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


                     THE BUDGET FOR FISCAL YEAR 2005

[[Page 67]]

 
                        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, [$5,092,000] $5,185,000: 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.

          Office of the Assistant Secretary for Administration

    For necessary salaries and expenses of the Office of the Assistant 
Secretary for Administration, [$673,000] $808,000.

      Office of the Assistant Secretary for Congressional Relations

                     (including transfers of funds)

    For necessary salaries and expenses of the Office of the Assistant 
Secretary for Congressional Relations to carry out the programs funded 
by this Act, including programs involving intergovernmental affairs and 
liaison within the executive branch, [$3,796,000] $4,263,000: 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 funds made available by this 
appropriation may be obligated after 30 days from the date of enactment 
of this Act, unless the Secretary has notified the Committees on 
Appropriations of both Houses of Congress on the allocation of these 
funds by USDA agency: 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, 
[$596,000] $805,000.

   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; [$725,000] $804,000.

              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, [$599,000] $803,000.

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, [$635,000] $933,000.

   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, [$745,000] $936,000.

           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, [$636,000] $929,000.

 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, 
[$599,000] $799,000. (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, [$808,000] $819,000. (Division A, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9913-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Office of the Secretary...........           4           3           4
00.02 Under/Assistant Secretaries.......           7          10          11
00.03 Trade Negotiations and 
        Biotechnology Resources.........                       2           2
00.04 Info Share (CCE/HS)...............          28
09.01 Homeland Security Reimbursable....          14
                                           ---------   ---------  ----------
10.00   Total new obligations...........          53          15          17
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          38          10          10
22.00 New budget authority (gross)......          25          15          17
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          63          25          27
23.95 Total new obligations.............         -53         -15         -17
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
24.40 Unobligated balance carried 
        forward, end of year............          10          10          10
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          13          15          17
41.00   Transferred to other accounts...          -2
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          11          15          17
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...           2
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          12
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          14
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          25          15          17
    Change in obligated balances:
72.40 Obligated balance, start of year..          46          29          32
73.10 Total new obligations.............          53          15          17
73.20 Total outlays (gross).............         -58         -12         -16
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -12
74.40 Obligated balance, end of year....          29          32          33
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          25          12          13
86.93 Outlays from discretionary 
        balances........................          33                       3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          58          12          16
    Offsets:
      Against gross budget authority and outlays:

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

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -12

[[Page 68]]

    Net budget authority and outlays:
89.00 Budget authority..................          11          15          17
90.00 Outlays...........................          56          12          16
---------------------------------------------------------------------------

    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; and 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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................           6           9          10
12.1    Civilian personnel benefits.....           1           2           3
25.2    Other services..................          32           4           4
                                           ---------   ---------  ----------
99.0      Direct obligations............          39          15          17
99.0  Reimbursable obligations..........          14
                                           ---------   ---------  ----------
99.9    Total new obligations...........          53          15          17
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9913-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          70          87          87
---------------------------------------------------------------------------

                                

                         Fund for Rural America

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0012-0-1-999      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..          23          14
73.20 Total outlays (gross).............          -8         -14
73.40 Adjustments in expired accounts 
        (net)...........................          -1
74.40 Obligated balance, end of year....          14
    Outlays (gross), detail:
86.98 Outlays from mandatory balances...           8          14
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           8          14
---------------------------------------------------------------------------

    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 Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8203-0-7-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............
    Receipts:
02.00 Gifts and bequests, Departmental 
        Administration..................           1           1           1
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...           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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........           1           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), [$8,707,000] 
$14,949,000.

                        national appeals division

    For necessary expenses of the National Appeals Division, 
[$13,670,000] $14,826,000.

                  Office of Budget and Program Analysis

    For necessary expenses of the Office of Budget and Program Analysis, 
[$7,740,000] $8,146,000.

                         Homeland Security Staff

    For necessary expenses of the Homeland Security Staff, [$499,000] 
$1,491,000. (Division A, H.R. 2673, Consolidated Appropriations Bill, FY 
2004.)

[[Page 69]]

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0705-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Chief Economist...................          11           9          15
00.03 National Appeals Division.........          14          14          15
00.04 Budget and Program Analysis.......           7           8           8
00.05 Homeland Security Staff...........                                   1
09.01 Reimbursable program..............           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........          33          32          40
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          32          34          42
23.95 Total new obligations.............         -33         -32         -40
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          29          30          38
40.00   Appropriation...................                                   1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          29          30          39
      Mandatory:

61.00   Transferred to other accounts...          -1
62.00   Transferred from other accounts.           2           2           2
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................           1           2           2
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).           1           1           1
68.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........           1           1
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....           2           2           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          32          34          42
    Change in obligated balances:
72.40 Obligated balance, start of year..           5           7           5
73.10 Total new obligations.............          33          32          40
73.20 Total outlays (gross).............         -30         -32         -41
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -1          -1
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................          -1
74.40 Obligated balance, end of year....           7           5           5
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          28          28          35
86.93 Outlays from discretionary 
        balances........................           1           2           4
86.97 Outlays from new mandatory 
        authority.......................           1           2           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          30          32          41
    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          -1
    Net budget authority and outlays:
89.00 Budget authority..................          30          32          41
90.00 Outlays...........................          29          31          40
---------------------------------------------------------------------------

    Executive Operations provides support for USDA policy officials and 
selected Department-wide 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

                                     2003 actual  2004 est.   2005 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.

    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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................          20          20          24
12.1    Civilian personnel benefits.....           5           5           7
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           1
25.2    Other services..................           4           2           4
31.0    Equipment.......................           1           1           1
                                           ---------   ---------  ----------
99.0      Direct obligations............          32          31          39
99.0  Reimbursable obligations..........           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          33          32          40
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0705-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         232         267         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, 
[$5,684,000: Provided, That the Chief Financial Officer shall actively 
market and expand cross-servicing activities of the National Finance 
Center: Provided further, That no funds made available by this 
appropriation may be obligated for FAIR Act or Circular A-76 activities 
until the Secretary has submitted to the Committees on Appropriations of 
both Houses of Congress a report on the Department's contracting out 
policies, including agency budgets for contracting out] $8,063,000. 
(Division A, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0014-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................           6           6           8
09.01 Reimbursable program..............           9           2           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........          15           8          10
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          16           8          10
23.95 Total new obligations.............         -15          -8         -10

[[Page 70]]

    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................           6           6           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)...................           8
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          10           2           2
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          16           8          10
    Change in obligated balances:
72.40 Obligated balance, start of year..                      -6
73.10 Total new obligations.............          15           8          10
73.20 Total outlays (gross).............         -11          -3         -10
73.40 Adjustments in expired accounts 
        (net)...........................          -2
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -8
74.40 Obligated balance, end of year....          -6
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          11           8          10
86.93 Outlays from discretionary 
        balances........................                      -5
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          11           3          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)...................          -8
    Net budget authority and outlays:
89.00 Budget authority..................           6           6           8
90.00 Outlays...........................           8           1           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

                                     2003 actual  2004 est.   2005 est.
Achieve an unqualified opinion on 
the USDA financial statements....... Unqualified Unqualified Unqualified
Anti-deficiency violations..........          No          No          No

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0014-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................           3           4           5
12.1    Civilian personnel benefits.....           1           1           1
25.2    Other services..................           1           1           1
                                           ---------   ---------  ----------
99.0      Direct obligations............           5           6           7
99.0  Reimbursable obligations..........           9           2           2
99.5  Below reporting threshold.........           1                       1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          15           8          10
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0014-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          47          62          76
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          11          13          13
---------------------------------------------------------------------------

                                

                 Office of the Chief Information Officer

    For necessary expenses of the Office of the Chief Information 
Officer, [$15,493,000] $22,093,000. (Division A, H.R. 2673, Consolidated 
Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0013-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Office of the Chief Information 
        Officer.........................          15          15          22
09.01 Reimbursable program..............          23           6           6
                                           ---------   ---------  ----------
10.00   Total new obligations...........          38          21          28
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          39          21          28
23.95 Total new obligations.............         -38         -21         -28
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          15          15          22
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...          10           6           6
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          14
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          24           6           6
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          39          21          28
    Change in obligated balances:
72.40 Obligated balance, start of year..                      -3
73.10 Total new obligations.............          38          21          28
73.20 Total outlays (gross).............         -41         -19         -28
73.40 Adjustments in expired accounts 
        (net)...........................          -1
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -14
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................          16           3
74.40 Obligated balance, end of year....          -3
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          25          21          28
86.93 Outlays from discretionary 
        balances........................          16          -2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          41          19          28
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -26          -6          -6
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -14
88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............          16
    Net budget authority and outlays:
89.00 Budget authority..................          15          15          22
90.00 Outlays...........................          14          13          22
---------------------------------------------------------------------------

    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 lead

[[Page 71]]

ership 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 designing 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

                                       FY 2003     FY 2004     FY 2005
Percent of all paper transactions 
identified for conversion to 
electronic access that will be 
completed by milestones.............         35%         74%        100%
Percent of USDA IT Systems that are 
certified, accredited, or otherwise 
authorized as being properly secured        n.a.         15%        100%
Percentage of USDA IT projects that 
are within costs/schedule/
performance.........................        n.a.       Est. 
                                                    Baseline        100%

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0013-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................           6           7           7
12.1    Civilian personnel benefits.....           1           1           1
25.2    Other services..................           5           4          10
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           3           3           3
                                           ---------   ---------  ----------
99.0      Direct obligations............          15          15          21
99.0  Reimbursable obligations..........          22           6           6
99.5  Below reporting threshold.........           1                       1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          38          21          28
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0013-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          69          72          72
    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, [$119,289,000] $136,736,000, 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. (Division A, H.R. 2673, Consolidated Appropriations Bill, FY 
2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0113-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........         113         141         152
09.01 Reimbursable program..............          31          15          15
                                           ---------   ---------  ----------
10.00   Total new obligations...........         144         156         167
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           9          37          15
22.00 New budget authority (gross)......         172         134         152
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         181         171         167
23.95 Total new obligations.............        -144        -156        -167
24.40 Unobligated balance carried 
        forward, end of year............          37          15
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         133         119         137
40.35   Appropriation permanently 
          reduced.......................          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         132         119         137
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...           9          15          15
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          31
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          40          15          15
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         172         134         152
    Change in obligated balances:
72.40 Obligated balance, start of year..          42          62          42
73.10 Total new obligations.............         144         156         167
73.20 Total outlays (gross).............         -93        -176        -159
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -31
74.40 Obligated balance, end of year....          62          42          50
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          57         121         138
86.93 Outlays from discretionary 
        balances........................          36          55          21
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          93         176         159
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -9         -15         -15
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -31
    Net budget authority and outlays:
89.00 Budget authority..................         132         119         137
90.00 Outlays...........................          84         161         144
---------------------------------------------------------------------------

    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

[[Page 72]]

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. 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.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0113-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

