   Inspection and standardization..           6           6           6
    00.03   Market protection and promotion.          29          33          34
    00.04   Wholesale market development....           3           3           3
    00.05   Transportation services.........           3           3           3
    09.01 Reimbursable program..............          41          64          66
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         111         139         142
    ----------------------------------------------------------------------------

    [[Page 84]]

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          13          18          18
    22.00 New budget authority (gross)......         117         140         142
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         130         158         160
    23.95 Total new obligations.............        -111        -139        -142
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............          18          18          19
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          71          75          76
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          46          65          66
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         117         140         142
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           9          23
    73.10 Total new obligations.............         111         139         142
    73.20 Total outlays (gross).............        -121        -126        -146
    73.40 Adjustments in expired accounts
            (net)...........................          18           2           2
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          -1          -1          -1
    74.40 Obligated balance, end of year....           9          23          20
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         117         127         133
    86.93 Outlays from discretionary
            balances........................           4          -1          13
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         121         126         146
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -46         -65         -66
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          71          75          76
    90.00 Outlays...........................          75          61          80
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.02 Total investments, end of year:
            Federal securities: Par value...          13          13          13
    ---------------------------------------------------------------------------

        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.

        The individual Marketing Services activities include:

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

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

        Quarterly inspection of egg handlers and hatcheries is conducted to
    ensure the proper disposition of shell eggs unfit for human consumption.

                               MARKET NEWS PROGRAM

                                         2002 actual  2003 est.   2004 est.
    Percentage of reports released on
    time................................         93%         93%         93%

                       COTTON AND TOBACCO USER FEE PROGRAM

                                         2002 actual  2003 est.   2004 est.

    Cotton classed (samples in millions)        20.4          16          16
    Tobacco graded at auction markets
    and contract delivery stations
    (million pounds)....................         648         334         334
    Imported tobacco inspected at
    markets and ports of entry (million
    kilograms)..........................         175         175         175

             FEDERALLY FUNDED INSPECTION AND PROCUREMENT ACTIVITIES

                                         2002 actual  2003 est.   2004 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

                                         2002 actual  2003 est.   2004 est.
    International and U.S. standards in
    effect, end of fiscal year..........         598         600         600
    Number of commodities covered.......         225         225         225

        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

                                         2002 actual  2003 est.   2004 est.
    Pesticide data program:
      Number of analyses performed......     100,000     100,000     100,000
      Percentage of sampling and
        analysis goal...................        100%        100%        100%
    Pesticide recordkeeping:
      Number of State/Federal
        Inspections conducted...........       5,124       4,900       4,900
      Percentage of sampling goal
        attained........................         98%         98%         98%
    Seed Act:
      Interstate investigations:
        Completed.......................         491         441         391
        Pending.........................         695         750         795
      Seed samples tested...............       1,502       1,600       1,600
      Percentage of cases submitted that
        are completed...................         94%         92%         92%
    Plant Variety Protection Act:
      Percentage of application
        processing goal completed.......        100%        100%        100%
      Number of applications received...         274         256         256
      Certificates of protection issued.         389         389         389
    Research and promotion collections
    (dollars in millions)...............         673         687         687
    Percentage of board budgets and
    marketing plans approved within time
    frame goal..........................         91%         91%         91%

        Wholesale market development.--This program is designed to enhance
    the marketing of agricultural commodities in the

    [[Page 85]]

    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

                                         2002 actual  2003 est.   2004 est.
    Number of projects completed........           8           8           8

                       TRANSPORTATION SERVICES ACTIVITIES

                                         2002 actual  2003 est.   2004 est.
    Number of projects completed........          10          10          10

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2500-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          28          29          30
    11.3      Other than full-time permanent           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          29          30          31
    12.1    Civilian personnel benefits.....           7           8           8
    21.0    Travel and transportation of
              persons.......................           3           3           3
    23.2    Rental payments to others.......           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           3           3           3
    25.2    Other services..................          18          20          20
    25.3    Other purchases of goods and
              services from Government
              accounts......................           4           4           4
    25.7    Operation and maintenance of
              equipment.....................           2           2           2
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           2           3           3
                                               ---------   ---------  ----------
    99.0      Direct obligations............          70          75          76
    99.0  Reimbursable obligations..........          41          64          66
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         111         139         142
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2500-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         552         566         566
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         649         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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2501-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........                       1           1
                                               ---------   ---------  ----------
    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
    ----------------------------------------------------------------------------

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

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

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

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

                  Perishable Agricultural Commodities Act Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5070-0-2-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.00 Deposits of Perishable
            Agricultural Commodities Act
            fees............................           9           8           8
        Appropriations:
    05.00 Perishable Agricultural
            Commodities Act fund............          -9          -8          -8
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5070-0-2-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........                       9           9
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                       9           9
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1          10          10
    22.00 New budget authority (gross)......           9           8           8
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          10          18          18
    23.95 Total new obligations.............                      -9          -9
    24.40 Unobligated balance carried
            forward, end of year............          10          10           9
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.20   Appropriation (special fund)....           9           8           8
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           2           1
    73.10 Total new obligations.............                       9           9
    73.20 Total outlays (gross).............                      -8          -8
    74.40 Obligated balance, end of year....           2           1           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                       8           8
    ----------------------------------------------------------------------------

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

        Memorandum (non-add) entries:
    92.02 Total investments, end of year:
            Federal securities: Par value...          12
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................                       1           1
    99.01 Outlays...........................                       1           1
    ---------------------------------------------------------------------------

    [[Page 86]]

        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 (3) repeal the 25 percent maximum funding
    reserve cap.

        A 1984 amendment to the Perishable Agricultural Commodities Act
    requires traders to have trust assets on hand to meet their obligations
    to fruit and vegetable suppliers. To preserve their trust and establish
    their rights ahead of other creditors, unpaid suppliers file notice with
    both the Department and their debtors that payment is due.

               PERISHABLE AGRICULTURAL COMMODITIES ACT ACTIVITIES

                                         2002 actual  2003 est.   2004 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      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           5           5           5
    12.1  Civilian personnel benefits.......           1           1           1
    21.0  Travel and transportation of
            persons.........................           1
    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           1
    33.0  Investments and loans.............         -10
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                       9           9
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-5070-0-2-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          95          95          95
    ---------------------------------------------------------------------------

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

                         (including transfers of funds)

        Funds available under section 32 of the Act of August 24, 1935 (7
    U.S.C. 612c), shall be used only for commodity program expenses as
    authorized therein, and other related operating expenses, except for:
    (1) transfers to the Department of Commerce as authorized by the Fish
    and Wildlife Act of August 8, 1956; (2) transfers otherwise provided in
    this Act; and (3) not more than $15,392,000 for formulation and
    administration of marketing agreements and orders pursuant to the
    Agricultural Marketing Agreement Act of 1937 and the Agricultural Act of
    1961.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............      10,436      10,084      10,003
        Receipts:
    02.00 30 percent of customs duties,
            Funds for strengthening markets,
            income and supply...............       5,787       5,716       6,224
    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..       5,788       5,718       6,226
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...      16,224      15,802      16,229
        Appropriations:
    05.00 Funds for strengthening markets,
            income, and supply (section 32).      -6,140      -5,799      -5,823
                                               ---------   ---------  ----------
    05.99   Total appropriations............      -6,140      -5,799      -5,823
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............      10,084      10,003      10,406
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Commodity program payments:
    00.01     Child nutrition program
                purchases...................         400          15         400
    00.02     Emergency surplus removal.....         207         185         416
    00.03     Direct payment program........         173
    00.04     Fruit and Vegetable Pilot
                Program.....................           6
    00.05     Lamb grading and certification
                support.....................           1           1
    00.06     Livestock Compensation Program                     937
    00.07     State option contract.........                       5           5
    00.08     Removal of defective
                commodities.................                       1           1
                                               ---------   ---------  ----------
    00.91     Subtotal, Commodity program
                payments....................         787       1,144         822
    01.01 Administrative expenses...........          17          26          26
                                               ---------   ---------  ----------
    01.92   Total direct program............         804       1,170         848
    09.11 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         805       1,171         849
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         108         192
    22.00 New budget authority (gross)......         889         979       1,149
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         997       1,171       1,149
    23.95 Total new obligations.............        -805      -1,171        -849
    24.40 Unobligated balance carried
            forward, end of year............         192                     300
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.20   Appropriation (special fund)....       6,139       5,798       5,822
    61.00   Transferred to other accounts...      -5,251      -4,820      -4,674
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         888         978       1,148
    69.00 Offsetting collections (cash).....           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         889         979       1,149
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         148          36          36
    73.10 Total new obligations.............         805       1,171         849
    73.20 Total outlays (gross).............        -915      -1,170        -848
    74.40 Obligated balance, end of year....          36          36          36
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         660         942         673
    86.98 Outlays from mandatory balances...         255         228         175
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         915       1,170         848
    ----------------------------------------------------------------------------

        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..................         888         978       1,148
    90.00 Outlays...........................         916       1,169         847
    ----------------------------------------------------------------------------

    [[Page 87]]

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           1           1           1
    99.01 Outlays...........................           1           1           1
    ---------------------------------------------------------------------------

        Under section 32 of the Act of August 24, 1935, as amended (7 U.S.C.
    612c), an amount equal to 30 percent of customs receipts collected
    during each calendar year is automatically appropriated for expanding
    outlets for nonbasic commodities. An amount equal to 30 percent of
    receipts collected on fishery products is transferred to the Department
    of Commerce. Most of the funds are transferred to the Food and Nutrition
    Service and are used to purchase commodities under section 6 of the
    National School Lunch Act and other authorities specified in the child
    nutrition appropriation. If unforeseen commodity surpluses should
    develop, unobligated reserve balances are available for surplus removal.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           9          12          12
    12.1    Civilian personnel benefits.....           2           3           3
    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..................           4           4           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......         782       1,144         822
    31.0    Equipment.......................           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         804       1,170         848
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         805       1,171         849
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         168         177         179
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          13          13          13
    ---------------------------------------------------------------------------

                                   Trust Funds

          Expenses and Refunds, Inspection and Grading of Farm Products

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8015-0-7-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............           2           2           2
        Receipts:
    02.20 Deposits of fees from inspection
            and grading of farm products....         122         118         118
    02.41 Payments from general fund, Wool
            research, development, and
            promotion.......................           2           2           2
    02.42 Interest on investments in public
            debt securities, AMS............           1
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         125         120         120
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         127         122         122
        Appropriations:
    05.00 Expenses and refunds, inspection
            and grading of farm products....        -125        -120        -120
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           2           2           2
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8015-0-7-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Dairy products....................           5           6           6
    00.02 Fruits and vegetables.............          53          54          54
    00.03 Meat grading......................          22          23          23
    00.04 Poultry products..................          23          25          25
    00.05 Miscellaneous agricultural
            commodities.....................          15          12          12
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         118         120         120
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           7          18          20
    22.00 New budget authority (gross)......         130         120         120
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         137         138         140
    23.95 Total new obligations.............        -118        -120        -120
    24.40 Unobligated balance carried
            forward, end of year............          18          20          22
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......         125         120         120
    62.00   Transferred from other accounts.           5
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         130         120         120
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          21          24          29
    73.10 Total new obligations.............         118         120         120
    73.20 Total outlays (gross).............        -116        -115        -120
    74.40 Obligated balance, end of year....          24          29          29
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         116         115         115
    86.98 Outlays from mandatory balances...                                   5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         116         115         120
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         130         120         120
    90.00 Outlays...........................         116         115         120
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.02 Total investments, end of year:
            Federal securities: Par value...          36
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           6           6           6
    99.01 Outlays...........................           6           6           6
    ---------------------------------------------------------------------------

        Expenses and refunds, inspection and grading of farm products.--The
    commodity grading programs provide grading, examination, and
    certification services for a wide variety of fresh and processed food
    commodities using federally approved grade standards and purchase
    specifications. Commodities graded include poultry, livestock, meat,
    dairy products, and fresh and processed fruits and vegetables. These
    programs use official grade standards which reflect the relative quality
    of a particular food commodity based on laboratory testing and
    characteristics such as taste, color, weight, and physical condition.
    Producers voluntarily request grading and certification services which
    are provided on a fee for service basis.

                               WORKLOAD INDICATORS

                                         2002 actual  2003 est.   2004 est.
    Weighted average cost per cwt. (1990
    index)..............................         .08         .08         .08

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8015-0-7-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          58          60          60
    11.3    Other than full-time permanent..           5           5           5
    11.5    Other personnel compensation....           9           9           9
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          72          74          74
    12.1  Civilian personnel benefits.......          17          17          17
    13.0  Benefits for former personnel.....           1           1           1

    [[Page 88]]

    21.0  Travel and transportation of
            persons.........................           6           7           7
    23.2  Rental payments to others.........           2           2           2
    23.3  Communications, utilities, and
            miscellaneous charges...........           2           2           2
    24.0  Printing and reproduction.........                       1           1
    25.2  Other services....................          15          10          10
    25.3  Other purchases of goods and
            services from Government
            accounts........................           1           2           2
    26.0  Supplies and materials............           1           2           2
    31.0  Equipment.........................           1           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         118         120         120
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8015-0-7-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,530       1,507       1,507
    ---------------------------------------------------------------------------

                       Milk Market Orders Assessment Fund

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8412-0-8-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.80 Milk market orders assessment
            fund, offsetting collections....          44          44          44
        Appropriations:
    05.00 Milk market orders assessment fund         -44         -44         -44
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8412-0-8-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Administration....................          37          41          44
    09.02 Marketing service.................           8           7           7
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          45          48          51
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          37          36          32
    22.00 New budget authority (gross)......          44          44          44
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          81          80          76
    23.95 Total new obligations.............         -45         -48         -51
    24.40 Unobligated balance carried
            forward, end of year............          36          32          25
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..          44          46          50
    73.10 Total new obligations.............          45          48          51
    73.20 Total outlays (gross).............         -43         -44         -44
    74.40 Obligated balance, end of year....          46          50          57
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          43          44          44
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

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

                                         2002 actual  2003 est.   2004 est.
    Percentage of formal and informal
    rulemaking completed within internal
    timeframes..........................         85%         85%         85%

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8412-0-8-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          27          29          31
    12.1  Civilian personnel benefits.......           6           7           7
    21.0  Travel and transportation of
            persons.........................           3           3           3
    23.2  Rental payments to others.........           3           3           3
    23.3  Communications, utilities, and
            miscellaneous charges...........           2           2           2
    25.2  Other services....................           1           1           1
    26.0  Supplies and materials............           1           1           2
    31.0  Equipment.........................           2           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          45          48          51
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8412-0-8-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         440         443         443
    ---------------------------------------------------------------------------

                             RISK MANAGEMENT AGENCY

                                  Federal Funds

    General and special funds:

                      Administrative and Operating Expenses

        For administrative and operating expenses, as authorized by section
    226A of the Department of Agriculture Reorganization Act of 1994 (7
    U.S.C. 6933), $78,488,000: Provided, That not to exceed $1,000 shall be
    available for official reception and representation expenses, as
    authorized by 7 U.S.C. 1506(i).

        Note.--A regular 2003 appropration for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution

    [[Page 89]]

    (P.L. 107-229, as amended). The amounts included for 2003 in this budget
    reflect the Administration's 2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2707-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........          74          71          78
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          74          71          78
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          74          71          78
    23.95 Total new obligations.............         -74         -71         -78
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          75          71          78
    40.76   Reduction pursuant to P.L. 107-
              206...........................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          74          71          78
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          39          24          22
    73.10 Total new obligations.............          74          71          78
    73.20 Total outlays (gross).............         -84         -73         -76
    73.40 Adjustments in expired accounts
            (net)...........................          -4
    74.40 Obligated balance, end of year....          24          22          24
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          45          50          55
    86.93 Outlays from discretionary
            balances........................          39          23          21
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          84          73          76
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          74          71          78
    90.00 Outlays...........................          84          73          76
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           5           6           7
    99.01 Outlays...........................           5           6           7
    ---------------------------------------------------------------------------

        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 2004 budget
    includes a proposal that would reduce the reimbursement rate for crop
    insurance policies from 24.5 to 20 percent through appropriations
    language to amend the Federal Crop Insurance Act. This proposal would
    increase efficiency in the delivery of crop insurance.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2707-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          33          35          38
    11.3    Other than full-time permanent..           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          34          36          39
    12.1  Civilian personnel benefits.......           8           8           8
    21.0  Travel and transportation of
            persons.........................           2           2           2
    23.2  Rental payments to others.........                                   1
    23.3  Communications, utilities, and
            miscellaneous charges...........           2           1           1
    25.2  Other services....................          24          20          25
    26.0  Supplies and materials............           2           2           2
    31.0  Equipment.........................           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          74          71          78
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2707-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         510         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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

    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. 1516).

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4085-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.03 Change in delivery and other
            expenses........................                    -115         -68
    01.01 Indemnities.......................       3,160       4,366       3,090
    09.01 Reimbursable program..............         685         681         653
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       3,845       4,932       3,675
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,225       1,017          71
    22.00 New budget authority (gross)......       3,637       3,986       4,156
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       4,862       5,003       4,227
    23.95 Total new obligations.............      -3,845      -4,932      -3,675
    24.40 Unobligated balance carried
            forward, end of year............       1,017          71         552
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.35   Appropriation rescinded.........                    -115         -68
          Mandatory:

    60.00   Appropriation...................       2,820       2,911       3,368
    61.00   Transferred to other accounts...          -2
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................       2,818       2,911       3,368
    69.00 Offsetting collections (cash).....         819       1,190         856
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       3,637       3,986       4,156
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,225       1,305       1,921
    73.10 Total new obligations.............       3,845       4,932       3,675
    73.20 Total outlays (gross).............      -3,765      -4,316      -3,559
    74.40 Obligated balance, end of year....       1,305       1,921       2,037
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                    -115         -68
    86.97 Outlays from new mandatory
            authority.......................       2,105       2,158       2,090
    86.98 Outlays from mandatory balances...       1,660       2,273       1,537
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       3,765       4,316       3,559
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....        -819      -1,190        -856
    ----------------------------------------------------------------------------

    [[Page 90]]

        Net budget authority and outlays:
    89.00 Budget authority..................       2,818       2,796       3,300
    90.00 Outlays...........................       2,947       3,126       2,703
    ---------------------------------------------------------------------------

        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.

        Commercial insurance companies deliver crop insurance policies to
    the producer in all states. For producers who obtain Catastrophic Crop
    Insurance (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, the 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.

        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 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 2004 Budget. It is designed to promote efficiency in the
    delivery of crop insurance by eliminating unnecessary expenditures.

        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 2002, RMA awarded over
    $21 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, 2002. 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 cover swine in the State of Iowa and
    were 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 2002, 206.3 million acres were insured, with an
    estimated $3,000 million in total premium income, including $1,793
    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 2004. Amounts in the 2002 column are as of September 30,
    2002, and pertain to the 2002 crop year.

                                            2002        2003        2004
                                          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).......      35,904      36,075      37,948
    Insured acreage (millions)..........         206         208         208
                                        ====================================
    Producer premium (millions)\1\......       1,207       1,127       1,183
    Premium subsidy (millions)\1\.......       1,793       1,699       1,782
                                        ------------------------------------
          Total premium (millions)\1\...       3,000       2,826       2,965
                                        ====================================
    Indemnities (million)\1\............       4,260       3,038       3,188
    Loss ratio..........................       1.420       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.

    [[Page 91]]

        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]

                                            2002         2003        2004
                                         fiscal year fiscal year fiscal year
                                           actual      estimate    estimate
    Premiums:
      Additional coverage premium
        subsidy.........................       1,542       1,464       1,527
      Catastrophic coverage--Reinsurance
        premium subsidy.................         240         236         243
                                        ------------------------------------
        Subtotal, premium subsidy.......       1,782       1,700       1,770
      Producer premium..................       1,200       1,139       1,175
                                        ------------------------------------
          Total premiums................       1,782       2,839       2,945
                                        ====================================
    Indemnities:
      Additional coverage...............       2,908       3,911       2,843
      Catastrophic coverage--Reinsurance         252         340         247
                                        ------------------------------------
          Total indemnities.............       3,160       4,251       3,090
                                        ====================================

        For crop years 1948 through 2001, indemnities ($26,425 million)
    exceeded premium income ($24,213 million) by $2,212 million; the loss
    ratio for the period was 1.09.

        The following table summarizes the insurance operations for 2002,
    2003, and 2004:

                 NET INCOME OR LOSS (-) ON INSURANCE OPERATIONS

                            [In millions of dollars]

                                            2002        2003        2004
                                         fiscal year fiscal year fiscal year
                                            est.        est.        est.
    Producer premium less indemnities...      -1,960      -3,112      -1,915
    Interest expense, net...............           1           0           0
    Delivery expenses \1\...............        -626        -613        -643
    Other income or expense, net........         149         881         295
    ARPA costs..........................         -41         -67         -77
    Reinsurance underwriting gain (+) or
    loss (-)............................        -342           0         370
                                        ------------------------------------
    Net income or loss (-)..............      -2,820      -2,911      -3,300
                                        ====================================
        \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    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         914            819         1,190            856
    0102  Expense...........................      -3,976         -4,927        -4,932         -3,743
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............      -3,062         -4,108        -3,742         -2,887
                                            ------------ --------------  ------------  -------------
    0199  Total comprehensive income........      -3,062         -4,108        -3,742         -2,887
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4085-0-3-351    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................       2,353          2,567         2,567          2,567
    1206  Non-Federal assets: Receivables,
            net.............................       1,357            750           750            750
    1803  Other Federal assets: Property,
            plant and equipment, net........           1              1             1              1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       3,711          3,318         3,318          3,318
        LIABILITIES:
          Federal liabilities:

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

    2201    Accounts payable................          93             70            70             70
    2207    Other...........................       3,427          1,750         1,750          1,750
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       3,519          1,996         1,996          1,996
        NET POSITION:
    3100  Appropriated capital..............         252            700           700            700
    3300  Cumulative results of operations..         -60            622           622            622
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         192          1,322         1,322          1,322
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       3,711          3,318         3,318          3,318
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4085-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.2    Other services..................                                 -68
    42.0    Insurance claims and indemnities
              (reinsured buyup).............       3,160       4,251       3,090
                                               ---------   ---------  ----------
    99.0      Direct obligations............       3,160       4,251       3,022
    42.0  Reimbursable obligations:
            Insurance claims and indemnities         685         681         653
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       3,845       4,932       3,675
    ---------------------------------------------------------------------------

                               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,
    $1,016,836,000: 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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0600-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Farm programs...................         595         643         611
    00.02   Conservation and environment....          97         130         141
    00.04   Commodity operations............           1           1           1
    00.05   Administrative and information
              technology....................         232         242         243
    00.06   Civil rights and equal
              employment opportunity........          19          22          21
                                               ---------   ---------  ----------
    03.00     Subtotal, direct program......         944       1,038       1,017
            Reimbursable program:
    09.01     Farm loans....................         273         279         290
    09.02     Other programs................         158         129         155
                                               ---------   ---------  ----------
    09.99   Subtotal, reimbursable program..         431         408         445
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,375       1,446       1,462
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4           2
    22.00 New budget authority (gross)......       1,369       1,444       1,462
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,376       1,446       1,462
    23.95 Total new obligations.............      -1,375      -1,446      -1,462
    24.40 Unobligated balance carried
            forward, end of year............           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         939       1,036       1,017
    40.76   Reduction pursuant to P.L. 107-
              206...........................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         938       1,036       1,017
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         413         408         445
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          18
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         431         408         445
                                               ---------   ---------  ----------

    [[Page 92]]

    70.00   Total new budget authority
              (gross).......................       1,369       1,444       1,462
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         166         180         159
    73.10 Total new obligations.............       1,375       1,446       1,462
    73.20 Total outlays (gross).............      -1,322      -1,465      -1,518
    73.40 Adjustments in expired accounts
            (net)...........................         -18
    73.45 Recoveries of prior year
            obligations.....................          -3
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -18
    74.40 Obligated balance, end of year....         180         159         101
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,219       1,337       1,357
    86.93 Outlays from discretionary
            balances........................         103         128         161
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,322       1,465       1,518
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -385        -377        -414
    88.40     Non-Federal sources...........         -28         -31         -31
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -413        -408        -445
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -18
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         938       1,036       1,017
    90.00 Outlays...........................         909       1,057       1,073
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................          67          73          87
    99.01 Outlays...........................          67          73          87
    ---------------------------------------------------------------------------

        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.
    These changes will also increase 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 the service.
    Specifically, the Administration proposes that the FSA, Rural
    Development, and NRCS field offices seek the following improvements:

         Capitalize on the significant investments made in
    information technology (IT) and establish a merged structure to provide
    IT support to the Service Centers. This will reduce overlap, duplication
    of effort, and disjointed systems.

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

         Review the field office structure to determine the correct
    level of offices necessary to provide services.

         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.

         FSA along with Rural Development will conduct a review and
    develop a pilot loan asset sale. The sale will include a loan mix that
    results in the greatest budgetary savings to the Federal government.

        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 providing direct and counter-cyclical payments, 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 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 approval
    of crop prices, average yields, and payment factors for the Noninsured
    Crop Disaster Assistance Program (NAP).

        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 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 direct and
    counter-cyclical payments and issuing checks; (k) certifying payment
    eligibility and monitoring payment limitations; and (l) processing farm
    storage facility loans and issuing checks.

    [[Page 93]]

        Conservation and environment.--These programs assist agricultural
    producers and landowners in achieving a high level of stewardship of
    soil, water, air, and wildlife resources on America's farmland and
    ranches while protecting the human and natural environment. Objectives
    of the Agency include improving environmental quality, protecting
    natural re- sources, and enhancing habitat for fish and wildlife,
    including threatened and endangered species, providing Emergency
    Conservation Program funding for farmers and ranchers to rehabilitate
    damaged farmland and for carrying out emergency conservation measures
    during periods of severe drought or flooding, protecting the public
    health of communities through implementation of the Hazardous Waste
    Management Program, assisting NRCS with EQIP program policy and
    procedure development, and implementing administrative processes and
    procedures for contracting, financial reporting, and other financial
    operations. This activity includes: (a) processing producer requests for
    conservation cost-sharing and issuing conservation reserve rental
    payments; and (b) issuing checks for other conservation programs.

        Commodity operations.--This activity includes: (a) overall
    management of CCC-owned commodities; (b) purchasing commodities; (c)
    donating commodities; (d) selling commodities; (e) accounting for loans
    and commodities; and (f) commercial warehouse activities, which include
    improving the effectiveness and efficiency of FSA's commodity
    acquisition, procurement, storage, and distribution activities to
    support domestic and international food assistance programs and
    administering the U.S. Warehouse Act (USWA). The Agency provides for the
    examination of warehouses licensed under the U.S. Warehouse Act and non-
    licensed warehouses storing CCC-owned or pledged commodities. Examiners
    perform periodic examinations of the facilities and the warehouse
    records to ensure protection of depositors against potential losses of
    the stored commodities and to ensure compliance with the U.S. Warehouse
    Act and any CCC storage agreements.

        Farm loans (reimbursable).--Provides for administering the direct
    and guaranteed loan programs covered under the Agricultural Credit
    Insurance Fund (ACIF). Objectives of the Agency include improving the
    economic viability of farmers and ranchers, reducing losses in direct
    loan programs, responding to loan making and servicing requests, and
    maximizing financial and technical assistance to under-served groups.
    Activities include reviewing applications, servicing the loan portfolio,
    and providing technical assistance and guidance to borrowers. These
    administrative expenses are transferred to this consolidated account
    from the ACIF. Appropriations representing subsidy amounts necessary to
    support the individual program loan levels under Federal Credit Reform
    are made to the ACIF account.

        Other reimbursable activities.--FSA collects a fee or is reimbursed
    for performing a variety of services for other Federal agencies, CCC,
    industry, and others, including certain administrative support services
    for the Risk Management Agency and the Foreign Agricultural Service, and
    for county office services provided to Federal and non-Federal entities,
    including a variety of services to producers.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0600-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         157         169         173
    11.3      Other than full-time permanent           3           3           3
    11.5      Other personnel compensation..           5           6           6
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         165         178         182
    12.1    Civilian personnel benefits.....          36          39          41
    13.0    Benefits for former personnel...           1
    21.0    Travel and transportation of
              persons.......................          11          12          12
    22.0    Transportation of things........           2           3           3
    23.2    Rental payments to others.......           1           3           3
    23.3    Communications, utilities, and
              miscellaneous charges.........          13          17          17
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          88         107          93
    26.0    Supplies and materials..........           6           7           7
    31.0    Equipment.......................          20          11          11
    41.0    Grants, subsidies, and
              contributions.................         600         659         646
    42.0    Insurance claims and indemnities                       1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         944       1,038       1,017
    99.0  Reimbursable obligations..........         431         408         445
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,375       1,446       1,462
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0600-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       2,467       2,463       2,444
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       3,394       3,398       3,473
    ---------------------------------------------------------------------------

                             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), $4,000,000.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0170-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

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

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

        New budget authority (gross), detail:
          Discretionary:

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

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

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

        This grant program is authorized by Title V of the Agricultural
    Credit Act of 1987, P.L. 100-233, as amended. Originally designed to
    address agricultural credit disputes, the program was expanded by the
    Federal Crop Insurance Reform and Department of Agriculture
    Reorganization Act of 1994 (P.L. 103-354) to include other agricultural
    issues such as wetland determinations, conservation compliance, rural
    water loan programs, grazing on National Forest System lands, and
    pesticide use. Grants are made to States whose agricultural mediation
    programs have been certified by the Farm Service Agency. A grant will
    not exceed 70 percent of the total fiscal year funds that a qualifying
    State requires to operate and

    [[Page 94]]

    administer its agricultural mediation program. In no case will the total
    amount of a grant exceed $500,000 annually.

                                GRANT OBLIGATIONS

                                         2002 actual  2003 est.   2004 est.
    Number of States receiving grants...          27          29          32
    Amount of grants (in millions of
    dollars)............................         3.5         3.5           4

                             Tree Assistance Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2701-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           6           5           2
    73.20 Total outlays (gross).............                      -2          -2
    74.40 Obligated balance, end of year....           5           2           2
    ----------------------------------------------------------------------------

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

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

        Funding of $14 million for the Tree assistance program (TAP) was
    provided by the 1998 Emergency Supplemental 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. No outlays occurred
    during 2002. The 1997 TAP expired at the end of 2002, and the 1998 and
    1999 TAP will expire at the end of 2003 and 2004, respectively.

        The Farm Security and Rural Investment Act of 2002 reauthorized the
    program, with some modifications. No funding is requested for 2004.

                          Conservation Reserve Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3319-0-1-302      2002 actual   2003 est.   2004 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..........           2           2
    23.95 Total new obligations.............                      -2
    24.40 Unobligated balance carried
            forward, end of year............           2
    ----------------------------------------------------------------------------

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

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

        The Conservation Reserve Program (CRP) was originally mandated by
    the Food Security Act of 1985. The Federal Agriculture Improvement and
    Reform Act of 1996 and the Farm Security and Rural Investment Act of
    2002 reauthorized the program 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.

        Annual rental payments, cost-share payments, and technical
    assistance for acres enrolled in the program are paid through the
    Commodity Credit Corporation. Just under $2 million in unobligated
    appropriated funds were available at the end of 2002; these funds are
    expected to be exhausted in 2003 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      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 ACP Payments......................           6
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4           1           1
    22.00 New budget authority (gross)......           6
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
    22.21 Unobligated balance transferred to
            other accounts..................          -6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           7           1           1
    23.95 Total new obligations.............          -6
    24.40 Unobligated balance carried
            forward, end of year............           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    68.10   Spending authority from
              offsetting collections (change
              in uncollected customer
              payments from federal sources)
              (unexpired)...................           6
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          11           7           5
    73.10 Total new obligations.............           6
    73.20 Total outlays (gross).............          -1          -2          -2
    73.45 Recoveries of prior year
            obligations.....................          -3
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -6
    74.40 Obligated balance, end of year....           7           5           3
    ----------------------------------------------------------------------------

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

        Offsets:
          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..................

    [[Page 95]]

    90.00 Outlays...........................           1           2           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 2002,
    there were $6.2 million in unliquidated obligations for ACP agreements.

                         Emergency Conservation Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3316-0-1-453      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 ECP payments......................          32          52          43
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          32          52          43
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         106          74          71
    22.00 New budget authority (gross)......                      49
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         106         123          71
    23.95 Total new obligations.............         -32         -52         -43
    24.40 Unobligated balance carried
            forward, end of year............          74          71          28
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..          29          29           2
    73.10 Total new obligations.............          32          52          43
    73.20 Total outlays (gross).............         -32         -79         -45
    74.40 Obligated balance, end of year....          29           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                      33
    86.93 Outlays from discretionary
            balances........................          32          46          45
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          32          79          45
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      49
    90.00 Outlays...........................          32          79          45
    ---------------------------------------------------------------------------

        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. No funding was provided in the 2002
    Agriculture Appropriations Act for ECP. However, the program continued
    to operate from unobligated funds carried forward from 2001 and
    recoveries throughout the fiscal year. Under the 2002 program, cost-
    sharing and technical assistance were provided in 44 States to treat
    farmlands damaged by floods, drought, ice storms, tornadoes, and other
    natural disasters.

        The 2004 budget proposes no funding 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, $1,140,149,000, of which $1,000,000,000 shall be for
    guaranteed loans and $140,149,000 shall be for direct loans; operating
    loans, $2,316,249,000, of which $1,400,000,000 shall be for unsubsidized
    guaranteed loans, $266,249,000 shall be for subsidized guaranteed loans
    and $650,000,000 shall be for direct loans; Indian tribe land
    acquisition loans as authorized by 25 U.S.C. 488, $2,000,000; and for
    boll weevil eradication program loans as authorized by 7 U.S.C. 1989,
    $60,000,000.
        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, $36,345,000, of which
    $5,400,000 shall be for guaranteed loans, and $30,945,000 shall be for
    direct loans; operating loans, $174,350,000, of which $46,620,000 shall
    be for unsubsidized guaranteed loans, $34,000,000 shall be for
    subsidized guaranteed loans, and $93,730,000 shall be for direct loans.
        In addition, for administrative expenses necessary to carry out the
    direct and guaranteed loan programs, $298,136,000, of which $290,136,000
    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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                             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).

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0101  Agriculture credit insurance,
            downward reestimates of
            subsidies.......................           2           3           4
    0102  Negative subsidies/subsidy
            reestimates.....................          53         249
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............          71         115         125
    00.02 Guaranteed loan subsidy...........         112          97          86
    00.05 Reestimates of direct loan subsidy         946         136
    00.06 Interest on reestimates of direct
            loan subsidy....................         275           7
    00.07 Reestimates of guaranteed loan
            subsidy.........................          59           1
    00.08 Interest on reestimates of
            guaranteed loan subsidy.........           6
          Administrative expenses:

    00.09   Administrative expenses--
              salaries and expenses.........         271         279         290
    00.10   Administrative expenses--non-
              recoverable costs.............           8           8           8
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,748         643         509
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          73          68          68
    22.00 New budget authority (gross)......       1,746         643         509

    [[Page 96]]

    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,820         711         577
    23.95 Total new obligations.............      -1,748        -643        -509
    23.98 Unobligated balance expiring or
            withdrawn.......................          -5
    24.40 Unobligated balance carried
            forward, end of year............          68          68          68
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         468         499         509
    41.00   Transferred to other accounts...          -8
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         460         499         509
          Mandatory:

    60.00   Appropriation...................       1,286         144
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,746         643         509
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          12          12           8
    73.10 Total new obligations.............       1,748         643         509
    73.20 Total outlays (gross).............      -1,744        -647        -510
    73.40 Adjustments in expired accounts
            (net)...........................          -3
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.40 Obligated balance, end of year....          12           8           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         449         475         485
    86.93 Outlays from discretionary
            balances........................           9          28          25
    86.97 Outlays from new mandatory
            authority.......................       1,286         144
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,744         647         510
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,746         643         509
    90.00 Outlays...........................       1,744         647         510
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Farm ownership....................         147         100         140
    115002Farm operating....................         611         600         650
    115003Emergency disaster................          25
    115004Indian tribe land acquisition.....           2           2           2
    115005Boll weevil eradication...........         100         100          60
    115006Seed cotton.......................
                                               ---------   ---------  ----------
    115901Total direct loan levels..........         885         802         852
        Direct loan subsidy (in percent):
    132001Farm ownership....................        2.63       11.61       22.08
    132002Farm operating....................        8.93       17.25       14.42
    132003Emergency disaster................       13.45       20.39       13.83
    132004Indian tribe land acquisition.....        5.92        8.95       -0.78
    132005Boll weevil eradication...........       -2.18       -2.70       -6.07
    132006Seed cotton.......................        0.00        0.00        0.00
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        6.78       13.97       14.20
        Direct loan subsidy budget authority:
    133001Farm ownership....................           4          12          31
    133002Farm operating....................          55         103          94
    133003Emergency disaster................           3
    133004Indian tribe land acquisition.....
    133005Boll weevil eradication...........          -2          -3          -4
    133006Seed cotton.......................
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....          60         112         121
        Direct loan subsidy outlays:
    134001Farm ownership....................           5          12          31
    134002Farm operating....................          56         104          94
    134003Emergency disaster................          28
    134004Indian tribe land acquisition.....
    134005Boll weevil eradication...........          -2          -3          -4
    134006Seed cotton.......................
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............          87         113         121
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Farm ownership....................         163         129
    135002Farm operating....................         776          57
    135003Emergency disaster................         169          12
    135004Indian tribe land acquisition.....           3
    135005Boll weevil eradication...........          16          30
    135006Seed cotton.......................                      10
    135007Soil and water....................           4
    135008Farm ownership credit sales.......          89
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................       1,220         238
        Direct loan upward reestimate subsidy outlays:
    136001Farm ownership....................         163         129
    136002Farm operating....................         776          57
    136003Emergency disaster................         169          12
    136004Indian tribe land acquisition.....           3
    136005Boll weevil eradication...........          16          30
    136006Seed cotton.......................                      10
    136007Soil and water....................           4
    136008Farm ownership credit sales.......          89
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...       1,220         238
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Farm ownership....................                      -5
    137002Farm operating....................                    -146
    137003Emergency disaster................         -16          -6
    137004Indian tribe land acquisition.....                      -4
    137005Boll weevil eradication...........          -9         -43
    137006Seed cotton.......................
    137007Soil and water....................                      -4
    137008Farm ownership credit sales.......          -2         -87
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................         -27        -295
        Direct loan downward reestimate subsidy
                    outlays:
    138001Farm ownership....................                      -5
    138002Farm operating....................                    -146
    138003Emergency disaster................         -16          -6
    138004Indian tribe land acquisition.....                      -4
    138005Boll weevil eradication...........          -9         -43
    138006Seed cotton.......................
    138007Soil and water....................                      -4
    138008Seed loans........................          -2         -87
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................         -27        -295
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Farm ownership, unsubsidized......       1,161       1,000       1,000
    215002Farm operating, unsubsidized......       1,548       1,700       1,400
    215003Farm operating, subsidized........         511         300         266
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......       3,220       3,000       2,666
        Guaranteed loan subsidy (in percent):
    232001Farm ownership, unsubsidized......        0.45        0.75        0.54
    232002Farm operating, unsubsidized......        3.51        3.17        3.33
    232003Farm operating, subsidized........       13.56       11.80       12.77
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        3.98        3.23        3.23
        Guaranteed loan subsidy budget authority:
    233001Farm ownership, unsubsidized......           5           8           5
    233002Farm operating, unsubsidized......          54          54          47
    233003Farm operating, subsidized........          69          35          34
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....         128          97          86
        Guaranteed loan subsidy outlays:
    234001Farm ownership, unsubsidized......           5           7           5
    234002Farm operating, unsubsidized......          48          52          47
    234003Farm operating, subsidized........          63          32          34
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............         116          91          86
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235001Farm ownership, unsubsidized......          17           1
    235002Farm operating, unsubsidized......          26
    235003Farm operating, subsidized........          24           6
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................          67           7
        Guaranteed loan upward reestimate subsidy
                    outlays:
    236001Farm ownership, unsubsidized......          17           1
    236002Farm operating, unsubsidized......          26
    236003Farm operating, subsidized........          24           6
                                               ---------   ---------  ----------
    236901Total upward reestimate subsidy
            outlays.........................          67           7
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237001Farm ownership, unsubsidized......                     -16

    [[Page 97]]

    237002Farm operating, unsubsidized......         -12         -36
    237003Farm operating, subsidized........         -10          -3
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................         -22         -55
        Guaranteed loan downward reestimate subsidy
                    outlays:
    238001Farm ownership, unsubsidized......                     -16
    238002Farm operating, unsubsidized......         -12         -36
    238003Farm operating, subsidized........         -10          -3
                                               ---------   ---------  ----------
    238901Total downward reestimate subsidy
            outlays.........................         -22         -55
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................         280         287         290
    358001Outlays from balances.............
    359001Outlays from new authority........         280         287         290
    ---------------------------------------------------------------------------

        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 2002, $124.3 thousand was paid to producers who filed claims
    under the program.

