[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.''.