25.2    Other services..................          52          51          68
25.3    Other purchases of goods and 
          services from Government 
          accounts......................          13          16          16
26.0    Supplies and materials..........          15          20          20
31.0    Equipment.......................          33          53          47
                                           ---------   ---------  ----------
99.0      Direct obligations............         113         140         151
99.0  Reimbursable obligations..........          31          15          15
99.5  Below reporting threshold.........                       1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         144         156         167
---------------------------------------------------------------------------

                                

Intragovernmental funds:

                          Working Capital Fund

    For the acquisition of disaster recovery and continuity of 
operations technology of the National Finance Center's data, 
$12,850,000, to remain available until expended.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4609-0-4-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating expenses:

09.01   Administration..................          25          25          26
09.02   Communications..................           7           5           5
09.03   Finance and management..........         169         204         216
09.04   Information technology..........          73          88          90
09.05   Executive secretariat...........           2           3           3
09.06   Corporate systems...............          63          87          76
                                           ---------   ---------  ----------
09.09   Subtotal, operating expenses....         339         412         416
      Purchase of equipment:

09.12   Finance and management..........           3           3           4
09.13   Information technology..........           5           5           8
09.15   Corporate systems...............           9          27          27
                                           ---------   ---------  ----------
09.19   Subtotal, purchase of equipment.          17          35          39
                                           ---------   ---------  ----------
10.00   Total new obligations...........         356         447         455
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          63          82          47
22.00 New budget authority (gross)......         371         412         429
22.22 Unobligated balance transferred 
        from other accounts.............           4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         438         494         476
23.95 Total new obligations.............        -356        -447        -455
24.40 Unobligated balance carried 
        forward, end of year............          82          47          21
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          12                      13
42.00   Transferred from other accounts.           2
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          14                      13
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...         335         412         416
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          22
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......         357         412         416
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         371         412         429
    Change in obligated balances:
72.40 Obligated balance, start of year..          16           4          54
73.10 Total new obligations.............         356         447         455
73.20 Total outlays (gross).............        -346        -397        -429
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -22
74.40 Obligated balance, end of year....           4          54          80
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         292         356         373
86.93 Outlays from discretionary 
        balances........................          54          41          56
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         346         397         429
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -335        -412        -416
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -22
    Net budget authority and outlays:
89.00 Budget authority..................          14                      13
90.00 Outlays...........................          11         -15          13
---------------------------------------------------------------------------

    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.

    In FY 2005, the budget request will enable the National Finance 
Center to design and implement point-in-time remote backup capability 
and to equip and implement a secondary backup data center.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4609-0-4-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............         108         126         134
11.3    Other than full-time permanent..           2           2           2
11.5    Other personnel compensation....           6           4           4
                                           ---------   ---------  ----------
11.9      Total personnel compensation..         116         132         140
12.1  Civilian personnel benefits.......          28          33          35
21.0  Travel and transportation of 
        persons.........................           3           2           2
22.0  Transportation of things..........           1           1           1
23.1  Rental payments to GSA............           6           6           6
23.2  Rental payments to others.........           4           2           3
23.3  Communications, utilities, and 
        miscellaneous charges...........          37          47          48
24.0  Printing and reproduction.........           1           2           1
25.2  Other services....................         127         174         168
26.0  Supplies and materials............           9           9           9
31.0  Equipment.........................          24          39          42
                                           ---------   ---------  ----------
99.9    Total new obligations...........         356         447         455
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-4609-0-4-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       2,039       2,297       2,365
---------------------------------------------------------------------------

[[Page 73]]



                                


 
                         OFFICE OF CIVIL RIGHTS

                              Federal Funds

General and special funds:

                         Office of Civil Rights

                     (including transfers of funds)

    For necessary expenses of the Office of Civil Rights, [$17,450,000] 
$22,283,000. (Division A, H.R. 2673, Consolidated Appropriations Bill, 
FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3800-0-1-751      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Office of Civil Rights............                      18          22
09.01 Reimbursable program..............                       5           5
                                           ---------   ---------  ----------
10.00   Total new obligations...........                      23          27
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                      23          27
23.95 Total new obligations.............                     -23         -27
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                      18          22
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............                       5           5
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................                      23          27
    Change in obligated balances:
73.10 Total new obligations.............                      23          27
73.20 Total outlays (gross).............                     -23         -27
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                      23          27
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........                      -5          -5
    Net budget authority and outlays:
89.00 Budget authority..................                      18          22
90.00 Outlays...........................                      18          22
---------------------------------------------------------------------------

    The Office of Civil Rights (CR) provides overall leadership 
responsibility for all department-wide civil rights activities including 
employment opportunity and program non-discrimination policy 
development, analysis, coordination, and compliance. CR is responsible 
for providing leadership in the implementation of best practices that 
will create an environment where diversity is valued as a source of 
strength. CR has the responsibility for monitoring program activities to 
ensure that all USDA programs are delivered in a non-discriminatory 
manner.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3800-0-1-751      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................                      14          15
12.1    Civilian personnel benefits.....                       3           3
25.2    Other services..................                       1           2
25.3    Other purchases of goods and 
          services from Government 
          accounts......................                                   1
                                           ---------   ---------  ----------
99.0      Direct obligations............                      18          21
99.0  Reimbursable obligations..........                       3           4
99.5  Below reporting threshold.........                       2           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........                      23          27
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3800-0-1-751      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................                     181         184
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................                      10          10
---------------------------------------------------------------------------

                                


 
                       DEPARTMENTAL ADMINISTRATION

                              Federal Funds

General and special funds:

                       Departmental Administration

                     (including transfers of funds)

    For Departmental Administration, [$23,031,000] $26,361,000, 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: 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. (Division A, H.R. 2673, Consolidated Appropriations Bill, FY 
2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0120-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.08 Direct program....................          38          22          26
09.01 Reimbursable program..............          19          12          12
                                           ---------   ---------  ----------
10.00   Total new obligations...........          57          34          38
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          57          34          38
23.95 Total new obligations.............         -57         -34         -38
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          38          22          26
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...           7          12          12
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          12
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          19          12          12
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          57          34          38
    Change in obligated balances:
72.40 Obligated balance, start of year..         -10          -5           9
73.10 Total new obligations.............          57          34          38
73.20 Total outlays (gross).............         -56         -20         -38
73.40 Adjustments in expired accounts 
        (net)...........................           1
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -12
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................          16
74.40 Obligated balance, end of year....          -5           9           9
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          54          32          36
86.93 Outlays from discretionary 
        balances........................           2         -12           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          56          20          38
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -18         -12         -12
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -12
88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............          11
    Net budget authority and outlays:
89.00 Budget authority..................          38          22          26
90.00 Outlays...........................          36           8          26
---------------------------------------------------------------------------

    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, 
participation of small and disadvantaged businesses, emergency 
preparedness, and the regulatory hearing and ad

[[Page 74]]

ministrative proceedings conducted by the Administrative Law Judges, 
Judicial Officer, and Board of Contract Appeals.

    Departmental Administration is also responsible for representing 
USDA in the development of government-wide policies and initiatives; 
analyzing the impact of government-wide trends and developing 
appropriate USDA principles, policies, and standards. In addition, 
Departmental Administration engages in strategic planning and evaluating 
programs to ensure USDA-wide compliance with applicable laws, rules, and 
regulations pertaining to administrative matters for the Secretary and 
general officers of the Department.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0120-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................          26          17          17
12.1    Civilian personnel benefits.....           5           4           4
23.3    Communications, utilities, and 
          miscellaneous charges.........           1
25.2    Other services..................           2                       2
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           2           1           2
26.0    Supplies and materials..........           1
                                           ---------   ---------  ----------
99.0      Direct obligations............          37          22          25
99.0  Reimbursable obligations..........          17          11          11
99.5  Below reporting threshold.........           3           1           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........          57          34          38
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0120-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         344         228         225
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          65          67          67
---------------------------------------------------------------------------

                                

                     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.), [$15,611,000] $15,730,000, 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.; 
Division A, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0500-0-1-304      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................          12          16          16
                                           ---------   ---------  ----------
10.00   Total new obligations...........          12          16          16
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           1           3           1
22.00 New budget authority (gross)......          16          16          16
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          17          19          17
23.95 Total new obligations.............         -12         -16         -16
24.40 Unobligated balance carried 
        forward, end of year............           3           1           1
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          16          16          16
    Change in obligated balances:
72.40 Obligated balance, start of year..          18          15          15
73.10 Total new obligations.............          12          16          16
73.20 Total outlays (gross).............         -15         -15         -17
74.40 Obligated balance, end of year....          15          15          15
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          14          14          14
86.93 Outlays from discretionary 
        balances........................           1           1           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          15          15          17
    Net budget authority and outlays:
89.00 Budget authority..................          16          16          16
90.00 Outlays...........................          14          15          17
---------------------------------------------------------------------------

    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 environmental cleanup and regulatory compliance regarding hazardous 
wastes and hazardous substances as private businesses. With 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

                                     2003 actual  2004 est.   2005 est.
Number of non-mine CERCLA cleanups..          26           7          15
Number of mine CERCLA cleanups......          24          29          21
Number of sites assessed/
characterized on need for cleanup...          48          99          53
Number of cleanup plans.............          96          65          20
Number of agreements reached with 
potentially responsible parties 
(PRPs)..............................          26          10          10
Estimated value of cleanup/
restoration work performed by PRP's 
($ millions)........................          $8          $5          $5

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0500-0-1-304      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.2  Direct obligations: Other services          11          15          15
99.5  Below reporting threshold.........           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          12          16          16
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0500-0-1-304      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................           6           7           7
---------------------------------------------------------------------------

                                

        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 and facilities, and for 
related costs, [as follows: for payments to the General Services 
Administration, $123,910,000, and for buildings operations and 
maintenance, $32,559,000] $203,938,000, 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. (Division A, H.R. 2673, Consolidated Appropriations Bill, 
FY 2004.)