        The 2004 budget requests $100 thousand for this program.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................         279         287         298
    41.0  Grants, subsidies, and
            contributions...................       1,469         356         211
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,748         643         509
    ---------------------------------------------------------------------------

        Agricultural Credit Insurance Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4212-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................       1,008         977         902
    00.02   Advances on behalf of borrowers.           3           3           3
    00.04   Interest on Treasury borrowing..         334         310         210
    00.05   Capital investments.............           4           4           4
    00.10 Civil rights and other obligations           2
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating program.....       1,351       1,294       1,119
    08.01 Negative subsidy receipts.........          -2          -3          -4
          Reestimates:

    08.02   Downward reestimate of subsidy..          25         126
    08.04   Downward reestimate of subsidy--
              interest......................           2          73
                                               ---------   ---------  ----------
    08.91   Subtotal, reestimates...........          25         196          -4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,376       1,490       1,115
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         718       2,534
    22.00 New financing authority (gross)...       3,589       2,598       2,280
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          17
    22.40 Capital transfer to general fund..                  -2,474
    22.60 Portion applied to repay debt.....        -415      -1,168      -1,165
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,909       1,490       1,115
    23.95 Total new obligations.............      -1,376      -1,490      -1,115
    24.40 Unobligated balance carried
            forward, end of year............       2,534
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............       1,176       1,006       1,006
    69.00 Offsetting collections (cash).....       2,414       1,592       1,274
    69.10 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................       2,413       1,592       1,274
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       3,589       2,598       2,280
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         135         165         210
    73.10 Total new obligations.............       1,376       1,490       1,115
    73.20 Total financing disbursements
            (gross).........................      -1,330      -1,445      -1,134
    73.45 Recoveries of prior year
            obligations.....................         -17
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           1
    74.40 Obligated balance, end of year....         165         210         191
    87.00 Total financing disbursements
            (gross).........................       1,330       1,445       1,134
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Payments from
                program account.............      -1,307        -351        -121
    88.25     Interest on uninvested funds..        -130        -111        -115
              Non-Federal sources:
    88.40       Repayments of principal.....        -801        -909        -863
    88.40       Repayments of interest......        -170        -221        -175
    88.40       Interest and principal
                  repayments--judgments.....          -1
    88.40       Proceeds from sale of
                  acquired property.........          -4
    88.40       Credit Report Fees..........          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -2,414      -1,592      -1,274
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............       1,176       1,006       1,006
    90.00 Financing disbursements...........      -1,084        -147        -140
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4212-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         885         802         852
    1121  Limitation available from carry-
            forward.........................         348         225          50
    1143  Unobligated limitation carried
            forward (P.L.106-113 ) (-)......        -225         -50
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       1,008         977         902
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       4,313       4,560       4,579
    1231  Disbursements: Direct loan
            disbursements...................         962         928         857
    1251  Repayments: Repayments and
            prepayments.....................        -665        -858        -961
          Write-offs for default:

    1263    Direct loans....................         -50         -51         -54
    1264    Other adjustments, net..........
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       4,560       4,579       4,421
    ---------------------------------------------------------------------------

    [[Page 98]]

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond (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    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         651          2,601           500            500
            Investments in US securities:
    1106      Receivables, net..............       1,231            243           385            385
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       4,305          4,416         4,521          4,271
    1402    Interest receivable.............         171            181           190            200
    1403    Accounts receivable from
              foreclosed property...........           4              4             4              4
    1405    Allowance for subsidy cost (-)..      -1,564         -1,526        -1,525         -1,525
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       2,916          3,075         3,190          2,950
    1603  Net value of assets related to
            pre-1992 direct loans receivable
            and acquired defaulted
            guaranteed loans receivable:
            Allowance for estimated
            uncollectible loans and interest
            (-).............................         -83            -81           -80            -75
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       4,715          5,838         3,995          3,760
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............       4,678          5,544         3,980          3,745
    2207  Non-Federal liabilities: Other....          37            294            15             15
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       4,715          5,838         3,995          3,760
        NET POSITION:
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       4,715          5,838         3,995          3,760
    -----------------------------------------------------------------------------------------------

      Agricultural Credit Insurance Fund Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4213-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Default claims..................          52          50          50
    00.02   Interest assistance on
              guaranteed loans..............         119         150         150
    00.04   Interest payments to Treasury...                       5           5
    00.05   Capital investments.............           1           2           2
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating program.....         172         207         207
          Reestimates:

    08.02   Downward reestimate of subsidy..          19          37
    08.04   Downward reestimate of subsidy--
              interest......................           7          13
                                               ---------   ---------  ----------
    08.91   Subtotal, reestimates...........          26          50
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         198         257         207
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         102         190          82
    22.00 New financing authority (gross)...         228         149         138
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          60
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         390         339         220
    23.95 Total new obligations.............        -198        -257        -207
    24.40 Unobligated balance carried
            forward, end of year............         190          82          13
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         228         149         138
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         407         414         528
    73.10 Total new obligations.............         198         257         207
    73.20 Total financing disbursements
            (gross).........................        -132        -143        -143
    73.45 Recoveries of prior year
            obligations.....................         -60
    74.40 Obligated balance, end of year....         414         528         594
    87.00 Total financing disbursements
            (gross).........................         132         143         143
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.        -183         -98         -86
    88.25     Interest on uninvested funds..         -27         -25         -25
    88.40     Fees and premiums.............         -18         -26         -27
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -228        -149        -138
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........         -95          -6           5
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4213-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........       2,755       3,000       2,666
    2121  Limitation available from carry-
            forward.........................                      63
    2143  Uncommitted limitation carried
            forward.........................        -204
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       2,551       3,063       2,666
    2199  Guaranteed amount of guaranteed
            loan commitments................       2,296       2,757       2,399
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       9,111       9,378      10,057
    2231  Disbursements of new guaranteed
            loans...........................       2,553       3,000       2,666
    2251  Repayments and prepayments........      -1,897      -2,250      -2,250
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....          -1          -2          -2
    2263    Terminations for default that
              result in claim payments......         -69         -69         -75
    2264    Other adjustments, net..........        -319
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       9,378      10,057      10,396
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       8,441       9,053       9,364
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......          12          10          10
    2331    Disbursements for guaranteed
              loan claims...................           1           2           2
    2351    Repayments of loans receivable..          -1          -1          -1
    2361    Write-offs of loans receivable..          -2          -1          -1
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......          10          10          10
    ---------------------------------------------------------------------------

        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.

    [[Page 99]]

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4213-0-3-351    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         271            604           293            300
            Investments in US securities:
    1106      Receivables, net..............         249             14           259            252
    1206  Non-Federal assets: Receivables,
            net.............................           1
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............                         10            10             10
    1502    Interest receivable.............                          1
    1505    Allowance for subsidy cost (-)..                         -9
                                            ------------ --------------  ------------  -------------
    1599      Net present value of assets
                related to defaulted
                guaranteed loans............                          2            10             10
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         521            620           562            562
        LIABILITIES:
          Federal liabilities:

    2104    Resources payable to Treasury...                          6
    2105    Other...........................                         56
          Non-Federal liabilities:

    2201    Accounts payable................         515            414           562            562
    2204    Liabilities for loan guarantees.           6            144
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         521            620           562            562
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         521            620           562            562
    -----------------------------------------------------------------------------------------------

             Agricultural Credit Insurance Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investment:

    00.08   Loan recoverable costs..........           8           8           8
    00.09   Minor Capital Improvements......           1           1           1
    00.10   Costs incident to acquisition of
              property......................           1           1           1
                                               ---------   ---------  ----------
    00.91     Direct Program by Activities--
                Subtotal (1 level)..........          10          10          10
          Operating expenses:

    01.08   Admininstrative expenses--
              Department of Justice fees....           1           1           1
    01.13   Interest assistance--guaranteed
              loans.........................           7           4           4
    01.17   Unclassified costs..............                       1           1
    01.18   Civil rights settlements........           1           1           1
                                               ---------   ---------  ----------
    01.91     Total operating expenses......           9           7           7
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          19          17          17
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          65
    22.00 New budget authority (gross)......          62          38          17
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          22
    22.40 Capital transfer to general fund..         -65
    22.70 Balance of authority to borrow
            withdrawn.......................         -65         -20
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          19          18          17
    23.95 Total new obligations.............         -19         -17         -17
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         862         838         784
    69.27   Capital transfer to general fund        -800        -800        -767
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          62          38          17
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          45          30           7
    73.10 Total new obligations.............          19          17          17
    73.20 Total outlays (gross).............         -12         -38         -17
    73.45 Recoveries of prior year
            obligations.....................         -22
    74.40 Obligated balance, end of year....          30           7           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          12          38          17
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Rent on acquired property...          -1          -1          -1
    88.40       Guaranteed loans purchased
                  from holders--principal...          -2          -1          -1
    88.40       Guaranteed loans purchased
                  from holders--interest....          -1
    88.40       Interest on loans...........        -258        -285        -285
    88.40       Guaranteed loss recoveries..          -1          -1          -1
    88.40       Interest on judgments.......          -1          -2          -2
    88.40       Interest shared appreciation          -3
    88.40       Repayments on loans--
                  principal.................        -547        -484        -430
    88.40       Judgments--principal........          -9          -9          -9
    88.40       Shared appreciation
                  recapture.................         -25         -14         -14
    88.40       Sale of acquired property/
                  chattels..................         -20         -40         -40
    88.40       Undistributed receipts......           6          -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -862        -838        -784
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -800        -800        -767
    90.00 Outlays...........................        -850        -800        -767
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       4,463       3,783       3,175
    1251  Repayments: Repayments and
            prepayments.....................        -550        -430        -405
    1261  Adjustments: Capitalized interest.          17          13          12
          Write-offs for default:

    1263    Direct loans....................        -124        -191        -184
    1264    Other adjustments, net\1\.......         -23
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       3,783       3,175       2,598
    ---------------------------------------------------------------------------
        \1\ Amounts shown are based on payment of delinquent installments,
    advances on behalf of borrowers, acquired property and chattels, loans
    in kind, and judgments.

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         411         297         247
    2251  Repayments and prepayments........        -118         -50         -35
    2264  Adjustments: Other adjustments,
            net.............................           4
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         297         247         212
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         267         222         191
    ---------------------------------------------------------------------------

        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    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         146            405           150
    0102  Expense...........................        -165           -156          -110
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............         -19            249            40
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4140-0-3-351    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         109             30            90             90

    [[Page 100]]

          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       4,463          3,783         3,175          2,598
    1602    Interest receivable.............         135            628           464            380
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -900           -777          -250           -250
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............       3,698          3,634         3,389          2,728
    1605    Accounts receivable/judgments
              receivable....................                        189
    1606    Foreclosed property.............          54             44            54             54
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       3,752          3,867         3,443          2,782
    1701    Defaulted guaranteed loans,
              gross.........................                         13
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       3,861          3,910         3,533          2,872
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............       3,745          3,866         3,427          2,766
          Non-Federal liabilities:

    2201    Accounts payable................         106             22            96             96
    2204    Liabilities for loan guarantees.                         13
    2207    Other...........................          10              9            10             10
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       3,861          3,910         3,533          2,872
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       3,861          3,910         3,533          2,872
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          11           5           5
    33.0  Investments and loans.............           8           8           8
    43.0  Interest and dividends............                       4           4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          19          17          17
    ---------------------------------------------------------------------------

                          COMMODITY CREDIT CORPORATION

                                  Corporations

        The following corporations and agencies are hereby authorized to
    make expenditures, within the limits of funds and borrowing authority
    available to each such corporation or agency and in accord with law, and
    to make contracts and commitments without regard to fiscal year
    limitations as provided by section 104 of the Government Corporation
    Control Act as may be necessary in carrying out the programs set forth
    in the budget for the current fiscal year for such corporation or
    agency, except as hereinafter provided.

                                  Federal Funds

    Public enterprise funds:

                        Commodity Credit Corporation Fund

                      reimbursement for net realized losses

        For fiscal year 2004, such sums as may be necessary to reimburse the
    Commodity Credit Corporation for net realized losses sustained, but not
    previously reimbursed.

                           hazardous waste management

                            (limitation on expenses)

        For fiscal year 2004, 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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-0-3-999      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Commodity purchases and related
            inventory transactions..........       2,481       3,603       3,033
    00.02 Storage, transportation and other
            obligations.....................         162         365         348
    00.03 Export enhancement program........           2          28          28
    00.04 Market access program.............          97         114         109
    00.05 Dairy export incentive program....          25          36          57
    00.06 Section 416/Food for progress
            ocean transportation............         302          81          59
    00.07 Foreign market development
            cooperative.....................          31          35          35
    00.08 Quality Samples Program...........                       3           3
    00.10 Feed grains.......................       3,126       1,319       3,172
    00.11 Wheat.............................       1,040         661       1,452
    00.12 Rice..............................         383         818         931
    00.13 Cotton............................       1,362       2,308       2,659
    00.14 Dairy Program.....................                   2,400       1,100
    00.15 Tobacco Program...................           6
    00.16 Peanut Program....................                   1,381         435
    00.17 Wool and Mohair Program...........                      26          15
    00.19 Lentils Program...................                       4           4
    00.21 Dry Peas Program..................                       1           3
    00.22 Crop Option Pilot Program.........           2           2
    00.23 Non-Insured Assistance Program....         181         244         257
    00.24 Oilseeds Payment Program..........       2,719       1,159       1,079
    00.25 Marketing Loan Writeoffs..........         642         298         354
    00.26 Certificates Issued...............         134
    00.27 Crop Disaster Program.............         230           1
    00.28 Other Market Loss Assistance
            Payments........................                     184
    00.29 State Payment Transfers...........           6
    00.31 Livestock Assistance Programs.....           3
    00.32 Disaster reserve assistance/
            American Indian livestock feed..           2           6
    00.33 Disaster reserve flood
            compensation....................          12          14
    00.35 Conservation reserve program (CRP)       1,785       1,883       2,022
    00.36 Environmental Qualify Incentives
            Program (EQIP)..................         164
    00.39 Farmland Protection Program.......           1
    00.46 Agricultural Management Assistance
            Program.........................           3           8           7
    00.47 Reimbursable Agreement/Transfers
            to State and Federal Agencies...          55          56          56
    00.48 Treasury..........................         217         203         383
    00.49 Other Interst.....................          17          20          19
    00.50 EQIP Technical Assistance.........          36
    00.52 CRP Technical Assistance..........                     133          97
    00.53 EQIP Education Assistance.........           2
    00.57 Agricultural Managment Assistance
            Program Technical Assistance....           2           5           7
                                               ---------   ---------  ----------
    01.92   Total support and related
              programs......................      15,230      17,399      17,724
    09.01 Commodity loans...................      10,131       8,652       8,934
    09.03 Reimbursable Program..............         441         563         543
    09.04 P. L. 480 ocean transportation....         522         650         671
                                               ---------   ---------  ----------
    09.09   Subtotal, reimbursable programs.      11,094       9,865      10,148
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      26,324      27,264      27,872
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         868
    22.00 New budget authority (gross)......      27,440      27,089      27,821
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          50                       1
    22.60 Portion applied to repay debt.....      -2,034         175          50
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      26,324      27,264      27,872
    23.95 Total new obligations.............     -26,324     -27,264     -27,872
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.35   Appropriation rescinded.........                    -175         -50
          Mandatory:

            Appropriation:
    60.00     Appropriation.................      22,821      17,684      17,275
    60.00     Appropriation.................
    60.35   Appropriation rescinded.........         -14
    60.47   Portion applied to repay debt...     -21,194     -16,175     -15,279
    60.76   Reduction pursuant to P.L. 107-
              206...........................          -7
    61.00   Transferred to other accounts...      -1,606      -1,509      -1,996
                                               ---------   ---------  ----------

    [[Page 101]]

    62.50     Appropriation (total
                mandatory)..................
    67.10   Authority to borrow.............      16,745      15,353      15,021
    69.00 Offsetting collections (cash).....      10,695      11,911      12,850
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      27,440      27,089      27,821
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       3,513       3,595       3,201
    73.10 Total new obligations.............      26,324      27,264      27,872
    73.20 Total outlays (gross).............     -26,609     -27,658     -28,210
    73.40 Adjustments in expired accounts
            (net)...........................         417
    73.45 Recoveries of prior year
            obligations.....................         -50                      -1
    74.40 Obligated balance, end of year....       3,595       3,201       2,863
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                    -175         -50
    86.97 Outlays from new mandatory
            authority.......................       7,871      15,484      15,011
    86.98 Outlays from mandatory balances...      18,738      12,349      13,249
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      26,609      27,658      28,210
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Federal sources:
    88.00       Sales to special activities.        -441        -563        -543
    88.00       Interest Revenue............         -16
    88.00       Other Revenue...............          -1
    88.00       Advances from Foreign
                  Assistance Programs (P.L.
                  480)......................        -966      -1,213      -1,213
              Non-Federal sources:
    88.40       Sales and other proceeds....        -307        -360        -157
    88.40       Interest Revenue............         -63         -77        -114
    88.40       Other Revenue...............        -462
    88.40       Loans Repaid................      -6,644      -8,094      -9,098
    88.40       Commodity Certificates
                  Redeemed..................      -1,750      -1,555      -1,671
    88.40       Export Credit Sales Program
                  Repayments................         -17         -22         -29
    88.40       Interest Revenue............         -28         -27         -25
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........     -10,695     -11,911     -12,850
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      16,745      15,178      14,971
    90.00 Outlays...........................      15,914      15,747      15,360
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-0-3-999      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
              SHORT TERM CREDIT LOANS
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........                     334         312
    1231  Disbursements: Direct loan
            disbursements...................
    1251  Repayments: Repayments and
            prepayments.....................         -17         -22         -29
    1264  Write-offs for default: Other
            adjustments, net................         351
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         334         312         283
    ----------------------------------------------------------------------------

              COMMODITY LOANS
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................      10,131       8,652       8,934
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...      10,131       8,652       8,934
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........                   1,600       2,012
    1231  Disbursements: Direct loan
            disbursements...................      10,131       8,652       8,934
    1251  Repayments: Repayments and
            prepayments.....................     -10,079      -8,094      -9,098
    1264  Write-offs for default: Other
            adjustments, net................       1,548        -146        -113
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,600       2,012       1,735
    ---------------------------------------------------------------------------

        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 2003 and 2004 budget estimates: (a) national
    income will rise both in 2003 and 2004 from the present level; (b) 2003
    crop production will increase from 2002 crop levels for some
    commodities; (c) generally, exports of agricultural commodities in 2004
    are expected to be lower than 2003 levels; (d) yields for the 2003 crops
    are based on recent averages adjusted for trends; and (e) acreage
    allotments and marketing quotas will be in effect for the 2003 crops of
    certain kinds of tobacco.

        It is difficult to accurately forecast requirements for the year
    ending September 30, 2004, 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.

        Title II of the Farm Security and Rural Investment Act of 2002, P.L.
    107-171, reauthorizes funding for the Conservation Reserve Program (CRP)
    through calendar year 2007. Up to 39.2 million acres may be enrolled at
    any one time. 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 2002,
    about 425,000 acres were signed up for continuous practices in signup
    24. Funding for technical assistance for this signup was authorized in
    Section 736 of the FY 2002 Agriculture Appropriations Act, which
    provided $13 million from funds appropriated for the Environmental
    Quality Incentives Program.

        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. This authorization was expanded in the 2002 Farm Bill
    to include 1 million acres and all states.

        A one-year contract extension for CRP participants with contracts of
    original duration of less than 15 years that were scheduled to expire
    September 20, 2002, was assumed. A general signup is planned for 2003.

        Appropriations are made to reimburse the Corporation for net
    realized losses sustained in carrying out its operations:

                                  2004 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...................       8,934       2,305           0
      Feed grain payments...............       3,172       3,172       3,172
      Wheat payments....................       1,452       1,452       1,452
      Rice payments.....................         931         931         931
      Cotton payments...................       2,659       2,659       2,659
      Export enhancement program........          28          28          28
      Other support and related.........       6,745       1,861       5,136
    Other items not distributed by
        program:
      Interest..........................         402         213         263
      All other.........................         217         468         217
                                        ------------------------------------
          Total, farm income, marketing
            assistance loans, and price-
            support programs............      24,540      13,089      13,858
    Conservation programs:
      Conservation reserve program......       2,119       2,119       2,190

    [[Page 102]]

      Environmental quality incentives
        program.........................           0         149         849
      Wetlands reserve program..........           0          47         360
      Farmland protection program.......           0           3         128
      Soil and water conservation
        program.........................           0           3           3
      Other conservation programs.......           0           0         277
                                        ------------------------------------
        Total, conservation programs....       2,119       2,321       3,807
            Total, Commodity Credit
              Corporation...............      26,659      15,410      17,665
                                        ------------------------------------

                           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 Farm
    Security and Rural Investment Act of 2002 (the 2002 Farm Bill).

        Price support is mandatory for tobacco and dairy products. Marketing
    assistance loans are mandatory for wheat, feed grains, oilseeds, upland
    cotton, peanuts, and rice. Loans are also required to be made for sugar,
    honey, wool, mohair, extra long staple cotton, and the pulse crops.

        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. The Farm Security and Rural Investment Act of 2002
    (the 2002 Farm Bill) rescinds Production Flexibility Contracts.
    Therefore, no PFC payments will be made after fiscal year 2002.

        Direct Payments and Counter-Cyclical Payments. The 2002 Farm Bill
    establishes direct payments and counter-cyclical payments for May 2002
    through 2007. The eligible commodities for both direct payments and
    counter-cyclical payments are wheat, corn, grain sorghum, barley, oats,
    upland cotton, rice, soybeans, other oilseeds, and peanuts.

        Direct Payments are payments to producers for which payment yields
    and base acres are established. The commodity payment amount is
    calculated as follows: Payment Amount = specified rate  x  payment acres
     x  payment yield. At the option of the producer, the producer can
    choose to receive advance payments (up to 50%) during the producer's
    selected month. The month selected may be any month during the period
    beginning on December 1 of the calendar year before the calendar year in
    which the crop of the covered commodity is harvested through the month
    within which the direct payment would otherwise be made.

        Counter-Cyclical Payments are payments to producers for which
    payment yields and base acres are established for eligible commodities
    if it is determined that the effective commodity price is less than the
    target commodity price. Counter-cyclical payments will be made for the
    crop as soon as practicable after the end of the 12-month marketing year
    for the eligible commodity. If, before the end of the 12-month marketing
    year it is determined that counter-cyclical payments will be required
    for the eligible commodity, producers will be provided the option to
    receive partial payment of the projected counter-cyclical payment.

        Marketing assessments. The 1949 Act mandated assessments for
    tobacco, and the 1996 Act required such assessments for peanuts and
    sugar. The 2000 Act suspended sugar marketing assessment collections
    through 2001. The 2002 Farm Bill did not resume the sugar marketing
    assessment collections. Tobacco marketing assessments were authorized
    through crop year 1998.

        Marketing assistance loans. The 2002 Farm Bill authorized producers
    of eligible crops to receive non-recourse marketing assistance loans
    from the government for any quantity of a loan commodity produced on the
    farm by pledging their production as loan collateral. This loan shall
    have a term of 9 months beginning on the first day of the first month
    after the month in which the loan is made. The loan cannot be extended.
    As a condition of the receipt of a marketing assistance loan, the
    producer shall comply with applicable conservation requirements under
    subtitle B of title XII of the Food Security Act of 1985 and applicable
    wetland protection requirements under subtitle C of title XII of the Act
    during the term of the loan. Producers of eligible commodities can repay
    a marketing assistance loan at a rate that is the lesser of (1) the loan
    rate established for the commodity plus interest; or (2) a rate that the
    Secretary determines. Special rules apply to upland cotton, rice, and
    extra long staple cotton. Crops eligible for marketing assistance loans
    include wheat, corn, barley, oats, grain sorghum, rice, upland cotton,
    soybeans, extra long staple cotton, other oilseeds, dry peas, lentils,
    small chickpeas, honey, wool, and mohair.

        Peanut price support program. Under the 2002 Farm Bill, peanuts
    qualify for direct payments, counter-cyclical payments, marketing
    assistance loans and loan deficiency payments for the 2002 through 2007
    crops.

        The 2002 Farm Bill terminates the marketing quota programs and
    repeals price support programs. The prior quota programs will stay in
    effect for the 2001 crop only, with quoto buyout compensation payments
    being made during fiscal years 2002 through 2006. The prior price
    support programs will remain in effect for the 2002 crop only
    notwithstanding any other provision of law or crop insurance policy.

        The 2002 Farm Bill established marketing assistance loans for the
    2002 through 2007 crops, with the loan rate for peanuts of $355 per ton.
    The payment rate shall be the amount by which the established loan rate
    exceeds the rate at which a loan may be repaid. The Farm Bill also
    requires that for crop years 2002 through 2006 CCC will pay storage,
    handling, and other associated costs to ensure proper storage of peanuts
    for which a loan is made. This authority terminates beginning with the
    2007 crop.

        Tobacco program. The Appropriations Act of 2002 defines ``eligible
    tobacco'' as fire-cured tobacco types 22 and 23, dark air-cured tobacco
    types 35 and 36, and Virginia sun-cured tobacco type 37. It also
    directed the Secretary to use CCC funds to make payments based on
    individual tobacco quotas and allotments. USDA is authorized to provide
    ongoing support to tobacco producers through price support programs and
    the allotment and quota program. Legislative authority for these
    activities originated in the Agricultural Act of 1949 and the
    Agricultural Adjustment Act of 1938, respectively. These payments will
    be calculated and the total distributed with one-third going to the
    person that owns the qualifying acres, one-third to the person that
    controls the qualifying acres, and one-third to the person that grows,
    could have grown or can grow on the qualifying acres. The same standards
    of payments will be used as set forth in the Agricultural Risk
    Protection Act of 2000. No changes to the program were made under the
    2002 Farm Bill.

    [[Page 103]]

        Sugar program. Sugar qualifies for price support. The 2002 Farm Bill
    extended the national average sugar loan rates to cover through the 2007
    crops at 18 cents per pound for raw cane sugar and 22.9 cents per pound
    for refined beet sugar. Loans are available to processors of
    domestically grown sugarcane and sugar beets for a term of nine months
    that does not begin or extend beyond the end/beginning of a fiscal year.
    The non-recourse loans are extended through the 2007 crop for processors
    of domestically produced sugar beets and sugarcane including for in-
    process sugar. Loans for in-process sugar have a loan rate of 80% of the
    loan rate for raw cane sugar or refined beet sugar (based on the source
    material used). If forfeitures occur, the processor shall convert the
    in-process into final product at no cost to the CCC. Upon transfer, the
    processor will receive payment based on the loan rate less 80% of raw
    cane or refined beet sugar rate times the quantity of sugar transferred.
    The loan program is assumed to continue through the 2012 crop. The 2002
    Farm Bill did not resume the sugar marketing assessment collections but
    authorized marketing allotments. The 2002 Act provides assistance for
    sugar donations in the amount of 10,000 tons to compensate sugar
    producers who suffer losses incurred beyond existing CCC administered
    programs.

        Dairy program. Dairy qualifies for milk price supports, recourse
    loans, and dairy market loss payments. The 2002 Act extended the Dairy
    Price Support Program from January 1, 2002 to May 31, 2002. The 2002
    Farm Bill extended the Dairy Price Support Program from June 1, 2002
    through December 31, 2007 at a rate of $9.90 per hundredweight for milk
    containing 3.67% butterfat. The support program is carried out through
    the purchase of butter, nonfat dry milk, and cheese at prices that
    enable processors to pay dairy farmers, on average, the support price
    for milk. As under previous law, the Secretary may allocate the rate of
    price support between the purchase prices for nonfat dry milk and butter
    in a manner that minimizes CCC expenditures or other objectives, as the
    Secretary considers appropriate. Cash CCC inventory sales (with some
    exceptions) shall be at any price that the Secretary determines will
    maximize CCC returns. The 2002 Farm Bill repealed all legislative
    authority for the Dairy Recourse Loan Program but established a new Milk
    Income Loss Contract Program, under which the Secretary may contract
    with eligible producers up to September 30, 2005, to make monthly
    payments when milk prices fall below specified levels.

        Market loss assistance payments. The 2002 Appropriations Act
    provided $75 million to apple producers for market loss assistance. The
    2002 Farm Bill provided $94 million in additional assistance, increasing
    apple market loss assistance to $169 million. The 2002 Farm Bill also
    provided a $10 million grant to the state of New York for market loss
    assistance to onion producers who suffered losses to onion crops during
    1 or more of the 1996 through 2000 crop years.

        Payment Limitations. In general, the 2002 Farm Bill revised the Food
    Security Act of 1985 (7 U.S.C. 1308) for payment limitations. The total
    amount of direct payments made to a person during any crop year for 1 or
    more covered commodities may not exceed $40,000. The total amount of
    counter-cyclical payments made to a person during any crop year for 1 or
    more covered commodities may not exceed $65,000. Separate limits apply
    to direct and counter-cyclical payments for peanuts. The total amount of
    gains and payments that a person may receive during any crop year under
    marketing assistance loan and loan deficiency payment provisions may not
    exceed $75,000. Notwithstanding any other provision of law, an
    individual or entity shall not be eligible to receive any benefit
    described above if the average adjusted annual gross income of the
    individual or entity exceeds $2,500,000, unless not less than 75 percent
    of the average adjusted gross income of the individual or entity is
    derived from farming, ranching, or forestry operations, as determined by
    the Secretary. This shall apply during the 2003 through 2007 crop years.

        Noninsured Assistance Program. The Agricultural Risk Protection Act
    of 2000 eliminated the area loss requirement for triggers and made other
    changes. It also included a provision that all types or varieties of a
    crop or commodity may be considered to be a single eligible crop for NAP
    assistance.

        Bioenergy Program. The 2004 President's Budget assumes CCC will
    continue to make incentive payments, under the Bioenergy Program, to
    ethanol, biodiesel, and other bioenergy producers to expand production
    of bio-based fuels. Payments shall be made on a portion of the increase
    in agricultural commodities purchased for expanded bioenergy production,
    with smaller and cooperatively-owned facilities receiving higher payment
    rates. This program is authorized by the CCC Charter Act. The 2002 Farm
    Bill extends the program through FY 2006 at the program level of $150
    million per year. The budget assumes a reduction in funding to $100
    million.

        Foreign Market Development and Food Assistance Programs.

        Dairy Export Incentive Program (DEIP). DEIP provides cash bonus
    payments to exporters to facilitate commercial sales of U.S. dairy
    products in overseas markets. Estimates of the quantity of dairy
    products to be exported under DEIP and associated expenditures were
    formulated within the maximum allowable expenditure and quantity levels
    specified in conjunction with provisions of the Uruguay Round Agreement.
    Consequently, current baseline projections assume that DEIP will not
    exceed $116.6 million annually during FYs 2002-2012. Actual DEIP
    subsidies are further limited on a product-by-product basis under the
    Uruguay Round.

        Export Enhancement Program (EEP). Current baseline projections
    assume an EEP annual program level for FYs 2003-2013 will be $28
    million. However, the 2002 Farm Bill authorizes funding up to $478
    annually for EEP through 2007, which will be available for EEP
    programming should market conditions warrant. Actual subsidies for EEP
    are further limited on a product-by-product basis under the Uruguay
    Round.

        Market Access Program (MAP). Under the MAP, CCC Funds are used to
    reimburse participating organizations for a portion of the costs of
    carrying out overseas marketing and promotional activities. The 2002
    Farm Bill continued the authority for the MAP program and increased the
    funding as follows: $100 million for FY 2002, $110 million for FY 2003,
    $125 million for FY 2004, $140 million for FY 2005, and $200 million for
    FY 2006 and 2007.

        Foreign Market Development Cooperator Program (FMD) and Quality
    Samples Program. Under the FMD program, cost-share assistance is
    provided to nonprofit commodity and agricultural trade associations to
    support overseas market development activities that are designed to
    remove long-term impediments to increased U.S. trade. The 2002 Farm Bill
    increased the available funds for this program to $34.5 million for each
    of fiscal years 2002 through 2007.

        CCC will fund the Quality Samples Program at an authorized annual
    level of $2.5 million. Under this initiative, samples of U.S.
    agricultural products will be provided to foreign importers to promote a
    better understanding and appreciation for the high quality of U.S.
    products.

        Global Food for Education Initiative (GFEI). During 2001 and 2002,
    Section 416(b) authority was used to support the GFEI. Under the
    initiative commodities were provided to support school-feeding programs
    in developing countries with the objectives of reducing hunger,
    improving health, and promoting school enrollment, attendance, and
    performance. The 2002 Farm Bill authorized a successor program, the
    McGovern-Dole International Food for Education and Child Nutrition
    Program. The 2002 Farm Bill authorizes $100 million

    [[Page 104]]

    in CCC funding to carry out the new program in FY 2003 and authorizes
    appropriated funding in subsequent years. The budget proposes $50
    million for the program in 2004 in a new account under the Foreign
    Agricultural Service.

        Commodity Donations. The 2002 Farm Bill authorizes the donation of
    surplus commodity inventory to domestic nutrition programs. 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 $40 million
    of the funds of the Corporation (exclusive of the costs of commodities)
    may be used for each fiscal year. Commodities that are acquired by CCC
    in the normal course of its domestic support operations will be
    available for donation. The current CCC inventory has nonfat dry milk
    available for donation.

        The Bill Emerson Humanitarian Trust. The Bill Emerson Humanitarian
    Trust (BEHT) is a commodity reserve that was established to ensure that
    the United States can meet its international food aid commitments.
    Commodities authorized for the 4-million-ton reserve include wheat,
    corn, grain sorghum, and rice. The Secretary is authorized to release up
    to 500,000 metric tons for urgent humanitarian relief in disasters in
    the case of unanticipated need and to release an additional 500,000
    metric tons of eligible commodities that could have been released but
    were not released in previous years. The Secretary is authorized to
    release eligible commodities from the reserve when supplies are so
    limited that eligible commodities cannot be made available for
    programming under P.L. 480. The 2002 Farm Bill extended the
    authorization to replenish the BEHT through FY 2007. CCC is authorized
    to hold funds as well as commodities in the reserve.

        Agricultural management assistance program.--The 2002 Farm Bill
    authorized the use of CCC funding of $20 million for each fiscal year
    2003 through 2007, and $10 million for 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.--Title II of the Farm Security and Rural
    Investment Act of 2002, P.L. 107-171, authorizes funding for new and
    existing conservation programs implemented by the Farm Service Agency or
    the Natural Resources Conservation Service and funded through the
    Commodity Credit Corporation. The bill provides $7 billion through 2007
    to help farmers adopt and maintain conservation systems that protect
    water quality, reduce soil erosion, protect and enhance wildlife habitat
    and wetlands, conserve water, and sequester carbon.

        The financial assistance for conservation programs where the Natural
    Resources Conservation Service (NRCS) is the lead agency, is transferred
    from CCC to NRCS's Farm Security and Rural Investment Programs account
    (see the NRCS section). Specifically, these programs include the
    Environmental Quality Incentives Program (EQIP), Wetlands Reserve
    Program (WRP), Wildlife Habitat Incentives program, Farmland Protection
    Program, Conservation Security Program, and Grasslands Reserve Program.

        The Environmental Conservation Acreage Reserve Program (ECARP) has
    been renamed Comprehensive Conservation Enhancement Program (CCEP).
    Authority for Conservation Priority Areas is eliminated in the EQIP but
    retained in the Conservation Reserve Program (CRP).

        The 2002 Farm Bill authorized EQIP funding at $6.1 billion over 6
    years with $400 million in 2002 and increasing to $1.3 billion in 2007.
    The program provides assistance to eligible farmers and ranchers to
    address soil, water, air, and related natural resource concerns on their
    lands, in an environmentally beneficial and cost-effective manner.
    Livestock-related conservation practices will receive 60 percent of the
    program funding. The 2002 EQIP program was funded at $400 million with
    the 2002 appropriations act authorizing use of $13 million for CRP
    technical assistance. This reduced the base EQIP program to $387 million
    for 2002.

        An additional $25 million of EQIP funds was authorized in 2002 for
    the Ground and Surface Water Conservation Program (GSWC). GSWC funds in
    2002 were targeted to states in the High Plains Aquifer to address this
    region's declining ground and surface water. A new water savings must be
    achieved on agricultural operations receiving funding. In 2003, GSWC
    funding is authorized at $45 million and for 2004 through 2007; the
    authorization is $60 million per year.

        The Klamath Basin of Oregon and California has been authorized for
    $50 million over the life of the 2002 Farm Bill. In 2002, the Klamath
    Basin EQIP funding was $2.5 million. The program is designed to promote
    the installation of water conservation practices on agricultural lands
    to improve the quantity and quality of water in the Klamath Basin.

        The WRP is authorized under Section 1237 of the Food Security Act of
    1985, as amended. The 2002 Farm Bill re-authorized WRP, providing the
    Secretary the authority to enroll, to the extent practical, 250,000
    acres annually, through 2007 with CCC funding. The program offers
    landowners an opportunity to voluntarily restore and protect wetlands,
    and associated lands, through long-term agreements, 30-year easements,
    or perpetual easements on marginal and high-risk agricultural lands. The
    Farm Security and Rural Investment Act of 2002 (FY 2002 Farm Bill)
    raised the total statutory acreage enrollment from 1,075,000 to
    2,275,000. The total acreage enrollment at the end of 2002 was 1,274,000
    acres.

        The 2002 Farm Bill also authorized the use of $275 million of CCC
    funds for implementation of the watershed rehabilitation provisions of
    the Watershed Protection and Flood Prevention Program (PL 83-566). The
    authorized annual CCC funding amounts start at $45 million in 2003 and
    increase $5 million each year to $65 million in 2007. The 2003 and 2004
    budgets, however, do not fund the Small Watershed Rehabilitation Program
    with CCC funds. Instead, the 2004 budget requests $10 million from
    discretionary appropriations to fund this program. No funding for the
    Small Watershed Rehabilitation Program was requested in the 2003 budget.

        Section 14 of PL 83-566 authorizes the Secretary to provide
    technical and financial assistance to project sponsors to rehabilitate
    aging dams that were originally constructed under the following USDA
    water resource programs: Flood Control Act of 1944 (PL 78-534),
    Watershed Protection and Flood Protection Act of 1954 (PL 83-566), Pilot
    Watershed Program (1953-54), and the Resource Conservation and
    Development Program (RC&D). Federal funds are limited to 65% of the
    total rehabilitation project cost. A priority ranking system identifies
    sponsor applications that address dams that pose the greatest threat to
    public health and safety. Dams will be rehabilitated to extend the life
    of the dams and meet all safety and performance standards.

        The Farmland Protection Program (FPP) is a voluntary program that
    helps farmers and ranchers keep their land in agriculture. The program
    provides matching funds to State, Tribal, or local governments or non-
    governmental organiza

    [[Page 105]]

    tions with existing farmland protection programs. USDA works with State,
    Tribal, or local governments or non-governmental organizations to
    acquire conservation easements from landowners. Participating landowners
    choose to keep their land in agriculture and agree not to convert the
    land to agricultural uses. Landowners retain all rights to use the
    property for agriculture. Through 2001, more than 108,000 acres have
    been protected in 28 states. The 2002 Farm Bill authorized $597 million
    of CCC funds for FPP. Between 2002 and 2007, it is estimated that these
    funds will protect an additional 1.2 million acres from conversion to
    non-agricultural uses.

        Wildlife Habitat Incentives Program (WHIP) is a voluntary program
    that provides technical and financial assistance to landowners to
    develop habitat for fish, upland and wetland wildlife, threatened and
    endangered species, and other types of wildlife. Program expenditures on
    habitat improvement projects through 2001 totaled $62.5 million. The
    2002 Farm Bill extended the program through 2007 and authorized an
    additional $360 million for WHIP. Of this total, $15 million were
    utilized during 2002 bringing the total program enrollment to 12,500
    contracts covering almost two million acres.

        The Agricultural Risk Protection Act of 2000 authorized CCC funding
    of $10 million for 2001 and subsequent years for the Agricultural
    Management Assistance Program (AMAP). AMAP provides cost-share
    assistance to producers in not less than 10, nor more than 15, States in
    which the Federal Crop Insurance Program is historically low as
    determined by the Secretary of Agriculture. The 2002 Farm Bill increased
    CCC funding to $20 million annually. The Secretary delegated authority
    to Natural Resources Conservation Service, Risk Management Agency, and
    the Agricultural Marketing Service.

        The 2002 Farm Bill authorized the Conservation Security Program
    (CSP) to provide payments to producers for using conservation systems
    that address a wide range of priority resource concerns. CSP will focus
    on land-based conservation practices, and specifically excludes
    livestock waste handling facilities. Producers can participate at one of
    three tiers; higher tiers require greater conservation efforts.
    Participants must use the most cost-effective practices that meet USDA's
    conservation standards. The 2004 budget proposes to legislatively limit
    the total amount CSP can spend over ten years (from FY 2003 through FY
    2011) to $2 billion.

        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.

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

                            [In millions of dollars]

                    Item                 2002 actual  2003 est.   2004 est.
    Loans outstanding, gross, start of
        year:
      Commodity Credit Corporation......       1,896       1,600       2,012
      Additional loans made.............      10,131       8,652       8,934
    Deduct:
      Loans repaid......................      10,079       8,093       9,098
      Acquisition of loan collateral....         164         147         113
      Write-offs........................         184           0           0
                                        ------------------------------------
          Total loans outstanding,
            gross, end of year..........       1,600       2,012       1,725
                                        ====================================

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

                            AGRICULTURAL COMMODITIES

                            [In millions of dollars]

                    Item                 2002 actual  2003 est.   2004 est.
    On hand, start of year, gross.......       2,285       2,479       2,426
                                        ====================================
    Acquisitions:
      Forfeiture of loan collateral.....         164         147         113
      Excess of collateral acquired over
        loans canceled..................           6           8           4
      Purchases.........................       5,331       3,557       2,990
      Transfers and exchanges...........         -27           0           0
    Carrying charges:
      Charges to inventory..............          35          38          39
      Storage and handling (non-add)....        (67)        (59)        (54)
      Transportation (non-add)..........        (16)        (16)        (12)
                                        ------------------------------------
          Total acquisitions............       5,509       3,750       3,146
                                        ====================================
    Dispositions:
      Domestic donations to:
        Families........................          39          48          69
        Institutions....................          24         228          32
        School lunch....................           0          19          19
                                        ------------------------------------
          Total domestic donations......          63         295         120
                                        ====================================
      Export donations..................         596         279         228
      Sales and transfers:
        Special programs: Title II,
          Public Law 480................         441         563         543
        Title III, Public Law 480.......           0           0           0
        Other sales.....................       2,146       1,915       1,828
        Net loss or gain (-) on sales
          and transfers.................       2,069         750         489
                                        ------------------------------------
          Total sales and transfers.....       4,656       3,228       2,860
                                        ====================================
          Total dispositions............       5,315       3,803       3,208
                                        ====================================
    On hand, end of year, gross.........       2,479       2,426       2,364
    Allowances for losses...............      -1,115      -1,092      -1,064
                                        ------------------------------------
    On hand, end of year, net...........       1,364       1,334       1,300
                                        ====================================

        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                 2002 actual  2003 est.   2004 est.
    Loans made..........................      10,131       8,652       8,934
    Loans repaid........................      10,079       8,094       9,098
    Loan collateral forfeited...........         164         147         113
    Loans outstanding, end of year......       1,600       2,012       1,735
    Acquisitions........................       5,509       3,750       3,147
    Cost of commodities sold............       4,656       3,228       2,860
    Cost of commodities donated.........         659         575         348
    Inventory, end of year..............       2,479       2,426       2,364
    Investment in loans and inventory,
    end of year.........................       4,079       4,437       4,098
    Direct producer payments............      11,963      12,682      13,328
    Net expenditures....................      15,680      15,735      15,191
    Realized losses.....................      16,993      16,589      17,665

        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 ex

    [[Page 106]]

    penses 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. CCC carried only $88,000 of the remaining ADP cap into fiscal
    year 2003.

        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 allotments 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 and the cap remains at $56 million in fiscal year
    2003.

        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. The Corporation receives
    reimbursement for the commodity costs and other costs, including
    administrative costs, for commodities supplied to domestic nutrition
    programs and international food aid programs.

                                    financing

        Borrowing authority.--The Corporation has an authorized capital
    stock of $100 million held by the U.S. Treasury and, effective in 1988,
    authority to have outstanding borrowings up to $30 billion at any one
    time.

        Funds are borrowed from the Treasury and may also be borrowed from
    private lending agencies and others. The Corporation reserves a
    sufficient amount of its borrowing authority to purchase at any time all
    notes and other obligations evidencing loans made to the Corporation by
    such agencies and others. All bonds, notes, debentures, and similar
    obligations issued by the Corporation are subject to approval by the
    Secretary of the Treasury as required by the Act of March 8, 1938.

        Interest on borrowings from the Treasury (and on capital stock) is
    paid at a rate based upon the average interest rate of all outstanding
    marketable obligations (of comparable maturity date) of the United
    States as of the preceding month. Interest is also paid on other notes
    and obligations at a rate prescribed by the Corporation and approved by
    the Secretary of the Treasury.

        The Department of Agriculture and Related Agencies Appropriation
    Act, 1966, made provision for terminating interest after June 30, 1964
    on the portion of the Corporation's borrowings from the Treasury equal
    to the unreimbursed realized losses recorded on the books of the
    Corporation after the end of the fiscal year in which such losses are
    realized.

            POSITION WITH RESPECT TO BORROWING AUTHORITY, END OF YEAR

                            [In millions of dollars]

                    Item                 2002 actual  2003 est.   2004 est.
    Statutory borrowing authority.......      30,000      30,000      30,000
    Deduct: Borrowings from Treasury....      17,827      18,223      25,062
    Net statutory borrowing authority
    available...........................      12,173      11,777       4,938

        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]
                                              2002 actual      2003 est.
    Realized losses, 1933 to 2002, inclusive                       356,948
     Reimbursements by the Treasury:
      Reimbursements of realized losses:
       Appropriations (63 times)............       336,777
       Note cancellations (6 times).........         2,698
       Less dividends paid to Treasury (4
        times)..............................          -138
                                             -------------  --------------

        Total reimbursements for net
         realized losses....................       339,337
                                             -------------  --------------

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

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

      Total.................................                       339,935
                                             -------------  --------------

    Realized deficit as of September 30,
     2002, support and related programs.....                        17,013
                                             -------------  --------------

        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. Commodity certificates 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

    [[Page 107]]

    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.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4336-0-3-999    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................       1,507          3,435         2,901          2,765
    0102  Expense...........................     -24,887        -20,428       -20,176        -20,376
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............     -23,380        -16,993       -17,275        -17,611
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4336-0-3-999    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....      -1,220          2,453         1,800          1,800
            Investments in US securities:
    1106      Receivables, net..............         925             44            44             44
    1107      Advances and prepayments......                         20            20             20
          Non-Federal assets:

    1206    Receivables, net................         413            411          -240           -496
    1207    Advances and prepayments........         175            104           118            118
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       1,896          1,570         1,813          1,563
    1602    Interest receivable.............         275          8,983         9,620         10,394
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -285           -158          -198           -171
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............       1,886         10,395        11,235         11,786
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       1,886         10,395        11,235         11,786
          Other Federal assets:

    1802    Inventories and related
              properties....................         878          1,364         1,335          1,300
    1803    Property, plant and equipment,
              net...........................          19             19            22             22
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       3,076         14,810        14,334         14,594
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................         475            676           475            475
    2102    Interest payable................         123          6,450           915            965
    2103    Debt............................      22,732         20,425        20,254         20,465
    2105    Other...........................         731          1,910           527            527
          Non-Federal liabilities:

    2201    Accounts payable................          27              3            23             22
    2207    Other...........................       2,696          2,711         1,334          1,334
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      26,784         32,175        23,528         23,788
        NET POSITION:
    3300  Cumulative results of operations..     -23,708        -17,365        -9,194         -9,194
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............     -23,708        -17,365        -9,194         -9,194
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       3,076         14,810        14,334         14,594
    -----------------------------------------------------------------------------------------------
        Note.--In addition to obligations other than liabilities, the
    Corporation does not reflect in its accounts claims by the Corporation
    on which adequate proof has not been established.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-0-3-999      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    22.0    Transportation of things........         319          99          72
            Other services:
    25.2      Other services................         173         485         443
    25.2      Other services: Storage and
                handling....................          67          59          54
    26.0    Supplies and materials: Costs of
              commodities sold or donated:
              P.L. 480......................       2,482       3,603       3,033
    41.0    Grants, subsidies, and
              contributions.................      11,955      12,930      13,721
    43.0    Interest and dividends..........         234         223         402
                                               ---------   ---------  ----------
    99.0      Direct obligations............      15,230      17,399      17,725
          Reimbursable obligations:

    22.0    Transportation of things: P. L.
              480 ocean transportation......         522         650         670
    26.0    Supplies and materials: Cost of
              commodities sold or donated:
              P. L. 480.....................         441         563         543
    33.0    Investments and loans...........      10,131       8,652       8,934
                                               ---------   ---------  ----------
    99.0      Reimbursable obligations......      11,094       9,865      10,147
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      26,324      27,264      27,872
    ---------------------------------------------------------------------------

            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, $4,312,000;
    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 $3,327,000 may be
    transferred to and merged with the appropriation for ``Foreign
    Agricultural Service, Salaries and Expenses'', and of which $985,000 may
    be transferred to and merged with the appropriation for ``Farm Service
    Agency, Salaries and Expenses''.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1336-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........          97         294         297
    00.07 Reestimates of subsidy............         118         376
    00.08 Interest on reestimates...........           8         173
    00.09 Administrative expenses...........           4           4           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         227         847         301
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       2,405         625         625
    22.00 New budget authority (gross)......         417         847         301
    22.40 Capital transfer to general fund..      -1,970
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         852       1,472         926
    23.95 Total new obligations.............        -227        -847        -301
    24.40 Unobligated balance carried
            forward, end of year............         625         625         625
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

            Appropriation:
    60.00     Appropriation.................         265         294         297
    60.00     Appropriation--upward
                reestimate..................         148         549
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         413         843         297
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         417         847         301
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         105          69          65
    73.10 Total new obligations.............         227         847         301
    73.20 Total outlays (gross).............        -261        -851        -293
    74.40 Obligated balance, end of year....          69          65          73
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           4           4           4
    86.97 Outlays from new mandatory
            authority.......................         204         784         238
    86.98 Outlays from mandatory balances...          53          63          51
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         261         851         293
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         417         847         301
    90.00 Outlays...........................         262         851         293
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1336-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Export guarantee program..........       3,266       4,225       4,155
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......       3,266       4,225       4,155

    [[Page 108]]

        Guaranteed loan subsidy (in percent):
    232001Export guarantee program..........        6.80        6.96        7.14
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        6.80        6.96        7.14
        Guaranteed loan subsidy budget authority:
    233001Export guarantee program..........         222         294         297
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....         222         294         297
        Guaranteed loan subsidy outlays:
    234001Export guarantee program..........         110         298         289
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............         110         298         289
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235001Export guarantee program..........         148         549
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................         148         549
        Guaranteed loan upward reestimate subsidy
                    outlays:
    236001Export guarantee program..........         148         549
                                               ---------   ---------  ----------
    236901Total upward reestimate subsidy
            outlays.........................         148         549
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237001Export guarantee program..........        -126        -552
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................        -126        -552
        Guaranteed loan downward reestimate subsidy
                    outlays:
    238001Export guarantee program..........        -126        -552
                                               ---------   ---------  ----------
    238901Total downward reestimate subsidy
            outlays.........................        -126        -552
    ----------------------------------------------------------------------------

        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 2004 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      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................           4           4           4
    41.0  Grants, subsidies, and
            contributions...................         223         843         297
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         227         847         301
    ---------------------------------------------------------------------------

         Commodity Credit Corporation Export Guarantee Financing Account

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4337-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0101  Commodity Credit Corporation
            export guarantees, downward
            reestimates of subsidies........         126         552
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4337-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          New loans:

    00.01   Default claims..................          40         325         325
    00.02   Interest on debt to Treasury....          93         104         104
                                               ---------   ---------  ----------
    00.91   Subtotal, new loans.............         133         429         429
          Reestimates:

    08.02   Reestimates of guaranteed loan
              subsidy.......................         118         389
    08.04   Interest on reestimates of
              guaranteed loan subsidy.......           8         163
                                               ---------   ---------  ----------
    08.91   Subtotal, reestimates...........         126         552
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         259         981         429
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         589       1,002          95
    22.00 New financing authority (gross)...         672       1,121         578
    22.40 Capital transfer to general fund..                  -1,047
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,261       1,076         673
    23.95 Total new obligations.............        -259        -981        -429
    24.40 Unobligated balance carried
            forward, end of year............       1,002          95         244
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............         221
          Discretionary:

    68.10   Spending authority from
              offsetting collections: Change
              in uncollected customer
              payments from Federal sources
              (unexpired)...................        -105
          Mandatory:

    69.00   Offsetting collections (cash)...         495       1,121         578

    [[Page 109]]

    69.10   Receivable from Federal sources.          61
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         556       1,121         578
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         672       1,121         578
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..        -105         -61         628
    73.10 Total new obligations.............         259         981         429
    73.20 Total financing disbursements
            (gross).........................        -259        -292        -292
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          44
    74.40 Obligated balance, end of year....         -61         628         765
    87.00 Total financing disbursements
            (gross).........................         259         292         292
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.        -258        -847        -289
    88.25     Interest on uninvested funds..         -61         -65         -68
              Non-Federal sources:
    88.40       Loan origination fee........         -21         -29         -29
    88.40       Principal collections.......         -53         -66         -72
    88.40       Interest collections........        -102        -114        -120
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -495      -1,121        -578
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          44
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         221
    90.00 Financing disbursements...........        -236        -829        -286
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4337-0-3-351      2002 actual   2003 est.   2004 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.................       3,926       4,225       4,155
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       3,926       4,225       4,155
    2199  Guaranteed amount of guaranteed
            loan commitments................       3,800       4,090       4,020
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       4,915       4,762       4,682
    2231  Disbursements of new guaranteed
            loans...........................       3,926       4,225       4,155
    2251  Repayments and prepayments........      -3,745      -3,980      -3,934
    2261  Adjustments: Terminations for
            default that result in loans
            receivable......................        -334        -325        -318
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       4,762       4,682       4,585
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       4,667       4,588       4,507
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......         485         779       1,038
    2331    Disbursements for guaranteed
              loan claims...................         334         325         318
    2351    Repayments of loans receivable..         -40         -66         -81
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         779       1,038       1,275
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from loan guarantees committed in 1992 and beyond. The amounts
    in this account are a means of financing and are not included in the
    budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4337-0-3-351    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

            Fund balances with Treasury:
    1101      Fund balances with Treasury...         589            942           757            755
    1101      Accounts Receivable, net......       1,612          1,326         1,250          1,100
    1101      Adjustments...................         168
          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501    Defaulted guaranteed loans
              receivable, gross.............         484            779         1,038          1,275
                                            ------------ --------------  ------------  -------------
    1599      Net present value of assets
                related to defaulted
                guaranteed loans............         484            779         1,038          1,275
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,853          3,047         3,045          3,130
        LIABILITIES:
    2103  Federal liabilities: Debt.........       2,538          2,408         2,110          2,500
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.         315            639           935            630
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,853          3,047         3,045          3,130
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,853          3,047         3,045          3,130
    -----------------------------------------------------------------------------------------------

        Commodity Credit Corporation Guaranteed Loans Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4338-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating Expenses................                       1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.3)...................                       1           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          84          80
    22.00 New budget authority (gross)......          -3           1           1
    22.40 Capital transfer to general fund..                     -80
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          81           1           1
    23.95 Total new obligations.............                      -1          -1
    24.40 Unobligated balance carried
            forward, end of year............          80
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         498         479         450
    69.27   Capital transfer to general fund        -501        -478        -449
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          -3           1           1
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          -3           1           1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Repayments of principal.....        -498        -240        -256
    88.40       Interest received on loans..                    -239        -194
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -498        -479        -450
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -501        -478        -449
    90.00 Outlays...........................        -499        -478        -449
    ---------------------------------------------------------------------------
        Note.--Includes amounts for activities previously funded in the
    Commodity Credit Corporation Fund.

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4338-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......       3,969       3,785       3,584
    2351    Repayments of loans receivable..        -184        -201        -198
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       3,785       3,584       3,386
    ---------------------------------------------------------------------------

    [[Page 110]]

        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.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4338-0-3-351    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         120            125           130
    0102  Expense...........................
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............         120            125           130
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4338-0-3-351    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

            Fund balances with Treasury:
    1101      Fund balances with Treasury...          84             81            81             81
    1101      Undepostied Collections.......          59
    1206  Non-Federal assets: Foreign Loans
            Receivables.....................       5,375          5,308         5,308          5,308
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1702    Interest receivable.............          30             28            28             28
    1703    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -2,795         -2,566        -2,566         -2,566
                                            ------------ --------------  ------------  -------------
    1799      Value of assets related to
                loan guarantees.............      -2,765         -2,538        -2,538         -2,538
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,753          2,851         2,851          2,851
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................           1              1             1              1
    2104    Resources payable to Treasury...       2,722          2,389         2,389          2,389
    2207  Non-Federal liabilities: Other....          30            461           461            461
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,753          2,851         2,851          2,851
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,753          2,851         2,851          2,851
    -----------------------------------------------------------------------------------------------

                   Farm Storage Facility Loans Program Account

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3301-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0101  Farm storage facility loans
            program, downward reestimates of
            subsidies.......................           1           8
    0102  Negative subsidies/subsidy
            reestimates.....................                                   1
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3301-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Farm Storage Loan Subsidy.........           1           2           1
    00.02 Sugar Storage Loan Subsidy........                                  -1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           1           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          10          12
    22.00 New budget authority (gross)......           4           2           1
    22.40 Capital transfer to general fund..                     -12
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          14           2           1
    23.95 Total new obligations.............          -1          -2
    24.40 Unobligated balance carried
            forward, end of year............          12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................           4           2           1
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           2           2           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           4           2           1
    90.00 Outlays...........................           2           2           1
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-3301-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Farm Storage facility loans.......         125         125          95
    115002Sugar Storage Facility Loans......                      22          22
                                               ---------   ---------  ----------
    115901Total direct loan levels..........         125         147         117
        Direct loan subsidy (in percent):
    132001Farm Storage facility loans.......        2.42        1.28        1.22
    132002Sugar Storage Facility Loans......        0.00        1.26       -3.87
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        2.40        1.36        0.00
        Direct loan subsidy budget authority:
    133001Farm Storage facility loans.......           3           2           1
    133002Sugar Storage Facility Loans......                                  -1
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....           3           2
        Direct loan subsidy outlays:
    134001Farm Storage facility loans.......           2           2           1
    134002Sugar Storage Facility Loans......                                  -1
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............           2           2
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Farm Storage facility loans.......          -1          -8
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................          -1          -8
        Direct loan downward reestimate subsidy
                    outlays:
    138001Farm Storage facility loans.......          -1          -8
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................          -1          -8
    ---------------------------------------------------------------------------

        Farm Storage Facility Loan (FSFL) Program. 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. The program
    was discontinued in the early 1980's when studies showed sufficient
    storage space was available. The FSFL was re-established in 2000 due to
    a severe shortage of sufficient available storage. The program was
    implemented in 2000 by CCC under Section 504(c) of the Federal Credit
    Reform Act of 1990. The 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.

        Sugar Storage Facility Loans. The 2002 Farm Bill directs that the
    CCC establish a sugar storage facility loan program to provide financing
    for processors of domestically produced sugarcane and sugar beets to
    construct or upgrade storage and handling facilities for raw sugars and
    refined sugars. The loan term would be for a minimum of 7 years with the
    amount and terms being determined as any other commercial loan.

        As required by the Federal Credit Reform Act of 1990, this account
    records the subsidy costs associated with the direct loans obligated in
    1992 and beyond, as well as adminis

    [[Page 111]]

    trative expenses of this program. The subsidy amounts are estimated on a
    prevent value basis; the administrative expenses are estimated on a cash
    basis.

               Farm Storage Facility Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4158-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................          48         147         117
    00.03 Interest to Treasury..............                      15          15
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............          48         162         132
    08.01 Payment of negative subsidy to
            receipt account.................                                   1
    08.02 Payment of downward re-estimate to
            receipt account.................           1           7
    08.04 Payment of interest on downward
            re-estimate to receipt account..                       1
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............           1           8           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          49         170         133
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          18          81
    22.00 New financing authority (gross)...         114         140         160
    22.40 Capital transfer to general fund..                     -51
    22.60 Portion applied to repay debt.....          -3                     -29
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         129         170         131
    23.95 Total new obligations.............         -49        -170        -133
    24.40 Unobligated balance carried
            forward, end of year............          81
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............         100         138         138
          Offsetting collections (cash):

    69.00   Payments from program account...          33           2           1
    69.00   Interest from Treasury..........                      25          25
    69.00   Principal.......................                      36          36
    69.00   Interest........................                       8           8
    69.10 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1
    69.27 Capital transfer to general fund..                     -69         -48
    69.47 Portion applied to repay debt.....         -18
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................          14           2          22
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         114         140         160
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          99          38          98
    73.10 Total new obligations.............          49         170         133
    73.20 Total financing disbursements
            (gross).........................        -111        -110        -140
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           1
    74.40 Obligated balance, end of year....          38          98          89
    87.00 Total financing disbursements
            (gross).........................         111         110         140
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -2          -2          -1
    88.25     Interest on uninvested funds..          -9         -25         -25
              Non-Federal sources:
    88.40       Principal collections.......         -22         -36         -36
    88.40       Interest collections........                      -8          -8
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -33         -71         -70
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          82          69          90
    90.00 Financing disbursements...........          77          39          70
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4158-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................          65         147         118
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          65         147         118
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          78         122         187
    1231  Disbursements: Direct loan
            disbursements...................          66          95          95
    1251  Repayments: Repayments and
            prepayments.....................         -22         -29         -41
    1263  Write-offs for default: Direct
            loans...........................                      -1          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         122         187         240
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4158-0-3-351    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................                        122           145            150
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..          32            122           187            240
    1402    Interest receivable.............                         10            14             20
    1405    Allowance for subsidy cost (-)..          -2             -4                           -4
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          30            128           201            256
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          30            250           346            406
        LIABILITIES:
          Federal liabilities:

    2104    Resources payable to Treasury...          30            250           326            394
    2105    Other...........................                                       20             12
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          30            250           346            406
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          30            250           346            406
    -----------------------------------------------------------------------------------------------

        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

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3302-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0101  Apple loan program, downward
            reestimates of subsidies........           2
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3302-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.05 Reestimates of direct loan subsidy                       1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                       1
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                       1
    ----------------------------------------------------------------------------

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

    [[Page 112]]

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

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

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

    ----------------------------------------------------------------------------
    Identification code 12-3302-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct loan subsidy (in percent):
    132001Apple loan program................        0.00        0.00
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        0.00        0.00
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Apple loan program................                       1
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................                       1
        Direct loan upward reestimate subsidy outlays:
    136001Apple loan program................                       1
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...                       1
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Apple loan program................          -2
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................          -2
        Direct loan downward reestimate subsidy
                    outlays:
    138001Apple loan program................          -2
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................          -2
    ---------------------------------------------------------------------------

        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 was provided for this program in 2002 or
    2003, and none is requested for 2004.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the direct
    loans obligated in 1992 and beyond (including modifications of direct
    loans or loan guarantees that resulted from obligations or commitments
    in any year), as well as administrative expenses of this program. The
    subsidy amounts are estimated on a present value basis; the
    administrative expenses are estimated on a cash basis.

                    Apple Loans Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4211-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Payment to Treasury--Interest.....           2           2           1
    00.05 Upward reestimates of subsidy.....                       1
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal......................           2           3           1
    08.02 Downward reestimates of subsidy...           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           4           3           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          34          12           3
    22.00 New financing authority (gross)...         -18           7           5
    22.40 Capital transfer to general fund..                     -10
    22.60 Portion applied to repay debt.....                      -3          -4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          16           6           4
    23.95 Total new obligations.............          -4          -3          -1
    24.40 Unobligated balance carried
            forward, end of year............          12           3           3
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                       1
    60.47   Portion applied to repay debt...         -25
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         -25           1
    67.10   Authority to borrow.............           2           1           1
    69.00 Offsetting collections (cash).....           5           5           4
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         -18           7           5
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1
    73.10 Total new obligations.............           4           3           1
    73.20 Total financing disbursements
            (gross).........................          -5          -3          -1
    87.00 Total financing disbursements
            (gross).........................           5           3           1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                      -1
    88.25     Interest on uninvested funds..          -2          -1          -1
    88.40     Principal repayments..........          -3          -3          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -5          -5          -4
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         -23           2           1
    90.00 Financing disbursements...........                      -2          -3
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4211-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          11           9           6
    1231  Disbursements: Direct loan
            disbursements...................           1
    1251  Repayments: Repayments and
            prepayments.....................          -3          -3          -3
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           9           6           3
    ---------------------------------------------------------------------------

        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    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          35             10             9              1
            Investments in US securities:
    1106      Receivables, net..............                          1             1
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..          11              8             5              3
    1405    Allowance for subsidy cost (-)..          -1              1            -4
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          10              9             1              3
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          45             20            11              4
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............          45             20            11              4
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          45             20            11              4
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          45             20            11              4
    -----------------------------------------------------------------------------------------------

    [[Page 113]]

                      Emergency Boll Weevil Program Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3303-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.05 Reestimates of direct loan subsidy                       1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                       1
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                       1
    ----------------------------------------------------------------------------

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

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

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

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

    ----------------------------------------------------------------------------
    Identification code 12-3303-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct loan subsidy (in percent):
    132001Emergency boll weevil loans.......        0.00        0.00
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        0.00        0.00
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Emergency boll weevil loans.......           1           1
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................           1           1
        Direct loan upward reestimate subsidy outlays:
    136001Emergency boll weevil loans.......           1           1
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...           1           1
    ---------------------------------------------------------------------------

               Emergency Boll Weevil Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4221-0-4-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1
    22.00 New financing authority (gross)...           1           2           1
    22.40 Capital transfer to general fund..          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           1           2           1
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...           1           2           1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -1          -1
    88.40     Non-Federal sources...........                      -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -1          -2          -1
    ----------------------------------------------------------------------------

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

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4221-0-4-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          10          10           9
    1231  Disbursements: Direct loan
            disbursements...................
    1251  Repayments: Repayments and
            prepayments.....................                      -1          -1
    1263  Write-offs for default: Direct
            loans...........................
                                               ---------   ---------  ----------
    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    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Investments in US securities:

    1106    Federal assets: Receivables, net                          1
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..          10             10             9              8
    1405    Allowance for subsidy cost (-)..          -6             -7            -6             -6
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....           4              3             3              2
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           4              4             3              2
        LIABILITIES:
    2103  Federal liabilities: Debt.........           4              4             3              2
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           4              4             3              2
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           4              4             3              2
    -----------------------------------------------------------------------------------------------

                     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,
    $703,605,000, to remain available until expended (7 U.S.C. 2209b), of
    which not less than $8,820,000 is for snow survey and water forecasting,
    and not less than $10,292,000 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 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

    [[Page 114]]

    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. (7 U.S.C. 2201-02; 16 U.S.C.
    590e-2, 1101-5; 33 U.S.C. 7016-11.)

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1000-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Technical assistance..............         696         617         599
    00.02 Soil surveys......................          84          84          86
    00.03 Snow survey and water forecasting.           9           9           9
    00.04 Plant materials centers...........          10          10          10
    00.05 Bioenergy transfer................           5          14          14
    09.00 Reimbursable program..............         118          56          56
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         922         790         774
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          17          16          -1
    22.00 New budget authority (gross)......         906         773         774
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          15
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         938         789         773
    23.95 Total new obligations.............        -922        -790        -774
    24.40 Unobligated balance carried
            forward, end of year............          16          -1          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         779         822         704
    40.73   Reduction pursuant to P.L. 107-
              206...........................          -1
    41.00   Transferred to other accounts...                    -119
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         778         703         704
          Mandatory:

    62.00   Transferred from other accounts.           5          14          14
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).         184          56          56
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         -61
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....         123          56          56
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         906         773         774
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         165         149         123
    73.10 Total new obligations.............         922         790         774
    73.20 Total outlays (gross).............        -984        -816        -779
    73.45 Recoveries of prior year
            obligations.....................         -15
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          61
    74.40 Obligated balance, end of year....         149         123         118
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         879         675         676
    86.93 Outlays from discretionary
            balances........................         105         127          89
    86.97 Outlays from new mandatory
            authority.......................                      14          14
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         984         816         779
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -167         -35         -35
    88.40     Non-Federal sources...........         -17         -21         -21
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -184         -56         -56
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          61
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         783         717         718
    90.00 Outlays...........................         800         760         723
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................          53          55          64
    99.01 Outlays...........................          53          55          64
    ---------------------------------------------------------------------------

        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 continue at the
    2003 level of $70 million. These funds will help livestock producers
    develop comprehensive nutrient management plans.

                              MAIN WORKLOAD FACTORS

                                         2002 Actual  2003 est.   2004 est.
    Customers served, number............ 3.1 million 3.2 million 3.2 million
    Customers receiving technical
    assistance for planning &
    application number..................     407,000     450,000     450,000
    Conservation systems planned to the
    RMS level, acres....................21.7 million  22 million  22 million
    Conservation plans applied to the
    RMS level, acres....................22.0 million  22 million  22 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. The 2004 budget requests an increase of $10
    million to enhance NRCS's monitoring and evaluation capabilities to
    track and report on the effectiveness of conservation programs
    authorized by the 2002 Farm Bill. 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

                                         2002 actual  2003 est.   2004 est.
    Acres mapped annually (millions)....       20.46        22.0        20.0
    Soil surveys ready for publication
    (number)............................          66          80          80

        Snow survey water forecasting.--Water supply forecasts prepared from
    snow surveys in western states are used in making efficient seasonal use
    of water for irrigation, flood control, fish and wildlife, recreation,
    power generation, municipal and industrial water supply, and water
    quality management.

        Operation of plant materials centers.--The selection and evaluation
    of plant materials are made at 26 plant materials centers through field
    trials to determine their suitability for erosion control, conservation,
    and other environmental improvements. Native plant species will be
    preferred and exotic species introductions phased out for this program.

    [[Page 115]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1000-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         440         391         383
    11.3      Other than full-time permanent          10           9           9
    11.5      Other personnel compensation..           5           4           4
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         455         404         396
    12.1    Civilian personnel benefits.....         131         118         117
    13.0    Benefits for former personnel...           1           1           1
    21.0    Travel and transportation of
              persons.......................          15          13          13
    22.0    Transportation of things........           4           3           3
    23.2    Rental payments to others.......          22          19          19
    23.3    Communications, utilities, and
              miscellaneous charges.........          30          27          26
    24.0    Printing and reproduction.......           4           3           3
    25.2    Other services..................          98         107         105
    26.0    Supplies and materials..........          14          13          12
    31.0    Equipment.......................          28          25          22
    42.0    Insurance claims and indemnities           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         803         734         718
    99.0  Reimbursable obligations..........         116          55          55
    99.5  Below reporting threshold.........           3           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         922         790         774
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1000-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       8,576       7,527       7,176
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,138         358         358
    ---------------------------------------------------------------------------

                         farm bill technical assistance

        For necessary expenses of the Natural Resources Conservation Service
    in providing technical assistance and administrative support for
    programs authorized under subtitle D of title XII of the Food Security
    Act of 1985, $432,160,000, to remain available until expended.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1006-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Farm Bill Technical Assistance....                     333         432
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                     333         432
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                     333         432
    23.95 Total new obligations.............                    -333        -432
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                     214         432
    42.00   Transferred from other accounts.                     119
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                     333         432
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                  40
    73.10 Total new obligations.............                     333         432
    73.20 Total outlays (gross).............                    -293        -413
    74.40 Obligated balance, end of year....                      40          59
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                     293         380
    86.93 Outlays from discretionary
            balances........................                                  33
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                     293         413
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     333         432
    90.00 Outlays...........................                     293         413
    ---------------------------------------------------------------------------

        The Farm Bill Technical Assistance account funds all of the
    technical assistance costs of certain conservation programs authorized
    by the Farm Security and Rural Investment Act of 2002 (P.L. 107-171).
    These are the same conservation programs included in NRCS's Farm
    Security and Rural Investment Programs account--the Environmental
    Quality Incentives Program, Ground and Surface Water Conservation,
    Klamath Basin Water Conservation, Farmland Protection Program, Wildlife
    Habitat Incentives Program, Wetlands Reserve Program, Grassland Reserve
    Program, and Conservation Security Program. The Farm Security and Rural
    Investment Programs account funds the financial assistance needed to
    deliver conservation measures on agricultural lands.

        The Farm Bill Technical Assistance account will fund the technical
    assistance needed to plan, design, layout, and install conservation
    systems funded by the 2002 Farm Bill programs. This will include both
    NRCS's technical assistance costs, as well as the costs for certified,
    non-federal technical service providers to provide technical assistance
    to farmers and ranchers for 2002 Farm Bill programs.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1006-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............                     188         230
    11.3    Other than full-time permanent..                       7          16
    11.5    Other personnel compensation....                       1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..                     196         247
    12.1  Civilian personnel benefits.......                      48          62
    21.0  Travel and transportation of
            persons.........................                       5           7
    22.0  Transportation of things..........                       1           1
    23.2  Rental payments to others.........                      14          18
    23.3  Communications, utilities, and
            miscellaneous charges...........                      12          16
    25.2  Other services....................                      45          67
    26.0  Supplies and materials............                       5           6
    31.0  Equipment.........................                       7           8
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                     333         432
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1006-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................                   3,624       4,596
    ---------------------------------------------------------------------------

                   Farm Security and Rural Investment Programs

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1004-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Wetlands Reserve Program..........         263         250         250
    00.02 Environmental Quality Incentives
            Program.........................         199         595         850
    00.03 Ground and Surface Water
            Conservation....................          25          38          51
    00.04 Klamath Basin.....................           2           8           8
    00.05 Wildlife Habitat Incentives
            Program.........................          15          26          42
    00.06 Farmland Protection Program.......          50          85         112
    00.07 Conservation Security Program.....                                  19
    00.08 Grassland Reserve Program.........                      72          85
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         554       1,074       1,417
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         567       1,075       1,418
    23.95 Total new obligations.............        -554      -1,074      -1,417
    23.98 Unobligated balance expiring or
            withdrawn.......................         -13          -1          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.35   Appropriation rescinded.........                    -145        -259
          Mandatory:

    62.00   Transferred from other accounts.         567       1,220       1,677
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         567       1,075       1,418
    ----------------------------------------------------------------------------

    [[Page 116]]

        Change in obligated balances:
    72.40 Obligated balance, start of year..                     341         802
    73.10 Total new obligations.............         554       1,074       1,417
    73.20 Total outlays (gross).............        -213        -613      -1,091
    74.40 Obligated balance, end of year....         341         802       1,128
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                     -39         -70
    86.93 Outlays from discretionary
            balances........................                                 -58
    86.97 Outlays from new mandatory
            authority.......................         213         378         557
    86.98 Outlays from mandatory balances...                     274         662
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         213         613       1,091
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         567       1,075       1,418
    90.00 Outlays...........................         213         613       1,091
    ---------------------------------------------------------------------------

        The Farm Security and Rural Investment Act of 2002 (P.L. 107-171)
    reauthorizes a number of USDA's conservation programs. NRCS is
    responsible for implementing many of these programs. All of the
    financial assistance for programs where NRCS is the lead implementation
    agency is transferred from the Commodity Credit Corporation (CCC) to the
    Farm Security and Rural Investment Programs account. This account will
    fund only the cost chare, monitoring, easement, and other financial
    assistance activities associated with the programs under title II of the
    2002 Farm Bill.

        The following programs are funded in this account.

        Wetlands Reserve Program (WRP) is authorized under Section 1237 of
    the Food Security Act of 1985, as amended. The authority provides for a
    total acreage enrollment cap of 2,275,000 acres. The purpose of the WRP
    is to preserve, protect, and restore valuable wetlands.

        Environmental Quality Incentives Program (EQIP) was re-authorized in
    the Farm Security and Rural Investment Act of 2002. Funding is
    authorized at $5.8 billion over 6 years with $400 million in FY 2002
    increasing to $1.3 billion in FY 2007. The purpose of the program is to
    promote agricultural production and environmental quality as compatible
    national goals.

        Ground and Surface Water Program (GSW) is authorized by Section
    1240I of Title XII of the Food Security Act of 1985. Funding is
    authorized at $310 million over six years. The purpose of the program is
    to promote ground and surface water conservation by providing cost-share
    payments and incentive payments to producers to carry out eligible water
    conservation activities.

        Klamath Basin. is authorized by Section 1240I of Title XII of the
    Food Security Act of 1985. Funding is authorized at $50 million over 6
    years. The purpose of the Klamath Basin program is to carry out water
    conservation activities in the Klamath Basin located in California and
    Oregon.

        Farmland Protection Program (FPP) The Farm Security and Rural
    Investment Act of 2002 repealed the Farmland Protection Program
    authorized by the Federal Agriculture Improvement and Reform Act of 1996
    and authorized a new Farmland Protection Program. Funding is authorized
    at $597 million over 6 years. The purpose of the program is to protect
    soil by limiting nonagricultural use of prime and unique farm and ranch
    land.

        Wildlife Habitat Incentives Program (WHIP) is authorized by Section
    1240N of the Food Security Act of 1985. Funding is authorized at $360
    million over 6 years. The purpose of the program is to develop habitat
    for upland wildlife, wetlands wildlife, threatened and endangered
    species, fish, and other types of wildlife.

        Conservation Security Program (CSP) is authorized by the Farm
    Security and Rural Investment Act of 2002. The purpose of the program is
    to provide financial and technical assistance for the conservation,
    protection, and improvement of natural resources on Tribal and private
    working lands. The program provides payments for producers who practice
    good stewardship on their agricultural lands and incentives for those
    who want to do more.

        Grassland Reserve Program (GRP) is authorized by Section 1238N of
    Title XII, of Food Security Act of 1985. Funding is authorized at $254
    million over 5 years. The purpose of the program is to assist landowners
    in restoring and protecting grassland.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1004-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          23
    12.1    Civilian personnel benefits.....           6
    21.0    Travel and transportation of
              persons.......................           1
    23.2    Rental payments to others.......           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1
    25.2    Other services..................          16
    31.0    Equipment.......................           1
    32.0    Land and structures.............         230         237         242
    41.0    Grants, subsidies, and
              contributions.................         273         837       1,175
                                               ---------   ---------  ----------
    99.0      Direct obligations............         552       1,074       1,417
    99.5  Below reporting threshold.........           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         554       1,074       1,417
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1004-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         431
    ---------------------------------------------------------------------------

                         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 (16 U.S.C. 1001-1009), $5,000,000:
    Provided, That this appropriation shall be available for employment
    pursuant to the second sentence of section 706(a) of the Organic Act of
    1944 (7 U.S.C. 2225), and not to exceed $110,000 shall be available for
    employment under 5 U.S.C. 3109 (7 U.S.C. 2201-02; 16 U.S.C. 1101-5; 33
    U.S.C. 7016-11.)

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1066-0-1-301      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          11                       5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          11                       5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          11           1           6
    23.95 Total new obligations.............         -11                      -5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          11                       5
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............                       1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          11           1           6
    ----------------------------------------------------------------------------

    [[Page 117]]

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           2
    73.10 Total new obligations.............          11                       5
    73.20 Total outlays (gross).............         -11          -3          -5
    74.40 Obligated balance, end of year....           2                       1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           9           1           5
    86.93 Outlays from discretionary
            balances........................           2           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          11           3           5
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................          11                       5
    90.00 Outlays...........................          11           2           4
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           1           1           1
    99.01 Outlays...........................           1           1           1
    ---------------------------------------------------------------------------

        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.

        Watershed work plans are prepared by sponsoring local organizations
    with the Department's assistance or through State and local resources.
    After work plans are approved by the Department or Congress (projects
    where the estimated Federal contribution will exceed $5 million require
    congressional approval), financial assistance is provided for specific
    works of improvements. Since 1944, the Federal government has invested
    over $8.5 billion to develop a watershed infrastructure through the
    Small Watershed program. The investment yields annual benefits estimated
    at $800 million.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1066-0-1-301      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           7                       3
    12.1    Civilian personnel benefits.....           2                       1
    25.2    Other services..................           1                       1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          10                       5
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          11                       5
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1066-0-1-301      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         111                      47
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           5                       2
    ---------------------------------------------------------------------------

                    Watershed and Flood Prevention Operations

        For necessary expenses to carry out preventive measures, including
    but not limited to research, engineering operations, methods of
    cultivation, the growing of vegetation, rehabilitation of existing works
    and changes in use of land, in accordance with the Watershed Protection
    and Flood Prevention Act, the provisions of the Act of April 27, 1935,
    $40,000,000, to remain available until expended: Provided, That this
    appropriation shall be available for employment pursuant to the second
    sentence of section 706(a) of the Organic Act of 1944, and not to exceed
    $200,000 shall be available for employment under 5 U.S.C. 3109: Provided
    further, That not to exceed $1,000,000 of this appropriation is
    available to carry out the purposes of the Endangered Species Act of
    1973 (Public Law 93-205), including cooperative efforts as contemplated
    by that Act to relocate endangered or threatened species to other
    suitable habitats as may be necessary to expedite project construction:
    Provided further, That the amount of federal funds that may be made
    available to an eligible local organization for construction of a
    particular rehabilitation project shall be equal to 65 percent of the
    total rehabilitation costs, but not to exceed 100 percent of actual
    construction costs incurred in the rehabilitation: Provided further,
    That consistent with existing statute, rehabilitation assistance
    provided may not be used to perform operation and maintenance activities
    specified in the agreement for the covered water resource projects
    entered into between the Secretary and the eligible local organization
    responsible for the works of improvement. (7 U.S.C. 2209b, 2225; 16
    U.S.C. 590a-f, 1001-1005, 1007-1009.)

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1072-0-1-301      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Watershed operations (P.L. 534).          18           1
    00.03   Emergency watershed protection
              operations....................          79         216
    00.04   Small watershed operations (P.L.
              566)..........................          97           6          40
    09.01 Reimbursable program..............          16           8           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         210         231          45
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          86         119
    22.00 New budget authority (gross)......         222         112          45
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          21
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         329         231          45
    23.95 Total new obligations.............        -210        -231         -45
    24.40 Unobligated balance carried
            forward, end of year............         119
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         201         110          40
    40.71   Reduction pursuant to P.L. XXX-
              XX............................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         200         110          40
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          21           2           5
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           1
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          22           2           5
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         222         112          45
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         221         214         217
    73.10 Total new obligations.............         210         231          45
    73.20 Total outlays (gross).............        -195        -228        -214
    73.45 Recoveries of prior year
            obligations.....................         -21
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1
    74.40 Obligated balance, end of year....         214         217          49
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         100          67          32
    86.93 Outlays from discretionary
            balances........................          95         161         182
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         195         228         214
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -14                      -3
    88.40     Non-Federal sources...........          -7          -2          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -21          -2          -5

    [[Page 118]]

          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..................         200         110          40
    90.00 Outlays...........................         174         226         209
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           4           4           4
    99.01 Outlays...........................           4           4           4
    ---------------------------------------------------------------------------

        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. In order to improve the environmental and
    economic benefits of these projects, NRCS intends to focus on developing
    and funding non-structural flood prevention measures.

        Emergency watershed protection operations.--This program authorizes
    the Secretary of Agriculture to undertake such emergency measures for
    runoff retardation and soil erosion prevention as may be needed to
    safeguard life and property from floods and the products of erosion on
    any watershed whenever natural elements or forces cause a sudden
    impairment of that watershed. An emergency is considered to exist when a
    watershed is suddenly impaired by flood, fire, wind, earthquake, or
    other natural causes and consequently life and property are endangered
    by floodwater, erosion, or sediment discharge. The emergency area need
    not be declared a national disaster area to be eligible for emergency
    watershed protection. Emergency watershed protection is applicable to
    small scale, localized disasters as well as large scale disasters. State
    environmental, natural resource, fish and game, and other agencies
    participate in planning and coordinating emergency work. To the extent
    financial resources are available, funding provided for the small
    watershed operations account can be used to meet these types of
    emergency needs should they occur in 2004.

        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.

        Given the program's low economic returns and environmental benefits,
    no funding is proposed for 2004.

        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. At least 50 percent of the funding provided will
    be used for financial assistance.

        Funding provided to the Watershed Surveys and Planning program will
    be used to address one of the most critical strategic objectives of the
    NRCS Government Performance and Results Act (GPRA) Strategic Plan:
    ``Restoring healthy watersheds, providing clean and abundant water
    supplies for people and environment.'' Program activities reflect high
    priority natural resource concerns such as: agriculture-induced water
    quality impacts, wetlands restoration, and flood damage risk reduction.

        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 2004.

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

                              MAIN WORKLOAD FACTORS

                                         2002 actual  2003 est.   2004 est.
    Status of operational projects:
      Projects receiving land treatment.         223         230          20
      Structural projects...............         180         180           0
      Land treatment and structural.....         145         147           0
                                        ------------------------------------
          Subtotal active projects......         548         557          20
      Projects continuing post-
        installation assistance.........         887         884           0
      Inactive projects.................          19          20           0
      Project life completed............          40          42       1,647
      Deauthorized projects.............         159         159           0
                                        ------------------------------------
          Total operational projects....       1,653       1,662       1,647
                                        ------------------------------------
      New projects approved during year.           3           9           5
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1072-0-1-301      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          33          28           6
    11.5      Other personnel compensation..           1           3
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          34          31           6
    12.1    Civilian personnel benefits.....           8           7           1
    21.0    Travel and transportation of
              persons.......................           1           1
    23.2    Rental payments to others.......           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           3           1           1
            Other services:
    25.2      Other services................           6           6
    25.2      Other services................          57          96           9
    26.0    Supplies and materials..........           1           1
    31.0    Equipment.......................           2           3
    32.0    Land and structures.............           4
    41.0    Grants, subsidies, and
              contributions.................          75          75          21
                                               ---------   ---------  ----------
    99.0      Direct obligations............         192         222          38
    99.0  Reimbursable obligations..........          15           8           5
    99.5  Below reporting threshold.........           3           1           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         210         231          45
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1072-0-1-301      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         603         566         100
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          46                      14
    ---------------------------------------------------------------------------

                        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, as amended, $10,000,000, to remain available until
    expended. (16 U.S.C. 1001 et seq., 1012.)

    [[Page 119]]

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1002-0-1-301      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........          10                      10
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          10                      10
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          10                      10
    40.35   Appropriation rescinded.........                     -45         -50
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          10         -45         -40
          Mandatory:

    62.00   Transferred from other accounts.                      45          50
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          10                      10
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                       4           2
    73.10 Total new obligations.............          10                      10
    73.20 Total outlays (gross).............          -6          -2          -8
    74.40 Obligated balance, end of year....           4           2           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           6                       7
    86.93 Outlays from discretionary
            balances........................                       2           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           6           2           8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          10                      10
    90.00 Outlays...........................           6           2           8
    ---------------------------------------------------------------------------

        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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1002-0-1-301      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           4                       3
    12.1    Civilian personnel benefits.....           1                       1
    25.2    Other services..................           1
    41.0    Grants, subsidies, and
              contributions.................           3                       5
                                               ---------   ---------  ----------
    99.0      Direct obligations............           9                       9
    99.5  Below reporting threshold.........           1                       1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          10                      10
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1002-0-1-301      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          64                      48
    ---------------------------------------------------------------------------

                      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 sections 31 and 32(l) of title III of the Bankhead-
    Jones Farm Tenant Act; the Act of April 27, 1935 (16 U.S.C. 590a-f); and
    subtitle H of title XV of the Agriculture and Food Act of 1981,
    $49,943,000, to remain available until expended: Provided, That this
    appropriation shall be available for employment pursuant to the second
    sentence of section 706(a) of the Organic Act of 1944, and not to exceed
    $50,000 shall be available for employment under 5 U.S.C. 3109. (7 U.S.C.
    1010-1011, 2225; 16 U.S.C. 590a-f, 3451-3460.)

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1010-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Technical assistance..............          49          50          50
    09.01 Reimbursable program..............                       1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          49          51          51
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           1
    22.00 New budget authority (gross)......          48          50          51
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          50          51          51
    23.95 Total new obligations.............         -49         -51         -51
    24.40 Unobligated balance carried
            forward, end of year............           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          48          49          50
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............                       1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          48          50          51
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           9           9          11
    73.10 Total new obligations.............          49          51          51
    73.20 Total outlays (gross).............         -49         -50         -52
    74.40 Obligated balance, end of year....           9          11          11
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          44          45          46
    86.93 Outlays from discretionary
            balances........................           5           5           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          49          50          52
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................          48          49          50
    90.00 Outlays...........................          49          49          51
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           3           3           3
    99.01 Outlays...........................           3           3           3
    ---------------------------------------------------------------------------

        The Resource Conservation and Development (RC&D) Program began in
    February 1964 under authority of Section 102 of the Food and
    Agricultural Act of 1962 (P.L. 87-703) and other Departmental
    authorities. Sections 1528-1538 of the Agricultural and Food Act of 1981
    have replaced these authorities. This act authorized a program to
    encourage and improve the capability of State and local units of
    government and local nonprofit organizations in rural areas to plan,
    develop, and implement programs for resource conservation and
    development. Through the establishment of RC&D areas, led by a council,
    the program establishes or improves coordination systems in rural
    communities and builds rural community leadership skills to effectively
    utilize Federal, State and local programs for the communities' benefit.
    The Farm Security and Rural Investment Act of 2002 (P.L. 107-171)
    permanently reauthorized RC&D.

        Designated RC&D areas are provided technical assistance to help
    States and local units of government prepare plans

    [[Page 120]]

    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&D area plans. Program financial
    resources are focused on the RC&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&D areas authorized
    to receive technical and financial assistance.