[[Page 75]]

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0117-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Rental payments to GSA: Non-
        recurring repairs...............         138         124         128
00.02 Building operations and 
        maintenance.....................          32          32          42
00.04 Strategic space plan..............          25                      34
09.02 Reimbursable program..............           3           2           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........         198         158         206
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          40          44          44
22.00 New budget authority (gross)......         198         158         206
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           4           2           2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         242         204         252
23.95 Total new obligations.............        -198        -158        -206
24.40 Unobligated balance carried 
        forward, end of year............          44          44          44
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         197         156         204
40.35   Appropriation permanently 
          reduced.......................          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         196         156         204
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...           1           2           2
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................           1
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......           2           2           2
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         198         158         206
    Change in obligated balances:
72.40 Obligated balance, start of year..          25          24          21
73.10 Total new obligations.............         198         158         206
73.20 Total outlays (gross).............        -194        -158        -206
73.45 Recoveries of prior year 
        obligations.....................          -4          -2          -2
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -1
74.40 Obligated balance, end of year....          24          21          21
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         192         156         204
86.93 Outlays from discretionary 
        balances........................           2           2           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         194         158         206
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -1          -2          -2
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          -1
    Net budget authority and outlays:
89.00 Budget authority..................         196         156         204
90.00 Outlays...........................         193         156         204
---------------------------------------------------------------------------

    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.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0117-0-1-352      2003 actual   2004 est.   2005 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..........         138         123         128
23.3    Communications, utilities, and 
          miscellaneous charges.........           5           5           5
25.2    Other services..................          44          20          63
                                           ---------   ---------  ----------
99.0      Direct obligations............         195         156         204
99.0  Reimbursable obligations..........           3           2           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........         198         158         206
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0117-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          85          95          95
---------------------------------------------------------------------------

                                


 
                        OFFICE OF COMMUNICATIONS

                              Federal Funds

General and special funds:

                        Office of Communications

    For necessary expenses to carry out 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, [$9,228,000] 
$10,288,000: Provided, That not to exceed $2,000,000 may be used for 
farmers' bulletins. (Division A, H.R. 2673, Consolidated Appropriations 
Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0150-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Public affairs....................           9           9          10
09.01 Reimbursable program..............                       1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........           9          10          11
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......           9          10          11
23.95 Total new obligations.............          -9         -10         -11
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................           9           9          10
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............                       1           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................           9          10          11
    Change in obligated balances:
73.10 Total new obligations.............           9          10          11
73.20 Total outlays (gross).............          -8         -10         -11
73.40 Adjustments in expired accounts 
        (net)...........................                       1           1
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           8           9          10
86.93 Outlays from discretionary 
        balances........................                       1           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           8          10          11
    Offsets:
      Against gross budget authority and outlays:

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

88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............           1
    Net budget authority and outlays:
89.00 Budget authority..................           9           9          10
90.00 Outlays...........................           8           9          10
---------------------------------------------------------------------------

    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.

[[Page 76]]

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0150-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................           6           7           7
12.1    Civilian personnel benefits.....           1           2           2
23.3    Communications, utilities, and 
          miscellaneous charges.........           1
25.2    Other services..................           1
                                           ---------   ---------  ----------
99.0      Direct obligations............           9           9           9
99.0  Reimbursable obligations..........                       1           1
99.5  Below reporting threshold.........                                   1
                                           ---------   ---------  ----------
99.9    Total new obligations...........           9          10          11
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0150-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          77          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 Inspector General Act of 1978, 
[$77,281,000] $78,392,000, 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, and including not to exceed $125,000 for certain confidential 
operational expenses, including the payment of informants, to be 
expended under the direction of the Inspector General pursuant to Public 
Law 95-452 and section 1337 of Public Law 97-98. (7 U.S.C. 450b, 2201, 
2202, 2220, 2270; Public Law 100-504; Division A, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0900-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................          74          77          78
09.01 Reimbursable program..............           4           3           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........          78          80          81
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           3           3           3
22.00 New budget authority (gross)......          79          79          80
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          82          82          83
23.95 Total new obligations.............         -78         -80         -81
24.40 Unobligated balance carried 
        forward, end of year............           3           3           2
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          74          77          78
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...           1           2           2
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................           4
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......           5           2           2
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          79          79          80
    Change in obligated balances:
72.40 Obligated balance, start of year..                      -1           3
73.10 Total new obligations.............          78          80          81
73.20 Total outlays (gross).............         -76         -75         -80
73.40 Adjustments in expired accounts 
        (net)...........................           1
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -4
74.40 Obligated balance, end of year....          -1           3           4
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          71          72          73
86.93 Outlays from discretionary 
        balances........................           5           3           7
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          76          75          80
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -1          -2          -2
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          -4
    Net budget authority and outlays:
89.00 Budget authority..................          74          77          78
90.00 Outlays...........................          75          73          78
---------------------------------------------------------------------------

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

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0900-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................          46          47          49
12.1    Civilian personnel benefits.....          13          13          13
21.0    Travel and transportation of 
          persons.......................           4           5           5
23.3    Communications, utilities, and 
          miscellaneous charges.........           2           2           2
25.2    Other services..................           4           4           4
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           1           1           1
26.0    Supplies and materials..........           1           1           1
31.0    Equipment.......................           2           3           3
                                           ---------   ---------  ----------
99.0      Direct obligations............          73          76          78
99.0  Reimbursable obligations..........           4           3           3
99.5  Below reporting threshold.........           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          78          80          81
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0900-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         621         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, 
[$34,700,000] $38,589,000. (7 U.S.C. 2201; 2202, 2214a; Division A, H.R. 
2673, Consolidated Appropriations Bill, FY 2004.)

[[Page 77]]

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2300-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................          35          34          38
09.00 Reimbursable program..............           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........          36          35          39
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          36          35          40
23.95 Total new obligations.............         -36         -35         -39
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          35          35          39
40.35   Appropriation permanently 
          reduced.......................                      -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          35          34          39
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           1           1           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          36          35          40
    Change in obligated balances:
72.40 Obligated balance, start of year..           2           3           2
73.10 Total new obligations.............          36          35          39
73.20 Total outlays (gross).............         -36         -35         -40
74.40 Obligated balance, end of year....           3           2           2
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          34          33          38
86.93 Outlays from discretionary 
        balances........................           2           2           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          36          35          40
    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..................          35          34          39
90.00 Outlays...........................          33          34          39
---------------------------------------------------------------------------

    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, Federal Maritime Administration, International Trade Commission, 
and other Federal agencies; 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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................          26          26          29
12.1    Civilian personnel benefits.....           6           6           7
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
25.2    Other services..................           1           1           1
26.0    Supplies and materials..........           1
                                           ---------   ---------  ----------
99.0      Direct obligations............          35          34          38
99.0  Reimbursable obligations..........           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          36          35          39
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2300-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         311         330         345
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................           8           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, 
[$71,402,000] $80,032,000. (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.; 
Division A, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1701-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................          69          71          80
09.00 Reimbursable program..............           2           3           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........          71          74          83
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          71          74          83
23.95 Total new obligations.............         -71         -74         -83
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          69          71          80
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           2           3           3
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          71          74          83
    Change in obligated balances:
72.40 Obligated balance, start of year..          23          23          23
73.10 Total new obligations.............          71          74          83
73.20 Total outlays (gross).............         -72         -74         -82
73.40 Adjustments in expired accounts 
        (net)...........................           1
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................           1
74.40 Obligated balance, end of year....          23          23          25
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          59          65          73
86.93 Outlays from discretionary 
        balances........................          13           9           9
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          72          74          82
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -2          -3          -3
    Net budget authority and outlays:
89.00 Budget authority..................          69          71          80
90.00 Outlays...........................          70          71          79
---------------------------------------------------------------------------

    The Economic Research Service provides economic and other social 
science research and analysis for public and private decisions on 
agriculture, food, natural resources, and rural America.

    Miscellaneous funds received from States, local organizations, and 
others are available for support of economic research and analysis (7 
U.S.C. 450b, 450h, 3318b).

    The 2005 request includes funding for costs associated with the 
development of an integrated and comprehensive data and analysis 
framework to provide a basis for understanding, monitoring, tracking, 
and identifying changes in food supply and consumption patterns.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1701-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          36          38          39
11.3      Other than full-time permanent           1           1           1
11.5      Other personnel compensation..           1           1           1
                                           ---------   ---------  ----------
11.9        Total personnel compensation          38          40          41
12.1    Civilian personnel benefits.....           8           8           9

[[Page 78]]

21.0    Travel and transportation of 
          persons.......................           1           1           1
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
25.2    Other services..................           4           4          11
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           9           9           9
25.5    Research and development 
          contracts.....................           5           5           5
26.0    Supplies and materials..........           1           1           1
31.0    Equipment.......................           1           1           1
41.0    Grants, subsidies, and 
          contributions.................           1           1           1
                                           ---------   ---------  ----------
99.0      Direct obligations............          69          71          80
99.0  Reimbursable obligations..........           2           3           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........          71          74          83
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1701-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         455         497         503
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................           7           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 and 2204g, and other laws, [$128,922,000] $137,594,000, 
of which up to [$25,279,000] $22,520,000 shall be available until 
expended for the Census of Agriculture. (7 U.S.C. 411, 411a, 411b, 427, 
471, 475, 476, 501, 951, 953, 955-57, 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.; Division A, H.R. 
2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1801-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Agricultural estimates..........          94          98         110
00.02   Statistical research and service           4           5           5
00.03   Census of Agriculture...........          40          27          23
09.01 Reimbursable program..............          18          21          21
                                           ---------   ---------  ----------
10.00   Total new obligations...........         156         151         159
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                       2
22.00 New budget authority (gross)......         156         149         159
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         156         151         159
23.95 Total new obligations.............        -156        -151        -159
24.40 Unobligated balance carried 
        forward, end of year............           2
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         139         129         138
40.35   Appropriation permanently 
          reduced.......................          -1          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         138         128         138
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...           9          21          21
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................           9
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          18          21          21
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         156         149         159
    Change in obligated balances:
72.40 Obligated balance, start of year..           6          10          16
73.10 Total new obligations.............         156         151         159
73.20 Total outlays (gross).............        -147        -145        -159
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -9
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................           5
74.40 Obligated balance, end of year....          10          16          16
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         137         135         144
86.93 Outlays from discretionary 
        balances........................          10          10          15
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         147         145         159
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -14         -18         -18
88.40     Non-Federal sources...........                      -3          -3
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -14         -21         -21
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          -9
88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............           5
    Net budget authority and outlays:
89.00 Budget authority..................         138         128         138
90.00 Outlays...........................         134         124         138
---------------------------------------------------------------------------

    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 2005 
program includes funding to continue restoration and modernization of 
the Agricultural Estimates program and the continuing development of a 
locality based agricultural county estimates/small area estimation 
program. It also includes funding to support government-wide and 
departmental e-government initiatives.

    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 $3.1 million reflects a $0.1 million 
decrease due to cyclical activities and a $3.0 million offset to support 
the restoration and modernization of the Agricultural Estimates program.

    Miscellaneous funds received from local organizations, commodity 
groups, and others are available for dissemination of reports and for 
survey work conducted under cooperative agreements (7 U.S.C. 450b, 450h, 
3318b).