                              MAIN WORKLOAD FACTORS

                                         2002 actual  2003 est.   2004 est.
    Areas authorized at beginning of
    year................................         348         368         388
    Areas authorized at end of year.....         368         388         388
    Project plans adopted...............       3,962       3,000       3,000
    Projects completed..................       4,145       3,000       3,000

                    Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1010-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          28          28          28
    11.3      Other than full-time permanent           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          29          29          29
    12.1    Civilian personnel benefits.....           7           7           7
    21.0    Travel and transportation of
              persons.......................           1           1           1
    23.2    Rental payments to others.......           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           2           2
    25.2    Other services..................           6           7           7
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          48          49          49
    99.0  Reimbursable obligations..........                       1           1
    99.5  Below reporting threshold.........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          49          51          51
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1010-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         504         491         501
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           2           5           5
    ---------------------------------------------------------------------------

                        Great Plains Conservation Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2268-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........           2           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           2           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           1
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           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..           4           2           1
    73.10 Total new obligations.............           2           1
    73.20 Total outlays (gross).............          -2          -2          -1
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.40 Obligated balance, end of year....           2           1
    ----------------------------------------------------------------------------

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

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

        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

                                         2002 actual  2003 est.   2004 est.
    Program participants:
      Number of contracts serviced
        during year.....................         658         200          50
      Number of acres under contracts...   2,443,000     740,000     185,000

        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 cannot exceed 80
    percent of the cost of installing eligible practices within the
    designated county. There is a cost-sharing limitation of $35,000 for any
    contract.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2268-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    11.1  Direct obligations: Personnel
            compensation: Full-time
            permanent.......................           1
    99.5  Below reporting threshold.........           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           2           1
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2268-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          18
    ---------------------------------------------------------------------------

                           Forestry Incentives Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3336-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........          11           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          11           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           2
    22.00 New budget authority (gross)......           7
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          13           2
    23.95 Total new obligations.............         -11          -2
    24.40 Unobligated balance carried
            forward, end of year............           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           7
    ----------------------------------------------------------------------------

    [[Page 121]]

        Change in obligated balances:
    72.40 Obligated balance, start of year..          18          18          14
    73.10 Total new obligations.............          11           2
    73.20 Total outlays (gross).............          -7          -6          -6
    73.45 Recoveries of prior year
            obligations.....................          -4
    74.40 Obligated balance, end of year....          18          14           8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           4
    86.93 Outlays from discretionary
            balances........................           3           6           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           7           6           6
    ----------------------------------------------------------------------------

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

        No funds are proposed for the Forestry Incentives Program (FIP). The
    FIP was not reauthorized by the Farm Security and Rural Investment Act
    of 2002 (P.L. 107-171). Prior-year account balances are maintained in
    this account until expended.

        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 the
    Forest Service.

                               Water Bank Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3320-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........                       1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 99.5)...................                       1
    ----------------------------------------------------------------------------

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..           7           3           1
    73.10 Total new obligations.............                       1
    73.20 Total outlays (gross).............          -3          -3          -1
    74.40 Obligated balance, end of year....           3           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           3           3           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           3           3           1
    ---------------------------------------------------------------------------

        The objectives of the Water Bank Program are to conserve water;
    preserve, maintain, and improve the Nation's wetlands; increase
    waterfowl habitat in migratory waterfowl nesting, breeding, and feeding
    areas in the United States; and secure recreational and environmental
    benefits for the Nation. The program was authorized by the Water Bank
    Act of 1970, as amended by Public Law 96-182, approved January 2, 1980.
    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. For 2004, the
    budget does not request program funding.

                  Colorado River Basin Salinity Control Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3318-0-1-304      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........                       1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 99.5)...................                       1
    ----------------------------------------------------------------------------

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

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

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

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

        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 (FAIR 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 Incentives 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      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           7
    ---------------------------------------------------------------------------

                            Wetlands Reserve Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1080-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.03 Technical assistance..............           1           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 99.5)...................           1           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           2
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           3           2
    23.95 Total new obligations.............          -1          -2
    24.40 Unobligated balance carried
            forward, end of year............           2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           5           4           3

    [[Page 122]]

    73.10 Total new obligations.............           1           2
    73.20 Total outlays (gross).............          -1          -3          -3
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.40 Obligated balance, end of year....           4           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           1           3           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           1           3           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), the
    Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriation Act, 2001 (P.L. 106-387), and the Farm
    Security and Rural Investment Act of 2002 (P.L. 107-171). 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.

                       Wildlife Habitat Incentives Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3322-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........           4           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           4           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           5           1
    23.95 Total new obligations.............          -4          -1
    24.40 Unobligated balance carried
            forward, end of year............           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          31          25          22
    73.10 Total new obligations.............           4           1
    73.20 Total outlays (gross).............          -6          -4          -4
    73.45 Recoveries of prior year
            obligations.....................          -4
    74.40 Obligated balance, end of year....          25          22          18
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           6           4           4
    ----------------------------------------------------------------------------

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

        Section 1240N of the Food Security Act of 1985, as amended by 2502
    of the Farm Security and Rural Investment Act of 2002 (2002 farm bill),
    authorized the Wildlife Habitat Incentives Program (WHIP) as a voluntary
    approach to improving wildlife habitat in our nation. The Natural
    Resources Conservation Service (NRCS) provides program administration
    for WHIP.

        WHIP is a voluntary program that provides assistance to eligible
    participants to develop upland wildlife, wetland wildlife, threatened
    and endangered species, fish and other types of wildlife habitat in an
    environmentally beneficial and cost effective manner. The purpose of the
    program is to create high-quality wildlife habitats that support
    wildlife populations of local, state, and national significance.

        WHIP supports the USDA strategic plan goal to maintain and enhance
    the nation's natural resources and the environment. Although the primary
    purpose of the program is wildlife habitat development and enhancement,
    the benefits are not limited to wildlife. The practices are often
    compatible with and beneficial to farming and ranching enterprises. Some
    practices enhance farm profitability by improving grazing conditions,
    reducing management expenses, and by producing non-crop income from the
    lease of rights to harvest and observe wild game and fish. The program
    has been utilized to control invasive species, re-establish native
    vegetation, manage non-industrial forestland, stabilize stream banks,
    protect, develop or enhance unique habitats, and remove barriers that
    impede migration of certain species.

        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 state NRCS offices based on state wildlife habitat
    priorities. 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.

        The 2002 farm bill reauthorized WHIP through 2007. Funding for WHIP
    is now provided through NRCS's Farm Security and Rural Investment
    Account. Information displayed in this section represents unobligated
    balances remaining from the 1996 farm bill.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3322-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           1
    41.0    Grants, subsidies, and
              contributions.................           2           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............           3           1
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           4           1
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3322-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          33
    ---------------------------------------------------------------------------

                            Rural Clean Water Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3337-0-1-304      2002 actual   2003 est.   2004 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 coopera

    [[Page 123]]

    tive endeavor among farmers, various USDA agencies, and other
    organizations to develop and test means of controlling agricultural
    nonpoint source water pollution in rural areas.

        Recommended project areas were developed by local and State
    committees and approved by the Secretary of Agriculture in consultation
    with the Administrator of the Environmental Protection Agency. Full
    funding was provided in previous appropriations for all approved
    projects. The implementation period for all projects has ended, and no
    additional obligations will be incurred. The final payments have been
    made and the program will be closed out in 2002. Similar activities will
    be carried out through the mandatory Environmental Quality Incentives
    Program.

        Agricultural Resource Conservation Demonstration Guaranteed Loan
                                Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2086-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.07 Reestimates of guaranteed loan
            subsidy.........................                       1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                       1
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                       1
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                       1
    86.98 Outlays from mandatory balances...           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           3           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                       1
    90.00 Outlays...........................           3           1
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-2086-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235001Agricultural resource conservation
            demonstration program...........           3           1
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................           3           1
        Guaranteed loan upward reestimate subsidy
                    outlays:
    236001Agricultural resource conservation
            demonstration program...........           3           1
                                               ---------   ---------  ----------
    236901Total upward reestimate subsidy
            outlays.........................           3           1
    ---------------------------------------------------------------------------

        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.

    Credit accounts:

        Agricultural Resource Conservation Demonstration Guaranteed Loan
                                Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4177-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Interest assistance on guaranteed
            loans...........................           2           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           2           1           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           3           4
    22.00 New financing authority (gross)...           4           1           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           5           4           5
    23.95 Total new obligations.............          -2          -1          -1
    24.40 Unobligated balance carried
            forward, end of year............           3           4           4
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............           1                       1
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           3           1
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................           4           1           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............           2           1           1
    73.20 Total financing disbursements
            (gross).........................          -2          -1          -1
    87.00 Total financing disbursements
            (gross).........................           2           1           1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -3          -1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           1                       1
    90.00 Financing disbursements...........          -1                       1
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4177-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          24          22          12
    2251  Repayments and prepayments........          -2         -10          -7
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          22          12           5
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          22          12           5
    ---------------------------------------------------------------------------

        This program, also known as ``Farms for the Future,'' provides
    guarantees and interest assistance on loans made to State trust funds,
    who in turn finance acquisitions to preserve farmland in selected
    states. No guarantees have been made since 1993.

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from guaranteed loans committed in 1992 and beyond. The
    amounts in this account are a means of financing and are not included in
    the budget totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4177-0-3-351    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           1              3             3              3
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           1              3             3              3
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............           1              1             1              1
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.                          2             2              2
                                            ------------ --------------  ------------  -------------

    [[Page 124]]

    2999    Total liabilities...............           1              3             3              3
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           1              3             3              3
    -----------------------------------------------------------------------------------------------

                                   Trust Funds

                         Miscellaneous Contributed Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............           4           5           6
        Receipts:
    02.20 Miscellaneous contributed funds...          12           1           1
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          16           6           7
        Appropriations:
    05.00 Miscellaneous contributed funds,
            Natural Resources Conservation
            Service.........................         -11
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           5           6           7
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........           4          10
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           4          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1          10
    22.00 New budget authority (gross)......          11
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          13          10
    23.95 Total new obligations.............          -4         -10
    24.40 Unobligated balance carried
            forward, end of year............          10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......          11
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           1           7
    73.10 Total new obligations.............           4          10
    73.20 Total outlays (gross).............          -4          -4          -4
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.40 Obligated balance, end of year....           1           7           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           2
    86.98 Outlays from mandatory balances...           2           4           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           4           4           4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          11
    90.00 Outlays...........................           4           4           4
    ---------------------------------------------------------------------------

        Funds received from State and local organizations, and others are
    available for work under cooperative agreements for soil survey,
    watershed protection, and resource conservation and development
    activities.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.2  Direct obligations: Other services           3          10
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           4          10
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           5           1           1
    ---------------------------------------------------------------------------

                                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;
    $147,520,000: 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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0403-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................         130         141         148
    09.01 Reimbursable program..............         482         509         552
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         612         650         700
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         615         650         700
    23.95 Total new obligations.............        -612        -650        -700
    23.98 Unobligated balance expiring or
            withdrawn.......................          -4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         133         141         148
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         481         509         552
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           1
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         482         509         552
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         615         650         700
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         124         126         138
    73.10 Total new obligations.............         612         650         700
    73.20 Total outlays (gross).............        -623        -638        -691
    73.40 Adjustments in expired accounts
            (net)...........................         -10
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          24
    74.40 Obligated balance, end of year....         126         138         148
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         507         546         588
    86.93 Outlays from discretionary
            balances........................         116          92         103
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         623         638         691
    ----------------------------------------------------------------------------

    [[Page 125]]

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -497        -509        -552
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -1
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         133         141         148
    90.00 Outlays...........................         126         129         139
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................          40          44          49
    99.01 Outlays...........................          40          44          49
    ---------------------------------------------------------------------------

        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.

        In 2004, Rural Development along with the Farm Service Agency will
    conduct a review and develop a pilot loan asset sale. The sale should
    include both performing and non-performing loans with a loan mix that
    results in the greatest budgetary savings for the Federal government.
    Although the exact mix of loans has not been determined, a placeholder
    has been included in the 2004 Budget to reflect the sale.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0403-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          73          74          80
    11.3      Other than full-time permanent           2           2           2
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          76          77          83
    12.1    Civilian personnel benefits.....          18          22          22
    21.0    Travel and transportation of
              persons.......................           4           4           4
    23.2    Rental payments to others.......           3           4           4
    23.3    Communications, utilities, and
              miscellaneous charges.........           4           6           5
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          10          11          11
    25.3    Other purchases of goods and
              services from Government
              accounts......................           2           5           6
    25.4    Operation and maintenance of
              facilities....................           7           7           7
    25.7    Operation and maintenance of
              equipment.....................           1           1           3
    26.0    Supplies and materials..........           2           1           1
    31.0    Equipment.......................           2           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         130         140         148
    99.0  Reimbursable obligations..........         482         510         552
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         612         650         700
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0403-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,431       1,475       1,476
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       5,381       5,549       5,552
    ---------------------------------------------------------------------------

                       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 and 381N of the Consolidated Farm and Rural Development
    Act, $477,864,000, to remain available until expended, of which
    $17,000,000 shall be for rural community programs described in section
    381E(d)(1) of such Act; of which $384,584,000 shall be for the rural
    utilities programs described in sections 381E(d)(2), 306C(a)(2), and
    306D of such Act; and of which $76,280,000 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, $13,000,000 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 $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 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: Provided further, That of the amount appropriated
    for rural utilities programs, not to exceed $11,800,000 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 $11,800,000 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 $16,215,000
    shall be for technical assistance grants for rural water and waste
    systems pursuant to section 306(a)(14) of such Act; and not to exceed
    $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 $22,132,000 shall be available
    through June 30, 2004, for authorized empowerment zones and enterprise
    communities and communities designated by the Secretary of Agriculture
    as Rural Economic Area Partnership Zones; of which $1,000,000 shall be
    for the rural community programs described in section 381E(d)(1) of such
    Act, of which $12,582,000 shall be for the rural utilities programs
    described in section 381E(d)(2) of such Act, and of which $8,550,000
    shall be for the rural business and cooperative development programs
    described in section 381E(d)(3) of such Act: 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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0400-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0101  Rural water and waste disposal,
            negative subsidies..............                                   5
    0102  Rural water and waste water,
            negative subsidies and downward
            reestimates.....................          21
    0104  Rural community facilities,
            downward reestimates of
            subsidies.......................          15

    [[Page 126]]

    0106  Rural business and industry,
            downward reestimates of
            subsidies.......................          17
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0400-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Loan program:

    00.01   Direct loan subsidy.............         101         111          35
    00.02   Guaranteed loan subsidy.........          32          43          29
    00.05   Reestimates of Direct Loan
              Subsidy.......................          31
    00.06   Interest on Reestimates of
              Direct Loan Subsidy...........           4
    00.07   Reestimates of Guaranteed Loan
              Subsidy.......................          34
    00.08   Interest on Reestimates of
              Guaranteed Loan Subsidy.......           5
          Grant program:

    00.11   Water and waste disposal systems
              grants........................         933         592         355
    00.13   Emergency Community Water
              Assistance Grants.............           3
    00.14   Solid waste management grants...           4           4           4
    00.15   Community facility grants.......          15          18          17
    00.16   Community facility grants--
              emergency supplemental........          11
    00.17   Hazardous weather early warning
              grants........................           4           1
    00.18   Economic impact initiative
              grants........................          36           1
    00.19   High Energy Cost Grants.........          25           5
    00.20   Rural business enterprise grants          43          45          44
    00.21   Rural business opportunity
              grants........................           5           3           3
    00.24 Department of Energy Matching
            Grant...........................           3
    00.26 Rural Community Development
            Initiative Grants...............                      12
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       1,289         835         487
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          83          52           8
    22.00 New budget authority (gross)......       1,240         792         478
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          30
    22.21 Unobligated balance transferred to
            other accounts..................         -10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,343         844         487
    23.95 Total new obligations.............      -1,289        -835        -487
    24.40 Unobligated balance carried
            forward, end of year............          52           8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         806         792         478
          Mandatory:

    60.00   Appropriation...................          74
    62.00   Transferred from other accounts.         360
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         434
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,240         792         478
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,205       2,614       2,745
    73.10 Total new obligations.............       1,289         835         487
    73.20 Total outlays (gross).............        -842        -704        -632
    73.31 Obligated balance transferred to
            other accounts..................          -5
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    73.45 Recoveries of prior year
            obligations.....................         -30
    74.40 Obligated balance, end of year....       2,614       2,745       2,600
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          91          50          36
    86.93 Outlays from discretionary
            balances........................         674         583         492
    86.97 Outlays from new mandatory
            authority.......................           3
    86.98 Outlays from mandatory balances...          74          71         104
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         842         704         632
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,240         792         478
    90.00 Outlays...........................         842         704         632
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-0400-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Direct water and waste disposal...       1,148         830       1,055
    115002Direct community facility.........         337         261         250
    115003Direct business and industry......
                                               ---------   ---------  ----------
    115901Total direct loan levels..........       1,485       1,091       1,305
        Direct loan subsidy (in percent):
    132001Direct water and waste disposal...        6.88       11.34        3.33
    132002Direct community facility.........        5.43        6.24       -0.71
    132003Direct business and industry......        0.00        0.00        0.00
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        6.60       10.08        2.53
        Direct loan subsidy budget authority:
    133001Direct water and waste disposal...          80          94          35
    133002Direct community facility.........          18          16          -2
    133003Direct business and industry......
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....          98         110          33
        Direct loan subsidy outlays:
    134001Direct water and waste disposal...          80          96          86
    134002Direct community facility.........          18          22          17
    134003Direct business and industry......           2
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............         100         118         103
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Direct water and waste disposal...          31
    135002Direct community facility.........
    135003Direct business and industry......           5
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................          36
        Direct loan upward reestimate subsidy outlays:
    136001Direct water and waste disposal...          31
    136002Direct community facility.........
    136003Direct business and industry......           5
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...          36
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Direct water and waste disposal...         -21
    137002Direct community facility.........         -15
    137003Direct business and industry......          -1
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................         -37
        Direct loan downward reestimate subsidy
                    outlays:
    138001Direct water and waste disposal...         -21
    138002Direct community facility.........         -15
    138003Direct business and industry......          -1
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................         -37
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Water and waste disposal loan
            guarantees......................           2          75          75
    215002Community facility loan guarantees         210         210         210
    215003Business and industry loan
            guarantees......................         858       1,036         602
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......       1,070       1,321         887
        Guaranteed loan subsidy (in percent):
    232001Water and waste disposal loan
            guarantees......................       -0.80       -0.81       -0.90
    232002Community facility loan guarantees       -0.68       -0.54       -0.60
    232003Business and industry loan
            guarantees......................        3.74        3.97        4.86
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        2.90        2.95        3.04
        Guaranteed loan subsidy budget authority:
    233001Water and waste disposal loan
            guarantees......................                      -1          -1
    233002Community facility loan guarantees          -1          -1          -1
    233003Business and industry loan
            guarantees......................          32          41          29
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....          31          39          27
        Guaranteed loan subsidy outlays:
    234001Water and waste disposal loan
            guarantees......................
    234002Community facility loan guarantees
    234003Business and industry loan
            guarantees......................          29          42          58
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............          29          42          58
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235003Business and industry loan
            guarantees......................          38
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................          38
        Guaranteed loan upward reestimate subsidy
                    outlays:
    236003Business and industry loan
            guarantees......................          38
                                               ---------   ---------  ----------

    [[Page 127]]

    236901Total upward reestimate subsidy
            outlays.........................          38
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237003Business and industry loan
            guarantees......................         -17
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................         -17
        Guaranteed loan downward reestimate subsidy
                    outlays:
    238002Community facility loan guarantees
    238003Business and industry loan
            guarantees......................         -17
                                               ---------   ---------  ----------
    238901Total downward reestimate subsidy
            outlays.........................         -17
    ---------------------------------------------------------------------------

        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 2004 for all programs is projected to be at or
    slightly above the 2003 enacted level except for water and waste
    disposal grants and business and industry guaranteed loans.

        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
    two of the 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 $820 million for these programs in 2004.

        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. $346 million is projected for
    this program in 2004.

        Emergency community water assistance grants are authorized under
    Section 306A of the Consolidated Farm and Rural Development Act, as
    amended. Grants are made to public bodies and nonprofit organizations
    for construction or extension of water lines, repair or maintenance of
    existing systems, replacement of equipment, and payment of costs to
    correct emergency situations. 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 2004.

        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 2004 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
    2003 and no funds are requested in 2004. $606 million in loan guarantees
    are projected for 2004.

        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:

                         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,
    $41,500,000, to remain available until expended: Provided, That of the
    total amount appropriated, $1,800,000 shall be available through June
    30, 2004, for authorized empowerment zones and enterprise communities
    and communities designated by the Secretary of Agriculture as Rural
    Economic Area Partnership Zones.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1953-0-1-604      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.03 Very low-income housing repair
            grants..........................          31          32          32
    00.04 Very low-income housing repair
            natural disaster grants.........                       5
    00.05 Supervisory and technical
            assistance grants...............           1           1
    00.07 Rural housing preservation grants.           9          10          10
    00.08 Compensation and constructio
            defects.........................                       1
    00.09 Prcessing housing grants..........                       5
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          41          54          42
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          12          12
    22.00 New budget authority (gross)......          39          42          42

    [[Page 128]]

    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          53          54          42
    23.95 Total new obligations.............         -41         -54         -42
    24.40 Unobligated balance carried
            forward, end of year............          12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          39          42          42
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          45          38          39
    73.10 Total new obligations.............          41          54          42
    73.20 Total outlays (gross).............         -48         -53         -51
    73.45 Recoveries of prior year
            obligations.....................          -2
    74.40 Obligated balance, end of year....          38          39          31
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          29          28          29
    86.93 Outlays from discretionary
            balances........................          19          25          22
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          48          53          51
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          39          42          42
    90.00 Outlays...........................          46          53          51
    ---------------------------------------------------------------------------

        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 2004.

        The supervisory and technical assistance grant program is carried
    out under the provisions of section 509(f) and 525 of the Housing Act of
    1949, as amended. Under section 509, grants are made to public and
    private nonprofit organizations for packaging loan applications for
    housing under sections 502, 504, 514/516, 515, and 533 of the Housing
    Act of 1949, as amended. The assistance is to be directed to underserved
    areas where at least 20 percent or more of the population is at or below
    the poverty level, and at least 10 percent or more of the population
    resides in substandard housing. Under section 525, grants are made to
    public and private nonprofit organizations and other associations for
    the developing, conducting, administering or coordinating of technical
    and supervisory assistance programs to demonstrate the benefits of
    Federal, State, and local housing programs for low-income families in
    rural areas. No new funds are provided for this program in 2004.

        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 2004.

                           Farm Labor Program Account

        For the cost of direct loans, grants, and contracts, as authorized
    by 42 U.S.C. 1484 and 1486, $35,018,000, to remain available until
    expended, for direct farm labor housing loans and domestic farm labor
    housing grants and contracts.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1954-0-1-604      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............          22          18          18
    00.02 Farm labor housing grants.........          15          17          17
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          37          35          35
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           5
    22.00 New budget authority (gross)......          31          35          35
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          36          35          35
    23.95 Total new obligations.............         -37         -35         -35
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          31          35          35
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          25          59          82
    73.10 Total new obligations.............          37          35          35
    73.20 Total outlays (gross).............          -2         -12         -23
    74.40 Obligated balance, end of year....          59          82          96
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           2          12          23
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          31          35          35
    90.00 Outlays...........................           3          12          23
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1954-0-1-604      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Farm Labor Program................          47          36          42
                                               ---------   ---------  ----------
    115901Total direct loan levels..........          47          36          42
        Direct loan subsidy (in percent):
    132001Farm Labor Program................       47.31       49.02       42.73
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       47.31       49.02       42.73
        Direct loan subsidy budget authority:
    133001Farm Labor Program................          22          18          18
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....          22          18          18
        Direct loan subsidy outlays:
    134001Farm Labor Program................           2           7          12
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............           2           7          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

    [[Page 129]]

    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 2004 is $59 million ($17 million in
    grants and $42 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, $740,000,000; 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 2004 shall be
    funded for a 5-year period, although the life of any such agreement may
    be extended to fully utilize amounts obligated.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0137-0-1-604      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........         705         715         740
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         705         715         740
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           6           3
    22.00 New budget authority (gross)......         701         712         740
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         707         715         740
    23.95 Total new obligations.............        -705        -715        -740
    24.40 Unobligated balance carried
            forward, end of year............           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

            Appropriation:
    40.00     Appropriation.................         701         712         740
    40.00     Appropriation.................          59          60          60
    40.47   Portion substituted for
              borrowing authority...........         -59         -60         -60
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         701         712         740
    ----------------------------------------------------------------------------

        Change in obligated balances:
          Obligated balance, start of year:

    72.40   Unpaid obligations,
              appropriation, start of year..       2,102       2,215       2,301
    72.40   Obligated balance, authority to
              borrow, start of year.........         625         566         506
    73.10 Total new obligations.............         705         715         740
    73.20 Total outlays (gross).............        -651        -689        -717
          Obligated balance, end of year:

    74.40   Obligated balance,
              appropriation, end of year....       2,215       2,301       2,385
    74.40   Obligated balance, authority to
              borrow,end of year............         566         506         446
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          24          25          26
    86.93 Outlays from discretionary
            balances........................         627         664         691
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         651         689         717
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         701         712         740
    90.00 Outlays...........................         651         689         717
    ---------------------------------------------------------------------------

        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      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

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

        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), $34,000,000, to remain available
    until expended (7 U.S.C. 2209b).

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2006-0-1-604      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........          29          61          34
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          29          61          34
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          21          30           3
    22.00 New budget authority (gross)......          35          34          34
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          59          64          37
    23.95 Total new obligations.............         -29         -61         -34
    24.40 Unobligated balance carried
            forward, end of year............          30           3           3
    ----------------------------------------------------------------------------

    [[Page 130]]

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..          37          37          56
    73.10 Total new obligations.............          29          61          34
    73.20 Total outlays (gross).............         -26         -42         -38
    73.45 Recoveries of prior year
            obligations.....................          -3
    74.40 Obligated balance, end of year....          37          56          52
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           4           4           4
    86.93 Outlays from discretionary
            balances........................          22          38          34
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          26          42          38
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          35          34          34
    90.00 Outlays...........................          26          42          38
    ---------------------------------------------------------------------------

        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 Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1956-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.35   Appropriation rescinded.........                     -10         -10
          Mandatory:

    62.00   Transferred from other accounts.                      10          10
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                      -7          -7
    86.93 Outlays from discretionary
            balances........................                                  -2
    86.97 Outlays from new mandatory
            authority.......................                       7           7
    86.98 Outlays from mandatory balances...                                   2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........
    ----------------------------------------------------------------------------

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

        Rural firefighters and emergency personnel grants are authorized
    under 7 U.S.C. 2655. Grants are provided to local government and Indian
    tribes to pay the cost of training firefighters and emergency personnel
    in firefighting, emergency medical practices, and responding to
    hazardous materials and bioagents in rural areas. Not less than 60
    percent of the amounts made available for training grants shall be used
    to provide grants to fund partial scholarships for training of
    individuals at training centers. The remaining funding may be made
    available for grants to provide financial assistance to State and
    regional centers that provide training for firefighters and emergency
    medical personnel for improvements to the training facility, equipment,
    curricula, and personnel. The Farm Security and Rural Investment Act of
    2002, Public Law 107-171, dated May 13, 2002, provides mandatory funding
    for this program. The Act provides $10,000,000 for each of fiscal years
    2003 through 2007, to remain available until expended, from the funds of
    the Commodity Credit Corporation. The 2004 Budget proposes to block the
    2003 and 2004 funding for this program because other programs in Forest
    Service, Federal Emergency Management Agency, and the Bureau of Land
    Management provide significant funding for this purpose.

                     Rural Community Fire Protection Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2067-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.20 Total outlays (gross).............          -1
    73.40 Adjustments in expired accounts
            (net)...........................           1
    ----------------------------------------------------------------------------

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

        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 fires threatening human lives, crops,
    livestock, farmsteads or other improvements, pastures, orchards,
    wildlife, rangeland, woodland, and other resources in rural areas.

    Credit accounts:

             Rural Community Facility Direct Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4225-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................         409         276         250
    00.02   Interest on Treasury borrowing..          71          80          96
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............         480         356         346
    08.02 Downward reestimate paid to
            receipt account.................          11
    08.04 Interest on downward reestimate
            paid to receipt account.........           4
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............          15
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         495         356         346
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          10          23
    22.00 New financing authority (gross)...         495         333         346
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          29
    22.70 Balance of authority to borrow
            withdrawn.......................         -18
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         516         356         346
    23.95 Total new obligations.............        -495        -356        -346
    24.40 Unobligated balance carried
            forward, end of year............          23
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............         392         202         206
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).         130         143         155
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           2         -12         -15
    68.47     Portion applied to repay debt.         -29
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....         103         131         140
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         495         333         346
    ----------------------------------------------------------------------------

    [[Page 131]]

        Change in obligated balances:
    72.40 Obligated balance, start of year..         463         639         662
    73.10 Total new obligations.............         495         356         346
    73.20 Total financing disbursements
            (gross).........................        -288        -345        -338
    73.45 Recoveries of prior year
            obligations.....................         -29
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -2          12          15
    74.40 Obligated balance, end of year....         639         662         685
    87.00 Total financing disbursements
            (gross).........................         288         345         338
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -18         -22         -17
    88.25     Interest on uninvested funds..         -13         -15         -17
              Non-Federal sources:
    88.40       Repayment of principal......         -51         -35         -41
    88.40       Interest received on loans..         -48         -71         -80
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -130        -143        -155
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          -2          12          15
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         363         202         206
    90.00 Financing disbursements...........         157         202         183
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4225-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         234         250         250
    1121  Limitation available from carry-
            forward.........................         177          11
    1143  Unobligated limitation carried
            forward (P.L. xx) (-)...........         -12
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         399         261         250
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         988       1,137       1,395
    1231  Disbursements: Direct loan
            disbursements...................         202         293         267
    1251  Repayments: Repayments and
            prepayments.....................         -51         -35         -41
    1264  Write-offs for default: Other
            adjustments, net................          -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,137       1,395       1,621
    ---------------------------------------------------------------------------

        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    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          20             29            39             45
            Investments in US securities:
    1106      Receivables, net..............          55              1            47             50
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..         988          1,137         1,375          1,589
    1402    Interest receivable.............          13             16            20             25
    1404    Foreclosed property.............                          2
    1405    Allowance for subsidy cost (-)..        -116           -111          -135           -145
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         885          1,044         1,260          1,469
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         960          1,074         1,346          1,564
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................         902          1,067         1,290          1,508
    2105    Other...........................          55              4            55             55
    2203  Non-Federal liabilities: Liability
            for deposit funds...............           3              3             1              1
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         960          1,074         1,346          1,564
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         960          1,074         1,346          1,564
    -----------------------------------------------------------------------------------------------

           Rural Community Facility Guaranteed Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4228-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........           6
    08.01 Negative subsidy paid to receipt
            account.........................           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           7
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           1           4
    22.00 New financing authority (gross)...           6           2           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           8           3           6
    23.95 Total new obligations.............          -7
    24.40 Unobligated balance carried
            forward, end of year............           1           4           6
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............           5
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           2           2
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................           6           2           2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           1           2
    73.10 Total new obligations.............           7
    73.20 Total financing disbursements
            (gross).........................          -6          -1          -1
    74.40 Obligated balance, end of year....           1           2           2
    87.00 Total financing disbursements
            (gross).........................           6           1           1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources,
              Guarantee Fees................          -1          -2          -2
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           5
    90.00 Financing disbursements...........           5          -1          -1
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4228-0-3-452      2002 actual   2003 est.   2004 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......................
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................         210         210         210
    2199  Guaranteed amount of guaranteed
            loan commitments................         168         168         168
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         227         301         422
    2231  Disbursements of new guaranteed
            loans...........................          59         155         164
    2251  Repayments and prepayments........         -27         -34         -40
    2264  Adjustments: Other adjustments,
            net.............................          42
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         301         422         546
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         241         338         437
    ---------------------------------------------------------------------------

        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

    [[Page 132]]

    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    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....           4              3            11             11
            Investments in US securities:
    1106      Receivables, net..............                          8
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           4             11            11             11
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................           1
    2104    Resources payable to Treasury...                          6             7              7
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.           3              5             4              4
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           4             11            11             11
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           4             11            11             11
    -----------------------------------------------------------------------------------------------

                  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:
    $4,091,634,000 for loans to section 502 borrowers, as determined by the
    Secretary, of which not more than $2,725,172,000 shall be for
    unsubsidized guaranteed loans; $35,003,000 for section 504 housing
    repair loans; $70,830,000 for section 515 rental housing; $100,000,000
    for section 538 guaranteed multi-family housing loans; $5,045,000 for
    section 524 site loans; $11,500,000 for credit sales of acquired
    property, of which up to $1,500,000 may be for multi-family credit
    sales; and $5,000,000 for section 523 self-help housing land development
    loans.
        For the cost of direct and guaranteed loans, including the cost of
    modifying loans, as defined in section 502 of the Congressional Budget
    Act of 1974, as follows: section 502 loans, $165,921,000, of which not
    more than $39,903,000 shall be for unsubsidized guaranteed loans;
    section 504 housing repair loans, $9,612,000; repair and rehabilitation
    of section 515 rental housing, $30,464,000, section 538 multi-family
    housing guaranteed loans, $5,950,000; multi-family credit sales of
    acquired property, $663,000; and section 523 self-help housing land
    development loans, $154,000: Provided, That of the total amount
    appropriated in this paragraph, $7,100,000 shall be available through
    June 30, 2004, 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, $482,787,000, which shall be
    transferred to and merged with the appropriation for ``Rural
    Development, Salaries and Expenses''.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0101  Negative subsidies/subsidy
            reestimates.....................         268         665
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Loan program:

    00.01   Direct loan subsidy.............         205         241         168
    00.02   Guaranteed loan subsidy.........          36          24          46
    00.05   Reestimates of direct loan
              subsidy.......................         112           2
    00.06   Interest on reestimates of
              direct loan subsidy...........          56
    00.09   Administrative expenses.........         422         443         483
    00.11 Modular housing demonstration
            grants..........................           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         834         712         696
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          23          17
    22.00 New budget authority (gross)......         832         695         696
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         855         712         696
    23.95 Total new obligations.............        -834        -712        -696
    23.98 Unobligated balance expiring or
            withdrawn.......................          -4
    24.40 Unobligated balance carried
            forward, end of year............          17
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         669         692         696
    41.00   Transferred to other accounts...          -5
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         664         692         696
          Mandatory:

    60.00   Appropriation...................         168           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         832         694         696
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         198         181         181
    73.10 Total new obligations.............         834         712         696
    73.20 Total outlays (gross).............        -837        -712        -715
    73.40 Adjustments in expired accounts
            (net)...........................         -13
    74.40 Obligated balance, end of year....         181         181         162
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         566         603         614
    86.93 Outlays from discretionary
            balances........................         103         107         101
    86.97 Outlays from new mandatory
            authority.......................         168           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         837         712         715
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         832         695         696
    90.00 Outlays...........................         837         712         715
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Direct 502 single family housing..       1,080         957       1,366
    115002Direct 502 supplemental...........
    115003Direct 502 modular housing........
    115004Direct 515 multi-family housing...         114          60          71
    115005Direct 515 natural disaster.......           8
    115006Direct 504 housing repair.........          32          35          35
    115007Direct 504 supplemental...........
    115008Direct Farm Labor Housing.........
    115009Direct Farm Labor Housing Supp....
    115010Direct 524 site development.......                       5           5
    115011Single family credit sales........           2          10          10
    115012Multi-family credit sales.........           2           2           2
    115013Direct 523 self-help housing......                       5           5
                                               ---------   ---------  ----------
    115901Total direct loan levels..........       1,238       1,074       1,494
        Direct loan subsidy (in percent):
    132001Direct 502 single family housing..       13.16       19.37        9.27
    132002Direct 502 supplemental...........       13.16       19.37        9.27
    132003Direct 502 modular housing........       17.68       17.92       12.37
    132004Direct 515 multi-family housing...       42.32       46.63       43.01
    132005Direct 515 natural disaster.......       42.32       46.63       43.01
    132006Direct 504 housing repair.........       32.13       31.02       27.46
    132007Direct 504 supplemental...........       32.13       31.02       27.46
    132008Direct Farm Labor Housing.........        0.00        0.00        0.00
    132009Direct Farm Labor Housing Supp....        0.00        0.00        0.00
    132010Direct 524 site development.......        0.55        1.09       -0.03

    [[Page 133]]

    132011Single family credit sales........       -4.82       -9.58      -17.46
    132012Multi-family credit sales.........       42.17       46.68       44.20
    132013Direct 523 self-help housing......        5.08        4.41        3.08
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       16.48       20.86       11.11
        Direct loan subsidy budget authority:
    133001Direct 502 single family housing..         142         185         127
    133002Direct 502 supplemental...........
    133003Direct 502 modular housing........
    133004Direct 515 multi-family housing...          48          28          30
    133005Direct 515 natural disaster.......           3
    133006Direct 504 housing repair.........          10          11          10
    133007Direct 504 supplemental...........
    133008Direct Farm Labor Housing.........
    133009Direct Farm Labor Housing Supp....
    133010Direct 524 site development.......
    133011Single family credit sales........                      -1          -2
    133012Multi-family credit sales.........           1           1           1
    133013Direct 523 self-help housing......
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....         204         224         166
        Direct loan subsidy outlays:
    134001Direct 502 single family housing..         137         174         136
    134002Direct 502 supplemental...........
    134003Direct 502 modular housing........           2
    134004Direct 515 multi-family housing...          48          53          42
    134005Direct 515 natural disaster.......           4           4           6
    134006Direct 504 housing repair.........          10          10           9
    134007Direct 504 supplemental...........                       3           1
    134008Direct Farm Labor Housing.........           6           4           2
    134009Direct Farm Labor Housing Supp....           1           1
    134010Direct 524 site development.......
    134011Single family credit sales........
    134012Multi-family credit sales.........           1           1           1
    134013Direct 523 self-help housing......
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............         209         250         197
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Direct 502 single family housing..         148
    135004Direct 515 multi-family housing...           3           2
    135006Direct 504 housing repair.........           1
    135008Direct Farm Labor Housing.........           1
    135011Single family credit sales........          15
    135012Multi-family credit sales.........
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................         168           2
        Direct loan upward reestimate subsidy outlays:
    136001Direct 502 single family housing..         148
    136004Direct 515 multi-family housing...           3           2
    136006Direct 504 housing repair.........           1
    136006Upward reestimates subsidy outlays
    136008Direct Farm Labor Housing.........           1
    136011Single family credit sales........          15
    136012Multi-family credit sales.........
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...         168           2
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Direct 502 single family housing..         -51        -601
    137004Direct 515 multi-family housing...        -135         -64
    137006Direct 504 housing repair.........          -3
    137008Direct Farm Labor Housing.........          -4
    137011Single family credit sales........          -1
    137012Multi-family credit sales.........          -1
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................        -195        -665
        Direct loan downward reestimate subsidy
                    outlays:
    138001Direct 502 single family housing..         -51        -601
    138004Direct 515 multi-family housing...        -135         -64
    138006Direct 504 housing repair.........          -3
    138008Direct Farm Labor Housing.........          -4
    138011Single family credit sales........          -1
    138012Multi-family credit sales.........          -1
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................        -195        -665
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Guaranteed 502 single family
            housing--New loans..............       2,419       1,590       2,500
    215002Guaranteed 502 refinancings.......                     225         225
    215003Guarantee 538 multi-family housing         100         100         100
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......       2,519       1,915       2,825
        Guaranteed loan subsidy (in percent):
    232001Guaranteed 502 single family
            housing--New loans..............        1.31        1.22        1.57
    232002Guaranteed 502 refinancings.......        0.00        0.18        0.29
    232003Guarantee 538 multi-family housing        3.93        4.50        5.95
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        1.43        1.25        1.63
        Guaranteed loan subsidy budget authority:
    233001Guaranteed 502 single family
            housing--New loans..............          32          19          39
    233002Guaranteed 502 refinancings.......                                   1
    233003Guarantee 538 multi-family housing           4           4           6
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....          36          24          46
        Guaranteed loan subsidy outlays:
    234001Guaranteed 502 single family
            housing--New loans..............          32          14          33
    234002Guaranteed 502 refinancings.......                                   1
    234003Guarantee 538 multi-family housing           4                       1
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............          36          14          35
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237001Guaranteed 502 single family
            housing--unsubsidized...........         -72
    237002Guarantee 538 multi-family housing
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................         -72
        Guaranteed loan downward reestimate subsidy
                    outlays:
    238001Guaranteed 502 single family
            housing--unsubsidized...........         -72
    238002Guarantee 538 multi-family housing
                                               ---------   ---------  ----------
    238901Total downward reestimate subsidy
            outlays.........................         -72
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................         422         443         483
    358001Outlays from balances.............
    359001Outlays from new authority........         422         443         483
    ---------------------------------------------------------------------------

        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 2004, funds for section 515 rural rental housing loans will be
    limited to repair and rehabilitation only and $71 million is included
    for this purpose. This is a change from the 2002 budget; it emphasizes
    the need for repair and rehabilitation of existing rural rental housing.
    During the hiatus of providing new construction, RHS will study its
    multifamily housing portfolio and determine ways to operate and manage
    the portfolio more efficiently so that new construction may be provided
    in future years at less cost to the taxpayers.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the direct
    loans obligated and loan guarantees committed in 1992 and beyond
    (including credit sales of acquired property), as well as administrative
    expenses of this program. The subsidy amounts are estimated on a present
    value basis; the administrative expenses are estimated on a cash basis.

    [[Page 134]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................         412         269         213
    41.0  Grants, subsidies, and
            contributions...................         422         443         483
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         834         712         696
    ---------------------------------------------------------------------------

           Rural Housing Insurance Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4215-0-3-371      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans including upward
              adjustments of prior year
              obligations...................       1,294       1,150       1,536
    00.02   Advances on behalf of borrowers.          48          91          91
    00.03   Collateral acquired by default..           4          10          16
    00.04   Interest on Treasury borrowing..         679         715         761
    00.06   Other expenses..................           6          11          14
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating program.....       2,031       1,977       2,418
    08.02 Downward subsidy reestimates paid
            to receipt account..............         141         442
    08.04 Interest on downward reestimates
            paid to receipt account.........          55         223
                                               ---------   ---------  ----------
    08.91   Subtotal, Reestimates...........         195         665
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,227       2,642       2,418
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         109         113
    22.00 New financing authority (gross)...       2,271       2,642       2,418
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          69
    22.60 Portion applied to repay debt.....        -109        -113
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,340       2,642       2,418
    23.95 Total new obligations.............      -2,227      -2,642      -2,418
    24.40 Unobligated balance carried
            forward, end of year............         113
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............       1,253       1,556       1,432
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...       1,697       1,682       1,730
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           6                     -25
    68.47   Portion applied to repay debt...        -685        -596        -719
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......       1,018       1,086         986
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       2,271       2,642       2,418
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Unpaid obligations, fund balance
            with Treasury, start of year....         489         552         499
    73.10 Total new obligations.............       2,227       2,642       2,418
    73.20 Total financing disbursements
            (gross).........................      -2,089      -2,695      -2,292
    73.45 Recoveries of prior year
            obligations.....................         -69
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -6                      25
    74.40 Obligated balance, end of year....         552         499         648
    87.00 Total financing disbursements
            (gross).........................       2,089       2,695       2,292
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: payments from
                program account.............        -377        -260        -211
    88.25     Interest on uninvested funds..         -97        -101        -100
              Non-Federal sources:
    88.40       Non-Federal sources:
                  Repayments of principal...        -683        -730        -773
    88.40       Interest received on loans..        -473        -504        -534
    88.40       Payments on judgments.......         -12         -13         -15
    88.40       Proceeds on sale of acquired
                  property..................         -25         -30         -35
    88.40       Recaptured income...........         -27         -33         -47
    88.40       Fees........................          -6          -6          -7
    88.40       Miscellaneous collections...           3          -5          -8
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,697      -1,682      -1,730
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          -6                      25
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         568         960         713
    90.00 Financing disbursements...........         392       1,013         562
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4215-0-3-371      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........       1,295       1,110       1,536
    1121  Limitation available from carry-
            forward.........................          51          39
    1131  Direct loan obligations exempt
            from limitation.................
    1142  Unobligated direct loan limitation
            (-).............................         -15
    1143  Unobligated limitation carried
            forward (P.L. xx) (-)...........         -42
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       1,289       1,150       1,536
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      11,697      12,088      12,469
    1231  Disbursements: Direct loan
            disbursements...................       1,175       1,203       1,408
    1251  Repayments: Repayments and
            prepayments.....................        -683        -730        -773
    1261  Adjustments: Capitalized interest.          18          31          33
          Write-offs for default:

    1263    Direct loans....................         -97        -100        -103
    1264    Other adjustments, net..........         -22         -23         -17
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      12,088      12,469      13,017
    ---------------------------------------------------------------------------

        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    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         245            294           199            264
            Investments in US securities:
    1106      Receivables, net..............         211
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..      11,697         12,088        12,469         13,017
    1402    Interest receivable.............          65             75            78             80
    1404    Foreclosed property.............          18             33            36             40
    1405    Allowance for subsidy cost (-)..      -2,693         -1,904        -1,445         -1,506
                                            ------------ --------------  ------------  -------------

    [[Page 135]]

    1499      Net present value of assets
                related to direct loans.....       9,087         10,292        11,138         11,631
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       9,543         10,586        11,337         11,895
        LIABILITIES:
          Federal liabilities:

    2103    Debt............................       9,267          9,708        10,545         11,173
    2104    Liability for subsidy related to
              undisbursed loans.............         211
    2105    Other...........................           5            816           728            656
    2207  Non-Federal liabilities: Other....          60             62            64             66
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       9,543         10,586        11,337         11,895
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       9,543         10,586        11,337         11,895
    -----------------------------------------------------------------------------------------------

         Rural Housing Insurance Fund Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4216-0-3-371      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default claims....................          82          99         102
    00.02 Interest assistance paid to
            lenders.........................                       3           4
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating program.....          82         102         106
    08.02 Downward subsidy reestimate paid
            to receipt account..............          56
    08.04 Interest on downward restimate
            paid to receipt account.........          16
                                               ---------   ---------  ----------
    08.91   Subtotal , Reestimates..........          72
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         155         102         106
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         369         319         288
    22.00 New financing authority (gross)...         103          71          98
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         472         390         386
    23.95 Total new obligations.............        -155        -102        -106
    24.40 Unobligated balance carried
            forward, end of year............         319         288         280
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).         106          61          87
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -3          10          11
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....         103          71          98
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -3                     -10
    73.10 Total new obligations.............         155         102         106
    73.20 Total financing disbursements
            (gross).........................        -155        -102        -106
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           3         -10         -11
    74.40 Obligated balance, end of year....                     -10         -21
    87.00 Total financing disbursements
            (gross).........................         155         102         106
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -36         -14         -34
    88.25     Interest on uninvested funds..         -20         -18         -16
    88.40     Non-Federal sources: guarantee
                fees........................         -50         -29         -37
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -107         -61         -87
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           3         -10         -11
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........          48          41          19
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4216-0-3-371      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........       2,724       2,850       2,825
    2121  Limitation available from carry-
            forward.........................          14           3
    2142  Uncommitted loan guarantee
            limitation......................        -206        -935
    2143  Uncommitted limitation carried
            forward.........................          -4
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       2,528       1,918       2,825
    2199  Guaranteed amount of guaranteed
            loan commitments................       2,267       1,724       2,543
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      12,673      13,602      13,965
    2231  Disbursements of new guaranteed
            loans...........................       2,444       2,016       2,516
    2251  Repayments and prepayments........      -1,436      -1,554      -1,668
          Adjustments:

    2263    Terminations for default that
              result in claim payments......         -81         -99        -102
    2264    Other adjustments, net..........           2
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      13,602      13,965      14,711
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      12,241      12,568      13,240
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from 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    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         366            319           278            259
            Investments in US securities:
    1106      Receivables, net..............           3             21            10             21
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         369            340           288            280
        LIABILITIES:
          Non-Federal liabilities:

    2204    Liabilities for loan guarantees.         366            327           278            270
    2207    Other...........................           3             13            10             10
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         369            340           288            280
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         369            340           288            280
    -----------------------------------------------------------------------------------------------

                Rural Housing Insurance Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investment:

    00.02   Advances on behalf of borrowers.          63          76          75
    00.05   Collateral acquired by default..           2           2           2
                                               ---------   ---------  ----------
    00.91     Total capital investment......          65          78          77
          Operating expenses:

    01.03   Interest on FFB borrowings......         282         224         158
    01.04   Premiums paid FFB at redemption
              of certificates of beneficial
              ownership.....................         137          65
    01.06   Interest credits on loans sold
              to investors..................           1           1           1
    01.07   Other costs incident to loans...           4           3           3
                                               ---------   ---------  ----------

    [[Page 136]]

    01.91     Total operating expenses......         424         293         162
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         489         371         239
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          92
    22.00 New budget authority (gross)......         489         371         239
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          11
    22.60 Portion applied to repay debt.....        -102
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         489         371         239
    23.95 Total new obligations.............        -489        -371        -239
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...       1,866       1,703       1,529
    69.27   Capital transfer to general fund          -9        -257      -1,290
    69.47   Portion applied to repay debt...      -1,368      -1,075
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         489         371         239
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Unpaid fund balance with treasury,
            end of year.....................         341         230         204
    73.10 Total new obligations.............         489         371         239
    73.20 Total outlays (gross).............        -589        -397        -239
    73.45 Recoveries of prior year
            obligations.....................         -11
    74.40 Obligated balance, end of year....         230         204         204
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         359         278         179
    86.98 Outlays from mandatory balances...         230         119          60
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         589         397         239
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -4
              Non-Federal sources:
    88.40       Repayments of loans and
                  advances..................      -1,023        -898        -792
    88.40       Proceeds from sale of
                  acquired property.........         -32         -36         -33
    88.40       Payments on judgments.......         -17         -15         -13
    88.40       Interest payments from
                  borrowers.................        -672        -597        -530
    88.40       Recapture of subsidies......        -119        -149        -153
    88.40       Income from residual
                  investment in loan asset
                  sale......................         -37          -7          -7
    88.40       Fees and other revenue......          38          -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,866      -1,703      -1,529
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      -1,377      -1,332      -1,290
    90.00 Outlays...........................      -1,276      -1,306      -1,290
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      16,183      14,995      13,993
    1251  Repayments: Repayments and
            prepayments.....................      -1,023        -898        -792
    1261  Adjustments: Capitalized interest.          19          20          21
          Write-offs for default:

    1263    Direct loans....................        -126        -105         -83
    1264    Other adjustments, net..........         -58         -19         -12
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      14,995      13,993      13,127
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          18          16          14
    2251  Repayments and prepayments........          -2          -2          -2
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          16          14          12
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          14          12          11
    ---------------------------------------------------------------------------

        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    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         876            818           765            746
    0102  Expense...........................        -813           -572          -426           -280
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............          63            246           339            466
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4141-0-3-371    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         433            230           204            204
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............      16,183         14,995        13,993         13,127
    1602    Interest receivable.............         546            631           668            725
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -3,045         -5,674        -5,324         -5,030
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............      13,684          9,952         9,337          8,822
    1606    Foreclosed property.............          49             39            36             33
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................      13,733          9,991         9,373          8,855
    1901  Other Federal assets: Other assets           3              4             4              4
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................      14,169         10,225         9,581          9,063
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................         264            142           116            116
    2103    Debt............................       4,375          2,905         1,830          1,830
    2104    Resources payable to Treasury...       9,415          7,104         7,565          7,052
          Non-Federal liabilities:

    2203    Debt............................           2              1             1              1
    2204    Liabilities for loan guarantees.           4              3             3              2
    2207    Other...........................         109             70            66             62
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      14,169         10,225         9,581          9,063
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      14,169         10,225         9,581          9,063
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           4           3           3
    33.0  Investments and loans.............          65          78          77
    41.0  Grants, subsidies, and
            contributions...................           1           1           1
    43.0  Interest and dividends............         419         289         158
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         489         371         239
    ---------------------------------------------------------------------------

    [[Page 137]]

                       RURAL BUSINESS-COOPERATIVE SERVICE

                                  Federal Funds

    General and special funds:

             Rural Empowerment Zones and Enterprise Community Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0402-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........          13          16
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          13          16
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          14          16
    22.00 New budget authority (gross)......          15
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          29          16
    23.95 Total new obligations.............         -13         -16
    24.40 Unobligated balance carried
            forward, end of year............          16
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          15
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          13          13          15
    73.10 Total new obligations.............          13          16
    73.20 Total outlays (gross).............         -13         -14         -13
    74.40 Obligated balance, end of year....          13          15           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           6
    86.93 Outlays from discretionary
            balances........................           7          14          13
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          13          14          13
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          15
    90.00 Outlays...........................          13          14          13
    ---------------------------------------------------------------------------

        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 were requested in 2003 because
    sufficient carryover balances were available. No funds are requested for
    2004.

        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 creating
    thousands of jobs, moving people from dependency to active participation
    in the economy.

                      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(e)), $11,000,000, of which $2,000,000 shall be for cooperative
    agreements for the appropriate technology transfer for rural areas
    program; of which not to exceed $1,500,000 shall be for cooperatives or
    associations of cooperatives whose primary focus is to provide
    assistance to small, minority producers; of which not to exceed $500,000
    shall be for cooperative research agreements; and of which not to exceed
    $2,000,000, to remain available until expended, shall be for value-added
    agriculture product market development grants, as authorized by section
    6401 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
    1621 note).

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1900-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Rural Cooperative Development
            Grants..........................           5           7           7
    00.10 Value-added Agricultural Product
            Marketing (mandatory)...........                      50
    00.11 Value added Agricultural Product
            Marketing (discretionary).......                                   2
    00.12 Appropriate Technology Transfer
            for Rural Areas.................           3           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           8          59          11
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                      40
    22.00 New budget authority (gross)......          48          19          11
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          48          59          11
    23.95 Total new obligations.............          -8         -59         -11
    24.40 Unobligated balance carried
            forward, end of year............          40
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           8           9          11
    40.35   Appropriation rescinded.........                     -30         -40
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............           8         -21         -29
          Mandatory:

    62.00   Transferred from other accounts.          40          40          40
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          48          19          11
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          34          24          42
    73.10 Total new obligations.............           8          59          11
    73.20 Total outlays (gross).............         -18         -41         -23
    74.40 Obligated balance, end of year....          24          42          30
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2         -20         -26
    86.93 Outlays from discretionary
            balances........................          16           1          -1
    86.97 Outlays from new mandatory
            authority.......................                      30          30
    86.98 Outlays from mandatory balances...                      30          20
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          18          41          23
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          48          19          11
    90.00 Outlays...........................          18          41          23
    ---------------------------------------------------------------------------

        Grants for rural cooperative development were authorized under
    section 310B(e) of the Consolidated Farm and Rural Development Act by
    Public Law 104-127, April 4, 1996. These grants are made available to
    nonprofit corporations and institutions of higher education to fund the
    establishment and operation of centers for rural cooperative
    development. The primary purpose of the centers is the improvement of
    economic conditions of rural areas through the development of new
    cooperatives and improving operations of existing cooperatives. RBS can
    fund up to 75 percent of any project and associated administrative costs
    and requires at least a 25 percent matching share from the applicant
    which must be from non-Federal sources.

        The Appropriate Technology Transfer to Rural Areas (ATTRA) program
    was first authorized by the Food Security

    [[Page 138]]

    Act of 1985. The program provides information and technical assistance
    to agricultural producers to adopt sustainable agricultural practices
    that are environmentally friendly and lower production costs.

        Funds are requested for cooperative research agreements to help the
    Rural Development mission area maintain a predictable level of research
    on agricultural and non-agricultural cooperative issues.

        Additionally, USDA provides value added marketing grants for
    cooperatives. These were first funded in the Agriculture Risk Protection
    Act of 2000. The 2002 Farm Bill provided $40 million for this purpose
    each year from 2002 through 2007. $30 million of the 2003 funds are
    blocked from being spent because there is sufficient carryover balances
    to meet 2003 demand. The full $40 million is blocked in 2004 as well.
    However, $2 million in discretionary 2004 funds is provided for this
    purpose.

                        Rural Economic Development Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3105-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........           3           4           4
                                               ---------   ---------  ----------
    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..........           9          22          36
    22.00 New budget authority (gross)......          15          17          17
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          24          39          53
    23.95 Total new obligations.............          -3          -4          -4
    24.40 Unobligated balance carried
            forward, end of year............          22          36          48
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...           3          16          17
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          12           1
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          15          17          17
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                     -13         -14
    73.10 Total new obligations.............           3           4           4
    73.20 Total outlays (gross).............          -3          -4         -15
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -12          -1
    74.40 Obligated balance, end of year....         -13         -14         -26
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           3           4          15
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -3         -16         -17
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -12          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................                     -12          -2
    ---------------------------------------------------------------------------

        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      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........                       2           1
                                               ---------   ---------  ----------
    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..........           5           6           5
    22.00 New budget authority (gross)......           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           6           6           5
    23.95 Total new obligations.............                      -2          -1
    24.40 Unobligated balance carried
            forward, end of year............           6           5           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................           1
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           1           2           1
    ----------------------------------------------------------------------------

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

        The Federal Agriculture Improvement Act of 1996 established the
    National Sheep Industry Improvement Center to promote activities to
    strengthen and enhance production or marketing of sheep and goat
    products in the United States. The Center may provide loans or grants to
    eligible entities to provide assistance to the industry for
    infrastructure development, business development, production, resource
    development, and market and environmental research. The 1996 Act
    provided $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 2004.

                    Rural Strategic Investment Program Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1955-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Grants............................                                  80
    00.09 Administrative Expenses...........                                   5
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                  85
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                                  85
    22.00 New budget authority (gross)......                      85
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                      85          85
    23.95 Total new obligations.............                                 -85
    24.40 Unobligated balance carried
            forward, end of year............                      85
    ----------------------------------------------------------------------------

    [[Page 139]]

        New budget authority (gross), detail:
          Discretionary:

    40.35   Appropriation rescinded.........                     -15
          Mandatory:

    62.00   Transferred from other accounts.                     100
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................                      85
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                  85
    73.20 Total outlays (gross).............                                 -43
    74.40 Obligated balance, end of year....                                  43
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................                                  -7
    86.98 Outlays from mandatory balances...                                  50
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                                  43
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      85
    90.00 Outlays...........................                                  43
    ---------------------------------------------------------------------------

        The Rural Strategic Investment Program is authorized under 7 U.S.C.
    2009dd. The Rural Strategic Investment Program will provide rural
    communities with flexible resources to develop comprehensive,
    collaborative, and locally-based strategic planning processes; and will
    implement innovative community and economic development strategies that
    optimize regional competitive advantages. The program was authorized and
    funded in section 6030 of the Farm Security and Rural Investment Act of
    2002, Public Law 107-171, dated May 13, 2002. The Act provides that if
    the Secretary approves a national strategic investment plan submitted by
    the National Board, the Secretary shall transfer $100,000,000 for
    planning grants and innovation grants to Regional Boards from the
    Commodity Credit Corporation, to remain available until expended.
    However, in 2003 $15,000,000 of these funds were blocked to reflect a
    total amount of $85,000,000 for this purpose.

    Credit accounts:

           Rural Business and Industry Direct Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4223-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.02   Interest on Treasury borrowings.           6           6           6
    08.02 Downward reestimates paid to
            receipt account.................           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           7           6           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          10           8           9
    22.00 New financing authority (gross)...           5          13          13
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
    22.70 Balance of authority to borrow
            withdrawn.......................          -3          -8          -5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          15          13          17
    23.95 Total new obligations.............          -7          -6          -6
    24.40 Unobligated balance carried
            forward, end of year............           8           9          13
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............           1
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          19          16          16
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -2          -3          -3
    68.47   Portion applied to repay debt...         -13
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......           4          13          13
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................           5          13          13
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          45           7           6
    73.10 Total new obligations.............           7           6           6
    73.20 Total financing disbursements
            (gross).........................         -44         -10          -8
    73.45 Recoveries of prior year
            obligations.....................          -3
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           2           3           3
    74.40 Obligated balance, end of year....           7           6           7
    87.00 Total financing disbursements
            (gross).........................          44          10           8
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -7
    88.25     Interest on uninvested funds..          -2          -6          -6
              Non-Federal sources:
    88.40       Repayments of principal.....          -5          -6          -6
    88.40       Interest received on loans..          -5          -4          -4
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -19         -16         -16
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           2           3           3
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         -12
    90.00 Financing disbursements...........          24          -6          -8
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4223-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          82         121         119
    1231  Disbursements: Direct loan
            disbursements...................          44           4           2
    1251  Repayments: Repayments and
            prepayments.....................          -5          -6          -4
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         121         119         117
    ---------------------------------------------------------------------------

        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 2003, and no program is proposed in 2004.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4223-0-3-452    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          11              6            14             20
            Investments in US securities:
    1106      Receivables, net..............          10              5
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..          82            112           106            106
    1402    Interest receivable.............           4              1             5              5
    1405    Allowance for subsidy cost (-)..         -31            -34
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          55             79           111            111
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          76             90           125            131
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................           1              5             5             11
    2104    Resources payable to Treasury...          71             85           120            120
    2105    Other...........................           4
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          76             90           125            131
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          76             90           125            131
    -----------------------------------------------------------------------------------------------

    [[Page 140]]

         Rural Business and Industry Guaranteed Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4227-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Guaranteed loan costs:

    00.01   Default claims..................          32          33          33
    00.02   Purchase from Secondary Market..          72
    00.03   Interest to Treasury............           3           7           6
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (Guaranteed loan
              costs]........................         107          40          39
          Reestimates:

    08.02   Downward reestimate paid to
              receipt account...............          17
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         124          40          39
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          91         101         128
    22.00 New financing authority (gross)...         134          67          89
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         225         168         217
    23.95 Total new obligations.............        -124         -40         -39
    24.40 Unobligated balance carried
            forward, end of year............         101         128         178
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............          34
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............         100          67          89
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         134          67          89
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............         124          40          39
    73.20 Total financing disbursements
            (gross).........................        -124         -40         -39
    87.00 Total financing disbursements
            (gross).........................         124          40          39
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -67         -42         -58
    88.25     Interest on uninvested funds..          -6          -5          -6
              Non-Federal sources:
    88.40       Interest and principal on
                  purchased loans from
                  secondary market..........         -14          -8          -8
    88.40       Guarantee fees..............         -13         -12         -17
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -100         -67         -89
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          34
    90.00 Financing disbursements...........          24         -27         -50
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4227-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........         704         733         602
    2121  Limitation available from carry-
            forward.........................         499         345
    2142  Uncommitted loan guarantee
            limitation......................
    2143  Uncommitted limitation carried
            forward.........................        -359
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................         844       1,078         602
    2199  Guaranteed amount of guaranteed
            loan commitments................         667         852         476
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       3,504       3,884       4,266
    2231  Disbursements of new guaranteed
            loans...........................         839         817       1,206
    2251  Repayments and prepayments........        -413        -380        -415
          Adjustments:

    2263    Terminations for default that
              result in claim payments......         -51         -55         -60
    2264    Other adjustments, net..........           5
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       3,884       4,266       4,997
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       3,107       3,417       4,006
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from guaranteed loans committed in 1992 and beyond. The
    amounts in this account are a means of financing and are not included in
    the budget totals. The subsidy cost of this program is funded through
    the Rural Community Advancement Program. Loans made prior to 1992 are
    recorded in the Rural Development Insurance Fund Liquidating Account.

        This account finances loan guarantee commitments for industrial
    development in rural areas.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4227-0-3-452    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          91            101           143            143
            Investments in US securities:
    1106      Receivables, net..............          99            102            98             98
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         190            203           241            241
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................
    2104    Resources payable to Treasury...          16             49            30             30
    2105    Other...........................                          8
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.         174            146           211            211
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         190            203           241            241
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         190            203           241            241
    -----------------------------------------------------------------------------------------------

                   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)), $40,000,000.
        For the cost of direct loans, $17,308,000, as authorized by the
    Rural Development Loan Fund (42 U.S.C. 9812(a)): Provided, That such
    costs, including the cost of modifying such loans, shall be as defined
    in section 502 of the Congressional Budget Act of 1974: Provided
    further, That of the total amount appropriated, $2,447,000 shall be
    available through June 30, 2004, 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, $4,850,000 shall be transferred to and merged with the
    appropriation for ``Rural Development, Salaries and Expenses''.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2069-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0101  Negative subsidies/subsidy
            reestimates.....................           3
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2069-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............          13          20          17
    00.05 Reestimates of direct loan subsidy           1
    00.09 Administrative expense............           4           4           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          18          24          22
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          18          24          22

    [[Page 141]]

    23.95 Total new obligations.............         -18         -24         -22
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          20          24          22
    41.00   Transferred to other accounts...          -3
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          17          24          22
          Mandatory:

    60.00   Appropriation...................           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          18          24          22
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          51          47          45
    73.10 Total new obligations.............          18          24          22
    73.20 Total outlays (gross).............         -21         -26         -23
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.40 Obligated balance, end of year....          47          45          44
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           5           5           6
    86.93 Outlays from discretionary
            balances........................          15          21          17
    86.97 Outlays from new mandatory
            authority.......................           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          21          26          23
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          18          24          22
    90.00 Outlays...........................          21          26          23
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-2069-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Rural development loan fund
            program.........................          31          40          40
                                               ---------   ---------  ----------
    115901Total direct loan levels..........          31          40          40
        Direct loan subsidy (in percent):
    132001Rural development loan fund
            program.........................       43.21       48.26       43.27
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       43.21       48.26       43.27
        Direct loan subsidy budget authority:
    133001Rural development loan fund
            program.........................          13          20          17
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....          13          20          17
        Direct loan subsidy outlays:
    134001Rural development loan fund
            program.........................          16          22          18
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............          16          22          18
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Rural development loan fund
            program.........................           1
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................           1
        Direct loan upward reestimate subsidy outlays:
    136001Rural development loan fund
            program.........................           1
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...           1
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Rural development loan fund
            program.........................          -3
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................          -3
        Direct loan downward reestimate subsidy
                    outlays:
    138001Rural development loan fund
            program.........................          -3
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................          -3
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................           4           4           5
    359001Outlays from new authority........           4           4           5
    ---------------------------------------------------------------------------

        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 2004 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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2069-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................           4           4           5
    41.0  Grants, subsidies, and
            contributions...................          14          20          17
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          18          24          22
    ---------------------------------------------------------------------------

            Rural Development Loan Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4219-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................          31          40          40
    00.03   Interest on Treasury borrowing..          13          23          23
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............          44          63          63
          Non-operating program:

    08.02   Downward subsidy reestimate paid
              to receipt account............           2
    08.04   Interest on downward reestimate
              paid to receipt account.......           1
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          47          63          63
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       3
    22.00 New financing authority (gross)...          49          62          63
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
    22.60 Portion applied to repay debt.....                      -3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          51          62          63
    23.95 Total new obligations.............         -47         -63         -63
    24.40 Unobligated balance carried
            forward, end of year............           3
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............          20          13          13
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          33          40          40
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -4          -2          -1
    68.47   Portion applied to repay debt...                      11          11
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          29          49          50
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          49          62          63
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          52          52          50
    73.10 Total new obligations.............          47          63          63
    73.20 Total financing disbursements
            (gross).........................         -49         -67         -66
    73.45 Recoveries of prior year
            obligations.....................          -2
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           4           2           1
    74.40 Obligated balance, end of year....          52          50          49
    87.00 Total financing disbursements
            (gross).........................          49          67          66
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.         -17         -22         -18
    88.25     Interest on uninvested funds..          -2          -3          -7
              Non-Federal sources:
    88.40       Non-Federal sources--
                  repayment of principal....         -11         -11         -11
    88.40       Non-Federal sources--
                  interest on loans.........          -3          -4          -4
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -33         -40         -40

    [[Page 142]]

          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           4           2           1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          20          24          24
    90.00 Financing disbursements...........          16          27          26
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4219-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........          31          40          40
    1131  Direct loan obligations exempt
            from limitation.................
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          31          40          40
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         313         338         370
    1231  Disbursements: Direct loan
            disbursements...................          34          43          43
    1251  Repayments: Repayments and
            prepayments.....................          -9         -11         -12
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         338         370         401
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond. The amounts in
    this account are a means of financing and are not included in the budget
    totals.

        This account finances loans to intermediary borrowers, who in turn
    relend the funds to small rural businesses, community development
    corporations, or other organizations for the purpose of improving
    economic opportunities in rural areas. Through the use of local
    intermediaries, this program serves small-scale enterprises and gives
    preference to those communities with the greatest need.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4219-0-3-452    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          11             15            12
            Investments in US securities:
    1106      Receivables, net..............          51             47            42
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..         313            335           370
    1402    Interest receivable.............           1              1             1
    1405    Allowance for subsidy cost (-)..        -144           -150          -152
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         170            186           219
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         232            248           273
        LIABILITIES:
          Federal liabilities:

    2104    Resources payable to Treasury...         181            201           240
    2105    Other...........................          51             47            33
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         232            248           273
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         232            248           273
    -----------------------------------------------------------------------------------------------

                 Rural Development Loan Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4233-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1
    22.40 Capital transfer to general fund..                      -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           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          -4          -4          -4
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........
    ----------------------------------------------------------------------------

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

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Loan repayments.............          -3          -3          -3
    88.40       Borrower interest payments..          -1          -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -4          -4          -4
    ----------------------------------------------------------------------------

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

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4233-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          66          61          57
    1231  Disbursements: Direct loan
            disbursements...................
    1251  Repayments: Repayments and
            prepayments.....................          -3          -3          -3
    1263  Write-offs for default: Direct
            loans...........................          -2          -1          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          61          57          53
    ---------------------------------------------------------------------------

        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    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................           1              2             1              1
    0102  Expense...........................          -1             -2            -1             -1
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4233-0-3-452    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           2              2             1              1
    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.............          66             61            57             53
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................         -18            -18           -17            -16
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............          48             43            40             37
                                            ------------ --------------  ------------  -------------

    [[Page 143]]

    1699      Value of assets related to
                direct loans................          48             43            40             37
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          51             46            42             39
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............          51             46            42             39
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          51             46            42             39
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          51             46            42             39
    -----------------------------------------------------------------------------------------------

                Rural Economic Development Loans Program Account

                         (including rescission of funds)

        For the principal amount of direct loans, as authorized under
    section 313 of the Rural Electrification Act, for the purpose of
    promoting rural economic development and job creation projects,
    $15,002,000.
        For the cost of direct loans, including the cost of modifying loans
    as defined in section 502 of the Congressional Budget Act of 1974,
    $2,792,000.
        Of the funds derived from interest on the cushion of credit payments
    in fiscal year 2004, as authorized by section 313 of the Rural
    Electrification Act of 1936, $2,792,000 shall not be obligated and
    $2,792,000 are rescinded.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3108-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0101  Rural economic development loans,
            downward reestimates of
            subsidies.......................           1
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3108-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

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

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

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..           5           4           3
    73.10 Total new obligations.............           4           3           3
    73.20 Total outlays (gross).............          -5          -4          -4
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.40 Obligated balance, end of year....           4           3           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           1           1
    86.93 Outlays from discretionary
            balances........................           3           3           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           5           4           4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           4           3           3
    90.00 Outlays...........................           5           4           4
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-3108-0-1-452      2002 actual   2003 est.   2004 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.........................       24.16       21.36       18.61
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       24.16       21.36       18.61
        Direct loan subsidy budget authority:
    133001Rural economic development loans
            program.........................           4           3           3
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....           4           3           3
        Direct loan subsidy outlays:
    134001Rural economic development loans
            program.........................           5           4           3
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............           5           4           3
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Rural economic development loans
            program.........................          -1
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................          -1
        Direct loan downward reestimate subsidy
                    outlays:
    138001Rural economic development loans
            program.........................          -1
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................          -1
    ---------------------------------------------------------------------------

        Rural economic development loans are made for the purpose of
    promoting rural economic development and job creation projects. Loans
    are made to electric and telecommunication borrowers, who in turn
    finance rural development projects in their service areas. Program costs
    are derived from interest earnings on borrowers' ``cushion of credit''
    loan prepayments.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the direct
    loans obligated in 1992 and beyond. The subsidy amounts are estimated on
    a present value basis.

            Rural Economic Development Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4176-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................          15          15          15
    00.03   Interest expense................           5           8           9
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............          20          23          24
          Reestimates:

    08.02   Subsidy re-estimates paid to the
              receipt account...............           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          21          23          24
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           9           9           9
    22.00 New financing authority (gross)...          21          25          12
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
    22.70 Balance of authority to borrow
            withdrawn.......................          -3          -2          -2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          31          32          19
    23.95 Total new obligations.............         -21         -23         -24
    24.40 Unobligated balance carried
            forward, end of year............           9           9          -5
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          11          13
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).          19          19          19
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -1
    68.47     Portion applied to repay debt.          -8          -7          -7
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....          10          12          12
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          21          25          12
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          16          12          12
    73.10 Total new obligations.............          21          23          24
    73.20 Total financing disbursements
            (gross).........................         -21         -23         -24
    73.45 Recoveries of prior year
            obligations.....................          -4
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           1

    [[Page 144]]

    74.40 Obligated balance, end of year....          12          12          12
    87.00 Total financing disbursements
            (gross).........................          21          23          24
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal Funds: Program Account          -5          -4          -3
    88.25     Interest on uninvested funds..          -1          -1          -1
    88.40     Non-Federal sources: Repayment
                of Principal................         -13         -14         -15
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -19         -19         -19
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           3           6          -7
    90.00 Financing disbursements...........           4           4           5
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4176-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........          15          15          15
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          15          15          15
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          73          82          83
    1231  Disbursements: Direct loan
            disbursements...................          17          15          15
    1251  Repayments: Repayments and
            prepayments.....................          -8         -14         -14
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          82          83          84
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond. The amounts in
    this account are a means of financing and are not included in the budget
    totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4176-0-3-452    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....           6              7             7              5
            Investments in US securities:
    1106      Program Account...............           5              4             4              4
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..          73             77            82             74
    1405    Allowance for subsidy cost (-)..         -11            -12           -17             86
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          62             65            65            160
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          73             76            76            169
        LIABILITIES:
          Federal liabilities:

    2104    Resources payable to Treasury...          68             75            75            166
    2105    Other...........................           5              1             1              4
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          73             76            76            170
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          73             76            76            169
    -----------------------------------------------------------------------------------------------

                   Rural Business Investment Programs Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1907-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Guaranteed loans subsidy..........                      56
    00.02 Grants............................                      44
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                     100
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                     100
    22.00 New budget authority (gross)......         100
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         100         100
    23.95 Total new obligations.............                    -100
    24.40 Unobligated balance carried
            forward, end of year............         100
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    62.00   Transferred from other accounts.         100
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                  80
    73.10 Total new obligations.............                     100
    73.20 Total outlays (gross) (-).........                     -20         -38
    74.40 Obligated balance, end of year....                      80          43
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...                      20          38
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         100
    90.00 Outlays...........................                      20          38
    ---------------------------------------------------------------------------

        The Rural Business Investment Program is authorized under 7 U.S.C.
    2009cc. The purpose of this program is to promote economic development
    and the creation of wealth and job opportunities in rural areas and
    among individuals living in those areas by encouraging developmental
    capital investments in smaller enterprises primarily located in rural
    areas. RBS may enter into participation agreements with rural business
    investment companies and may guarantee debentures of rural business
    investment companies to enable each rural business investment company to
    make developmental venture capital investments in smaller enterprises in
    rural areas. Grants will be made to rural business investment companies
    and other entities for the purpose of providing operational assistance
    to smaller enterprises financed by rural business investment companies.
    The Rural Business Investment Program was authorized and provided
    mandatory funding by section 6029 of the Farm Security and Rural
    Investment Act of 2002, Public Law 107-171, dated May 13, 2002. The Act
    provides such sums as may be necessary for the cost of guaranteeing $280
    million of debentures and $44 million to make grants, an estimated total
    of $100,000,000, to remain available until expended from the funds of
    the Commodity Credit Corporation.

        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, 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.

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

    ----------------------------------------------------------------------------
    Identification code 12-1907-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Rural Business Investment Program.                     280
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......                     280
        Guaranteed loan subsidy (in percent):
    232001Loan guarantee levels.............                   20.00        0.00
                                               ---------   ---------  ----------

    [[Page 145]]

    232901Weighted average subsidy rate.....                   20.00        0.00
        Guaranteed loan subsidy budget authority:
    233001Loan guarantee levels.............                      56
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....                      56
        Guaranteed loan subsidy outlays:
    234001Loan guarantee levels.............                      11          20
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............                      11          20
    ---------------------------------------------------------------------------

          Rural Business Investment Program Guarantee Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4033-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default claims....................                                   1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                   1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                                  57
    22.00 New financing authority (gross)...                      57           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                      57          60
    23.95 Total new obligations.............                                  -1
    24.40 Unobligated balance carried
            forward, end of year............                      57          59
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).                      12          23
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........                      45         -20
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....                      57           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                 -45
    73.10 Total new obligations.............                                   1
    73.20 Total financing disbursements
            (gross).........................                                  -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................                     -45          20
    74.40 Obligated balance, end of year....                     -45         -25
    87.00 Total financing disbursements
            (gross).........................                                   1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                     -11         -20
    88.25     Interest on uninvested funds..                                  -1
    88.40     Non-Federal sources: Guarantee
                fees........................                      -1          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                     -12         -23
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............                     -45          20
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........                     -12         -22
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4033-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........                     280
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                     280
    2199  Guaranteed amount of guaranteed
            loan commitments................                     224
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........                                  56
    2231  Disbursements of new guaranteed
            loans...........................                      56          98
    2251  Repayments and prepayments........                                  -1
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................                                  -1
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........                      56         152
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                      45         122
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4033-0-3-452    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....                                       12             34
            Investments in US securities:
    1106      Receivables, net..............                                       45             25
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                       57             59
        LIABILITIES:
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.                                       57             59
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                                       57             59
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                       57             59
    -----------------------------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from 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.

                            Renewable Energy Program

        For the cost of direct loans and grants, as authorized by section
    9006 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C.
    8106), $3,000,000, to remain available until expended, for direct
    renewable energy loans and grants: Provided, That the cost of direct
    loans and loan guarantees, including the cost of modifying such loans,
    shall be as defined in section 502 of the Congressional Budget Act of
    1974.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1908-0-1-451      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.10 Grants............................                      18           3
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                      18           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                      18           3
    23.95 Total new obligations.............                     -18          -3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                   3
    40.35   Appropriation rescinded.........                      -5         -23
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                      -5         -20
          Mandatory:

    62.00   Transferred from other accounts.                      23          23
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................                      18           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                  10
    73.10 Total new obligations.............                      18           3
    73.20 Total outlays (gross).............                      -8          -8
    74.40 Obligated balance, end of year....                      10           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                      -2          -9
    86.93 Outlays from discretionary
            balances........................                                  -2
    86.97 Outlays from new mandatory
            authority.......................                      10          10
    86.98 Outlays from mandatory balances...                                   9
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                       8           8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      18           3

    [[Page 146]]

    90.00 Outlays...........................                       8           8
    ---------------------------------------------------------------------------

        Renewable Energy Systems and Energy Efficiency Improvements is
    authorized under 7 U.S.C. 8106. This program provides direct loans, loan
    guarantees, and grants to farmers, ranchers, and small rural businesses
    to purchase renewable energy systems and make energy efficiency
    improvements. The Farm Security and Rural Investment Act of 2002, Public
    Law 107-171, dated May 13, 2002, provides mandatory funding for this
    program. Of the funds of the Commodity Credit Corporation, the Secretary
    shall make available $23,000,000 for each of fiscal years 2003 through
    2007. In 2003, $5,000,000 of these funds are blocked from being spent
    because similar programs within RBS can provide this type of funding.
    Similarly, in 2004 the full $23,000,000 is blocked. However, $3,000,000
    in discretionary funding is provided for this purpose.

    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      2002 actual   2003 est.   2004 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...........................
    ---------------------------------------------------------------------------

        The Alternative Agricultural Research and Commercialization Act of
    1990 (7 U.S.C. 5901 et seq.) was repealed by 116 Stat. 418. USDA is
    currently disposing of the assets of the fund as prescribed in the
    statute.

                             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      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

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

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                      10
    22.22 Unobligated balance transferred
            from other accounts.............          10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          10          10
    23.95 Total new obligations.............                     -10
    24.40 Unobligated balance carried
            forward, end of year............          10
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                   7
    73.10 Total new obligations.............                      10
    73.20 Total outlays (gross).............          -5          -3          -5
    73.32 Obligated balance transferred from
            other accounts..................           5
    74.40 Obligated balance, end of year....                       7           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           5           3           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           5           3           5
    ---------------------------------------------------------------------------

        Funding was provided in 2001 and 2002 to support grants for areas
    that have high energy costs. These grants can be made to eligible
    entities or the Denali Commission to construct, extend, upgrade, and
    otherwise improve energy generation, transmission, or distribution
    facilities serving communities in which the average residential
    expenditure for home energy is at least 275 percent of the national
    average residential expenditure for home energy (as determined by the
    Energy Information Agency using the most recent data available). Grants
    are also available to establish and support a revolving fund to provide
    a more cost-effective means of purchasing fuel where the fuel cannot be
    shipped by means of surface transportation.

    Credit accounts:

          Rural Water and Waste Disposal Direct Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4226-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................       1,159         829       1,055
    00.02   Interest on Treasury borrowing..         277         413         485
    00.03   Expenses for loan asset sale....                                   5
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............       1,436       1,242       1,545
    08.01 Negative subsidy from loan asset
            sale............................                                   5
    08.02 Downward reestimates paid to
            receipt account.................          16
    08.04 Interest on downward reestimate
            paid to receipt account.........           5
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............          21                       5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,457       1,242       1,550
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                     110         208
    22.00 New financing authority (gross)...       1,561       1,285       1,640
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          47          55          20
    22.70 Balance of authority to borrow
            withdrawn.......................         -40
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,568       1,450       1,868
    23.95 Total new obligations.............      -1,457      -1,242      -1,550
    24.40 Unobligated balance carried
            forward, end of year............         110         208         318
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............       1,099         735       1,033
          Spending authority from offsetting
              collections:

            Discretionary:
              Offsetting collections (cash):
    68.00       Offsetting collections
                  (cash)....................         488         549         587
    68.00       Offsetting collections
                  (cash)....................                                  66
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -7           1          10
    68.47     Portion applied to repay debt.         -19                     -56
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....         462         550         607
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       1,561       1,285       1,640
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,809       2,285       2,191
    73.10 Total new obligations.............       1,457       1,242       1,550
    73.20 Total financing disbursements
            (gross).........................        -941      -1,280      -1,396

    [[Page 147]]

    73.45 Recoveries of prior year
            obligations.....................         -47         -55         -20
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           7          -1         -10
    74.40 Obligated balance, end of year....       2,285       2,191       2,315
    87.00 Total financing disbursements
            (gross).........................         941       1,280       1,396
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -111         -98         -87
    88.25     Interest on uninvested funds..         -26         -39         -45
              Non-Federal sources:
    88.40       Repayment of principal......        -130        -153        -175
    88.40       Interest Received on Loans..        -221        -259        -280
    88.40       Loan Asset Sale Proceeds....                                 -66
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -488        -549        -653
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           7          -1         -10
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............       1,080         735         977
    90.00 Financing disbursements...........         454         731         743
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4226-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         817         814       1,055
    1121  Limitation available from carry-
            forward.........................          40          15
    1131  Direct loan obligations exempt
            from limitation.................         326
    1142  Unobligated direct loan limitation
            (-).............................
    1143  Unobligated limitation carried
            forward (P.L. xx) (-)...........         -25
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       1,158         829       1,055
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       4,548       5,061       5,773
    1231  Disbursements: Direct loan
            disbursements...................         643         864         889
    1251  Repayments: Repayments and
            prepayments.....................        -130        -152        -182
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       5,061       5,773       6,480
    ---------------------------------------------------------------------------

        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    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....           7             40            20             37
            Investments in US securities:
    1106      Receivables, net..............         274              3           262
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       4,548          5,061         5,773          6,296
    1402    Interest receivable.............          55             61            69             69
    1405    Allowance for subsidy cost (-)..        -710           -754          -970           -921
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       3,893          4,368         4,872          5,444
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       4,174          4,411         5,154          5,481
        LIABILITIES:
          Federal liabilities:

    2103    Debt............................       3,888          4,374         4,957          5,307
    2105    Other...........................         275             26           183            161
    2207  Non-Federal liabilities: Other....          11             11            14             13
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       4,174          4,411         5,154          5,481
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       4,174          4,411         5,154          5,481
    -----------------------------------------------------------------------------------------------

     Rural Water and Waste Water Disposal Guaranteed Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4218-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                       1           1
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............                       1           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.20 Total financing disbursements
            (gross).........................                      -1          -1
    87.00 Total financing disbursements
            (gross).........................                       1           1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.40   Offsetting collections (cash)
              from: Fees....................                      -1          -1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4218-0-3-452      2002 actual   2003 est.   2004 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......................
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................          75          75          75
    2199  Guaranteed amount of guaranteed
            loan commitments................          60          60          60
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          11          30          37
    2231  Disbursements of new guaranteed
            loans...........................           9          11          37
    2251  Repayments and prepayments........          -2          -4          -6
    2264  Adjustments: Other adjustments,
            net.............................          12
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          30          37          68
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          24          30          54
    ---------------------------------------------------------------------------

        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 water systems,
    and waste disposal facilities in rural areas.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4218-0-3-452    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           1                            1              1
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           1                            1              1
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............           1                            1              1
                                            ------------ --------------  ------------  -------------

    [[Page 148]]

    2999    Total liabilities...............           1                            1              1
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           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, $240,000,000; municipal rate rural
    electric loans, $100,000,000; loans made pursuant to section 306 of that
    Act, rural electric, $1,600,000,000; Treasury rate direct electric
    loans, $700,000,000; 5 percent rural telecommunications loans,
    $145,000,000; cost of money rural telecommunications loans,
    $250,000,000; and loans made pursuant to section 306 of that Act, rural
    telecommunications loans, $100,000,000.
        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 sections 305 and 306 of the Rural
    Electrification Act of 1936 (7 U.S.C. 935 and 936), as follows: cost of
    rural electric loans, $60,000, and the cost of telecommunication loans,
    $125,000: 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, $41,562,000 which shall be
    transferred to and merged with the appropriation for ``Rural
    Development, Salaries and Expenses''.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1230-0-1-271      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0101  Rural electrification and
            telephone loans, negative
            subsidies.......................          26          23          20
    0102  Rural electrification and
            telephone loans, downward
            reestimates of subsidies........          83
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1230-0-1-271      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............           6          12
    00.05 Reestimate of the direct loan
            subsidy.........................          28
    00.06 Interest on reestimates of direct
            loan subsidy....................           6
    00.09 Administrative expenses subject to
            limitation......................          36          38          42
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          76          50          42
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          76          50          42
    23.95 Total new obligations.............         -76         -50         -42
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          42          50          42
          Mandatory:

    60.00   Appropriation...................          34
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          76          50          42
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          90          67          49
    73.10 Total new obligations.............          76          50          42
    73.20 Total outlays (gross).............         -98         -70         -65
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.40 Obligated balance, end of year....          67          49          26
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          36          40          42
    86.93 Outlays from discretionary
            balances........................          28          30          23
    86.97 Outlays from new mandatory
            authority.......................          34
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          98          70          65
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          76          50          42
    90.00 Outlays...........................          98          70          65
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1230-0-1-271      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Hardship electric.................         124         121         240
    115002Municipal electric................         500         100         100
    115003Treasury electric.................         750         700         700
    115004FFB electric......................       2,700       1,600       1,500
    115005Hardship telephone................          75          75         145
    115006Treasury telephone................         300         300         250
    115007FFB telephone.....................         120         120         100
                                               ---------   ---------  ----------
    115901Total direct loan levels..........       4,569       3,016       3,035
        Direct loan subsidy (in percent):
    132001Hardship electric.................        2.98        5.71       -2.33
    132002Municipal electric................       -0.09        4.03       -2.42
    132003Treasury electric.................       -0.04       -0.04       -0.06
    132004FFB electric......................       -1.13       -1.82       -2.13
    132005Hardship telephone................        2.32        1.71       -4.44
    132006Treasury telephone................        0.10        0.05        0.05
    132007FFB telephone.....................       -0.85       -2.36       -1.99
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       -0.57       -0.66       -1.58
        Direct loan subsidy budget authority:
    133001Hardship electric.................           4           7          -6
    133002Municipal electric................                       4          -2
    133003Treasury electric.................
    133004FFB electric......................         -31         -29         -32
    133005Hardship telephone................           2           1          -6
    133006Treasury Telephone................
    133007FFB telephone.....................          -1          -3          -2
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....         -26         -20         -48
        Direct loan subsidy outlays:
    134001Hardship electric.................           4           5           5
    134002Municipal electric................          17          11          11
    134003Treasury Electric.................
    134004FFB electric......................         -25         -22         -37
    134005Hardship telephone................           5          15           5
    134006Treasury Telephone................
    134007FFB telephone.....................          -1          -1          -1
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............                       8         -17
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Hardship electric.................           7
    135002Municipal electric................          22
    135003Treasury electric.................
    135004FFB electric......................           2
    135005Hardship telephone................           4
    135006Treasury telephone................           1
    135007FFB Telephone.....................
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................          36
        Direct loan upward reestimate subsidy outlays:
    136001Hardship electric.................           7
    136002Municipal electric................          22
    136003Treasury electric.................
    136004FFB electric......................           2
    136005Hardship telephone................           4
    136006Treasury telephone................           1
    136007FFB Telephone.....................
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...          36
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Hardship electric.................          -3
    137002Municipal electric................          -4
    137003Treasury electric.................          -2
    137004FFB electric......................         -64
    137005Hardship telephone................          -4
    137006Treasury telephone................          -2

    [[Page 149]]

    137007FFB telephone.....................          -3
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................         -82
        Direct loan downward reestimate subsidy
                    outlays:
    138001Hardship electric.................          -3
    138002Municipal electric................          -4
    138003Treasury electric.................          -2
    138004FFB electric......................         -64
    138005Hardship telephone................          -4
    138006Treasury telephone................          -2
    138007FFB telephone.....................          -3
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................         -82
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Guaranteed electric...............                     100         100
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......                     100         100
        Guaranteed loan subsidy (in percent):
    232001Guaranteed electric...............        0.00        0.08        0.06
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        0.00        0.08        0.06
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................          36          38          42
    359001Outlays from new authority........          36          38          42
    ---------------------------------------------------------------------------

        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.