[[Page 79]]

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1801-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          61          64          66
11.3      Other than full-time permanent           1           1           1
11.5      Other personnel compensation..           1           1           1
                                           ---------   ---------  ----------
11.9        Total personnel compensation          63          66          68
12.1    Civilian personnel benefits.....          15          17          18
21.0    Travel and transportation of 
          persons.......................           2           2           2
22.0    Transportation of things........           1           1           1
23.3    Communications, utilities, and 
          miscellaneous charges.........           7           5           5
25.2    Other services..................          24          22          25
25.3    Other purchases of goods and 
          services from Government 
          accounts......................          18           8           9
25.7    Operation and maintenance of 
          equipment.....................           3           3           3
26.0    Supplies and materials..........           1           1           2
31.0    Equipment.......................           4           4           5
                                           ---------   ---------  ----------
99.0      Direct obligations............         138         129         138
99.0  Reimbursable obligations..........          18          20          20
99.5  Below reporting threshold.........                       2           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         156         151         159
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1801-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       1,001       1,262       1,269
    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, [$1,088,892,000] $987,597,000: Provided, 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: Provided further, That all rights and title of the 
United States in the 1.0664-acre parcel of land including improvements, 
as recorded at Book 1320, Page 253, records of Larimer County, State of 
Colorado, shall be conveyed to the Board of Governors of the Colorado 
State University for the benefit of Colorado State University.
    None of the funds appropriated under this heading shall be available 
to carry out research related to the production, processing or marketing 
of tobacco or tobacco products. (7 U.S.C. 328, 427, 427i, 1281 note, 
1621, 2201, 2204, 2225, 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. 114c, 114e-131; 42 U.S.C. 1476(e), 1483; Division A, 
H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1400-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Product Quality/Value Added.....         105         108          99
00.02   Livestock Production............          92          97          80
00.03   Crop Production.................         172         181         153
00.04   Food Safety.....................          93          95          90
00.05   Livestock Protection............          59          65          61
00.06   Crop Protection.................         174         178         151
00.07   Human nutrition research........          81          82          81
00.08   Environmental Stewardship.......         211         216         182
00.09   National Agricultural Library...          23          21          24
00.10   Repair and maintenance of 
          facilities....................          18          18          18
00.11   Collaborative research program..          11          14
00.12   Homeland security...............          23          21          49
00.13   Construction/Miscellaneous Fees.                       3
09.00 Reimbursable program..............          62          65          65
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,124       1,164       1,053
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          39          17
22.00 New budget authority (gross)......       1,105       1,147       1,053
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,144       1,164       1,053
23.95 Total new obligations.............      -1,124      -1,164      -1,053
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...................       1,044       1,089         988
40.35   Appropriation permanently 
          reduced.......................          -7          -7
42.00   Transferred from other accounts.           6
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       1,043       1,082         988
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...          28          65          65
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          34
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          62          65          65
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,105       1,147       1,053
    Change in obligated balances:
72.40 Obligated balance, start of year..         303         325         368
73.10 Total new obligations.............       1,124       1,164       1,053
73.20 Total outlays (gross).............      -1,096      -1,121      -1,070
73.40 Adjustments in expired accounts 
        (net)...........................           2
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -34
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................          27
74.40 Obligated balance, end of year....         325         368         351
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         843         931         855
86.93 Outlays from discretionary 
        balances........................         253         190         215
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,096       1,121       1,070
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -57         -65         -65
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -34
88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............          29
    Net budget authority and outlays:
89.00 Budget authority..................       1,043       1,082         988

[[Page 80]]

90.00 Outlays...........................       1,039       1,056       1,005
---------------------------------------------------------------------------

    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 2005, the Service proposes increased emphases for critical 
research needs in agriculture, such as: support for homeland security 
efforts to protect the Nation's food supply (emerging and exotic 
diseases of plants and animals, food safety, and the national plant 
disease recovery system); sequencing and bioinformatics; nutrition and 
obesity; genetic resources; controlling invasive specifics; climate 
change; agricultural information services and cyber security. Consistent 
with the 2004 budget, the 2005 budget also proposes to eliminate funding 
for unrequested Congressional earmarks added to the Service since 2001. 
In 2003, the Service submitted 67 new patent applications, participated 
in 55 new Cooperative research and development agreements (CRADAs), 
licensed 27 new products, and developed 61 new plant varieties to 
release to industry for further development and marketing.

    Product Quality/Value Added.--New products, new uses, and value-
added processes that appeal to consumers will create additional demand-
driven need for agricultural production, thus providing more 
opportunities for agricultural producers and businesses. Biobased 
technologies promise new opportunities for energy, industrial and 
pharmacological markets for U.S. farmers. New markets are emerging for 
environmental activities and products that mitigate environmental 
concerns.

    Livestock Production.--Intense competition in global markets 
emphasizes the need for American agriculture to pursue and market higher 
value animal products. Research must respond to consumer demands for 
healthier and safer products to ensure a sustainable and profitable 
livestock production system that produces affordable value-added food, 
fiber, and industrial products. These superior technologies must 
effectively differentiate U.S. agricultural products from competing 
sources and provide customers with value-added processes that enhance 
product quality.

    Crop Production.--ARS will develop and disseminate science-based 
information to provide U.S. crop producers with increased flexibility to 
effectively manage unforeseen risks that impact profitability and 
product quality. U.S. agricultural production and marketability is 
constantly influenced by factors such as unpredictable weather, disease 
and pest outbreaks, and changing consumer demands. Use of genetically 
diverse germplasm resource collections and best management practices 
require research that helps improve production efficiency and 
productivity through the development of pest resistant varieties and 
information to facilitate decision-making.

    Food Safety.--For the Nation to have affordable and safe food, the 
food system must be protected at each step from production to 
consumption. The production and distribution system for food in the 
United States has been a diverse, extensive, and easily accessible 
system. This open system is vulnerable to the introduction of pathogens 
and toxins through natural processes, global commerce, and by 
intentional means. Thus, the food supply must be protected during 
production, processing, and preparation from pathogens, toxins, and 
chemical contamination that cause disease in humans.

    Livestock Protection.--Economic sustainability of livestock 
production systems in both domestic and global markets is limited by the 
disease status of the animals. Many factors affect the likelihood of 
diseases in livestock. These include globalization and international 
commerce, presence of pathogen vectors, industrialization of 
agriculture, availability of vaccines and protection systems, movements 
of animals during production, continued emergence of new diseases, 
genetic resistance, and the availability of vaccines and protection 
systems, movements of animals during production, continued emergence of 
new disease, genetic resistance, and the availability of trained animal 
health specialists. Livestock production systems are in transition from 
open and extensive systems to more closely monitored intensive 
management systems which remain vulnerable to accidental and intentional 
exposure to pathogens. Many of these pathogens are zoonotic and impact 
public health.

    Crop Protection.--Economic sustainability of agricultural crop 
production in both domestic and global markets is limited by the disease 
status of crops. Many factors affect the likelihood of diseases to crops 
including, globalization and international commerce, presence of 
pathogen vectors, availability of protection systems, continued 
emergence of new disease, genetic resistance of crops, and the 
availability of trained plant health specialists. Crop systems have 
limited diversity and will remain extensive and thereby more vulnerable 
to intentional exposure to pathogens.

    Human Nutrition.--Improving the Nation's health requires enhancing 
the quality of the American diet. The United States is experiencing an 
obesity epidemic resulting from multifaceted causes including a ``more 
is better'' mindset, a sedentary lifestyle, and the selection of readily 
available high calorie foods. In addition, four of the top ten causes of 
death in the U.S.--cardiovascular disease, cancer, stroke, and 
diabetes--are associated with the quality of our diets--diets too high 
in calories, total fat, saturated fat, cholesterol, or too low in fiber. 
Americans want fresh foods that taste good, are convenient to prepare 
and consume, and yet, offer nutrition and health benefits. Building a 
strong connection between agriculture and human health is an important 
step to providing a nutritionally enhanced food supply. Promoting 
healthier food choices and educating Americans to balance caloric intake 
with sufficient daily physical activity are vital steps to preventing 
obesity and decreasing risk for chronic disease.

    Environmental Stewardship.--Agriculture relies on a natural resource 
base whose sustainability depends on sound, science-based production 
practices. The management of our renewable resources often seems to be a 
continuous balancing of conflicting and competing goals and concerns. 
While this is often the case, particularly in the short-term, longer-
term management strategies combined with adequate knowledge of the 
complex natural systems can yield maximum sustainable benefits from our 
resources that can satisfy most competing concerns. The outcome will be 
technology and practices that will mitigate the adverse impact of 
agriculture on the environment, moderate the build up of green house 
gasses that may contribute to climate change, and remove the necessity 
of farming environmentally sensitive marginal lands.

    Library and Information Services.--Timely, relevant information is 
an essential raw material for the research process as well as for 
effective policy development and decision-making. Targeted information 
services are also required to support specialized USDA audiences such as 
inspectors, regulators, nutritionists, and others, as well as their 
peers, cus

[[Page 81]]

tomers and stakeholders nationwide. The general public requires 
information on a very broad set of agriculture-related topics, ranging 
from small business development to gardening to nutrition to food safety 
to farming to textiles to statistics and beyond. And, the permanent 
preservation of USDAs and the Nation's agricultural intellectual 
heritage is a key national responsibility. The National Agricultural 
Library (NAL) is mandated to fulfill these roles and is a national 
resource for all users of agricultural information. NAL' s work in 
collecting, preserving and ensuring access to agricultural information 
is fundamental to the continued wellbeing and growth of U.S. 
agriculture, and the development of food supplies for the nation and 
world.

    Repair and maintenance of facilities.--Funds are used to restore, 
upgrade, and maintain Federal facilities to meet OSHA and EPA 
requirements, provide suitable workspace for in-house research programs, 
and to retrofit existing structures for better energy utilization.

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

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

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1400-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         439         455         462
11.3      Other than full-time permanent          19          20          20
11.5      Other personnel compensation..          13          13          13
                                           ---------   ---------  ----------
11.9        Total personnel compensation         471         488         495
12.1    Civilian personnel benefits.....         117         122         124
21.0    Travel and transportation of 
          persons.......................          18          18          18
22.0    Transportation of things........           1           1           1
23.2    Rental payments to others.......           1           2           1
23.3    Communications, utilities, and 
          miscellaneous charges.........          36          37          28
24.0    Printing and reproduction.......           2           2           1
25.1    Advisory and assistance services           1           1           1
25.2    Other services..................           4           7           3
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           4           5           4
25.4    Operation and maintenance of 
          facilities....................          26          32          20
25.5    Research and development 
          contracts.....................         179         179         101
25.7    Operation and maintenance of 
          equipment.....................           7           7           6
25.8    Subsistence and support of 
          persons.......................           1           1           1
26.0    Supplies and materials..........          99         101          95
31.0    Equipment.......................          63          64          60
32.0    Land and structures.............           9           9           7
41.0    Grants, subsidies, and 
          contributions.................          23          23          22
                                           ---------   ---------  ----------
99.0      Direct obligations............       1,062       1,099         988
99.0  Reimbursable obligations..........          62          65          65
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,124       1,164       1,053
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1400-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       8,235       8,314       8,314
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         172         172         172
---------------------------------------------------------------------------

                                

                        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, [$63,810,000] 
$178,000,000, to remain available until expended. (Division A, H.R. 
2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1401-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Building and facilities projects..          81         124         134
                                           ---------   ---------  ----------
10.00   Total new obligations...........          81         124         134
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         256         403         342
22.00 New budget authority (gross)......         228          63         178
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         484         466         520
23.95 Total new obligations.............         -81        -124        -134
24.40 Unobligated balance carried 
        forward, end of year............         403         342         386
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         229          64         178
40.35   Appropriation permanently 
          reduced.......................          -1          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         228          63         178
    Change in obligated balances:
72.40 Obligated balance, start of year..          63          83         109
73.10 Total new obligations.............          81         124         134
73.20 Total outlays (gross).............         -61         -98        -116
74.40 Obligated balance, end of year....          83         109         127
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          24          10          27
86.93 Outlays from discretionary 
        balances........................          37          88          89
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          61          98         116
    Net budget authority and outlays:
89.00 Budget authority..................         228          63         178
90.00 Outlays...........................          61          98         116
---------------------------------------------------------------------------