        To support USDA's rural development goal of providing increased
    support to rural areas, the electric and telecommunications programs
    will target funds to needier areas (areas of persistent poverty). The
    budget proposes $240,000,000 for hardship electric loans which can only
    be used for areas that are severely depressed (applicants must meet rate
    disparity thresholds and their consumers must fall below average per
    capita and household income thresholds). USDA will analyze loans made in
    2002 and 2003 to determine the characteristics of the communities to
    which the loans are going, who the loans are supporting, benefits
    derived from the loans by the communities, and how many loans and
    dollars are going to support poverty areas. In addition, USDA will
    develop program goals and performance measures to better define the
    purpose of the program and support future needs of rural communities.
    These goals and measures will be used to develop the 2005 budget for the
    electric and telecommunications programs.

        RUS will rescind loans obligated, but not issued, more than ten
    years ago. Most electric loans obligated more than ten years ago have
    either been issued or rescinded. However, current law prohibits the
    rescission of telecommunications loans in most instances. This has
    resulted in many outstanding obligations that are older than ten years.
    Since loans are issued for specific projects, and technology is changing
    at a very fast pace, it is doubtful that the original project will be
    accomplished ten years after a loan is approved. Legislation will be
    proposed to allow the rescission of all electric and telecommunications
    loan obligations that are more than ten years old.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for rural electrification and telecommunications programs, the
    subsidy costs associated with the direct and guaranteed loans obligated
    in 1992 and beyond (including modifications of direct loans or loan
    guarantees that resulted from obligations or commitments in any year),
    as well as administrative expenses of this program. The subsidy amounts
    are estimated on a present value basis; the administrative expenses are
    estimated on a cash basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1230-0-1-271      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................          36          38          42
    41.0  Grants, subsidies, and
            contributions...................          40          12
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          76          50          42
    ---------------------------------------------------------------------------

       Rural Electrification and Telecommunications Direct Loan Financing
                                     Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4208-0-3-271      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................       4,569       3,016       3,035
    00.02   Interest on Treasury borrowing..         639         793         857
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating program.....       5,208       3,809       3,892
          Non-operating program:

    08.01   Negative subsidy paid to receipt
              account.......................          32          32          17
    08.02   Downward reestimate paid to
              receipt account...............          70
    08.04   Interest on downward reestimate
              paid to receipt account.......          13
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............         115          32          17
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       5,323       3,841       3,909
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           6         363
    22.00 New financing authority (gross)...       5,678       3,480       3,909
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          34
    22.70 Balance of authority to borrow
            withdrawn.......................         -34
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,684       3,843       3,909
    23.95 Total new obligations.............      -5,323      -3,841      -3,909
    24.40 Unobligated balance carried
            forward, end of year............         363
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............       4,969       2,691       2,908
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         976       1,190       1,408
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -22         -18         -21
    68.47   Portion applied to repay debt...        -245        -383        -386
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         709         789       1,001
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       5,678       3,480       3,909
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       6,209       8,315       8,385
    73.10 Total new obligations.............       5,323       3,841       3,909
    73.20 Total financing disbursements
            (gross).........................      -3,205      -3,790      -3,615
    73.45 Recoveries of prior year
            obligations.....................         -34
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          22          18          21
    74.40 Obligated balance, end of year....       8,315       8,385       8,700
    87.00 Total financing disbursements
            (gross).........................       3,205       3,790       3,615
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payment from program account..         -62         -31         -21
    88.25     Interest on uninvested funds..         -67         -91        -109
              Non-Federal sources:
    88.40       Repayment of principal......        -269        -252        -330
    88.40       Interest received on loans..        -566        -816        -948
    88.40       Non-Federal sources.........         -12
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -976      -1,190      -1,408
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          22          18          21
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............       4,724       2,308       2,522

    [[Page 150]]

    90.00 Financing disbursements...........       2,229       2,600       2,207
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4208-0-3-271      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........       4,569       3,016       3,035
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       4,569       3,016       3,035
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       9,072      11,212      13,931
    1231  Disbursements: Direct loan
            disbursements...................       2,409       2,971       2,724
    1251  Repayments: Repayments and
            prepayments.....................        -269        -252        -330
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      11,212      13,931      16,325
    ---------------------------------------------------------------------------

        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    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....           2            108           582            824
            Investments in US securities:
    1106      Receivables, net..............         104            171            25             14
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       7,815          9,697        11,887         13,804
    1402    Interest receivable.............          44              4            66             54
    1405    Allowance for subsidy cost (-)..        -435           -537          -585           -596
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       7,424          9,164        11,368         13,262
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       7,530          9,443        11,975         14,100
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................          54                           70             59
    2102    Interest payable................          46                           66             54
    2103    Debt............................       7,348          9,430        11,814         13,973
    2207  Non-Federal liabilities: Other....          82             13            25             14
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       7,530          9,443        11,975         14,100
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       7,530          9,443        11,975         14,100
    --------------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         156            129           261            363
            Investments in US securities:
    1106      Receivables, net..............          48             14            24             15
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       1,232          1,492         2,026          2,503
    1402    Interest receivable.............           3              1             5              3
    1405    Allowance for subsidy cost (-)..         -27            -24           -99           -109
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....       1,208          1,469         1,932          2,397
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,412          1,612         2,217          2,775
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................           8                            9             13
    2102    Interest payable................           3                            5              3
    2103    Debt............................       1,365          1,592         2,179          2,744
    2207  Non-Federal liabilities: Other....          36             20            24             15
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,412          1,612         2,217          2,775
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,412          1,612         2,217          2,775
    -----------------------------------------------------------------------------------------------

    Rural Electrification and Telecommunications Guaranteed Loans Financing
                                    Account

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4209-0-3-271      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........                     100         100
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                     100         100
    2199  Guaranteed amount of guaranteed
            loan commitments................                     100         100
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         203         256         275
    2231  Disbursements of new guaranteed
            loans...........................          55          22         100
    2251  Repayments and prepayments........          -2          -3          -3
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         256         275         372
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         256         275         372
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from guaranteed loans committed in 1992 and beyond. The
    amounts in this account are a means of financing and are not included in
    the budget totals.

        This account finances loan guarantee commitments.

        Rural Electrification and Telecommunications Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-271      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Interest expense on certificates
            of beneficial ownership.........         369         369         369
    00.02 Interest expense, FFB direct......         669         669         594
    00.03 Other interest expense............           7          21          21
    00.05 Other.............................          19          20          20
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,064       1,079       1,004
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,045       1,076       1,001
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          19           3           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,064       1,079       1,004
    23.95 Total new obligations.............      -1,064      -1,079      -1,004
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance rescission
              proposal......................                      -3          -3
          Mandatory:

    60.00   Appropriation...................                      55         348
    60.36   Unobligated balance rescinded...          -3
    62.00   Transferred from other accounts.          23          22          22
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................          20          77         370
    69.00 Offsetting collections (cash).....       2,859       2,427       2,223
    69.27 Capital transfer to general fund..        -738
    69.47 Portion applied to repay debt.....      -1,096      -1,425      -1,589
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................       1,025       1,002         634
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,045       1,076       1,001
    ----------------------------------------------------------------------------

    [[Page 151]]

        Change in obligated balances:
    72.40 Obligated balance, start of year..         482         312         309
    73.10 Total new obligations.............       1,064       1,079       1,004
    73.20 Total outlays (gross).............      -1,215      -1,079      -1,004
    73.45 Recoveries of prior year
            obligations.....................         -19          -3          -3
    74.40 Obligated balance, end of year....         312         309         306
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       1,045       1,079       1,004
    86.98 Outlays from mandatory balances...         170
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,215       1,079       1,004
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Loans repaid................      -1,421      -1,371      -1,252
    88.40       Interest from loans.........      -1,198      -1,056        -971
    88.40       Non-Federal sources.........        -240
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -2,859      -2,427      -2,223
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      -1,814      -1,351      -1,222
    90.00 Outlays...........................      -1,643      -1,348      -1,219
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-271      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      21,009      19,412      17,837
    1231  Disbursements: Direct loan
            disbursements...................           5          12          12
    1251  Repayments: Repayments and
            prepayments.....................      -1,672      -1,463      -1,344
    1261  Adjustments: Capitalized interest.          70
          Write-offs for default:

    1263    Direct loans....................                    -119        -109
    1264    Other adjustments, net..........                      -5          -5
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      19,412      17,837      16,391
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-271      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         358         317         297
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................         -41         -20         -19
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         317         297         278
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         317         297         278
    ---------------------------------------------------------------------------

                              STATUS OF AGENCY DEBT

                            [In millions of dollars]

                                         2002 actual  2003 est.   2004 est.
    Agency debt held by FFB:
      Outstanding FFB direct, start of
        year............................       9,890       8,891       7,892
      Outstanding Certificate of
        Beneficial Ownership (CBO's),
        start of year...................       4,270       4,270       4,270
      New agency borrowing, FFB direct..           1           0           0
      Repayments and prepayments, FFB
        Direct..........................      -1,000        -999        -886
      Repayments, CBO's.................           0           0           0
                                        ------------------------------------
      Outstanding FFB direct, end of
        year............................       8,891       7,892       7,006
      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]

                                         2002 actual  2003 est.   2004 est.
    Cumulative RUS financed direct loans      21,856      21,856      21,856
    Cumulative FFB financed direct loans      27,084      27,037      26,987
    Cumulative RUS funds advanced.......      21,831      21,832      21,834
    Unadvanced RUS funds, end of year...          22          20          18
    Cumulative RUS principal repaid.....      14,873      15,527      16,181
    Cumulative RUS interest paid........      11,963      12,449      12,935
    Cumulative loan guarantee
    commitments\1\......................       3,967       3,967       3,967
    Number of borrowers.................       1,107       1,100       1,092

        \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]

                                         2002 actual  2003 est.   2004 est.
    Cumulative RUS financed direct loans       6,029       6,019       6,009
    Cumulative FFB financed direct loans         582         582         582
    Cumulative RUS funds advanced.......       5,894       5,902       5,910
    Unadvanced RUS funds, end of period.         138         130         122
    Cumulative RUS principal repaid.....       3,850       4,064       4,171
    Cumulative RUS interest paid........       2,939       3,048       3,145
    Cumulative loan guarantee
    commitments \1\.....................           3           3           3
    Number of borrowers.................         979         961         943

        \1\ Other lenders--privately financed direct loans, FFB.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4230-0-3-271    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
              ELECTRIC PROGRAM:
    0111  Revenue...........................       1,164          1,339           926            711
    0112  Expense...........................      -2,900         -1,339        -1,040         -1,006
                                            ------------ --------------  ------------  -------------
    0115  Net income or loss (-)............      -1,736                         -114           -295
              TELEPHONE PROGRAM:
    0121  Revenue...........................         113           -145            79             67
    0122  Expense...........................        -380            145           -84            -70
                                            ------------ --------------  ------------  -------------
    0125  Net income or loss (-)............        -267                           -5             -3
                                            ------------ --------------  ------------  -------------
    0191  Total revenues....................       1,277          1,194         1,005            778
                                            ------------ --------------  ------------  -------------
    0192  Total expenses....................      -3,280         -1,194        -1,124         -1,076
                                            ------------ --------------  ------------  -------------
    0195  Total income or loss (-)..........      -2,003                         -119           -298
                                            ------------ --------------  ------------  -------------
    0199  Net loss (-)......................      -2,003                         -119           -298
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4230-0-3-271    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         267            115           115            115
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross (Electric)..      18,732         17,337        15,926         14,629
    1602    Interest receivable.............         163             43            19             -3
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -1,415         -1,682        -1,546         -1,420
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............      17,480         15,698        14,399         13,206
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................      17,480         15,698        14,399         13,206
                                            ------------ --------------  ------------  -------------

    [[Page 152]]

    1999    Total assets....................      17,747         15,813        14,514         13,321
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................         780            780           781            780
    2102    Interest payable................         156                         -156           -311
    2103    Debt............................      17,774         16,709        15,643         14,578
    2104    Resources payable to Treasury...        -970         -1,715        -1,767         -1,733
    2105    Other...........................           7             39            13              7
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............      17,747         15,813        14,514         13,321
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position      17,747         15,813        14,514         13,321
    --------------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         159            140           145            148
          Non-Federal assets:

    1201    Investments in non-Federal
              securities, net...............         453            430           408            385
    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).       2,278          2,076         1,913          1,763
    1602    Interest receivable.............           8              6             4              2
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................        -399           -245          -216           -191
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............       1,887          1,837         1,701          1,574
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       1,887          1,837         1,701          1,574
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       3,279          3,187         3,034          2,887
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................           2                            2              2
    2103    Debt............................       1,757          1,751         1,744          1,737
    2104    Resources payable to Treasury...       1,506          1,424         1,277          1,144
    2105    Other...........................           4              4            11              4
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       3,269          3,179         3,034          2,887
        NET POSITION:
    3300  Cumulative results of operations..          10              8
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............          10              8
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       3,279          3,187         3,034          2,887
    -----------------------------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-271      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          19          20          20
    33.0  Investments and loans.............           7          21          21
    43.0  Interest and dividends............       1,038       1,038         963
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,064       1,079       1,004
    ---------------------------------------------------------------------------

                      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.
        For administrative expenses, including audits, necessary to continue
    to service existing loans, $3,462,000, 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''.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1231-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0101  Rural telephone bank loans,
            downward reestimate of subsidies           3           4
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1231-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............           4
    00.05 Reestimates of direct loan subsidy           3           1
    00.06 Interest on reestimates of direct
            loan subsidy....................           1
    00.09 Administrative expenses subject to
            limitation......................           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          11           4           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          11           4           3
    23.95 Total new obligations.............         -11          -4          -3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           7
    42.00   Transferred from other accounts.                       3           3
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............           7           3           3
          Mandatory:

    60.00   Appropriation...................           4           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          11           4           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          16          19          17
    73.10 Total new obligations.............          11           4           3
    73.20 Total outlays (gross).............          -8          -6          -5
    74.40 Obligated balance, end of year....          19          17          15
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           3           3           3
    86.93 Outlays from discretionary
            balances........................           1           2           2
    86.97 Outlays from new mandatory
            authority.......................           4           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           8           6           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          11           4           3
    90.00 Outlays...........................           8           6           5
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1231-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Rural Telephone Bank..............         175
                                               ---------   ---------  ----------
    115901Total direct loan levels..........         175
        Direct loan subsidy (in percent):
    132001Rural Telephone Bank..............        2.14        1.38       -4.32
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        2.14        1.38       -4.32
        Direct loan subsidy budget authority:
    133001Rural Telephone Bank..............           4
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....           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           1
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................           4           1
        Direct loan upward reestimate subsidy outlays:
    136001Rural Telephone Bank..............           4           1
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...           4           1

    [[Page 153]]

        Direct loan downward reestimate subsidy budget
                    authority:
    137001Rural Telephone Bank..............          -3          -4
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................          -3          -4
        Direct loan downward reestimate subsidy
                    outlays:
    138001Rural Telephone Bank..............          -3          -4
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................          -3          -4
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................           3           3           3
    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.

        RUS will rescind loans obligated, but not issued, more than ten
    years ago. Current law prohibits the rescission of Rural Telephone Bank
    loans in most instances. This has resulted in many outstanding
    obligations that are older than ten years. Since loans are issued for
    specific projects, and technology is changing at a very fast pace, it is
    doubtful that the original project will be accomplished ten years after
    a loan is approved. Legislation will be proposed to allow the rescission
    of all Rural Telephone Bank loan obligations that are more than ten
    years old.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for the Rural Telephone Bank, the subsidy costs associated with
    the direct loans obligated in 1992 and beyond as well as administrative
    expenses for the program. The subsidy amounts are estimated on a present
    value basis; administrative expenses are estimated on a cash basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1231-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           3           3           3
    41.0  Grants, subsidies, and
            contributions...................           8           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          11           4           3
    ---------------------------------------------------------------------------

               Rural Telephone Bank Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4210-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................         175
    00.02   Interest on Treasury borrowing..          23          45          45
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............         198          45          45
    08.02 Downward reestimates paid to
            receipt accounts................           3           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         201          49          45
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           6          17
    22.00 New financing authority (gross)...         188          46          45
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          21          16          31
    22.60 Portion applied to repay debt.....           3         -31         -31
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         218          48          45
    23.95 Total new obligations.............        -201         -49         -45
    24.40 Unobligated balance carried
            forward, end of year............          17
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............         147          23          23
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          49          56          55
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           3          -2          -2
    68.47   Portion applied to repay debt...         -11         -31         -31
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          41          23          22
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         188          46          45
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,001       1,091         873
    73.10 Total new obligations.............         201          49          45
    73.20 Total financing disbursements
            (gross).........................         -86        -253        -164
    73.45 Recoveries of prior year
            obligations.....................         -21         -16         -31
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -3           2           2
    74.40 Obligated balance, end of year....       1,091         873         725
    87.00 Total financing disbursements
            (gross).........................          86         253         164
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Payment from
                program account.............          -5          -3          -2
    88.25     Interest on uninvested funds..          -5          -4          -4
              Non-Federal sources:
    88.40       Principal received on loans.         -17         -16         -16
    88.40       Interest received on loans..         -19         -23         -23
    88.40       Sale of RTB Stock...........          -3         -10         -10
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -49         -56         -55
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          -3           2           2
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         136          -8          -8
    90.00 Financing disbursements...........          37         197         109
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4210-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         175
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         175
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         338         395         536
    1231  Disbursements: Direct loan
            disbursements...................          71         157         136
    1251  Repayments: Repayments and
            prepayments.....................         -14         -16         -19
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         395         536         653
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond. The amounts in
    this account are a means of financing and are not included in the budget
    totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4210-0-3-452    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....          10             23            36             67
            Investments in US securities:
    1106      Receivables, net..............          16              1            17             15
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..         281            324           536            617
    1405    Allowance for subsidy cost (-)..                                       -7             -9
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         281            324           529            608
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         307            348           582            690
        LIABILITIES:
          Federal liabilities:

    2103    Debt............................         291            348           582            690
    2105    Other...........................
          Non-Federal liabilities:

    2201    Accounts payable................          16
    2207    Other...........................
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         307            348           582            690
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         307            348           582            690
    -----------------------------------------------------------------------------------------------

    [[Page 154]]

                    Rural Telephone Bank Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4231-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Dividends.........................          23          29          29
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 43.0)...................          23          29          29
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         769         943       1,018
    22.00 New budget authority (gross)......         188         107          96
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           8
    22.21 Unobligated balance transferred to
            other accounts..................                      -3          -3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         965       1,047       1,111
    23.95 Total new obligations.............         -23         -29         -29
    24.40 Unobligated balance carried
            forward, end of year............         943       1,018       1,082
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    61.00   Transferred to other accounts...         -23         -22         -22
    69.00 Offsetting collections (cash).....         220         138         126
    69.27 Capital transfer to general fund..          -9
    69.47 Portion applied to repay debt.....                      -9          -8
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................         211         129         118
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         188         107          96
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         106          98          98
    73.10 Total new obligations.............          23          29          29
    73.20 Total outlays (gross).............         -23         -29         -29
    73.45 Recoveries of prior year
            obligations.....................          -8
    74.40 Obligated balance, end of year....          98          98          98
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           8          11          12
    86.98 Outlays from mandatory balances...          15          18          17
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          23          29          29
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.20     Interest on Federal securities         -53
              Non-Federal sources:
    88.40       Loans repaid................        -116         -90         -78
    88.40       Interest from loans.........         -51         -48         -48
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -220        -138        -126
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         -32         -31         -30
    90.00 Outlays...........................        -197        -109         -97
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4231-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         795         680         596
    1231  Disbursements: Direct loan
            disbursements...................           1           6           5
    1251  Repayments: Repayments and
            prepayments.....................        -116         -90         -78
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         680         596         523
    ---------------------------------------------------------------------------

        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]

                                         2002 actual  2003 est.   2004 est.
    Cumulative net loans................       2,545       2,595       2,645
    Cumulative loan funds, advanced.....       2,469       2,475       2,480
    Unadvanced loan funds, end of year..          76          70          65
    Cumulative principal repaid.........       1,789       1,879       1,957
    Cumulative interest paid............       2,343       2,385       2,433
    Number of borrowers.................         311         300         295
                                        ====================================

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4231-0-3-452    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         115            103            52             49
    0102  Expense...........................          -1                           -1             -1
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............         114            103            51             48
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4231-0-3-452    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         875          1,041         1,198          1,232
    1402  Net value of assets related to
            post-1991 direct loans
            receivable: Interest receivable.           3              2             2              2
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............         794            680           596            523
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................          -6             -6            -5             -4
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............         788            674           591            519
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................         788            674           591            519
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,666          1,717         1,791          1,753
        LIABILITIES:
          Federal liabilities:

    2103    Debt............................
    2104    Resources payable to Treasury...         114                          101             98
    2207  Non-Federal liabilities: Other....       1,118          1,205         1,211          1,316
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,232          1,205         1,312          1,414
        NET POSITION:
    3300  Cumulative results of operations..         434            512           479            339
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............         434            512           479            339
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,666          1,717         1,791          1,753
    -----------------------------------------------------------------------------------------------

             Distance Learning, Telemedicine, and Broadband Program

        For the cost of direct loans and grants, as authorized by 7 U.S.C.
    950aaa, et seq., $25,000,000, to remain available until expended, to be
    available for loans, the principal amount of which shall not exceed
    $50,000,000, and grants for telemedicine and distance learning services
    in rural areas. For the cost of direct and guaranteed broadband loans,
    as authorized by 7 U.S.C. 901, et seq., $9,116,000, the principal

    [[Page 155]]

    amount of loans not to exceed $196,465,000: Provided, That the cost of
    all direct loans provided under this heading shall be as defined in
    section 502 of the Congressional Budget Act of 1974.
        In addition, $2,000,000, to remain available until expended, for a
    grant program to finance broadband transmission in areas that meet the
    definition of ``rural area'' used for the Broadband Loan Program
    authorized by 7.U.S.C. 901.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1232-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Grants............................          30          51          27
    00.03 Broadband loan subsidy............                      40           9
    00.05 Reestimates of direct loan subsidy           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          31          91          36
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4          44
    22.00 New budget authority (gross)......          70          47          36
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          75          91          36
    23.95 Total new obligations.............         -31         -91         -36
    24.40 Unobligated balance carried
            forward, end of year............          44
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          49          27          36
    40.35   Appropriation rescinded.........                                 -20
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          49          27          16
          Mandatory:

    60.00   Appropriation...................           1
    62.00   Transferred from other accounts.          20          20          20
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................          21          20          20
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          70          47          36
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          58          68         138
    73.10 Total new obligations.............          31          91          36
    73.20 Total outlays (gross).............         -19         -21         -30
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.40 Obligated balance, end of year....          68         138         145
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       1           1
    86.93 Outlays from discretionary
            balances........................          19          20          27
    86.97 Outlays from new mandatory
            authority.......................           1
    86.98 Outlays from mandatory balances...                                   2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          19          21          30
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          70          47          36
    90.00 Outlays...........................          19          21          30
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1232-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Distance Learning and Telemedicine          15          50          50
    115002Broadband.........................          80         775         196
                                               ---------   ---------  ----------
    115901Total direct loan levels..........          95         825         246
        Direct loan subsidy (in percent):
    132001Distance Learning and Telemedicine       -0.07       -1.15        0.00
    132002Broadband.........................       -0.07        5.16        4.64
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        0.00        4.73        3.66
        Direct loan subsidy budget authority:
    133001Distance Learning and Telemedicine                      -1
    133002Broadband.........................                      40           9
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....                      39           9
        Direct loan subsidy outlays:
    134001Distance Learning and Telemedicine
    134002Broadband.........................                                   2
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............                                   2
        Direct loan upward reestimate subsidy budget
                    authority:
    135002Broadband.........................           1
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................           1
        Direct loan upward reestimate subsidy outlays:
    136001Distance Learning and Telemedicine
    136002Broadband.........................           1
                                               ---------   ---------  ----------
    136901Total upward reestimate outlays...           1
    ---------------------------------------------------------------------------

        The loan and grant program provides access to advanced
    telecommunications services for improved education and health care in
    rural areas throughout the country. The loans and grants help education
    and health care providers bring the most modern technology, level of
    care, and education to rural America so its citizens can compete
    regionally, nationally, and globally. Additionally, the budget proposes
    blocking mandatory funding and providing discretionary funding for a
    program for 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, as authorized by the Rural
    Electrification Act of 1936, 7 U.S.C. 901 et seq.

        The budget also proposes continuing a program for one year for
    grants to finance installation of broadband transmission capacity to and
    through rural communities. USDA will issue a public notice for comment
    on how it will be administering this program.

      Distance Learning, Telemedicine, and Broadband Direct Loan Financing
                                     Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4146-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................          95         825         246
    00.02   Interest on Treasury borrowing..           4           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          99         826         247
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1          10          13
    22.00 New financing authority (gross)...         108         829         252
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         109         839         265
    23.95 Total new obligations.............         -99        -826        -247
    24.40 Unobligated balance carried
            forward, end of year............          10          13          18
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............          95         825         246
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          16           4           6
    68.47   Portion applied to repay debt...          -3
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          13           4           6
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         108         829         252
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         149         204       1,005
    73.10 Total new obligations.............          99         826         247
    73.20 Total financing disbursements
            (gross).........................         -45         -25         -25
    74.40 Obligated balance, end of year....         204       1,005       1,227
    87.00 Total financing disbursements
            (gross).........................          45          25          25
    ----------------------------------------------------------------------------

    [[Page 156]]

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -1                      -2
    88.25     Interest on uninvested funds..          -2          -1          -1
              Non-Federal sources:
    88.40       Repayment of principal......         -13          -2          -2
    88.40       Interest received on loans..                      -1          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -16          -4          -6
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          92         825         246
    90.00 Financing disbursements...........          28          21          19
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4146-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         380         825         246
    1142  Unobligated direct loan limitation
            (-).............................        -285
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          95         825         246
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          16          49          71
    1231  Disbursements: Direct loan
            disbursements...................          45          24          25
    1251  Repayments: Repayments and
            prepayments.....................         -12          -2          -3
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          49          71          93
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond. The amounts in
    this account are a means of financing and are not included in the budget
    totals.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4146-0-3-452    2001 actual    2002 actual     2003 est.      2004 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..          14             49            48             48
    1402    Interest receivable.............                                        1              1
    1405    Allowance for subsidy cost (-)..           1                           -1             -1
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          15             49            48             48
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          18             49            48             48
        LIABILITIES:
    2101  Federal liabilities: Accounts
            payable.........................          18             49            48             48
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          18             49            48             48
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          18             49            48             48
    -----------------------------------------------------------------------------------------------

                 Local Television Loan Guarantee Program Account

                          (including transfer of funds)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1233-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Loan guarantee subsidy............                      88
    00.09 Administrative expenses...........           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           2          88
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                      88
    22.00 New budget authority (gross)......          90
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          90          88
    23.95 Total new obligations.............          -2         -88
    24.40 Unobligated balance carried
            forward, end of year............          88
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          30
    40.35   Appropriation rescinded.........         -20
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          10
          Mandatory:

    62.00   Transferred from other accounts.          80
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          90
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                  70
    73.10 Total new obligations.............           2          88
    73.20 Total outlays (gross).............          -2         -18         -39
    74.40 Obligated balance, end of year....                      70          30
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2
    86.93 Outlays from discretionary
            balances........................                       2           3
    86.98 Outlays from mandatory balances...                      16          36
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           2          18          39
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          90
    90.00 Outlays...........................           2          18          39
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1233-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Local television..................       1,135
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......       1,135
        Guaranteed loan subsidy (in percent):
    232001Local television..................        7.75        8.25        8.46
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        7.75        8.25        8.46
        Guaranteed loan subsidy budget authority:
    233001Local television..................          88
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....          88
        Guaranteed loan subsidy outlays:
    234001Local television..................                      18          39
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............                      18          39
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................           2
    358001Outlays from balances.............
    359001Outlays from new authority........           2
    ---------------------------------------------------------------------------

        The President's budget proposes no additional funds for the Local
    Television Loan Guarantee program.

        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.

    [[Page 157]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1233-0-1-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................           2
    41.0  Grants, subsidies, and
            contributions...................                      88
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           2          88
    ---------------------------------------------------------------------------

                Local Television Loan Guarantee Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4220-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                                  90
    22.00 New financing authority (gross)...                      90           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                      90          94
    24.40 Unobligated balance carried
            forward, end of year............                      90          94
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).                       2           4
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........                       6          -3
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....                       8           1
          Mandatory:

    69.00   Offsetting collections (cash)...                      18          39
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................                      64         -36
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........                      82           3
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................                      90           4
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                 -70
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................                     -70          39
    74.40 Obligated balance, end of year....                     -70         -31
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                     -18         -39
    88.25     Interest on uninvested funds..                      -1          -2
    88.40     Non-Federal sources...........                      -1          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........                     -20         -43
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............                     -70          39
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........                     -20         -43
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4220-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........         103
    2121  Limitation available from carry-
            forward.........................                   1,067
    2131  Guaranteed loan commitments exempt
            from limitation.................       1,032
    2143  Uncommitted limitation carried
            forward.........................      -1,135
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                   1,067
    2199  Guaranteed amount of guaranteed
            loan commitments................                     853
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........                                 205
    2231  Disbursements of new guaranteed
            loans...........................                     213         480
    2251  Repayments and prepayments........                      -8         -25
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........                     205         660
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                     165         528
    ---------------------------------------------------------------------------

        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    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....                                       19             63
            Investments in US securities:
    1106      Receivables, net..............                                       70             31
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................                                       89             94
        LIABILITIES:
    2105  Federal liabilities: Other........                                       70             31
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.                                       19             63
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............                                       89             94
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position                                       89             94
    -----------------------------------------------------------------------------------------------

              Rural Development Insurance Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4155-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investment:

    01.01   Interest on FFB borrowings......         249         123          73
    01.05   Interest on Treasury borrowings.          16          42          11
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 43.0)...................         265         165          84
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         265         156          65
    22.70 Balance of authority to borrow
            withdrawn.......................                       9          19
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         265         165          84
    23.95 Total new obligations.............        -265        -165         -84
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................       1,482         208         608
    60.47   Portion applied to repay debt...      -1,217         -52        -543
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         265         156          65
    69.00 Offsetting collections (cash).....         428         323         303
    69.47 Portion applied to repay debt.....        -428        -323        -303
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         265         156          65
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         159          55          50
    73.10 Total new obligations.............         265         165          84
    73.20 Total outlays (gross).............        -368        -170        -116
    74.40 Obligated balance, end of year....          55          50          18
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         265         156          65
    86.98 Outlays from mandatory balances...         103          14          51
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         368         170         116
    ----------------------------------------------------------------------------

    [[Page 158]]

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
              Non-Federal sources:
    88.40       Non-Federal sources.........        -260        -171        -160
    88.40       Repayments of guaranteed
                  loans purchased from
                  investors.................          -3          -2          -2
    88.40       Interest revenue............        -163        -150        -141
    88.40       Undistributed Charges.......          -2
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -428        -323        -303
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -163        -167        -238
    90.00 Outlays...........................         -59        -153        -187
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4155-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       3,068       2,808       2,636
    1251  Repayments: Repayments and
            prepayments.....................        -260        -171        -161
    1263  Write-offs for default: Direct
            loans...........................                      -1          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       2,808       2,636       2,474
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4155-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          98          80          64
    2251  Repayments and prepayments........         -11         -10          -8
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................          -7          -6          -5
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          80          64          51
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          57          46          36
    ---------------------------------------------------------------------------

        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 these loan 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 these programs is recorded
    in corresponding program accounts and financing accounts.

        In 1994, these loan programs were administered by the Rural
    Development Administration. Under reorganization of the Department of
    Agriculture, the water and waste direct and guaranteed loan programs are
    administered by the Rural Utilities Service, the community facility
    direct and guaranteed loan programs are adminsitered by the Rural
    Housing Service, and the business and industry direct and guaranteed
    loan programs are administered by the Rural Business-Cooperative
    Service.

                            Statement of Operations (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4155-0-3-452    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................         483            265           186            144
    0102  Expense...........................        -732           -265          -365           -323
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............        -249                         -179           -179
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4155-0-3-452    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................         159             55            42             -9
    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.............       3,068          2,808         2,636          2,474
    1602    Interest receivable.............          56             48            46             44
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................      -1,026            -33          -800           -812
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............       2,098          2,823         1,882          1,706
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       2,098          2,823         1,882          1,706
    1901  Other Federal assets: Other assets          18             12            10              8
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       2,309          2,924         1,968          1,739
        LIABILITIES:
          Federal liabilities:

    2103    Debt............................       3,066          1,421         1,047            200
    2104    Resources payable to Treasury...        -930          1,433           857          1,506
          Non-Federal liabilities:

    2202    Interest payable................         158             55            50             18
    2204    Liabilities for loan guarantees.           2              3             4              5
    2207    Other...........................          13             12            10             10
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       2,309          2,924         1,968          1,739
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       2,309          2,924         1,968          1,739
    -----------------------------------------------------------------------------------------------

            Rural Communication Development Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4142-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Interest on Treasury borrowing....           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 43.0)...................           3           3           3
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................           1           2           2
    69.00 Offsetting collections (cash).....                       1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           1           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).............          -2          -2          -2
    74.40 Obligated balance, end of year....           1           1           1
    ----------------------------------------------------------------------------

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

    [[Page 159]]

        Offsets:
          Against gross budget authority and outlays:

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

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

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4142-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           5           5           5
    1251  Repayments: Repayments and
            prepayments.....................                                  -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           5           5           4
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4142-0-3-452      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........           4           4           4
    2251  Repayments and prepayments........                                  -1
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........           4           4           3
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..           4           4           3
    ---------------------------------------------------------------------------

        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    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
    0101  Revenue...........................           3              9             8              4
    0102  Expense...........................          -3             -9            -8             -4
                                            ------------ --------------  ------------  -------------
    0105  Net income or loss (-)............
    -----------------------------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4142-0-3-452    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................           3              2             1              1
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............           5              5             4              4
    1602    Interest receivable.............                          1             1              1
    1603    Allowance for estimated
              uncollectible loans and
              interest (-)..................           1             -3            -2             -2
                                            ------------ --------------  ------------  -------------
    1604      Direct loans and interest
                receivable, net.............           6              3             3              3
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................           6              3             3              3
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................           9              5             4              4
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................           1              1             2              3
    2103    Debt............................          25             25            25             24
    2204  Non-Federal liabilities:
            Liabilities for loan guarantees.         -17            -21           -23            -23
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............           9              5             4              4
        NET POSITION:
    3300  Cumulative results of operations..
                                            ------------ --------------  ------------  -------------
    3999    Total net position..............
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position           9              5             4              4
    -----------------------------------------------------------------------------------------------

                          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), $140,798,000, of which $5,000,000 is to support the Montreal
    Protocol Multilateral Fund: Provided, That the Service may utilize
    advances of funds, or reimburse this appropriation for expenditures made
    on behalf of Federal agencies, public and private organizations and
    institutions under agreements executed pursuant to the agricultural food
    production assistance programs (7 U.S.C. 1737) and the foreign
    assistance programs of the United States Agency for International
    Development.
        None of the funds in the foregoing paragraph shall be available to
    promote the sale or export of tobacco or tobacco products.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2900-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Market access...................          30          32          33
    00.02   Market development..............          34          36          37
    00.03   Market intelligence.............          28          30          31
    00.04   Financial marketing assistance..           7           6           7
    00.05   Long-term market and
              infrastructure development....          23          27          28
    00.06   Montreal Protocol Multilateral
              Funding.......................                                   5
    09.00 Reimbursable program..............          72          72          74
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         194         203         215
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          14          15          15
    22.00 New budget authority (gross)......         197         203         215
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         211         218         230
    23.95 Total new obligations.............        -194        -203        -215
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    24.40 Unobligated balance carried
            forward, end of year............          15          15          15
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         122         131         141
    42.00   Transferred from other accounts.          12
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         134         131         141
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          27          72          74
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          36
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          63          72          74
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         197         203         215
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          49          44          45
    73.10 Total new obligations.............         194         203         215
    73.20 Total outlays (gross).............        -203        -202        -215
    73.40 Adjustments in expired accounts
            (net)...........................           5
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -36
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          35
    74.40 Obligated balance, end of year....          44          45          45
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         193         192         204

    [[Page 160]]

    86.93 Outlays from discretionary
            balances........................          10          10          11
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         203         202         215
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -76         -72         -74
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -36
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          49
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         134         131         141
    90.00 Outlays...........................         127         130         141
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           4           4           4
    99.01 Outlays...........................           4           4           4
    ---------------------------------------------------------------------------

        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 17 such offices are in operation
    at key foreign trading centers to assist U.S. exporters, trade groups
    and state export marketing officials in trade promotion. Promotional
    activities are carried out chiefly in cooperation with non-profit
    agricultural trade associations and firms on a cost-sharing basis. The
    largest of FAS's promotional programs 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 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. 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, 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 promotes trade
    capacity building, fosters world food security, and deploys USDA
    resources and expertise to advance market-based policies, trade and
    investment, sustainable agricultural systems, and agricultural research
    and education in developing countries and emerging markets. FAS also
    provides linkages to worldwide agricultural resources and international
    organizations to gain access to emerging technologies that can help
    create new U.S. agricultural products and markets. Direct program
    activities include administering the Cochran Fellowship Program and
    managing USDA's bilateral exchange and cooperative research programs
    with foreign governments and institutions. The Emerging Markets Program,
    under which technical assistance and related activities are carried out,
    facilitates international agribusiness relationships, enhances food
    systems in developing and transitional countries, and helps expand U.S.
    agricultural exports.

        FAS also administers food assistance activities such as Public Law
    480, Title I; Food for Progress; Section 416(b); and the McGovern-Dole
    International Food for Education and Child Nutrition Program. 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 not displacing expected commercial sales. 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. The

    [[Page 161]]

    International Food for Education Program provides for the donation of
    U.S. agricultural commodities and associated technical and financial
    assistance to carry out preschool and school feeding programs in foreign
    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.

        Montreal Protocol Multilateral Fund: The Montreal Protocol
    Multilateral Fund was created in 1991 to help developing countries
    switch from ozone depleting substances (ODS) to safer alternatives.
    Developing countries' commitment to comply with the Protocol's strict
    requirements is contingent on developed countries providing help through
    the Fund. With Fund assistance, developing countries as a group have
    exceeded initial reduction commitment by almost 25%.

        Historically, the Department of State and EPA have provided nearly
    all U.S. payments to the Montreal Protocol Multilateral Fund. This has
    funded projects that are leading to the phase out of the production and
    use by developing countries of industrial chemicals that deplete the
    ozone layer, such as chlorofluorocarbons and halons. In the future,
    there will be an increasing focus on reducing the use of methyl bromide
    in developing countries. In recognition of the growing importance of
    agricultural issues in the Montreal Protocol process, USDA is requesting
    a $5 million contribution to the Fund.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2900-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          55          57          59
    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          60          62          64
    12.1    Civilian personnel benefits.....          16          16          16
    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.........           1           2           2
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          29          32          39
    25.8    Subsistence and support of
              persons.......................           1           1           1
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           1           3           3
                                               ---------   ---------  ----------
    99.0      Direct obligations............         122         131         141
    99.0  Reimbursable obligations..........          72          72          74
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         194         203         215
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2900-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         792         804         804
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         179         181         201
    ---------------------------------------------------------------------------

            Scientific Activities Overseas (Foreign Currency Program)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1404-0-1-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1           1
    24.40 Unobligated balance carried
            forward, end of year............           1           1           1
    ----------------------------------------------------------------------------

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

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

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

        As authorized by the Agricultural Trade Development and Assistance
    Act of 1954 (Public Law 480), as amended, USDA uses foreign currencies
    to support research on problems of mutual interest to the United States
    and participating foreign countries. After 1991 no new foreign currency
    programs have been or are proposed to be initiated.

                           FOREIGN ASSISTANCE PROGRAMS

        The funds and facilities of the Commodity Credit Corporation may, by
    law, be used in carrying out programs to encourage the export of
    agricultural commodities.