    This account provides funds for the acquisition of land, 
construction, repair, improvement, extension, alterations, and purchases 
of fixed equipment or facilities of or used by the Agricultural Research 
Service. The 2005 request provides for the full funding required for the 
accelerated completion of the department's animal research and 
diagnostic facilities at Ames, IA.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1401-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.2  Other services....................          75         115         125
32.0  Land and structures...............           6           9           9
                                           ---------   ---------  ----------
99.9    Total new obligations...........          81         124         134
---------------------------------------------------------------------------

                                

                               Trust Funds

                     Miscellaneous Contributed Funds

                Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8214-0-7-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............
    Receipts:
02.20 Deposits of miscellaneous 
        contributed funds, Science and 
        Educati.........................          24          23          23
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          24          23          23
    Appropriations:
05.00 Miscellaneous contributed funds...         -24         -23         -23
                                           ---------   ---------  ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

[[Page 82]]



               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8214-0-7-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Miscellaneous contributed funds...          21          23          23
                                           ---------   ---------  ----------
10.00   Total new obligations...........          21          23          23
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          17          20          20
22.00 New budget authority (gross)......          24          23          23
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          41          43          43
23.95 Total new obligations.............         -21         -23         -23
24.40 Unobligated balance carried 
        forward, end of year............          20          20          20
    New budget authority (gross), detail:
      Mandatory:

60.26   Appropriation (trust fund)......          24          23          23
    Change in obligated balances:
72.40 Obligated balance, start of year..          12           8           7
73.10 Total new obligations.............          21          23          23
73.20 Total outlays (gross).............         -25         -24         -23
74.40 Obligated balance, end of year....           8           7           7
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          17          12          12
86.98 Outlays from mandatory balances...           8          12          11
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          25          24          23
    Net budget authority and outlays:
89.00 Budget authority..................          24          23          23
90.00 Outlays...........................          25          24          23
---------------------------------------------------------------------------

    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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................           6           6           6
12.1  Civilian personnel benefits.......           1           1           1
21.0  Travel and transportation of 
        persons.........................           1           1           1
25.2  Other services....................           7           7           7
25.5  Research and development contracts           2           3           3
26.0  Supplies and materials............           3           4           4
31.0  Equipment.........................           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          21          23          23
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-8214-0-7-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         114         114         114
---------------------------------------------------------------------------

                                


 
      COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION SERVICE

                              Federal Funds

General and special funds:

                          Integrated Activities

    For the integrated research, education, and extension grants 
programs, including necessary administrative expenses, [$50,493,000] 
$76,865,000, as follows: for competitive grants programs authorized 
under section 406 of the Agricultural Research, Extension, and Education 
Reform Act of 1998 (7 U.S.C. 7626), [$39,793,000] $41,852,000, including 
[$11,598,000] $12,971,000 for the water quality program, [$13,384,000] 
$14,967,000 for the food safety program, [$4,052,000] $4,531,000 for the 
regional pest management centers program, [$4,371,000] $4,889,000 for 
the Food Quality Protection Act risk mitigation program for major food 
crop systems, [$1,338,000] $1,497,000 for the crops affected by Food 
Quality Protection Act implementation, [$3,150,000] $2,498,000 for the 
methyl bromide transition program, and [$1,900,000] $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 (7 
U.S.C. 3292b), to remain available until expended, [$900,000] 
$1,000,000; for grants programs authorized under section 2(c)(1)(B) of 
Public Law 89-106, as amended, [$1,800,000] $4,013,000, including 
[$447,000] $2,500,000, to remain available until September 30, [2005] 
2006 for the critical issues program, and [$1,353,000] $1,513,000 for 
the regional rural development centers program; and [$8,000,000] 
$30,000,000 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] 2006. (7 U.S.C. 
450i(c)(1)(B), 3292b, 3351, 7626; Division A, H.R. 2673, Consolidated 
Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1502-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.20   Water quality...................          13          12          13
00.30   Food safety.....................          15          13          15
00.40   Regional pest management centers           5           4           4
00.50   Crops at risk from Food Quality 
          Protection Act implementation.           1           1           1
00.60   Food Quality Protection Act risk 
          mitigation program............           4           4           5
00.70   Methyl bromide transition 
          program.......................           3           3           3
00.71   Homeland Security...............                       8          30
00.86   International science and 
          education grants..............                       1           1
00.87   Rural development centers.......           1           1           2
00.88   Organic transition..............           2           2           1
00.89   Critical issues--plant and 
          animal diseases...............           1           1           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........          46          50          77
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          46          50          77
23.95 Total new obligations.............         -46         -50         -77
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          47          50          77
40.35   Appropriation permanently 
          reduced.......................          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          46          50          77
    Change in obligated balances:
72.40 Obligated balance, start of year..          97         108         119
73.10 Total new obligations.............          46          50          77
73.20 Total outlays (gross).............         -31         -39         -62
73.40 Adjustments in expired accounts 
        (net)...........................          -4
74.40 Obligated balance, end of year....         108         119         134
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           2           6          17
86.93 Outlays from discretionary 
        balances........................          29          33          45
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          31          39          62
    Net budget authority and outlays:
89.00 Budget authority..................          46          50          77
90.00 Outlays...........................          31          39          62
---------------------------------------------------------------------------

    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 pes

[[Page 83]]

ticides that significantly benefit U.S. food production without causing 
adverse effects on the environment.

    Crops at risk from FQPA implementation.--Funding will support the 
development of multi-tactic IPM strategies. Grant opportunities will be 
available to colleges and universities.

    FQPA Risk mitigation program for major food crop systems.--Funds are 
proposed to support a program to address risk mitigation that will have 
a food production system focus, integrating food safety and water 
quality considerations as impacted by FQPA. Emphasis will be placed on 
development and implementation of new innovative pest management systems 
designed to maintain crop productivity and profitability while meeting 
or exceeding environmental quality and human health standards.

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

    Organic transition program.--This program supports the development 
and implementation of biologically based pest management practices that 
mitigate the ecological, agronomic, and economic risks associated with 
the transition from conventional to organic agricultural production 
systems.

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

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

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

    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. The FY 2005 budget includes an increase to enhance agricultural 
defense.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1502-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................           1           1           1
41.0  Grants, subsidies, and 
        contributions...................          45          49          76
                                           ---------   ---------  ----------
99.9    Total new obligations...........          46          50          77
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1502-0-1-352      2003 actual   2004 est.   2005 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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                                 120
22.00 New budget authority (gross)......                     120        -120
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                     120
24.40 Unobligated balance carried 
        forward, end of year............                     120
    New budget authority (gross), detail:
      Discretionary:

40.35   Appropriation permanently 
          reduced.......................                                -140
40.36   Unobligated balance permanently 
          reduced.......................                                -120
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............                                -260
      Mandatory:

62.00   Transferred from other accounts.                     120         140
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................                     120        -120
    Change in obligated balances:
72.40 Obligated balance, start of year..         172         113          47
73.20 Total outlays (gross).............         -59         -66         -41
74.40 Obligated balance, end of year....         113          47           6
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                 -13
86.97 Outlays from new mandatory 
        authority.......................                                   7
86.98 Outlays from mandatory balances...          59          66          47
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          59          66          41
    Net budget authority and outlays:
89.00 Budget authority..................                     120        -120
90.00 Outlays...........................          59          66          41
---------------------------------------------------------------------------

    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 and $140 million in 2005. 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 and 
2004 budgets include language that would block implementation of the 
program during 2003 and 2004. This action is continued in the FY 2005 
budget. The FY 2005 budget proposes to cancel FY 2004 and FY 2005 
funding because adequate funding for similar research is proposed 
through other USDA research programs.

                                

                    Research and Education Activities

    For payments to agricultural experiment stations, for cooperative 
forestry and other research, for facilities, and for other expenses, 
[$621,447,000] $501,540,000, as follows: to carry out the provisions of 
the Hatch Act of 1887 (7 U.S.C. 361a-i), $180,148,000; for grants for 
cooperative forestry research (16 U.S.C. 582a through a-7), $21,884,000; 
for payments to the 1890 land-grant colleges, including Tuskegee 
University and West Virginia State College (7 U.S.C. 3222), $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 (7 U.S.C. 450i(c)), 
[$111,312,000] $3,341,000; for special grants for agricultural research 
on improved pest control (7 U.S.C. 450i(c)), [$13,675,000] $15,006,000; 
for competitive research grants (7 U.S.C. 450i(b)), [$165,000,000] 
$180,000,000; for the support of animal health and disease programs (7 
U.S.C. 3195), [$4,559,000; for supplemental and alternative crops and 
products (7 U.S.C. 3319d), $1,069,000; for grants for research pursuant 
to the Critical Agricultural Materials Act (7 U.S.C. 178 et seq.), 
$1,118,000, to remain available until expended] $5,098,000; for the 1994 
research grants program for 1994 institutions pursuant to section 536 of 
Public Law 103-382 (7 U.S.C. 301 note), [$1,093,000] $998,000, to remain 
available until expended; [for rangeland research grants (7 U.S.C. 
3333), $900,000]; for higher education graduate fellowship grants (7 
U.S.C. 3152(b)(6)), [$2,900,000] $4,500,000, to remain available until 
expended (7 U.S.C. 2209b); for higher education challenge grants (7 
U.S.C. 3152(b)(1)), [$4,888,000] $5,500,000; for a higher education 
multicultural scholars program (7 U.S.C. 3152(b)(5)), [$992,000] 
$998,000, to remain available until expended (7 U.S.C. 2209b); for a 
higher education agrosecurity education program (7 U.S.C. 3351), 
$5,000,000, to remain available until expended; for an education grants 
program for Hispanic-serving Institutions (7 U.S.C. 3241), [$4,673,000] 
$4,645,000; for noncompetitive grants for the purpose of carrying out 
all provisions of 7 U.S.C. 3242 (section 759 of Public Law 106-78) to 
individual eligible institutions or consortia of eligible institutions 
in Alaska and in Hawaii, with funds awarded equally to each of the 
States of Alaska and Hawaii, [$3,150,000] $2,997,000; for a secondary 
agriculture education program and 2-year post-secondary education (7

[[Page 84]]

U.S.C. 3152(j)), [$895,000] $1,000,000; for aquaculture grants (7 U.S.C. 
3322), [$4,024,000] $3,996,000; for sustainable agriculture research and 
education (7 U.S.C. 5811), [$12,295,000] $9,230,000; for a program of 
capacity building grants (7 U.S.C. 3152(b)(4)) to colleges eligible to 
receive funds under the Act of August 30, 1890 (7 U.S.C. 321-326 and 
328), including Tuskegee University and West Virginia State College, 
[$11,479,000] $11,411,000, to remain available until expended (7 U.S.C. 
2209b); for payments to the 1994 Institutions pursuant to section 
534(a)(1) of Public Law 103-382, [$1,689,000] $2,250,000; and for 
necessary expenses of Research and Education Activities, [$37,704,000] 
$7,538,000.
    None of the funds appropriated under this heading 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-i, 450i(b)-(c), 
2209b, 3152(b)(1) and (4)-(6), 3152(j), 3195, 3222, 3241, 3322, 3351, 
5811; 16 U.S.C. 582-a7; Division A, H.R. 2673, Consolidated 
Appropriations Bill, FY 2004.)