        Included in this category are the following activities carried out
    under the Agricultural Trade Development and Assistance 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. During 2003, Commodity
    Credit Corporation funds were authorized to carry out the McGovern-Dole
    International Food for Education Program. Beginning in 2004, the program
    is authorized to be funded through a direct appropriation.

            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, $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.)

        Note.--A regular 2003 appropriation for this accont had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2271-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 P.L. 480 grant--Title I: Ocean
            freight differential (OFD)......          27          28          28
    09.00 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          28          29          29
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          15           8
    22.00 New budget authority (gross)......          21          29          29
    22.40 Capital transfer to general fund..                      -8
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          36          29          29
    23.95 Total new obligations.............         -28         -29         -29
    24.40 Unobligated balance carried
            forward, end of year............           8
    ----------------------------------------------------------------------------

    [[Page 162]]

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          20          28          28
          Mandatory:

    69.00   Offsetting collections (cash)...           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          21          29          29
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          25          10          11
    73.10 Total new obligations.............          28          29          29
    73.20 Total outlays (gross).............         -42         -27         -37
    74.40 Obligated balance, end of year....          10          11           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                      16          16
    86.93 Outlays from discretionary
            balances........................          41          10          20
    86.97 Outlays from new mandatory
            authority.......................           1           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          42          27          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..................          20          28          28
    90.00 Outlays...........................          42          26          36
    ---------------------------------------------------------------------------

        This account funds the title I ocean freight differential program.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2271-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....          27          28          28
    99.0  Reimbursable obligations:
            Reimbursable obligations........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          28          29          29
    ---------------------------------------------------------------------------

                         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, for commodities supplied in connection with dispositions abroad
    under title II of said Act, $1,185,000,000, to remain available until
    expended. (7 U.S.C. 1691, 1721-26a, 1727-27e, 1731-36g-3, 1737, 2209b.)

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2278-0-1-151      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Title II..........................         991       1,248       1,185
    09.01 Reimbursable program..............          23
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,014       1,248       1,185
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          94          63
    22.00 New budget authority (gross)......         887       1,185       1,185
    22.22 Unobligated balance transferred
            from other accounts.............          96
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,077       1,248       1,185
    23.95 Total new obligations.............      -1,014      -1,248      -1,185
    24.40 Unobligated balance carried
            forward, end of year............          63
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         864       1,185       1,185
          Mandatory:

    69.00   Offsetting collections (cash)...          23
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         887       1,185       1,185
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         587         656         824
    73.10 Total new obligations.............       1,014       1,248       1,185
    73.20 Total outlays (gross).............        -945      -1,080      -1,144
    74.40 Obligated balance, end of year....         656         824         865
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         337         622         622
    86.93 Outlays from discretionary
            balances........................         585         458         522
    86.97 Outlays from new mandatory
            authority.......................          23
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         945       1,080       1,144
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................         864       1,185       1,185
    90.00 Outlays...........................         922       1,080       1,144
    ---------------------------------------------------------------------------

        This account funds the non-credit components of Public Law 480.
    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 ports 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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2278-0-1-151      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....         991       1,248       1,185
    99.0  Reimbursable obligations:
            Reimbursable obligations........          23
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,014       1,248       1,185
    ---------------------------------------------------------------------------

       McGovern-Dole International Food for Education and Child Nutrition
                                 Program Grants

        For necessary expenses to carry out the provisions of section 3107
    of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 17360-
    1), $50,000,000, to remain available until expended: Provided, That the
    Commodity Credit Corporation is authorized to provide the services,
    facilities, and authorities for the purpose of implementing such
    section, subject to reimbursement from amounts provided herein.

    [[Page 163]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2903-0-1-151      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Support and Related Programs:

    00.01   McGovern-Dole International Food
              for Education & Child
              Nutrition Program.............                                  50
                                               ---------   ---------  ----------
    10.00     Total new obligations (object
                class 41.0).................                                  50
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
          Budgetary Resources Available for Obligation:

    22.00   New budget authority (gross)....                                  50
    23.95   Total new obligations...........                                 -50
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    73.10 Total new obligations.............                                  50
    73.20 Total outlays (gross).............                                 -50
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                  50
    ----------------------------------------------------------------------------

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

        The Farm Security and Rural Investment Act of 2002 (Public Law 107-
    171) authorizes the McGovern-Dole International Food for Education and
    Child Nutrition Program. The program provides for the donation of U.S.
    agricultural commodities and associated technical and financial
    assistance to carry out preschool and school feeding programs in foreign
    countries in order to improve food security, reduce the incidence of
    hunger and malnutrition, and improve literacy and primary education.
    Maternal, infant, and child nutrition programs for pregnant women,
    nursing mothers, infants, and children also are authorized.

    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, $103,887,000,
    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, $4,041,000, of which $1,066,000, may be transferred to and
    merged with the appropriation for ``Foreign Agricultural Service,
    Salaries and Expenses'', and of which $2,975,000 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.)

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2277-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0108  P.L. 480 loan program, downward
            reestimates of subsidies........                     538
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2277-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct credit subsidy.............         155          99         104
    00.05 Re-estimates of subsidy...........          65          12
    00.06 Interest on re-estimates..........          17           1
    00.09 Administrative expenses...........           2           2           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         239         114         108
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         288         254
    22.00 New budget authority (gross)......         205         114         108
    22.21 Unobligated balance transferred to
            other accounts..................          -1
    22.40 Capital transfer to general fund..                    -255
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         492         113         108
    23.95 Total new obligations.............        -239        -114        -108
    24.40 Unobligated balance carried
            forward, end of year............         254
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         128         101         108
          Mandatory:

    60.00   Appropriation...................          63          13
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).          27
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         -13
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....          14
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         205         114         108
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          69          71          43
    73.10 Total new obligations.............         239         114         108
    73.20 Total outlays (gross).............        -251        -142        -137
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          13
    74.40 Obligated balance, end of year....          71          43          14
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          34          58          63
    86.93 Outlays from discretionary
            balances........................         135          71          74
    86.97 Outlays from new mandatory
            authority.......................                      13
    86.98 Outlays from mandatory balances...          82
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         251         142         137
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -27
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          13
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         191         114         108
    90.00 Outlays...........................         224         142         137
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-2277-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001P. L. 480 title I loans...........         155         132         132
                                               ---------   ---------  ----------
    115901Total direct loan levels..........         155         132         132
        Direct loan subsidy (in percent):
    132001P. L. 480 title I loans...........       81.73       75.11       78.90
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       81.73       75.11       78.90
        Direct loan subsidy budget authority:
    133001P. L. 480 title I loans...........         126          99         104
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....         126          99         104
        Direct loan subsidy outlays:
    134001P. L. 480 title I loans...........         139         127         132
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............         139         127         132
        Direct loan upward reestimate subsidy budget
                    authority:
    135001P. L. 480 title I loans...........          82          13
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................          82          13
        Direct loan upward reestimate subsidy outlays:
    136001P. L. 480 title I loans...........          82          13
                                               ---------   ---------  ----------

    [[Page 164]]

    136901Total upward reestimate outlays...          82          13
        Direct loan downward reestimate subsidy budget
                    authority:
    137001P. L. 480 title I loans...........                    -538
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................                    -538
        Direct loan downward reestimate subsidy
                    outlays:
    138001P. L. 480 title I loans...........                    -538
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................                    -538
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................           2           2           4
    358001Outlays from balances.............
    359001Outlays from new authority........           2           2           4
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this account
    records, for the P.L. 480 Program, the subsidy costs associated with the
    direct loans obligated in 1992 and beyond (including modifications of
    direct loans that resulted from obligation in any year), as well as
    administrative expenses of this program. The subsidy amounts are
    estimated on a present value basis; the administrative expenses are
    estimated on a cash basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2277-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................           2           2           4
    41.0  Grants, subsidies, and
            contributions...................         237         112         104
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         239         114         108
    ---------------------------------------------------------------------------

                    P.L. 480 Direct Credit Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4049-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................          85         132         132
    00.02   Interest on Treasury borrowing..          77          41          41
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............         162         173         173
    08.02 Payment of downward reestimate to
            receipt account.................                     360
    08.04 Payment of interest on downward
            reestimate to receipt account...                     178
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............                     538
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         162         711         173
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         159         246
    22.00 New financing authority (gross)...         285         511         215
    22.40 Capital transfer to general fund..                     -27         -42
    22.60 Portion applied to repay debt.....         -36         -19
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         408         711         173
    23.95 Total new obligations.............        -162        -711        -173
    24.40 Unobligated balance carried
            forward, end of year............         246
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............          29
          Mandatory:

    67.10   Authority to borrow.............                     366          74
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).         274
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         -18
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....         256
          Mandatory:

    69.00   Offsetting collections (cash)...                     281         277
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................                    -136        -136
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........                     145         141
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         285         511         215
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          43          46          29
    73.10 Total new obligations.............         162         711         173
    73.20 Total financing disbursements
            (gross).........................        -178        -864        -326
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          18         136         136
    74.40 Obligated balance, end of year....          46          29          12
    87.00 Total financing disbursements
            (gross).........................         178         864         326
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.        -165        -140        -132
    88.25     Interest on uninvested funds..         -16          -1          -1
              Non-Federal sources:
    88.40       Interest received on loans..         -38         -62         -63
    88.40       Principal received on loans.         -55         -78         -81
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -274        -281        -277
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          18         136         136
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          29         366          74
    90.00 Financing disbursements...........         -96         583          49
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4049-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         168         132         132
    1121  Limitation available from carry-
            forward.........................         176
    1142  Unobligated direct loan limitation
            (-).............................        -246
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          98         132         132
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       2,176       2,334       2,383
    1231  Disbursements: Direct loan
            disbursements...................         122         127         132
    1251  Repayments: Repayments and
            prepayments.....................         -55         -78         -81
    1261  Adjustments: Capitalized interest.          91
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       2,334       2,383       2,434
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from 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    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....         203            278           250            250
            Investments in US securities:
    1106      Receivables, net..............          64             58            58             58
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..       2,176          2,334         2,364          2,412

    [[Page 165]]

    1402    Interest receivable.............          24             79            24             24
    1405    Allowance for subsidy cost (-)..      -1,603         -1,388        -1,568         -1,568
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         597          1,025           820            868
    1901  Other Federal assets: Other assets         329
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       1,193          1,361         1,128          1,176
        LIABILITIES:
          Federal liabilities:

    2101    Accounts payable................          31             23            31             31
    2104    Resources payable to Treasury...         753            732           753            753
    2105    Other...........................         409            606           344            392
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       1,193          1,361         1,128          1,176
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       1,193          1,361         1,128          1,176
    -----------------------------------------------------------------------------------------------

                        Debt Reduction--Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4143-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........          20          33          67
    00.02 Interest to Treasury..............           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          23          33          67
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          59          51          15
    22.00 New financing authority (gross)...          15          48          80
    22.60 Portion applied to repay debt.....                     -51
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          74          48          95
    23.95 Total new obligations.............         -23         -33         -67
    24.40 Unobligated balance carried
            forward, end of year............          51          15          28
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............           3           3
          Spending authority from offsetting
              collections:

            Discretionary:
              Offsetting collections (cash):
    68.00       Offsetting collections
                  (cash)....................          11          12          13
    68.00       Offsetting collections--Debt
                  Reduction.................           8          33          67
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -7
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....          12          45          80
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          15          48          80
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -1           4
    73.10 Total new obligations.............          23          33          67
    73.20 Total financing disbursements
            (gross).........................         -25         -35         -67
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           7
    74.40 Obligated balance, end of year....           4
    87.00 Total financing disbursements
            (gross).........................          25          35          67
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -8         -33         -67
    88.25     Interest on uninvested funds..          -2          -2          -2
    88.40     Non-Federal sources...........          -9         -10         -11
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -19         -45         -80
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           7
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           3           3
    90.00 Financing disbursements...........           7         -10         -13
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4143-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........           8           3
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...           8           3
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         132         236         231
    1233  Disbursements: Purchase of loans
            assets from a liquidating
            account.........................           8           3
    1251  Repayments: Repayments and
            prepayments.....................          -7          -8         -10
    1264  Write-offs for default: Other
            adjustments, net................         103
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         236         231         221
    ---------------------------------------------------------------------------

        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    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101    Fund balances with Treasury.....                         30            30             30
            Investments in US securities:
    1106      Receivables, net..............                         10            10             10
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..         132            236           231            221
    1405    Allowance for subsidy cost (-)..         -87           -149          -178           -214
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....          45             87            53              7
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................          45            127            93             47
        LIABILITIES:
          Federal liabilities:

    2102    Interest payable................                          2             2              2
    2103    Debt............................          45             45            45             45
    2105    Other...........................                         80            46
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............          45            127            93             47
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position          45            127            93             47
    -----------------------------------------------------------------------------------------------

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

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2273-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    0101  Negative subsidies/subsidy
            reestimates.....................                     195
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-2273-0-1-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Downward reestimates subsidy
            budget authority--P.L. 480 title
            I credits.......................                    -195
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................                    -195
        Direct loan downward reestimate subsidy
                    outlays:
    138001Downward reestimates subsidy
            outlays.........................                    -195
                                               ---------   ---------  ----------
    138901Total downward reestimate subsidy
            outlays.........................                    -195
    ----------------------------------------------------------------------------

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

    [[Page 166]]

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

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4078-0-3-351      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Interest to Treasury on borrowings          11          16          17
    08.02 Payment of downward re-estimate to
            receipt account.................                     112
    08.04 Payment of interest on downward
            re-estimate to receipt account..                      83
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............                     195
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          11         211          17
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          47          68
    22.00 New financing authority (gross)...          78         297         102
    22.40 Capital transfer to general fund..                    -154         -85
    22.60 Portion applied to repay debt.....         -47
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          78         211          17
    23.95 Total new obligations.............         -11        -211         -17
    24.40 Unobligated balance carried
            forward, end of year............          68
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............                     207          12
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          78          90          90
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          78         297         102
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............          11         211          17
    73.20 Total financing disbursements
            (gross).........................         -11        -211         -17
    87.00 Total financing disbursements
            (gross).........................          11         211          17
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..          -4          -4          -4
              Non-Federal sources:
    88.40       Principal collections.......         -74         -74         -74
    88.40       Interest collections........                     -12         -12
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -78         -90         -90
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                     207          12
    90.00 Financing disbursements...........         -67         121         -73
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4078-0-3-351      2002 actual   2003 est.   2004 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........         465         409         353
    1251  Repayments: Repayments and
            prepayments.....................         -56         -56         -56
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         409         353         297
    ---------------------------------------------------------------------------

        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    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101  Federal assets: Fund balances with
            Treasury........................                         68
          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401    Direct loans receivable, gross..         465            409           353            297
    1402    Interest receivable.............          19             12            16             16
    1405    Allowance for subsidy cost (-)..        -347           -165          -165           -165
                                            ------------ --------------  ------------  -------------
    1499      Net present value of assets
                related to direct loans.....         137            256           204            148
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................         137            324           204            148
        LIABILITIES:
          Federal liabilities:

    2103    Debt............................         137            128           204            148
    2105    Other...........................                        196
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............         137            324           204            148
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position         137            324           204            148
    -----------------------------------------------------------------------------------------------

       Expenses, Public Law 480, Foreign Assistance Programs, Agriculture
                               Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2274-0-1-151      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........           4
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           4
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          77          93
    22.00 New budget authority (gross)......          93
    22.40 Capital transfer to general fund..         -73         -93
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          97
    23.95 Total new obligations.............          -4
    24.40 Unobligated balance carried
            forward, end of year............          93
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)
              (Principal and interest)......         504         542         505
    69.27   Capital transfer to general fund        -411        -542        -505
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          93
    ----------------------------------------------------------------------------

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

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources--debt
                reduction...................          -8          -3
    88.40     Principal and interest
                collections.................        -496        -509        -438
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -504        -512        -438
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -411        -512        -438
    90.00 Outlays...........................        -504        -512        -438
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2274-0-1-151      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       8,219       7,908       7,540
          Repayments:

            Repayments and prepayments:
    1251      Repayments and prepayments....        -295        -331        -287
    1251      Payments from USDA debt
                reduction finance account...          -8          -3
    1263  Write-offs for default: Direct
            loans...........................          -8         -34
                                               ---------   ---------  ----------

    [[Page 167]]

    1290    Outstanding, end of year........       7,908       7,540       7,253
    ---------------------------------------------------------------------------

        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.

        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 received $95 million from the fund
    as of December 31, 2001.

        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    2001 actual    2002 actual     2003 est.      2004 est.
    -----------------------------------------------------------------------------------------------
        ASSETS:
          Net value of assets related to
              pre-1992 direct loans
              receivable and acquired
              defaulted guaranteed loans
              receivable:

    1601    Direct loans, gross.............       8,219          7,851         7,490          7,203
                                            ------------ --------------  ------------  -------------
    1699      Value of assets related to
                direct loans................       8,219          7,851         7,490          7,203
                                            ------------ --------------  ------------  -------------
    1999    Total assets....................       8,219          7,851         7,490          7,203
        LIABILITIES:
    2104  Federal liabilities: Resources
            payable to Treasury.............       8,219          7,851         7,490          7,203
                                            ------------ --------------  ------------  -------------
    2999    Total liabilities...............       8,219          7,851         7,490          7,203
                                            ------------ --------------  ------------  -------------
    4999  Total liabilities and net position       8,219          7,851         7,490          7,203
    -----------------------------------------------------------------------------------------------

                         Miscellaneous Contributed Funds

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8232-0-7-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.20 Deposits of miscellaneous
            contributed funds, International
            cooperation and development.....                       4           4
        Appropriations:
    05.00 Miscellaneous contributed funds...                      -4          -4
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8232-0-7-352      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........           3           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           3           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           5           2           3

    [[Page 168]]

    22.00 New budget authority (gross)......                       4           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           5           6           7
    23.95 Total new obligations.............          -3          -1
    24.40 Unobligated balance carried
            forward, end of year............           2           3           7
    ----------------------------------------------------------------------------

        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                      -1
    73.10 Total new obligations.............           3           1
    73.20 Total outlays (gross).............                      -4          -4
    74.40 Obligated balance, end of year....                      -1          -5
    ----------------------------------------------------------------------------

        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:

                        Nutrition Programs Administration

        For necessary administrative expenses of the domestic nutrition
    assistance programs funded under this Act, $144,849,000, 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 $12,000,000 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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3508-0-1-605      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Nutrition programs
              administration................         128         137         145
    00.03   Congressional hunger center
              fellowships...................           2
    09.01 Reimbursable administrative
            services provided to Federal
            agencies........................           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         131         138         146
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         131         138         146
    23.95 Total new obligations.............        -131        -138        -146
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         130         137         145
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         131         138         146
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          15          17          15
    73.10 Total new obligations.............         131         138         146
    73.20 Total outlays (gross).............        -128        -140        -146
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.40 Obligated balance, end of year....          17          15          14
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         117         123         131
    86.93 Outlays from discretionary
            balances........................          11          17          15
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         128         140         146
    ----------------------------------------------------------------------------

        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..................         130         137         145
    90.00 Outlays...........................         127         139         145
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           8           9           9
    99.01 Outlays...........................           8           9           9
    ---------------------------------------------------------------------------

        This account funds the majority of the Federal operating expenses of
    the Food and Nutrition Service.

        Funds are provided for additional activities to identify and address
    error in the Food Stamp and Child Nutrition programs.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3508-0-1-605      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          84          93          97
    11.3      Other than full-time permanent           1           1           1
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          86          95          99
    12.1    Civilian personnel benefits.....          19          21          22
    21.0    Travel and transportation of
              persons.......................           3           3           3
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           2           2
    25.2    Other services..................          15          14          17
    26.0    Supplies and materials..........           2           1           1
    31.0    Equipment.......................           1           1           1
    41.0    Grants, subsidies, and
              contributions.................           2
                                               ---------   ---------  ----------
    99.0      Direct obligations............         130         137         145
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         131         138         146
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3508-0-1-605      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,324       1,486       1,499
    ---------------------------------------------------------------------------

                               Food Stamp Program

        For necessary expenses to carry out the Food Stamp Act (7 U.S.C.
    2011 et seq.), $27,745,981,000, 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 funds provided
    herein shall be expended in accordance with section 16 of the Food Stamp
    Act: Provided further, That this appropriation shall be subject to any
    work registration or workfare requirements as may be required by law:
    Provided further, That funds made available for Employment and Training
    under this heading shall remain available until expended, as authorized
    by section 16(h)(1) of the Food Stamp Act.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution

    [[Page 169]]

    (P.L. 107-229, as amended). The amounts included for 2003 in this budget
    reflect the Administration's 2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3505-0-1-605      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Benefits issued.................      17,975      20,597      21,526
    00.02   State administration............       2,162       2,212       2,258
    00.03   Employment and training program.         315         249         255
    00.04   Other program costs.............          64          66          69
    00.05   Puerto Rico.....................       1,351       1,395       1,397
    00.06   Food distribution program on
              Indian reservations
              (Commodities in lieu of food
              stamps).......................          51          53          56
    00.07   Food distribution program on
              Indian reservations
              (Cooperator administrative
              expense)......................          23          26          27
    00.08   The emergency food assistance
              program (commodities).........         140         140         140
    00.09   Modified food stamp program in
              American Samoa................           5           6           6
    00.10   Community food project..........           5           5           5
    00.11   Commonwealth of the Northern
              Mariannas Islands.............           6           7           7
    09.01 Reimbursable program..............         105         105         105
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      22,202      24,861      25,851
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         187
    22.00 New budget authority (gross)......      22,954      26,355      27,851
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          68
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      23,209      26,355      27,851
    23.95 Total new obligations.............     -22,202     -24,861     -25,851
    23.98 Unobligated balance expiring or
            withdrawn.......................      -1,008      -1,494      -2,000
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          17          17          17
          Mandatory:

    60.00   Appropriation...................      22,975      26,233      27,729
    60.35   Appropriation rescinded.........         -24
    60.36   Unobligated balance rescinded...        -119
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      22,832      26,233      27,729
    69.00 Offsetting collections (cash).....         105         105         105
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      22,954      26,355      27,851
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,022         947         612
    73.10 Total new obligations.............      22,202      24,861      25,851
    73.20 Total outlays (gross).............     -22,174     -25,196     -25,831
    73.40 Adjustments in expired accounts
            (net)...........................         -35
    73.45 Recoveries of prior year
            obligations.....................         -68
    74.40 Obligated balance, end of year....         947         612         632
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           9           9           9
    86.93 Outlays from discretionary
            balances........................           7           8           8
    86.97 Outlays from new mandatory
            authority.......................      21,143      24,240      25,210
    86.98 Outlays from mandatory balances...       1,015         939         604
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      22,174      25,196      25,831
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....        -105        -105        -105
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      22,849      26,250      27,746
    90.00 Outlays...........................      22,069      25,091      25,726
    ---------------------------------------------------------------------------

        The Food Stamp Program is the primary source of nutrition assistance
    for low-income Americans.

        Some of these funds provide a grant to Puerto Rico in lieu of the
    Food Stamp Program which gives the Commonwealth flexibility to
    administer a nutrition assistance program tailored to the needs of its
    low-income households.

        Funds in this account are also used to carry out the Emergency Food
    Assistance Act of 1983 and for food distribution and administrative
    expenses for Native Americans under section 4(b) of the Food Stamp Act.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3505-0-1-605      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           4           4           4
    12.1    Civilian personnel benefits.....           1           1           1
    21.0    Travel and transportation of
              persons.......................           2           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           3           3           3
    24.0    Printing and reproduction.......          12           3           3
    25.2    Other services..................          54          66          68
    26.0    Supplies and materials..........         186         193         196
    31.0    Equipment.......................           2           2           2
    41.0    Grants, subsidies, and
              contributions.................      21,833      24,482      25,467
                                               ---------   ---------  ----------
    99.0      Direct obligations............      22,097      24,756      25,746
    99.0  Reimbursable obligations..........         105         105         105
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      22,202      24,861      25,851
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3505-0-1-605      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          55          56          56
    ---------------------------------------------------------------------------

                            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;
    $11,418,441,000, to remain available through September 30, 2005, of
    which $6,819,340,000 is hereby appropriated and $4,559,101,000 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 up to $5,198,000 shall
    be available for independent verification of school food service claims.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3539-0-1-605      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          School lunch program:

    00.01   Above 185 of poverty............         404         428         448
    00.02   130-185 of poverty..............         740         785         821
    00.03   Below 130 of poverty............       4,876       5,176       5,415
                                               ---------   ---------  ----------
    00.91   Subtotal, school lunch program..       6,020       6,389       6,684
          School breakfast program:

    01.01   Above 185 of poverty............          50          54          58
    01.02   130-185 of poverty..............         120         131         140
    01.03   Below 130 of poverty............       1,371       1,496       1,600
                                               ---------   ---------  ----------
    01.91   Subtotal, school breakfast
              program.......................       1,541       1,681       1,798
          Child and adult care feeding program:

    02.01   Above 185 of poverty............         188         192         201
    02.02   130-185 of poverty..............         106         113         118
    02.03   Below 130 of poverty............       1,512       1,592       1,672
    02.04   Audits..........................          25          28          28
                                               ---------   ---------  ----------
    02.91   Subtotal, child and adult care
              feeding program...............       1,831       1,925       2,019
          Other mandatory activities:

    03.01   Summer food service program.....         307         288         309
    03.02   Special milk program............          18          15          15
    03.03   State administrative expenses...         132         134         140
    03.04   Commodity procurement...........         455         647         422
                                               ---------   ---------  ----------
    03.91   Subtotal, Other mandatory
              activities....................         912       1,084         886
          Discretionary activities:

    04.01   School meals initiative.........          10          10          10
    04.02   Coordinated review and CN pay
              costs.........................           5           5           5
    04.03   Computer support and processing.          11           9           9
    04.05   Food safety education...........           2           1           1
    04.06   Child nutrition program
              integrity.....................                                   6
                                               ---------   ---------  ----------

    [[Page 170]]

    04.91   Subtotal, discretionary
              activities....................          28          25          31
          Activities with permanent appropriations:

    05.01   Food service management
              institute and information
              clearinghouse.................           3           3           3
    09.01 Reimbursable program..............           6
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      10,341      11,107      11,421
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         380         359           3
    22.00 New budget authority (gross)......      10,096      10,579      11,421
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         242         172
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      10,718      11,110      11,424
    23.95 Total new obligations.............     -10,341     -11,107     -11,421
    23.98 Unobligated balance expiring or
            withdrawn.......................         -18
    24.40 Unobligated balance carried
            forward, end of year............         359           3           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           7           7          13
          Mandatory:

    60.00   Appropriation...................       4,911       5,827       6,809
    62.00   Transferred from other accounts.       5,172       4,745       4,599
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      10,083      10,572      11,408
    69.00 Offsetting collections (cash).....           6
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      10,096      10,579      11,421
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,629       1,462         983
    73.10 Total new obligations.............      10,341      11,107      11,421
    73.20 Total outlays (gross).............     -10,260     -11,414     -11,351
    73.40 Adjustments in expired accounts
            (net)...........................          -6
    73.45 Recoveries of prior year
            obligations.....................        -242        -172
    74.40 Obligated balance, end of year....       1,462         983       1,053
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           3           4           7
    86.93 Outlays from discretionary
            balances........................           4           3           3
    86.97 Outlays from new mandatory
            authority.......................       8,245       9,775      10,027
    86.98 Outlays from mandatory balances...       2,008       1,632       1,314
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      10,260      11,414      11,351
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      10,090      10,579      11,421
    90.00 Outlays...........................      10,254      11,414      11,351
    ---------------------------------------------------------------------------

        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      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           7           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.......           7           7           7
    25.2    Other services..................          10          10          16
    26.0    Supplies and materials
              (Commodities).................         455         646         422
    41.0    Grants, subsidies, and
              contributions.................       9,853      10,434      10,966
                                               ---------   ---------  ----------
    99.0      Direct obligations............      10,335      11,107      11,421
    99.0  Reimbursable obligations..........           6
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      10,341      11,107      11,421
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3539-0-1-605      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         130         130         130
    ---------------------------------------------------------------------------

                            Child Nutrition Programs

                    (Legislative proposal, subject to PAYGO)

        This legislation would reauthorize programs under the Child
    Nutrition Act and implement a new system to improve the accuracy of
    eligibility determinations in the National School Lunch Program
    beginning in 2005. Any savings from the eligibility determination system
    would be reinvested in the program to ensure that all eligible children
    have access to meals and to provide financial incentives to schools that
    serve meals that meet the dietary guidelines.

    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), $4,769,232,000, to remain available through
    September 30, 2005, of which $20,000,000 shall be for breastfeeding
    support initiative in addition to the activities specified in section
    17(h)(3)(A); $30,000,000 shall be for a management information system
    initiative; and $25,000,000, to remain available until expended, 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
    notwithstanding section 17(h)(10)(A) of such Act, $14,000,000 shall be
    available for the purposes specified in section 17(h)(10)(B): Provided
    further, That notwithstanding section 17(g)(5) of such Act, $7,000,000
    shall be available for the Food and Nutrition Service to conduct studies
    and contract for an evaluation of the effectiveness of the WIC program,
    and $5,000,000 shall be for pilot projects to prevent childhood obesity:
    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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3510-0-1-605      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................       4,465       4,766       4,971
    00.02 Transfer from CCC.................          15
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       4,480       4,766       4,971
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1          57         125
    22.00 New budget authority (gross)......       4,477       4,726       4,769
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          60         108         227
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       4,538       4,891       5,121
    23.95 Total new obligations.............      -4,480      -4,766      -4,971
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1

    [[Page 171]]

    24.40 Unobligated balance carried
            forward, end of year............          57         125         150
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       4,462       4,726       4,769
          Mandatory:

    62.00   Transferred from other accounts.          15
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       4,477       4,726       4,769
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         328         428         268
    73.10 Total new obligations.............       4,480       4,766       4,971
    73.20 Total outlays (gross).............      -4,330      -4,818      -4,746
    73.40 Adjustments in expired accounts
            (net)...........................          10
    73.45 Recoveries of prior year
            obligations.....................         -60        -108        -227
    74.40 Obligated balance, end of year....         428         268         266
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       3,987       4,348       4,368
    86.93 Outlays from discretionary
            balances........................         328         470         378
    86.97 Outlays from new mandatory
            authority.......................          15
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       4,330       4,818       4,746
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       4,477       4,726       4,769
    90.00 Outlays...........................       4,330       4,818       4,746
    ---------------------------------------------------------------------------

        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. This request
    includes funds for pilot projects to prevent childhood obesity, a
    breastfeeding support initiative, a project to improve management
    information systems, and an evaluation of the effectiveness of the WIC
    program.

                          Commodity Assistance Program

        For necessary expenses to carry out disaster assistance and the
    commodity supplemental food program as authorized by section 4(a) of the
    Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c note);
    the Emergency Food Assistance Act of 1983; special assistance for the
    nuclear affected islands, as authorized by section 103(h)(2) of the
    Compacts of Free Association Act of 1985; and the Farmers' Market
    Nutrition Program, as authorized by section 17(m) of the Child Nutrition
    Act of 1966, $166,072,000, to remain available through September 30,
    2005: Provided, That none of these funds shall be available to reimburse
    the Commodity Credit Corporation for commodities donated to the program.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3507-0-1-605      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Commodity supplemental food program:

    00.01   Commodity procurement...........          81          76          73
    00.02   Administrative costs............          23          19          22
                                               ---------   ---------  ----------
    00.91   Subtotal, commodity supplemental
              food program..................         104          95          95
          The emergency food assistance program:

    02.01   Administrative costs............          50          50          50
    03.01 Senior farmers' market............          15          15          15
    04.01 Farmers' Market Nutrition Program.                                  20
    05.01 Pacific Island and Disaster
            Assistance......................                                   1
    09.01 Reimbursable program..............           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         174         160         181
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          15
    22.00 New budget authority (gross)......         160         160         181
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         175         160         181
    23.95 Total new obligations.............        -174        -160        -181
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         153         145         166
    40.36   Unobligated balance rescinded...          -3
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         150         145         166
          Mandatory:

    62.00   Transferred from other accounts.           5          15          15
    69.00 Offsetting collections (cash).....           5
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         160         160         181
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          17          27          28
    73.10 Total new obligations.............         174         160         181
    73.20 Total outlays (gross).............        -164        -159        -179
    74.40 Obligated balance, end of year....          27          28          30
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         131         131         150
    86.93 Outlays from discretionary
            balances........................          29          19          14
    86.97 Outlays from new mandatory
            authority.......................           4           8           8
    86.98 Outlays from mandatory balances...                       1           7
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         164         159         179
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................         155         160         181
    90.00 Outlays...........................         159         159         179
    ---------------------------------------------------------------------------

        This account funds the Commodity Supplemental Food Program (CSFP),
    the Emergency Food Assistance Program (TEFAP), farmers' market nutrition
    programs, assistance for the nuclear affected islands, and disaster
    relief.

        CSFP provides food packages for low-income women, infants, and
    children as well as low-income elderly persons. It also funds State
    administrative expenses.

        TEFAP provides cash to support State administrative activities and
    maintain the storage and distribution pipeline for USDA and privately
    donated commodities.

        This account funds two farmers' market nutrition programs which
    provide low-income participants vouchers for fresh produce at farmers'
    markets. The first, for seniors, is funded by transfer from the
    Commodity Credit Corporation. The second, for women, infants, and
    children, was previously funded in the WIC account.

        Assistance for the nuclear affected islands and disaster relief was
    previously funded in the Food Donations Programs account.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3507-0-1-605      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    26.0    Supplies and materials
              (commodities).................          82          76          76
    41.0    Grants, subsidies, and
              contributions.................          87          84         105
                                               ---------   ---------  ----------
    99.0      Direct obligations............         169         160         181
    99.0  Reimbursable obligations..........           5
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         174         160         181
    ---------------------------------------------------------------------------

                             Food Donations Programs

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

    [[Page 172]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3503-0-1-605      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Nutrition program for the elderly.         150
    00.02 Pacific island assistance.........           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         151           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1
    22.00 New budget authority (gross)......         151           1
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         153           1
    23.95 Total new obligations.............        -151          -1
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         151           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          48          39
    73.10 Total new obligations.............         151           1
    73.20 Total outlays (gross).............        -157         -40
    73.40 Adjustments in expired accounts
            (net)...........................          -2
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.40 Obligated balance, end of year....          39
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         109           1
    86.93 Outlays from discretionary
            balances........................          48          39
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         157          40
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         151           1
    90.00 Outlays...........................         158          40
    ---------------------------------------------------------------------------

        This account includes the Nutrition Services Incentive Program which
    provides cash and commodities for elderly persons served in senior
    citizens' centers and similar settings. The budget continues the 2003
    proposal to consolidate this program with elderly meals programs in the
    Department of Health and Human Services. The budget also funds
    assistance for the nuclear affected islands and disaster relief in the
    commodity assistance program account, beginning in 2004.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3503-0-1-605      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    26.0  Supplies and materials (grants of
            commodities to States)..........           3           1
    41.0  Grants, subsidies, and
            contributions...................         148
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         151           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, $1,369,573,000, 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 2004 shall be displayed by budget
    line item in the fiscal year 2005 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. For an additional amount
    to reimburse the Judgment Fund as required by 41 U.S.C. 612(c) for
    judgment liabilities previously incurred, $188,405,000.

        Note.--A regular 2003 appropriations for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 National forest system............       1,249       1,520       1,369
    09.01 Reimbursable program..............         113          50          50
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,362       1,570       1,419
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         264         222          68
    22.00 New budget authority (gross)......       1,299       1,416       1,420
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          22
    22.21 Unobligated balance transferred to
            other accounts..................          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,584       1,638       1,488
    23.95 Total new obligations.............      -1,362      -1,570      -1,419
    24.40 Unobligated balance carried
            forward, end of year............         222          68          69
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,332       1,366       1,370
    40.35   Appropriation rescinded.........          -3
    41.00   Transferred to other accounts...        -159
    42.00   Transferred from other accounts.           1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,170       1,366       1,370
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         113          50          50
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          15
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         128          50          50
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,299       1,416       1,420
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         248          74         234
    73.10 Total new obligations.............       1,362       1,570       1,419
    73.20 Total outlays (gross).............      -1,491      -1,410      -1,420
    73.40 Adjustments in expired accounts
            (net)...........................          -8
    73.45 Recoveries of prior year
            obligations.....................         -22
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -15
    74.40 Obligated balance, end of year....          74         234         231
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         997       1,211       1,215
    86.93 Outlays from discretionary
            balances........................         494         199         205
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,491       1,410       1,420
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -28         -13         -13
    88.40     Non-Federal sources...........         -85         -37         -37
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -113         -50         -50
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -15
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,171       1,366       1,370
    90.00 Outlays...........................       1,378       1,360       1,370
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................          61          64          68
    99.01 Outlays...........................          61          64          68
    ---------------------------------------------------------------------------

    [[Page 173]]

        The 156 National Forests, 20 National Grasslands, and nine land
    utilization projects located in 44 States, Puerto Rico, and the Virgin
    Islands are managed under multiple-use and sustained-yield principles.
    The natural resources of timber, minerals, range, wildlife, outdoor
    recreation, watershed, and soil are used in a planned combination that
    will best meet the needs of the Nation without impairing productivity of
    the land or damaging the environment. These management and utilization
    principles are recognized in the Multiple-Use, Sustained-Yield Act of
    1960 (16 U.S.C. 528-531) and use an ecological approach to managing the
    National Forest System.

        National Forest System (NFS) operations and maintenance provide for
    the planning, assessment, and conservation of ecosystems while
    delivering multiple public services and uses. These are delivered
    through the principal NFS programs of land management planning;
    inventory and monitoring; recreation, 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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         578         571         571
    11.3      Other than full-time permanent          47          46          46
    11.5      Other personnel compensation..          31          31          31
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         656         648         648
    12.1    Civilian personnel benefits.....         181         179         179
    13.0    Benefits for former personnel...           3           3           3
    21.0    Travel and transportation of
              persons.......................          38          39          39
    23.1    Rental payments to GSA..........          84          85          87
    24.0    Printing and reproduction.......           2           2           2
    25.2    Other services..................         224         501         347
    26.0    Supplies and materials..........          36          37          38
    31.0    Equipment.......................          18          19          19
    32.0    Land and structures.............           2           2           2
    41.0    Grants, subsidies, and
              contributions.................           2           2           2
    42.0    Insurance claims and indemnities           2           2           2
    43.0    Interest and dividends..........           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,249       1,520       1,369
    99.0  Reimbursable obligations..........         113          50          50
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,362       1,570       1,419
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Civilian full-time equivalent
              employment....................      14,969      14,366      13,844
        Reimbursable:
          Total compensable workyears:

    2001    Civilian full-time equivalent
              employment....................       1,379       1,324       1,276
        Allocation account:
          Total compensable workyears:

    3001    Civilian full-time equivalent
              employment....................         746         746         746
    ---------------------------------------------------------------------------

                       Capital Improvement and Maintenance

        For necessary expenses of the Forest Service, not otherwise provided
    for, $524,571,000, 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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1103-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Capital improvement and
            maintenance.....................         447         655         526
    09.01 Reimbursable program..............          11          19          19
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         458         674         545
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         123         130          27
    22.00 New budget authority (gross)......         465         571         544
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         588         701         571
    23.95 Total new obligations.............        -458        -674        -545
    24.40 Unobligated balance carried
            forward, end of year............         130          27          26
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         546         552         525
    40.35   Appropriation rescinded.........          -1
    41.00   Transferred to other accounts...         -97
    42.00   Transferred from other accounts.           7
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         455         552         525
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          13          19          19
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -3
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          10          19          19
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         465         571         544
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         227         129         238
    73.10 Total new obligations.............         458         674         545
    73.20 Total outlays (gross).............        -559        -565        -523
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           3
    74.40 Obligated balance, end of year....         129         238         260
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         359         433         413
    86.93 Outlays from discretionary
            balances........................         200         132         110
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         559         565         523
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -9         -15         -15
    88.40     Non-Federal sources...........          -4          -4          -4
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -13         -19         -19
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         455         552         525
    90.00 Outlays...........................         546         546         504
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................          16          16          21
    99.01 Outlays...........................          16          16          21
    ---------------------------------------------------------------------------

        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.

        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

    [[Page 174]]

    a facility; alteration of an existing facility to change the function;
    and expansion of a facility to change the capacity or to serve needs
    that are different from what was originally intended. Maintenance is
    divided into four primary areas: annual maintenance, deferred
    maintenance, decommissioning, and operations. Deferred maintenance work
    includes the repair, rehabilitation, or replacement of the facility or
    components of the facility.

        Roads.--Provides for capital improvement and maintenance of roads.
    The program also focuses on decommissioning unneeded roads and/or roads
    that are degrading the ecosystem. Capital improvement includes: new road
    construction; alteration of an existing road to change the function; and
    expansion of the road to change the capacity or to serve needs that are
    different from what was originally intended. The agency will continue to
    address the growing road system maintenance backlog. Funding priorities
    are health and safety, resource protection, and mission critical needs.
    Maintenance is divided into four primary areas: annual road maintenance,
    deferred road maintenance, road operations, and decommissioning.

        Trails.--Provides for capital improvement and maintenance of trails.
    Capital improvement includes: new trail construction; alteration of an
    existing trail to change the function; and expansion of the trail to
    change the capacity or to serve needs that are different from what was
    originally intended. Maintenance funding is used to protect capital
    investments by keeping trails open for access and protecting vegetation,
    soil, and water quality. Work includes clearing the pathway of
    encroaching vegetation and fallen trees, and repairing or improving
    trail signs, treadways, drainage facilities, and bridges. Maintenance is
    divided into four primary areas: annual trail maintenance, deferred
    trail maintenance, trail operations, and trail decommissioning.

        Infrastructure Improvement.--Ameliorates the backlog in deferred
    maintenance of National Forest System roads and trails as well as Forest
    Service fire, administrative, and recreation facilities. The funds focus
    on critical maintenance backlogs; i.e., these additional funds are for
    repair and rehabilitation of existing facilities and roads; funds may
    not be used for new and expanded facilities or roads.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1103-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         146         145         145
    11.3      Other than full-time permanent          17          17          17
    11.5      Other personnel compensation..           7           7           7
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         170         169         169
    12.1    Civilian personnel benefits.....          46          46          46
    13.0    Benefits for former personnel...           2           2           2
    21.0    Travel and transportation of
              persons.......................           9           9          10
    23.1    Rental payments to GSA..........          16          16          16
    25.2    Other services..................         150         358         228
    26.0    Supplies and materials..........          10          10          10
    31.0    Equipment.......................           6           6           6
    32.0    Land and structures.............          38          39          39
                                               ---------   ---------  ----------
    99.0      Direct obligations............         447         655         526
    99.0  Reimbursable obligations..........          11          19          19
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         458         674         545
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1103-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Civilian full-time equivalent
              employment....................       4,116       3,972       3,828
        Reimbursable:
          Total compensable workyears:

    2001    Civilian full-time equivalent
              employment....................          59          57          55
    ---------------------------------------------------------------------------

                          Forest and Rangeland Research

        For necessary expenses of forest and rangeland research as
    authorized by law, $252,170,000, 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, to remain
    available until expended, to be derived from the fund established
    pursuant to the above Act.