               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] $12,000,000. 
(Division A, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

                Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1500-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............          39          46          55
    Receipts:
02.40 Federal payment, Native American 
        institutions endowment fund.....           7           9          12
02.41 Earnings on investments, Native 
        American institutions endowment.           2           3           3
                                           ---------   ---------  ----------
02.99   Total receipts and collections..           9          12          15
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          48          58          70
    Appropriations:
05.00 Research and education activities.          -2          -3          -3
                                           ---------   ---------  ----------
07.99 Balance, end of year..............          46          55          67
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1500-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Payments under the Hatch Act....         179         179         180
00.02   Cooperative forestry research...          22          22          22
00.03   Payments to 1890 colleges and 
          Tuskegee Univ. and West 
          Virginia State College........          35          36          36
00.04   Special research grants.........         149         145          32
00.05   National research initiative 
          competitive grants............         121         209         180
00.06   Animal health and disease 
          research......................           5           5           5
00.07   Federal administration..........          30          37           8
00.08   Higher education................          28          33          38
00.09   Native American Institutions 
          Endowment Fund................           9          11          15
09.00 Reimbursable program..............          13          16          16
                                           ---------   ---------  ----------
10.00   Total new obligations...........         591         693         532
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          92         140          92
22.00 New budget authority (gross)......         639         645         532
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         731         785         624
23.95 Total new obligations.............        -591        -693        -532
24.40 Unobligated balance carried 
        forward, end of year............         140          92          92
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         628         630         513
40.20   Appropriation (special fund)....           2           3           3
40.35   Appropriation permanently 
          reduced.......................          -4          -4
41.00   Transferred to other accounts...          -3
42.00   Transferred from other accounts.           3
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         626         629         516
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...                      16          16
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          13
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          13          16          16
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         639         645         532
    Change in obligated balances:
72.40 Obligated balance, start of year..         537         565         701
73.10 Total new obligations.............         591         693         532
73.20 Total outlays (gross).............        -546        -557        -527
73.40 Adjustments in expired accounts 
        (net)...........................          -9
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -13
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................           4
74.40 Obligated balance, end of year....         565         701         707
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         207         338         281
86.93 Outlays from discretionary 
        balances........................         334         217         246
86.98 Outlays from mandatory balances...           5           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         546         557         527
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -13         -16         -16
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -13
88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............          13
    Net budget authority and outlays:
89.00 Budget authority..................         626         629         516
90.00 Outlays...........................         533         541         511
    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...          30          41
92.02 Total investments, end of year: 
        Federal securities: Par value...          41
---------------------------------------------------------------------------

    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

[[Page 85]]

the growing need for registration of safe pesticides and drugs for minor 
crops and animals and lead to reduced levels of chemical and drug 
residues in food products by half. These pest management programs will 
be coordinated to address Food Quality and Protection Act issues. The 
IR-4 and IPM programs are contained under improved pest control funding. 
Improved pest control also includes Pest Management Alternatives, and 
Expert IPM Decision Support System Programs. A grant program for global 
change is proposed for research at universities as part of a coordinated 
Federal initiative. Funding is also proposed for the National Biological 
Impact Assessment Program, and aquaculture centers. The 2005 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-one 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. Funding is proposed in the 2005 budget for 
a Higher Education Agrosecurity Program to provide educational and 
professional development for personnel in securing the Nation's 
agriculture and food supply.

    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 2005 budget 
includes an increase for the endowment fund.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1500-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................          14          16          17
12.1    Civilian personnel benefits.....           5           6           7
21.0    Travel and transportation of 
          persons.......................           2           1           1
25.1    Advisory and assistance services                       1           1
25.2    Other services..................           2           2           2
25.4    Operation and maintenance of 
          facilities....................           1           1           1
25.5    Research and development 
          contracts.....................           2           2           2
25.8    Subsistence and support of 
          persons.......................           1           1           1
26.0    Supplies and materials..........           1           1           1
31.0    Equipment.......................           1           1           1
41.0    Grants, subsidies, and 
          contributions.................         549         645         482
                                           ---------   ---------  ----------
99.0      Direct obligations............         578         677         516
99.0  Reimbursable obligations..........          13          16          16
                                           ---------   ---------  ----------
99.9    Total new obligations...........         591         693         532
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1500-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         192         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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........          -3
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          -3
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           3           5           3
22.00 New budget authority (gross)......          -1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           2           5           3
23.95 Total new obligations.............           3
24.40 Unobligated balance carried 
        forward, end of year............           5           3           3
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          -1
    Change in obligated balances:
72.40 Obligated balance, start of year..          17           4           4
73.10 Total new obligations.............          -3
73.20 Total outlays (gross).............         -10
74.40 Obligated balance, end of year....           4           4           4
    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................          10
    Net budget authority and outlays:
89.00 Budget authority..................          -1

[[Page 86]]

90.00 Outlays...........................          10
---------------------------------------------------------------------------

    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 2005.

                                

                          Extension Activities

    For payments to States, the District of Columbia, Puerto Rico, Guam, 
the Virgin Islands, Micronesia, Northern Marianas, and American Samoa, 
[$441,731,000] $421,174,000, 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, [$279,390,000] $275,940,000; payments for extension 
work at the 1994 Institutions under the Smith-Lever Act (7 U.S.C. 
343(b)(3)), [$2,946,000] $3,273,000; payments for the nutrition and 
family education program for low-income areas under section 3(d) of the 
Act, [$52,366,000] $57,909,000; payments for the pest management program 
under section 3(d) of the Act, [$9,620,000; payments for the farm safety 
program under section 3(d) of the Act, $4,940,000] $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 (7 
U.S.C. 3222b), [$15,000,000] $14,912,000, to remain available until 
expended; payments for youth-at-risk programs under section 3(d) of the 
Smith-Lever Act, [$7,583,000] $8,481,000; for youth farm safety 
education and certification extension grants, to be awarded 
competitively under section 3(d) of the Act, [$446,000] $499,000; 
payments for carrying out the provisions of the Renewable Resources 
Extension Act of 1978 (16 U.S.C. 1671 et seq.), [$4,064,000] $4,093,000; 
payments for Indian reservation agents under section 3(d) of the Smith-
Lever Act, [$1,785,000] $1,996,000; payments for sustainable agriculture 
programs under section 3(d) of the Act, [$4,359,000; payments for rural 
health and safety education as authorized by section 502(i) of Public 
Law 92-419 (7 U.S.C. 2662(i)), $2,345,000] $3,792,000; payments for 
cooperative extension work by the colleges receiving the benefits of the 
second Morrill Act (7 U.S.C. 321-326 and 328) and Tuskegee University 
and West Virginia State College, [$31,908,000] $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; [for grants to 
youth organizations pursuant to section 7630 of title 7, United States 
Code, $2,683,000;] and for necessary expenses of Extension Activities, 
[$22,296,000] $7,403,000. (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; Division A, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0502-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Smith-Lever Act, 3(b) and 3(c)..         279         278         276
00.02   Youth at risk...................           8           7           8
00.04   Expanded food and nutrition 
          education program (EFNEP).....          58          52          58
00.05   Pest management.................          11           9          11
00.06   Farm Safety.....................                       5
00.09   Indian reservation extension 
          agents........................           2           2           2
00.13   Payments to 1890 colleges and 
          Tuskegee Univ. and West 
          Virginia State College........          32          32          32
00.15   Renewable resources extension 
          act...........................           5           4           4
00.16   Federal administration..........          21          22           7
00.19   1890 facilities (section 1447)..          29          15          15
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   Rural Health and Safety 
          Education.....................           3           2
00.25   Grants to Youth Serving 
          Organizations.................           3           3
00.26   Risk Management Education.......           5
09.00 Reimbursable program..............          25          25          25
                                           ---------   ---------  ----------
10.00   Total new obligations...........         490         464         446
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          15           6           6
22.00 New budget authority (gross)......         481         464         446
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         496         470         452
23.95 Total new obligations.............        -490        -464        -446
24.40 Unobligated balance carried 
        forward, end of year............           6           6           6
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         453         442         421
40.35   Appropriation permanently 
          reduced.......................          -3          -3
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         450         439         421
      Mandatory:

62.00   Transferred from other accounts.           6
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................           6
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).           1          25          25
68.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........          24
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....          25          25          25
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         481         464         446
    Change in obligated balances:
72.40 Obligated balance, start of year..         202         294         307
73.10 Total new obligations.............         490         464         446
73.20 Total outlays (gross).............        -442        -451        -448
73.40 Adjustments in expired accounts 
        (net)...........................          24
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -24
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................          44
74.40 Obligated balance, end of year....         294         307         307
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         272         288         278
86.93 Outlays from discretionary 
        balances........................         169         163         170
86.98 Outlays from mandatory balances...           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         442         451         448
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -23         -25         -25
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -24
88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............          22
    Net budget authority and outlays:
89.00 Budget authority..................         456         439         421
90.00 Outlays...........................         418         426         423
---------------------------------------------------------------------------

    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.

[[Page 87]]

    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 2005 funding has been requested for the Expanded Food and 
Nutrition Education Program, pest management, children, youth and 
families at risk, a youth farm safety education and certification pilot 
project, extension services on Indian reservations, sustainable 
agriculture, and 1994 (Native American) institutions.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0502-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................           9          10          10
12.1    Civilian personnel benefits.....           2           2           1
21.0    Travel and transportation of 
          persons.......................           1           1           1
23.3    Communications, utilities, and 
          miscellaneous charges.........          12           1           1
25.2    Other services..................           1           1           1
25.4    Operation and maintenance of 
          facilities....................           1           1           1
25.5    Research and development 
          contracts.....................           1           1           1
41.0    Grants, subsidies, and 
          contributions.................         438         422         405
                                           ---------   ---------  ----------
99.0      Direct obligations............         465         439         421
99.0  Reimbursable obligations..........          25          25          25
                                           ---------   ---------  ----------
99.9    Total new obligations...........         490         464         446
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0502-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         193         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), 
[$5,970,000] $5,935,000, to remain available until expended. (Division 
A, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0601-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.10 Direct Program Activity...........           7           6           6
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................           7           6           6
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           4
22.00 New budget authority (gross)......           3           6           6
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           7           6           6
23.95 Total new obligations.............          -7          -6          -6
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................           3           6           6
    Change in obligated balances:
72.40 Obligated balance, start of year..           2           7           3
73.10 Total new obligations.............           7           6           6
73.20 Total outlays (gross).............          -2         -10          -9
74.40 Obligated balance, end of year....           7           3
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           2           6           6
86.93 Outlays from discretionary 
        balances........................                       4           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           2          10           9
    Net budget authority and outlays:
89.00 Budget authority..................           3           6           6
90.00 Outlays...........................           1          10           9
---------------------------------------------------------------------------

    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      2003 actual   2004 est.   2005 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, [$720,580,000] $828,361,000, of which 
[$4,112,000] $4,119,000 shall be available for the control of outbreaks 
of insects, plant diseases, animal diseases and for control of pest 
animals and birds to the extent necessary to meet emergency conditions; 
of which [$51,000,000] $17,322,000 shall be used for the boll weevil 
eradication program for cost share purposes or for debt retirement for 
active eradication zones: Provided, That no funds shall be used to 
formulate or administer a brucellosis eradication program for the 
current fiscal year that does not require minimum matching by the States 
of at least 40 percent: Provided further, That this appropriation shall 
be available for the operation and maintenance of aircraft and the 
purchase of not to exceed four, of which two shall be for replacement 
only: Provided further, That, in addition, [in emergencies] for sudden, 
urgent, and unforeseen circumstances which threaten any segment of the 
agricultural production industry of this country, the Secretary may 
transfer from other appropriations or funds available to the agencies or 
corporations of the Department such sums as may be deemed necessary, to 
be available only in such emergencies for the arrest and eradication of 
contagious or infectious disease or pests of animals, poultry, or 
plants, and for expenses in accordance with sections 10411 and 10417 of 
the Animal Health Protection Act (7 U.S.C. 8310 and 8316) and sections 
431 and 442 of the Plant Protection Act (7 U.S.C. 7751 and 7772), and 
any unexpended balances of funds transferred for such emergency purposes 
in the preceding fiscal year shall be merged with such transferred 
amounts: Provided further, That appropriations hereunder shall be 
available pursuant to law (7 U.S.C. 2250) for the repair and alteration 
of leased buildings and improvements, but unless otherwise provided the 
cost of altering any one building during the fiscal year shall

[[Page 88]]

not exceed 10 percent of the current replacement value of the building.
    In fiscal year [2004] 2005, 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. (Division A, H.R. 2673, Consolidated Appropriations Bill, FY 
2004.)

                Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1600-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............         185         143          76
    Receipts:
02.00 1990 food, agricultural quarantine 
        inspection fees.................         231         260         274
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...         416         403         350
    Appropriations:
05.00 Salaries and expenses.............        -273        -327        -344
                                           ---------   ---------  ----------
07.99 Balance, end of year..............         143          76           6
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1600-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Pest and disease exclusion......         351         285         313
00.02   Plant and animal health 
          monitoring....................         134         138         219
00.03   Pest and disease management 
          programs......................         315         331         316
00.04   Animal care.....................          17          17          17
00.05   Scientific and technical 
          services......................          61          70          87
00.06   Contingencies...................           3           4           4
00.07   Emergency program funding.......         411         174          40
00.08   Information Technology 
          Infrastructure................           4           4           5
00.09   Supplemental Appropriations.....          60           6
00.10   Physical/Operational Security...                                   7
                                           ---------   ---------  ----------
01.00   Total direct program............       1,356       1,029       1,008
09.01 Reimbursable program..............          79          82          83
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,435       1,111       1,091
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         408         283         103
22.00 New budget authority (gross)......       1,269         931       1,051
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          41
22.21 Unobligated balance transferred to 
        other accounts..................          -1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,717       1,214       1,154
23.95 Total new obligations.............      -1,435      -1,111      -1,091
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
24.40 Unobligated balance carried 
        forward, end of year............         283         103          63
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         688         721         828
40.35   Appropriation permanently 
          reduced.......................          -5          -5
41.00   Transferred to other accounts...        -143
42.00   Transferred from other accounts.         521
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       1,061         716         828
      Mandatory:

60.20   Appropriation (special fund)....         273         327         344
61.00   Transferred to other accounts...        -154        -194        -204
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................         119         133         140
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).          74          82          83
68.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........          15
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....          89          82          83
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,269         931       1,051
    Change in obligated balances:
72.40 Obligated balance, start of year..         156         403         221
73.10 Total new obligations.............       1,435       1,111       1,091
73.20 Total outlays (gross).............      -1,153      -1,293      -1,126
73.40 Adjustments in expired accounts 
        (net)...........................          -1
73.45 Recoveries of prior year 
        obligations.....................         -41
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -15
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................          22
74.40 Obligated balance, end of year....         403         221         186
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         872         691         787
86.93 Outlays from discretionary 
        balances........................         145         470         199
86.97 Outlays from new mandatory 
        authority.......................         101         126         133
86.98 Outlays from mandatory balances...          35           6           7
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,153       1,293       1,126
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -89         -82         -83
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -15
88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............          15
    Net budget authority and outlays:
89.00 Budget authority..................       1,180         849         968
90.00 Outlays...........................       1,064       1,211       1,043
---------------------------------------------------------------------------

    The major objectives of the Animal and Plant Health Inspection 
Service (APHIS) are to protect the health and value of American 
agriculture and natural resources against a variety of threats. To 
achieve this mission, APHIS has developed a protection system that is 
based on a strategic premise that safeguarding the health of animals, 
plants, and ecosystems makes possible safe agricultural trade and 
reduces losses to agricultural and natural resources. 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 2005 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. The FY 2005 budget 
includes significant increases in monitoring programs to enhance 
agricultural defense. The request includes approximately $36 million in 
these programs to respond to the recent discovery of a BSE-positive cow.

    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

[[Page 89]]

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 2005 budget includes increases related to 
diseases such as citrus canker, emerald ash borer, low pathogenic avian 
influenza, scrapie and tuberculosis.

    Animal care.--The Agency conducts regulatory activities which ensure 
the humane care and handling of animals used in research, exhibition, or 
the wholesale pet trade. The Agency is also responsible for 
administering the Horse Protection Act, which prohibits the showing, 
selling, or exhibition of sore horses.

    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 FY 2005 budget 
includes funding to enhance agricultural defense and for biotech 
regulatory services.

    The 2005 budget also 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.

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2003 actual  2004 est.   2005 est.
Enacted/requested:
  Budget Authority..................       1,178         849         968
  Outlays...........................       1,062       1,211       1,043
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                 -11
  Outlays...........................                                 -11
                                    ------------------------------------
Total:
  Budget Authority..................       1,178         849         957
  Outlays...........................       1,062       1,211       1,032
                                    ====================================

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1600-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         337         209         290
11.3      Other than full-time permanent           5           5           2
11.5      Other personnel compensation..          28          28          36
                                           ---------   ---------  ----------
11.9        Total personnel compensation         370         242         328
12.1    Civilian personnel benefits.....          81          86          98
13.0    Benefits for former personnel...           1           1           1
21.0    Travel and transportation of 
          persons.......................          40          42          29
22.0    Transportation of things........           8           8           8
23.1    Rental payments to GSA..........           7           3           3
23.2    Rental payments to others.......           9          10           7
23.3    Communications, utilities, and 
          miscellaneous charges.........          19          20          17
24.0    Printing and reproduction.......           2           2           1
25.2    Other services..................         500         308         294
26.0    Supplies and materials..........          83          81          69
31.0    Equipment.......................          59          48          46
32.0    Land and structures.............           1           1           1
41.0    United States-Colombia 
          Commission to Prevent Foot-
          and-Mouth Disease.............           2           1           1
41.0    Joint Screwworm eradication 
          programs......................          13           9           9
41.0    Joint Commission on the 
          Mediterranean Fruit Fly.......          17           6           6
41.0    Other grants, subsidies, and 
          contributions.................          40          56          42
42.0    Other insurance claims and 
          indemnities...................         104         105          48
                                           ---------   ---------  ----------
99.0      Direct obligations............       1,356       1,029       1,008
99.0  Reimbursable obligations..........          79          82          83
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,435       1,111       1,091
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1600-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       6,517       5,334       5,551
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         795         822         833
---------------------------------------------------------------------------

                                

                          Salaries and Expenses

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1600-2-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.04   Animal care.....................                                 -11
                                           ---------   ---------  ----------
01.00   Total direct program............                                 -11
09.01 Reimbursable program..............                                  11
                                           ---------   ---------  ----------
10.00   Total new obligations...........
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                                 -11
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............                                  11
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................
    Change in obligated balances:
73.10 Total new obligations.............
    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....                                 -11
    Net budget authority and outlays:
89.00 Budget authority..................                                 -11
90.00 Outlays...........................                                 -11
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1600-2-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........                                  -5
11.3      Other than full-time permanent                                  -4
11.5      Other personnel compensation..                                  -2
                                           ---------   ---------  ----------
11.9        Total personnel compensation                                 -11
99.0  Reimbursable obligations: 
        Reimbursable obligations........                                  11
                                           ---------   ---------  ----------
99.9    Total new obligations...........
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1600-2-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................                                -107

[[Page 90]]

    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................                                 107
---------------------------------------------------------------------------

                                

                        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. (Division A, H.R. 2673, Consolidated 
Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1601-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........           2          15          15
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.2)...................           2          15          15
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          12          20          10
22.00 New budget authority (gross)......          10           5           5
22.22 Unobligated balance transferred 
        from other accounts.............           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          23          25          15
23.95 Total new obligations.............          -2         -15         -15
24.40 Unobligated balance carried 
        forward, end of year............          20          10
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          10           5           5
    Change in obligated balances:
72.40 Obligated balance, start of year..          16           5          16
73.10 Total new obligations.............           2          15          15
73.20 Total outlays (gross).............         -13          -4         -15
74.40 Obligated balance, end of year....           5          16          16
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           6           1           1
86.93 Outlays from discretionary 
        balances........................           7           3          14
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          13           4          15
    Net budget authority and outlays:
89.00 Budget authority..................          10           5           5
90.00 Outlays...........................          13           4          15
---------------------------------------------------------------------------

    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 2005 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 Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9971-0-7-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............
    Receipts:
02.20 Deposits of miscellaneous 
        contributed funds, APHIS........          15          14          14
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...          15          14          14
    Appropriations:
05.00 Miscellaneous trust funds.........         -15         -14         -14
                                           ---------   ---------  ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9971-0-7-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........          14          14          14
                                           ---------   ---------  ----------
10.00   Total new obligations...........          14          14          14
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           8          10           8
22.00 New budget authority (gross)......          15          14          14
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          24          24          22
23.95 Total new obligations.............         -14         -14         -14
24.40 Unobligated balance carried 
        forward, end of year............          10           8           8
    New budget authority (gross), detail:
      Mandatory:

60.26   Appropriation (trust fund)......          15          14          14
    Change in obligated balances:
72.40 Obligated balance, start of year..           2           2           2
73.10 Total new obligations.............          14          14          14
73.20 Total outlays (gross).............         -14         -13         -13
73.45 Recoveries of prior year 
        obligations.....................          -1
74.40 Obligated balance, end of year....           2           2           2
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           9           8           8
86.98 Outlays from mandatory balances...           5           5           5
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          14          13          13
    Net budget authority and outlays:
89.00 Budget authority..................          15          14          14
90.00 Outlays...........................          14          13          13
---------------------------------------------------------------------------