        Note.--A regular 2003 appropriation for its account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1104-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.06 Forest and rangeland research.....         253         253         252
    09.01 Reimbursable program..............          27          23          23
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         280         276         275
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          75          23          13
    22.00 New budget authority (gross)......         224         266         276
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         301         289         289
    23.95 Total new obligations.............        -280        -276        -275
    24.40 Unobligated balance carried
            forward, end of year............          23          13          14
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         241         243         253
    40.35   Appropriation rescinded.........          -1
    41.00   Transferred to other accounts...          -1
    42.00   Transferred from other accounts.           1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         241         243         253
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          27          23          23
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -43
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         -16          23          23
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         224         266         276
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          38          81         164
    73.10 Total new obligations.............         280         276         275
    73.20 Total outlays (gross).............        -277        -193        -273
    73.45 Recoveries of prior year
            obligations.....................          -2
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          43
    74.40 Obligated balance, end of year....          81         164         166
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         153         186         193
    86.93 Outlays from discretionary
            balances........................         124           7          80
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         277         193         273
    ----------------------------------------------------------------------------

    [[Page 175]]

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -27         -23         -23
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          43
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         240         243         253
    90.00 Outlays...........................         250         170         250
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           6          11          13
    99.01 Outlays...........................           6          11          13
    ---------------------------------------------------------------------------

        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.

        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 $5 million for new priority research for sudden
    oak death, invasive species, and biobased products.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1104-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         117         116         116
    11.3      Other than full-time permanent           8           8           8
    11.5      Other personnel compensation..           3           3           3
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         128         127         127
    12.1    Civilian personnel benefits.....          33          32          32
    21.0    Travel and transportation of
              persons.......................          11          12          12
    23.1    Rental payments to GSA..........          13          13          13
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          33          34          33
    26.0    Supplies and materials..........          27          27          26
    31.0    Equipment.......................           4           4           5
    41.0    Grants, subsidies, and
              contributions.................           3           3           3
                                               ---------   ---------  ----------
    99.0      Direct obligations............         253         253         252
    99.0  Reimbursable obligations..........          27          23          23
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         280         276         275
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1104-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Civilian full-time equivalent
              employment....................       2,384       2,301       2,217
        Reimbursable:
          Total compensable workyears:

    2001    Civilian full-time equivalent
              employment....................         110         106         102
    ---------------------------------------------------------------------------

                           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, including treatments of pests,
    pathogens, and invasive or noxious plants, cooperative forestry, and
    education and land conservation activities and conducting an
    international program as authorized, $315,823,000, to remain available
    until expended, of which $194,311,000 is to be derived from the Land and
    Water Conservation Fund: Provided, That: $103,502,000 is for
    conservation spending category activities; Provided further, That 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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1105-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 State and private forestry........         284         316         314
    09.01 Reimbursable program..............           6           8           8
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         290         324         322
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          39          51          24
    22.00 New budget authority (gross)......         302         297         349
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         341         348         373
    23.95 Total new obligations.............        -290        -324        -322
    24.40 Unobligated balance carried
            forward, end of year............          51          24          51
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         291         277         122
    40.20   Appropriation (LWCF)............                                 194
    40.35   Appropriation rescinded.........          -1          -8
    42.00   Transferred from other accounts.           7
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         297         269         316
          Mandatory:

    62.00   Transferred from other accounts.                      20          25
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).          10           8           8
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -5
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....           5           8           8
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         302         297         349
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         357         341         360
    73.10 Total new obligations.............         290         324         322
    73.20 Total outlays (gross).............        -311        -305        -340
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           5
    74.40 Obligated balance, end of year....         341         360         343
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         234         217         246
    86.93 Outlays from discretionary
            balances........................          77          73          70
    86.97 Outlays from new mandatory
            authority.......................                      15          19
    86.98 Outlays from mandatory balances...                                   5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         311         305         340
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           5
    ----------------------------------------------------------------------------

    [[Page 176]]

        Net budget authority and outlays:
    89.00 Budget authority..................         297         289         341
    90.00 Outlays...........................         301         297         332
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           4           4           4
    99.01 Outlays...........................           4           4           4
    ---------------------------------------------------------------------------

        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.

        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. This budget proposes significant increases to
    programs that help maintain the integrity of our country's valuable
    forest lands. Increased funding is provided for the Forest Legacy
    program, a federal program that parners with states to leverage funding
    and support state efforts to protect environmentally sensitive forest
    lands. Additional funding is also provided for the Forest Stewardship
    program, which will bring valuable professional assistance to non-
    industrial private forest (NIPF) landowners to encourage sound
    environmental management of forests and to ensure that the social,
    economic, and environmental benefits of these lands are realized.

        International Programs.--The programs will emphasize habitat
    protection for migratory birds along the length of flyways, preventing
    the introduction of new invasive species, and sustainable forestry
    techniques development for other timber exporting nations.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1105-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          42          41          41
    11.3      Other than full-time permanent           3           3           3
    11.5      Other personnel compensation..           1           2           2
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          46          46          46
    12.1    Civilian personnel benefits.....          11          11          11
    21.0    Travel and transportation of
              persons.......................           6           6           6
    23.1    Rental payments to GSA..........           5           5           5
    25.2    Other services..................          25          25          25
    26.0    Supplies and materials..........                      10          10
    31.0    Equipment.......................           1           1           1
    41.0    Grants, subsidies, and
              contributions.................         190         212         210
                                               ---------   ---------  ----------
    99.0      Direct obligations............         284         316         314
    99.0  Reimbursable obligations..........           6           8           8
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         290         324         322
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1105-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Civilian full-time equivalent
              employment....................         862         831         801
        Reimbursable:
          Total compensable workyears:

    2001    Civilian full-time equivalent
              employment....................          47          46          44
    ---------------------------------------------------------------------------

            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), $5,535,000, to
    remain available until expended, of which not to exceed $100,000 per
    annum may be used to reimburse the Office of General Counsel, Department
    of Agriculture, for salaries and related expenses incurred in providing
    legal services in relation to subsistence management.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1119-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........           7           5           6
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           7           5           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2                       1
    22.00 New budget authority (gross)......           5           6           6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           7           6           7
    23.95 Total new obligations.............          -7          -5          -6
    24.40 Unobligated balance carried
            forward, end of year............                       1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           5           6           6
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           3           3           2
    73.10 Total new obligations.............           7           5           6
    73.20 Total outlays (gross).............          -5          -6          -6
    74.40 Obligated balance, end of year....           3           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           5           6           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           5           6           6
    90.00 Outlays...........................           7           6           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).

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1119-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           1           1           1
    12.1  Civilian personnel benefits.......           1           1           1
    25.2  Other services....................           4           2           3
    26.0  Supplies and materials............           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           7           5           6
    ---------------------------------------------------------------------------

    [[Page 177]]

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1119-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          22          22          22
    ---------------------------------------------------------------------------

                            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 fuels reduction on or adjacent to such lands, and for
    emergency rehabilitation of burned-over National Forest System lands and
    water, $1,541,775,000, 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
    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, hazardous fuels 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, $231,392,000 is for hazardous fuels reduction
    activities, $21,427,000 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.),
    $46,455,000 is for state fire assistance, $8,240,000 is for volunteer
    fire assistance, and $11,934,000 is for forest health activities on
    state, private, and Federal lands: Provided further, That amounts in
    this paragraph may be transferred to the ``State and Private Forestry,''
    ``National Forest System,'' and ``Forest and Rangeland Research''
    accounts to fund state fire assistance, volunteer fire assistance,
    forest health management, forest and rangeland research, vegetation and
    watershed management, heritage site rehabilitation, and wildlife and
    fish habitat management and restoration: Provided further, That notice
    of transfers of any amounts in excess of those authorized in this
    paragraph, shall be transmitted to the House and Senate Committees on
    Appropriations: 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 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: in using the funds provided
    in this Act for hazardous fuels reduction activities, the Secretary of
    Agriculture may conduct fuel reduction treatments on Federal lands using
    all contracting and hiring authorities available to the Secretary to
    hazardous fuel reduction activities under the wildland fire management
    accounts: Provided further, That with regard to such activities, and
    notwithstanding requirements of the Competition in Contracting Act but
    subject to any such requirements as the Director of the Office of
    Management and Budget may prescribe, the Secretary of Agriculture may
    obtain maximum practicable competition among: (A) local private,
    nonprofit, or cooperative entities; (B) Youth Conservation Corps crews
    or related partnerships with state, local, or nonprofit youth groups;
    (C) small or micro-business; or (D) other entities that will hire or
    train locally a significant percentage, defined as 50 percent or more,
    of the project workforce to complete such contracts: Provided further,
    That in implementing this section, the Secretary shall develop written
    guidance to field units to ensure accountability and consistent
    application of authorities provided herein:
            (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 2003 and 2004.
            (B) Only those funds appropriated for fiscal years 2003 and 2004
        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 or 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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1115-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Wildland fire management..........       1,637       1,569       1,533
    09.01 Reimbursable program..............         458          60          60
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,095       1,629       1,593
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          96         268          68
    22.00 New budget authority (gross)......       2,248       1,429       1,602
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          19
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,363       1,697       1,670
    23.95 Total new obligations.............      -2,095      -1,629      -1,593
    24.40 Unobligated balance carried
            forward, end of year............         268          68          77
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,834       1,369       1,542
    40.35   Appropriation rescinded.........          -4
    41.00   Transferred to other accounts...        -282
    42.00   Transferred from other accounts.         248
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,796       1,369       1,542
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         458          60          60
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -6
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         451          60          60
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,248       1,429       1,602
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         177         162          31
    73.10 Total new obligations.............       2,095       1,629       1,593
    73.20 Total outlays (gross).............      -2,097      -1,760      -1,605
    73.45 Recoveries of prior year
            obligations.....................         -19
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           6
    74.40 Obligated balance, end of year....         162          31          17
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,636       1,286       1,442
    86.93 Outlays from discretionary
            balances........................         461         474         163
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,097       1,760       1,605
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -458         -60         -60
          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..................       1,796       1,369       1,542
    90.00 Outlays...........................       1,639       1,700       1,545
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................          54          57          62
    99.01 Outlays...........................          54          57          62
    ---------------------------------------------------------------------------

    [[Page 178]]

        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.

        To address wildfire suppression costs that have risen dramatically
    over the past few years, this budget proposes a number of management
    initiatives to ensure sound financial management and that funds are
    spent in the most targeted and cost-effective way. Specifically, the
    Administration proposes that the Forest Service:
             Form a review team to evaluate and develop cost
        containment strategies.
             Revise procedures to improve reporting of fire
        suppression spending.
             Assess cost-share agreements to ensure consistency and
        equitability.
             Increase state and local incentives to reduce their
        risks of catastrophic fire.

        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 and property, including soil loss and flooding. Funds
    are used to increase the level of fire preparedness when predicted or
    actual burning conditions exceed normal levels and are also used to
    support the joint fire sciences program.

        The funds provided continue a strong focus on implementation of the
    National fire plan to protect and manage the impact of wildfires on
    communities and the environment. In addition to funds specifically for
    hazardous fuels reduction, fire suppression, and fire readiness,
    additional funding is provided to continue fire research and
    rehabilitation activities. Additionally, funds are provided to enhance
    state and private programs that will contribute to cooperative fire
    assistance, increased fire department readiness, and forest health
    programs to reduce fire risk. Funds would also be available to support
    Fish and Wildlife Service and National Marine Fisheries Service
    consultation for project and Endangered Species Act review.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1115-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         353         354         354
    11.3      Other than full-time permanent          58          58          58
    11.5      Other personnel compensation..         260         261         260
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         671         673         672
    12.1    Civilian personnel benefits.....         138         139         139
    13.0    Benefits for former personnel...           6           6           7
    21.0    Travel and transportation of
              persons.......................          69          71          71
    23.1    Rental payments to GSA..........          49          50          51
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................         627         452         413
    26.0    Supplies and materials..........                     100         100
    31.0    Equipment.......................          32          32          33
    32.0    Land and structures.............           2           2           2
    41.0    Grants, subsidies, and
              contributions.................          40          41          42
    42.0    Insurance claims and indemnities           1           1           1
    43.0    Interest and dividends..........           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,637       1,569       1,533
    99.0  Reimbursable obligations..........         458          60          60
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       2,095       1,629       1,593
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1115-0-1-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Civilian full-time equivalent
              employment....................       9,431       9,187       8,854
        Reimbursable:
          Total compensable workyears:

    2001    Civilian full-time equivalent
              employment....................          73          71          69
    ---------------------------------------------------------------------------

                     Southeast Alaska Economic Disaster Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1108-0-1-451      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program activity...........           5
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           5
    23.95 Total new obligations.............          -5
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           6
    73.10 Total new obligations.............           5
    73.20 Total outlays (gross).............         -10
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          10
    ----------------------------------------------------------------------------

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

        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

    [[Page 179]]

    timber receipts from each borough. No funding was appropriated for 2002
    and none is requested for 2003 or 2004.

                              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.

        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............           2           2           2
        Receipts:
    02.20 Cooperative range improvements....           3           3           3
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           5           5           5
        Appropriations:
    05.00 Range betterment fund.............          -3          -3          -3
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           2           2           2
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Range betterment fund.............           2           5           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           2           5           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           2           1
    22.00 New budget authority (gross)......           3           3           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           4           5           4
    23.95 Total new obligations.............          -2          -5          -3
    24.40 Unobligated balance carried
            forward, end of year............           2           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                       2
    73.10 Total new obligations.............           2           5           3
    73.20 Total outlays (gross).............          -3          -3          -3
    74.40 Obligated balance, end of year....                       2           2
    ----------------------------------------------------------------------------

        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      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           1           1           1
    26.0  Supplies and materials............           1           4           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           2           5           3
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Civilian full-time equivalent
              employment....................          21          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, $44,130,000, 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, and for authorized
    expenditures, such sums to be derived from funds deposited by non-
    federal parties pursuant to land sale and exchange acts, 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)
        Note.--A regular 2003 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 107-229, as amended). The
    amounts included for 2003 in this budget reflect the Administration's
    2003 policy proposals.

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............                       5           5
        Receipts:
    02.20 Offsetting receipts (proprietary).           6           1           1
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           6           6           6
        Appropriations:
    05.00 Land acquisition..................          -1          -1          -1
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           5           5           5
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Land acquisition..................         251         152          50
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         251         152          50
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         126          27           7
    22.00 New budget authority (gross)......         151         132          45
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         277         159          52
    23.95 Total new obligations.............        -251        -152         -50
    24.40 Unobligated balance carried
            forward, end of year............          27           7           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

            Appropriation (special fund):
    40.20     Appropriation (LWCF)..........         150         131          44
    40.20     Appropriation (special act)...           1           1           1
                                               ---------   ---------  ----------

    [[Page 180]]

    43.00     Appropriation (total
                discretionary)..............         151         132          45
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          15           1          38
    73.10 Total new obligations.............         251         152          50
    73.20 Total outlays (gross).............        -260        -115         -75
    73.40 Adjustments in expired accounts
            (net)...........................          -5
    74.40 Obligated balance, end of year....           1          38          11
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         100          87          30
    86.93 Outlays from discretionary
            balances........................         160          28          45
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         260         115          75
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         151         132          45
    90.00 Outlays...........................         260         115          75
    ---------------------------------------------------------------------------

        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 76-589, 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      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           7           7           7
    12.1  Civilian personnel benefits.......           2           2           2
    23.1  Rental payments to GSA............           1           1           1
    25.2  Other services....................           2           2           2
    31.0  Equipment.........................           4           4           4
    32.0  Land and structures...............         234         135          33
    41.0  Grants, subsidies, and
            contributions...................           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         251         152          50
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Civilian full-time equivalent
              employment....................         109         105         101
    ---------------------------------------------------------------------------

                     Forest Service Permanent Appropriations

                  Unavailable Collections (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............                     124         124
        Receipts:
    02.20 National forests fund, Agriculture         120          81          79
    02.21 Payments to states................          94          13          13
    02.22 Timber roads, purchaser elections.           6           6           6
    02.23 Road and trails for States,
            National forest fund............          14          12          12
    02.24 Timber salvage sales..............          65          63          63
    02.25 Deposits, brush disposal..........           9           9           9
    02.26 Rents and charges for quarters....           6           7           7
    02.27 Timber sales pipeline restoration
            fund............................                       3           5
    02.28 Recreational fee demonstration
            program.........................          36          40          42
    02.29 Midewin national tallgrass prairie
            rental fees.....................           1           1           1
    02.30 National grasslands...............          12           4           7
    02.31 Miscellaneous special funds,
            Forest Service..................           5           2           2
    02.32 National forests fund, Interior...           8           9           9
    02.35 Charges, user fees, and natural
            resource utilization............           3           4           4
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         379         254         259
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         379         378         383
        Appropriations:
    05.00 Forest Service permanent
            appropriations..................        -269        -254        -175
    06.10 Unobligated balance returned to
            receipts........................          14
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............         124         124         208
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Payments to States, national
              forest fund...................         208          92          13
    00.02   Payments to States, northern
              spotted owl...................         281
    00.03   Payments to counties, national
              grasslands fund...............          12           6           4
    00.04   Payment to Minnesota............           4           2           2
    00.05   Recreation fee collection costs.           1           1           1
    00.06   Timber roads, purchaser
              elections.....................           6           6           6
    00.07   Roads and trails for States, NFF          17          15          14
    00.08   Timber salvage sales............          78          76          69
    00.09   Expenses, brush disposal........          31          13          13
    00.10   Restoration of forestlands and
              improvements..................           5           7           7
    00.11   Operation and maintenance of
              quarters......................           7           8           8
    00.12   Timber sales pipeline
              restoration fund..............           1           3           4
    00.13   Recreation fee demonstration
              program.......................          43          30          31
    00.14   Land between the lakes
              management fund...............                       4           4
    00.15   Payments to States, full
              community stabilization.......                     295         371
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         693         558         547
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         355         227         218
    22.00 New budget authority (gross)......         571         549         546
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         928         776         764
    23.95 Total new obligations.............        -693        -558        -547
    23.97 Deficiency........................           6
    23.98 Unobligated balance expiring or
            withdrawn.......................         -14
    24.40 Unobligated balance carried
            forward, end of year............         227         218         217
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................         295         295         371
    60.20   Appropriation (special fund)....         269         254         175
    62.00   Transferred from other accounts.           7
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         571         549         546
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          38          18          28
    73.10 Total new obligations.............         693         558         547
    73.20 Total outlays (gross).............        -711        -548        -546
    73.45 Recoveries of prior year
            obligations.....................          -2
    74.40 Obligated balance, end of year....          18          28          29
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         545         518         515
    86.98 Outlays from mandatory balances...         166          30          31
                                               ---------   ---------  ----------

    [[Page 181]]

    87.00   Total outlays (gross)...........         711         548         546
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         571         549         546
    90.00 Outlays...........................         711         548         546
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           8          10          13
    99.01 Outlays...........................           8          10          13
    ---------------------------------------------------------------------------

        Operation and maintenance of quarters.--Quarters rental deductions
    are collected from employees occupying Forest Service facilities.
    Amounts are deposited into a special fund and are available for the
    maintenance and operation of employee-occupied quarters. (5 U.S.C. 5911)

        Resource management, timber receipts.--Funds in this special account
    are available for trail maintenance, reconstruction, and construction;
    wildlife and fisheries habitat management; soil, water, and air
    management; cultural/heritage resource management; wilderness
    management; reforestation; and timber sale administration and
    management.

        Recreation fee demonstration program.--Pursuant to Sec. 315 of Title
    III--General Provisions, Omnibus Consolidated Rescissions and
    Appropriations Act of 1996, Public Law 104-134 of April 26, 1996 as
    amended, amounts collected at fee demonstration areas, sites, or
    projects are available for maintenance and development of recreation
    facilities.

        Midewin National Tallgrass Prairie rental fees.--Monies received
    under a special use authorization (issued under subsection (b) of Public
    Law 104-106, Title XXIX, Subtitle A, Section 2915, after distribution to
    the State of Illinois and affected counties pursuant to the Act of May
    23, 1908) are available to cover the cost to the United States of
    prairie improvement work at the Midewin National Tallgrass Prairie.

        Midewin National Tallgrass Prairie Restoration Fund.--Monies
    received from user fees and the salvage value proceeds from sale of any
    facilities and improvements pursuant to Section 2915(d) and (e) of
    Public Law 104-106, as amended by Public Law 105-83, are available to
    cover the costs of restoration and administrative activities.

        Payment to Minnesota.--At the close of each fiscal year, the State
    of Minnesota is paid 0.75 percent of the appraised value of certain
    Superior National Forest lands in the counties of Cook Lake and St.
    Louis for distribution to these counties (16 U.S.C. 577g).

        Payments to Counties, National Grasslands.--This program provides an
    annual payment to counties in which Title III--Bankhead-Jones Acquired
    Lands are located for funding public schools and roads. Of the net
    revenues for use of Title III--Bankhead-Jones Farm Tenant Act lands, 25
    percent is paid to the counties in which such lands are located for
    public school and road purposes (7 U.S.C. 1012).

        Payments to States.--The Secure Rural Schools and Community Self-
    Determination Act of 2000 (P.L. 106-393 dated October 30, 2000) provides
    stabilized education and road maintenance funding through predictable
    payments to counties, job creation in those counties and other
    opportunities associated with the restoration, maintenance and
    stewardship of Federal lands. Under P.L. 106-393, counties may elect one
    of two methods to calculate Payments to States funding they receive.
    Counties can either choose to continue receiving funds established by
    the 25 percent fund or they can receive their share of the State's
    ``full payment amount.'' Full payment amount is the average of the
    highest three years of payments to the State under the 25 percent fund
    through the years 1986-1999. A county's share of that amount is
    generally determined by the State in cooperation with the affected
    counties.

        Expenses, brush disposal.--Funds from payments by purchasers of
    National Forest timber to dispose of or treat slash and other debris
    that result from cutting operations (16 U.S.C. 490).

        Licensee programs, Forest Service.--Funds from fees for the use of
    characters by private enterprises are collected under regulations
    promulgated by the Secretary as follows:
            Smokey Bear.--For furthering the nationwide forest fire
        prevention campaign (16 U.S.C. 580(2)).
            Woodsy Owl.--For promoting wise use of the environment and
        programs which foster maintenance and improvement of environmental
        quality (16 U.S.C. 580(1)).

        Restoration of forestlands and improvements.--Funds from claim
    settlements involving damage to lands or improvements and from
    forfeiture of deposits and bonds by permittees and timber purchasers are
    used for the restoration made necessary by the action which led to the
    settlement of forfeiture (16 U.S.C. 579c).

        Timber purchaser roads constructed by Forest Service.--Funds from
    timber receipts for Government constructed permanent roads for
    purchasers of timber who qualify as small businesses and elect to have
    the Forest Service construct the roads designated under the timber sale
    contract where costs exceed $20,000 (16 U.S.C. 472a(i)).

        Recreation fee collection costs.--Under authority of Section
    10002(b) of the Omnibus Budget Reconciliation Act of 1993 (P.L. 103-66),
    which amended Section 4(i)(1) of the L&WCF Act, the Secretaries of
    Agriculture and Interior are authorized to withhold a portion of all
    recreation fees collected (not to exceed 15 percent), to be available
    during the current fiscal year, without further appropriation to cover
    fee collection costs.

        Tongass timber supply fund.--Funds from sales of Alaska timber to
    maintain the timber supply from the Tongass National Forest at a
    specified level (16 U.S.C. 539d).

        Timber salvage sales.--Funds are used for salvage of insect-
    infested, dead, damaged, or down timber, and to remove associated trees
    for stand improvement (16 U.S.C. 472a(h)).

        Timber Sales Pipeline Restoration Fund.--As authorized under Section
    327 of the Omnibus Consolidated Recissions and Appropriations Act of
    1996, funds from revenues received from timber sales released under
    Section 2001(k) of the 1995 Supplemental Appropriations for Disaster
    Assistance and Recissions Act for the purpose of restoring the timber
    pipeline and funding the backlog of recreation projects on National
    Forest System lands.

        Valles Caldera Fund established under the Valles Caldera
    Preservation Act (Public Law 106-248) provides funds, which shall be
    available without further appropriation for any purpose consistent with
    the purposes of the Act. Notwithstanding sections 1341 and 3302 of title
    31 of the United States Code, all monies received from donations under
    subsection (g) or from the management of the Preserve shall be retained
    and shall be available, without further appropriation, for the
    administration, preservation, restoration, operation and maintenance,
    improvement, repair, and related expenses incurred with respect to
    properties under its management jurisdiction.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          50          50          51
    11.3    Other than full-time permanent..          10          10          10
    11.5    Other personnel compensation....           5           5           5
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          65          65          66
    12.1  Civilian personnel benefits.......          16          16          16
    21.0  Travel and transportation of
            persons.........................           3           3           3
    23.1  Rental payments to GSA............           6           6           6
    25.2  Other services....................          37          35          32
    26.0  Supplies and materials............          58          35          31
    31.0  Equipment.........................           1           1           1
    32.0  Land and structures...............           2           2           2
    41.0  Grants, subsidies, and
            contributions...................         505         395         390
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         693         558         547
    ---------------------------------------------------------------------------

    [[Page 182]]

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Civilian full-time equivalent
              employment....................       1,410       1,380       1,351
    ---------------------------------------------------------------------------

        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 repeal selected parts of the Forest and Rangeland
    Renewable Resources Planning Act of 1974 (RPA) would eliminate
    provisions that are duplicative of the Government Performance and
    Results Act of 1993. The RPA requires the Secretary to prepare a
    national assessment of resource conditions and trends (the RPA
    Assessment), an RPA Program (strategic plan) and accompanying
    Presidential Statement of Natural Resources Policy, and an Annual Report
    of the Forest Service to Congress that reports on RPA Program
    accomplishments. In 1993, Congress enacted government-wide legislation,
    the Government Performance and Results Act (GPRA), requiring a strategic
    plan and annual reporting requirements that are essentially the same as
    the RPA requirements except for the requirement for a Presidential
    Statement of Natural Resources Policy to accompany the strategic plan.
    Since 1998, language has been carried in Appropriations legislation for
    the Forest Service to complete its strategic plan and reporting
    requirements under the Results Act. The Forest Service has done so. The
    proposal would bring older legislative authorities into accord with more
    recent enactments, while retaining the RPA Assessment.

        A proposal to transfer titles acquired through Forest Legacy would
    provide for consistent and rational ownership of lands previously
    acquired by the Forest Service through the Forest Legacy Program in
    those States that now take title for program acquisitions by electing to
    utilize the program's state grant option. Prior to the 1996 farm bill,
    all properties acquired under the Forest Legacy program were titled to
    the United States. When the State grant option was created in the 1996
    Farm Bill, most subsequent acquisitions switched to the States. There
    are now instances in which some program acquisitions in a state are
    titled to the Federal government and others are titled to the state.
    Properties originally acquired by the Forest Service in the name of the
    United States prior to the establishment of the State grant option could
    be more efficiently and effectively managed if title were vested in the
    States.

        Watershed Restoration and Enhancement Agreements would authorize the
    Secretary of Agriculture to use federal funds on non-federal land in
    proximity to National Forest Systems lands when a project benefits the
    greater watershed. P.L. 105-257, the Omnibus Appropriations bill for
    1999, authorizes the USDA Forest Service to use federal funds on non-
    federal land in proximity to National Forest Systems lands when a
    project benefits the greater watershed. The authority allows the Forest
    Service to protect watersheds that consist of lands under multiple
    ownerships, including lands in the wildland-urban interface. This
    proposal promotes the efficient and effective work associated with
    watershed restoration and enhancement as well as reducing fire hazards
    across multiple ownerships.

        A proposal for a Facilities Acquisition and Enhancement Fund would
    enable the Secretary to sell facilities and appurtenant administrative
    land, excess to agency needs, and to use the proceeds for acquiring or
    developing land and improvements for administrative purposes. Downsizing
    has led to the closure of a number of administrative units and
    consolidation of units to central locations. The agency currently
    experiences a $2.8 billion backlog that has accumulated because of
    inadequate and untimely maintenance. Over 60% of the agency's facilities
    are over 30 years old and functionally obsolete. Funds collected under
    this authority would solely be used to reconstruct functionally obsolete
    facilities or to construct new facilities necessary in light of
    reorganization and consolidation.

        A Partnership Authorities proposal would expand or clarify the
    agency's authorities to work more efficiently and effectively with
    nonfederal entities. There are over thirty different laws relating to
    partnerships cited in Forest Service directives and fourteen different
    types of agreement instruments are use to document partnership
    relationships. Navigating this complex patchwork of authorities and
    agreements has hindered the agency's ability to work efficiently and
    effectively with nonprofit and community partners. This complex
    patchwork of authorities and agreements has resulted in inconsistent
    interpretations of authorities and time-consuming processes for
    documenting partnerships.

        A proposal for Pacific Island Participation in State and Private
    Forestry (S&PF) Programs would restore eligibility of three U.S. trust
    territories (the Federated States of Micronesia, the Republic of the
    Marshall Islands, and the Republic of Palau) in ``compacts of free
    association'' for assistance through all S&PF programs.

        A proposal would streamline management of proclaimed forests and
    other management areas within administrative units in order to reduce
    accounting transactions, improve productivity of financial staff, and
    support the Presidential Management Agenda by reducing indirect costs.

    Intragovernmental funds:

                              Working Capital Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4605-0-4-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Working Capital fund..............         162         276         180
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         162         276         180
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          23          96
    22.00 New budget authority (gross)......         226         180         180
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           8
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         257         276         180
    23.95 Total new obligations.............        -162        -276        -180
    24.40 Unobligated balance carried
            forward, end of year............          96
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         228         180         180
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -2
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         226         180         180
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         129          32         128
    73.10 Total new obligations.............         162         276         180
    73.20 Total outlays (gross).............        -253        -180        -180
    73.45 Recoveries of prior year
            obligations.....................          -8
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           2
    74.40 Obligated balance, end of year....          32         128         128
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         226         162         162
    86.98 Outlays from mandatory balances...          27          18          18
                                               ---------   ---------  ----------

    [[Page 183]]

    87.00   Total outlays (gross)...........         253         180         180
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -228        -180        -180
          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...........................          25
    ---------------------------------------------------------------------------

        The Working Capital Fund is a self-sustaining revolving fund that
    provides services to National Forests, to Research Experiment Stations,
    to other Federal agencies when necessary, to State and private agencies
    as provided by law, and to persons who cooperate with the Forest Service
    in fire control and other authorized programs.

        Forestry-related supply and support services include:

        Equipment Services.--The fund owns, operates, maintains, replaces,
    and repairs common-use, motor-driven, and similar equipment. This
    equipment is rented to administrative units, that is, National Forests,
    Research Experiment Stations, and other units, and, in some cases, to
    other agencies, at rates which recover the cost of operation, repair and
    maintenance, management, and depreciation. The rates also include an
    increment which provides additional cash which, when added to
    depreciation earnings and the residual value of equipment, provides
    sufficient funds to replace the equipment.

        Aircraft Services.--The fund operates, maintains, and repairs Forest
    Service owned aircraft used in fire surveillance and suppression and in
    other Forest Service programs. The aircraft are rented to National
    Forests, Research Experiment Stations, and in some cases to other
    agencies, at rates which recover the cost of depreciation, operation,
    maintenance, repair, and improvements in the airworthiness of the
    aircraft. Aircraft replacement costs are financed from either
    appropriated funds or the Forest Service Working Capital Fund, or a
    combination of both.

        Computer Services.--The Fund provides computer hardware, software,
    and radio equipment.

        Supply Services.--The fund operates the following common services,
    and provides for cost-recovery of Working Capital Fund Program
    Management:

        Photo reproduction laboratories that store, reproduce, and supply
    aerial photographs, aerial maps, and other photographs of National
    Forest lands. Photographic reproductions are sold to National Forests,
    Experiment Stations, and others at cost.

        Sign shops that manufacture and supply special signs for the
    National Forests for use in regulating traffic and as information to the
    public and other users of the National Forests. Signs are sold to
    National Forests and Experiment Stations at cost.

        Seed supply services that provide tree seed for direct seeding or
    sowing in nurseries for the production of trees. Includes purchase or
    collection of cones, extraction of seeds, cleaning and testing, and
    storage and delivery. Operates in conjunction with tree nurseries; that
    is, forest tree nurseries and cold storage facilities for storage of
    tree seedlings. Tree seedlings are sold to National Forests, State
    foresters, and other cooperators at cost.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4605-0-4-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    21.0  Travel and transportation of
            persons.........................           3           3           3
    23.1  Rental payments to GSA............           4           4           4
    25.2  Other services....................          32          32          33
    26.0  Supplies and materials............                     100          59
    31.0  Equipment.........................         123         137          81
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         162         276         180
    ---------------------------------------------------------------------------
        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      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............                                  30
        Receipts:
    02.00 Transfers from general fund of
            amounts equal to certain customs
            duties..........................          30          30          30
    02.20 Forest Service cooperative fund...          76         115         123
    02.40 Transfer from TVA for land between
            the lakes trust fund............           1           1           1
    02.80 Forest Service trust funds,
            offsetting collections..........          -9
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..          98         146         154
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          98         146         184
        Appropriations:
    05.00 Forest Service trust funds........         -98        -116        -115
                                               ---------   ---------  ----------
    05.99   Total appropriations............         -98        -116        -115
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............                      30          69
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9974-0-7-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Forest Service trust funds........         276         162         155
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         276         162         155
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         143         241         195
    22.00 New budget authority (gross)......         374         116         115
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         517         357         310
    23.95 Total new obligations.............        -276        -162        -155
    24.40 Unobligated balance carried
            forward, end of year............         241         195         155
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    42.00   Transferred from other accounts.         276
          Mandatory:

    60.26   Appropriation (trust fund)......         107         116         115
    69.00 Offsetting collections (cash).....          -9
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         374         116         115
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         240         217         247
    73.10 Total new obligations.............         276         162         155
    73.20 Total outlays (gross).............        -298        -131        -115
    74.40 Obligated balance, end of year....         217         247         287
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          58          93          92
    86.98 Outlays from mandatory balances...         240          38          23
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         298         131         115
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........           9
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         383         116         115
    90.00 Outlays...........................         307         131         115
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.02 Total investments, end of year:
            Federal securities: Par value...           2
    ----------------------------------------------------------------------------

    Additional net budget authority and outlays to cover cost of fully accruing
                                     retirement:
    99.00 Budget authority..................           5           6           8
    99.01 Outlays...........................           5           6           8
    ---------------------------------------------------------------------------

    [[Page 184]]

        Reforestation trust fund.--Amounts from this account are used for
    reforestation as authorized by 16 U.S.C. 1606a (d) and (e).

        Cooperative work trust fund.--Funds, including deposits from
    purchasers of timber, are received and used for specified work in forest
    investigations, protection, and improvement of the National Forest
    System, including protection, reforestation, and administration of
    private lands adjacent to National Forests (7 U.S.C. 2269; 16 U.S.C.
    498, 535, 565a, 572, 572a, 576b, 1643; and 31 U.S.C. 1321).

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9974-0-7-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          41          42          42
    11.3    Other than full-time permanent..           6           6           7
    11.5    Other personnel compensation....           3           3           3
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          50          51          52
    12.1  Civilian personnel benefits.......          13          13          13
    21.0  Travel and transportation of
            persons.........................           3           3           3
    23.1  Rental payments to GSA............           5           5           5
    25.2  Other services....................                      43          39
    26.0  Supplies and materials............         201          43          39
    31.0  Equipment.........................           2           2           2
    32.0  Land and structures...............           2           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         276         162         155
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9974-0-7-302      2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
        Direct:
          Total compensable workyears:

    1001    Civilian full-time equivalent
              employment....................         965         945         924
    ---------------------------------------------------------------------------

             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 124 passenger
    motor vehicles, of which 21 will be used primarily for law enforcement
    purposes and of which 124 shall be for replacement; acquisition of 25
    passenger motor vehicles from excess sources, and hire of such vehicles;
    operation and maintenance of aircraft 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).
        Any appropriations or funds available to the Forest Service may be
    transferred to the Wildland Fire Management appropriation for forest
    firefighting, emergency rehabilitation of burned-over or damaged lands
    or waters under its jurisdiction, and fire preparedness due to severe
    burning conditions.
        Funds appropriated to the Forest Service shall be available for
    assistance to or through the Agency for International Development and
    the Foreign Agricultural Service in connection with forest and rangeland
    research, technical information, and assistance in foreign countries,
    and shall be available to support forestry and related natural resource
    activities outside the United States and its territories and
    possessions, including technical assistance, education and training, and
    cooperation with United States and international organizations.
        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 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 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. Funds
    appropriated to the Forest Service shall be available for payments to
    counties within the Columbia River Gorge National Scenic Area, pursuant
    to sections 14(c)(1) and (2), and section 16(a)(2) of Public Law 99-663.
        The Secretary of Agriculture is authorized to enter into grants,
    contracts, and cooperative agreements as appropriate with the Pinchot
    Institute for Conservation, as well as with public and other private
    agencies, organizations, institutions, and individuals, to provide for
    the development, administration, maintenance, or restoration of land,
    facilities, or Forest Service programs, at the Grey Towers National
    Historic Landmark: Provided, That, subject to such terms and conditions
    as the Secretary of Agriculture may prescribe, any such public or
    private agency, organization, institution, or individual may solicit,
    accept, and administer private gifts of money and real or personal
    property for the benefit of, or in connection with, the activities and
    services at the Grey Towers National Historic Landmark: Provided
    further, That such gifts may be accepted notwithstanding the fact that a
    donor conducts business with the Department of Agriculture in any
    capacity.
        Funds appropriated to the Forest Service shall be available, as
    determined by the Secretary, for payments to Del Norte County, Cali

    [[Page 185]]

    fornia, 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.
        The Forest Service shall fund indirect expenses, that is expenses
    not directly related to specific programs or to the accomplishment of
    specific 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 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.
        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.
        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.
        Of the funds available to the Forest Service, the Secretary of
    Agriculture may transfer or reimburse, not to exceed $15,000,000, to the
    Secretary of the Interior or the Secretary of Commerce to expedite
    conferencing and consultations as required under section 7 of the
    Endangered Species Act, 16 U.S.C. 1536. The amount of the transfer or
    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.

                          General Fund Receipt Accounts

                             (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      12-181100  National grasslands........          18          22          19
      12-270110  Agriculture credit
        insurance, Negative subsidies.......           2           3           4
      12-270130  Agriculture credit
        insurance, Downward reestimates of
        subsidies...........................          53         249
      12-270210  Rural electrification and
        telephone loans, Negative subsidies.          26          23          20
      12-270230  Rural electrification and
        telephone loans, Downward
        reestimates of subsidies............          83
      12-270310  Rural water and waste
        disposal, Negative subsidies........                                   5
      12-270330  Rural water and waste
        disposal, Downward reestimates of
        subsidies...........................          21
      12-270530  Rural community facility,
        Downward reestimates of subsidies...          15
      12-270630  Rural housing insurance,
        Downward reestimates of subsidies...         268         665
      12-270730  Rural business and
        industry, Downward reestimates of
        subsidies...........................          17
      12-270830  P.L. 480 loan program,
        Downward reestimates of subsidies...                     538
      12-271030  Rural development loans,
        Downward reestimates of subsidies...           3
      12-271130  Rural telephone bank loans,
        Downward reestimates of subsidies...           3           4
      12-271330  Economic development loans,
        Downward reestimates of subsidies...           1
      12-275430  Apple loan program,
        downward reestimates of subsidies...           2
      12-275610  Negative subsidies, farm
        storage facility loans..............                                   1
      12-275630  Farm storage facility
        loans, Downward reestimate of
        subsidies...........................           1           8
      12-275730  Commodity Credit
        Corporation export guarantee
        financing, Downward reestimate of
        subsidies...........................         126         552
      12-276530  P.L. 480 title I food for
        progress credits, downward
        reestimates of subsidies............                     195
                                               ---------   ---------  ----------
    General Fund Offsetting receipts from
     the public.............................         639       2,259          49
    ---------------------------------------------------------------------------

                       Other Consolidated Receipt Accounts

                             (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2002 actual   2003 est.   2004 est.
    ----------------------------------------------------------------------------
      12-977210  Miscellaneous contributed
        funds...............................          12           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 2004 under this Act shall be available for the purchase, in
    addition to those specifically provided for, of not to exceed 398
    passenger motor vehicles, of which 396 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. 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 advance notice transmitted to the
    Committees on Appropriations of both Houses of Congress.
        Sec. 704. 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 Service, 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. 705. 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. 706. 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. 707. 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 arrange

    [[Page 186]]

    ments 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. 708. 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. 709. 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. 710. Notwithstanding any other provision of this Act, all loan
    levels provided in this Act shall be considered estimates, not
    limitations.
        Sec. 711. Appropriations to the Department of Agriculture for the
    cost of direct and guaranteed loans made available in fiscal year 2004
    shall remain available until expended to cover obligations made in
    fiscal year 2004 for the following accounts: the Rural Development Loan
    Fund program account; the Rural Telephone Bank program account; the
    Rural Electrification and Telecommunications Loans program account; the
    Rural Housing Insurance Fund program account; and the Rural Economic
    Development Loans program account.
        Sec. 712. 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. 713. 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. 714. 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 notification of the Committees on
    Appropriations of both Houses of Congress.
        Sec. 715. With the exception of funds needed to administer and
    conduct oversight of grants awarded and obligations incurred prior to
    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 7 U.S.C. 7621.
    Funds under such section for fiscal year 2004 are hereby cancelled.
        Sec. 716. 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. 717. 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. 718. 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. 719. Section 10417 of Public Law 107-171 is amended by adding
    the following new subsections at the end:
        ``(d) Preconditions for a Transfer Availability.--Funds may be
    transferred to combat emergencies only for infestations that were not
    funded in the previous fiscal year.
        ``(e) Definitions.--For purposes of this section, an ``emergency''
    is an unanticipated event that requires a necessary expenditure that is
    sudden, urgent, and unforeseen.''.
        Sec. 720. 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. 721. None of the funds appropriated or otherwise made available
    by this Act shall be used to pay the salaries and expenses of personnel
    to carry out the following:
        (a) an environmental quality incentives program authorized by 16
    U.S.C. 3839aa, et seq. in excess of $850,000,000;
        (b) a ground and surface water conservation program authorized by 16
    U.S.C. 3839aa-9 in excess of $51,000,000;
        (c) a water conservation program in the Klamath Basin authorized by
    16 U.S.C. 3839aa-9 in excess of $8,118,000;
        (d) a farmland protection program authorized by 16 U.S.C. 3838h-i in
    excess of $112,044,000;
        (e) a wildlife habitat incentives program authorized by 16 U.S.C.
    3839bb et seq. in excess of $42,000,000;
        (f) a conservation security program authorized by 16 U.S.C. 3838-
    3838c in excess of $19,379,000;
        (g) a small watershed rehabilitation program authorized by 16 U.S.C.
    1012(h)(1);
        (h) section 9006 of Public Law 107-171, the Farm Security and Rural
    Investment Act of 2002;
        (i) section 9010 of Public Law 107-171, the Farm Security and Rural
    Investment Act of 2002 (7 U.S.C. 1424) in excess of $100,000,000.
        Sec. 722. None of the funds appropriated or otherwise made available
    by this or any other Act shall be used to pay the salaries and expenses
    of personnel to carry out the following:
        (a) section 601(j)(1)(A) of the Rural Electrification Act of 1936 (7
    U.S.C. 901). Funds under such section for fiscal year 2004 are hereby
    cancelled;
        (b) section 6401 of Public Law 107-171, the Farm Security and Rural
    Investment Act of 2002. Funds under such section for fiscal year 2004
    are hereby cancelled;
        (c) section 6405 of Public Law 107-171, the Farm Security and Rural
    Investment Act of 2002. Funds under such section for fiscal year 2004
    are hereby cancelled.
        Sec. 723. Section 508(k)(4)(A) of the Federal Crop Insurance Act (7
    U.S.C. 1508(k)(4)(A)) is amended--
            (1) in clause (i), by striking ``and'';
            (2) in clause (ii)--
                (A) by striking ``and subsequent reinsurance years'' and
            inserting ``through the 2003 reinsurance years''; and
                (B) by striking the period and inserting ``; and''; and
            (3) by adding at the end the following:
                ``(iii) for each of the 2004 and subsequent reinsurance
            years, 20 percent of premium used to define loss ratio.''.