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

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

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9971-0-7-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............           5           5           5
11.3    Other than full-time permanent..           1
11.5    Other personnel compensation....           1           1           1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..           7           6           6
12.1  Civilian personnel benefits.......           2           3           3
21.0  Travel and transportation of 
        persons.........................           2           2           2
25.2  Other services....................           1           1           1
26.0  Supplies and materials............           1           1           1
31.0  Equipment.........................           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          14          14          14
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9971-0-7-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         150         150         150
---------------------------------------------------------------------------

[[Page 91]]



                                


 
                   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), [$784,511,000] 
$838,660,000, of which no less than [$701,823,000] $758,702,000 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. 138f): 
Provided, [That no fewer than 50 full time equivalent positions above 
the fiscal year 2002 level shall be employed during fiscal year 2004 for 
purposes dedicated solely to inspections and enforcement related to the 
Humane Methods of Slaughter Act: 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; Division A, 
H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3700-0-1-554      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................         756         792         836
09.01 Reimbursable program..............         103         108         110
                                           ---------   ---------  ----------
10.00   Total new obligations...........         859         900         946
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          29          27          10
22.00 New budget authority (gross)......         863         883         949
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         892         910         959
23.95 Total new obligations.............        -859        -900        -946
23.98 Unobligated balance expiring or 
        withdrawn.......................          -6
24.40 Unobligated balance carried 
        forward, end of year............          27          10          13
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         760         785         839
40.35   Appropriation permanently 
          reduced.......................          -5          -5
40.36   Unobligated balance permanently 
          reduced.......................                      -5
41.00   Transferred to other accounts...          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         754         775         839
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...          89         108         110
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          20
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......         109         108         110
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         863         883         949
    Change in obligated balances:
72.40 Obligated balance, start of year..          73          88         104
73.10 Total new obligations.............         859         900         946
73.20 Total outlays (gross).............        -838        -884        -947
73.40 Adjustments in expired accounts 
        (net)...........................          -5
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -20
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................          19
74.40 Obligated balance, end of year....          88         104         103
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         792         854         918
86.93 Outlays from discretionary 
        balances........................          46          30          29
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         838         884         947
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -2
88.40     Non-Federal sources...........        -104        -108        -110
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -106        -108        -110
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -20
88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............          17
    Net budget authority and outlays:
89.00 Budget authority..................         754         775         839
90.00 Outlays...........................         731         776         837
---------------------------------------------------------------------------

    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 2005 budget proposes a $59 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: food and agriculture defense and workforce training.

    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

                                     2003 actual  2004 est.   2005 est.
Federally inspected establishments:
  Slaughter plants..................         133         128         125
  Processing plants.................       4,180       4,165       4,157
  Combination slaughter and 
    processing plants...............         954         975         960
  Talmadge-Aiken plants.............         359         365         360
  Import establishments.............         115         115         115
  Egg plants........................          72          72          70
  Other plants......................         620         610         608
Federally inspected and passed 
    production (millions of pounds):
  Meat slaughter....................      43,563      45,000      45,000
  Poultry slaughter.................      49,242      50,000      50,000
  Egg products......................       3,700       3,800       3,900
Import/export activity (millions of 
    pounds):
  Meat and poultry imported.........       3,773       3,750       3,750
  Meat and poultry exported.........      11,800      12,000      12,200
Inspection Review:
  Consumer safety officer 
    assessments.....................       2,000       2,500       3,000
  In-depth verification reviews.....          23          25          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)..................       2,100       2,100       2,100
  Pounds inspected slaughter 
    (millions)......................         500         500         500
Compliance activities:
  Corrective action reviews.........      29,000      30,000      30,000
  Corrective actions completed......         500         500         500
Product Testing (samples analyzed):
  Food chemistry....................       2,652       2,700       2,700
  Food microbiology.................      83,620      93,600     105,000
  Chemical residues.................      38,191      39,000      39,000
  Antibiotic residues...............     255,559     256,000     256,000
  Pathology samples.................       5,592       6,000       6,000
Egg Products:
  Food microbiology.................       1,720       1,700       1,700
  Chemical residues.................       1,860       1,900       1,900
Consumer Education and public 
    outreach:
  Meat and poultry hotline calls 
    received........................      86,000      86,500      87,000
  Website visits....................     982,000     983,000     984,000
  Electronic messages received......       7,000       7,100       7,200
  Publication subscriptions.........      17,400      17,500      17,600
Epidemiological Investigations:
  Cooperative efforts with State and 
    public health offices...........          30          32          34
  Illnesses reported and treated 
    b....................         583         580         570

[[Page 92]]

Field Automation and Information 
    Management Project:
  Number of computers to be provided 
    to federal field inspection 
    staff...........................         800         700         700
  Number of computers to be provided 
    to state field inspection staff.         100         100         100
    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.

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2003 actual  2004 est.   2005 est.
Enacted/requested:
  Budget Authority..................         754         775         839
  Outlays...........................         732         776         837
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                -124
  Outlays...........................                                -124
                                    ------------------------------------
Total:
  Budget Authority..................         754         775         715
  Outlays...........................         732         776         713
                                    ====================================

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3700-0-1-554      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         421         442         460
11.3      Other than full-time permanent          16          16          17
11.5      Other personnel compensation..          22          22          22
                                           ---------   ---------  ----------
11.9        Total personnel compensation         459         480         499
12.1    Civilian personnel benefits.....         141         148         159
13.0    Benefits for former personnel...           1           1           1
21.0    Travel and transportation of 
          persons.......................          28          28          34
22.0    Transportation of things........           5           6           6
23.1    Rental payments to GSA..........           1           1           1
23.2    Rental payments to others.......           1           1           2
23.3    Communications, utilities, and 
          miscellaneous charges.........           9           9           5
24.0    Printing and reproduction.......           1           1           1
25.2    Other services..................          14          18          28
25.3    Other purchases of goods and 
          services from Government 
          accounts......................          33          33          31
25.4    Operation and maintenance of 
          facilities....................           1           1           1
25.5    Research and development 
          contracts.....................                                   3
25.7    Operation and maintenance of 
          equipment.....................           1
26.0    Supplies and materials..........          11          11          13
31.0    Equipment.......................           7          10           4
41.0    Grants, subsidies, and 
          contributions.................          43          44          45
                                           ---------   ---------  ----------
99.0      Direct obligations............         756         792         833
99.0  Reimbursable obligations..........         102         108         110
99.5  Below reporting threshold.........           1                       3
                                           ---------   ---------  ----------
99.9    Total new obligations...........         859         900         946
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3700-0-1-554      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       9,208       9,557       9,629
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         243         243         243
---------------------------------------------------------------------------

                                

                          Salaries and Expenses

              (Legislative proposal, not subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3700-2-1-554      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................                                -124
09.01 Reimbursable program..............                                 124
                                           ---------   ---------  ----------
10.00   Total new obligations...........
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                                -124
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............                                 124
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................
    Change in obligated balances:
73.10 Total new obligations.............
    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....                                -124
    Net budget authority and outlays:
89.00 Budget authority..................                                -124
90.00 Outlays...........................                                -124
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3700-2-1-554      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........                                 -70
11.3      Other than full-time permanent                                  -3
11.5      Other personnel compensation..                                  -3
                                           ---------   ---------  ----------
11.9        Total personnel compensation                                 -76
12.1    Civilian personnel benefits.....                                 -21
21.0    Travel and transportation of 
          persons.......................                                  -5
23.3    Communications, utilities, and 
          miscellaneous charges.........                                  -2
25.2    Other services..................                                 -10
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............                                -124
99.0  Reimbursable obligations..........                                 124
                                           ---------   ---------  ----------
99.9    Total new obligations...........
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3700-2-1-554      2003 actual   2004 est.   2005 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 Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8137-0-7-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............
    Receipts:
02.20 Deposits of fees, Inspection and 
        grading of farm products, Food..           4           3           3
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...           4           3           3
    Appropriations:
05.00 Expenses and refunds, inspection 
        and grading of farm products....          -4          -3          -3
                                           ---------   ---------  ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

[[Page 93]]



               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8137-0-7-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........           3           3           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........           3           3           3
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           1           2           2
22.00 New budget authority (gross)......           4           3           3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           5           5           5
23.95 Total new obligations.............          -3          -3          -3
24.40 Unobligated balance carried 
        forward, end of year............           2           2           2
    New budget authority (gross), detail:
      Mandatory:

60.26   Appropriation (trust fund)......           4           3           3
    Change in obligated balances:
72.40 Obligated balance, start of year..           1           1           1
73.10 Total new obligations.............           3           3           3
73.20 Total outlays (gross).............          -3          -3          -3
74.40 Obligated balance, end of year....           1           1           1
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           3           3           3
    Net budget authority and outlays:
89.00 Budget authority..................           4           3           3
90.00 Outlays...........................           3           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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............           1           1           1
11.5    Other personnel compensation....           1           1           1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..           2           2           2
12.1  Civilian personnel benefits.......           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........           3           3           3
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-8137-0-7-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          28          28          28
---------------------------------------------------------------------------

                                


 
         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, [$35,890,000] $44,150,000: 
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; Division 
A, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2400-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Standardization...................           4           4           6
00.02 Compliance........................           5           6           7
00.03 Methods development...............           5           7           7
00.04 Packers and stockyards program....          19          23          24
                                           ---------   ---------  ----------
10.00   Total new obligations...........          33          40          44
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                       4
22.00 New budget authority (gross)......          38          36          44
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          38          40          44
23.95 Total new obligations.............         -33         -40         -44
24.40 Unobligated balance carried 
        forward, end of year............           4
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          40          36          44
41.00   Transferred to other accounts...          -2
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          38          36          44
    Change in obligated balances:
72.40 Obligated balance, start of year..           5           6           6
73.10 Total new obligations.............          33          40          44
73.20 Total outlays (gross).............         -32         -40         -43
74.40 Obligated balance, end of year....           6           6           7
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          27          30          37
86.93 Outlays from discretionary 
        balances........................           5          10           6
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          32          40          43
    Net budget authority and outlays:
89.00 Budget authority..................          38          36          44
90.00 Outlays...........................          32          40          43
---------------------------------------------------------------------------

    The Grain Inspection, Packers and Stockyards Administration (GIPSA) 
establishes official United States standards for grain, promotes the 
uniform application thereof by official inspection personnel, provides 
for an official inspection system for grain, and regulates the weighing 
and certification of the weight of grain shipped in interstate or 
foreign commerce as authorized by the U.S. Grain Standards Act (USGSA), 
as amended, and the regulations thereof, and the Agricultural Marketing 
Act of 1946 (AMA).

    Standardization activities include establishing and updating U.S. 
grain standards, research, and developing and improving methods to 
ensure the accurate and uniform application of the standards.

    The compliance activities ensure the accurate and uniform 
application of the USGSA and applicable provisions of the AMA. The 
compliance program functions include: (1) evaluating alleged violations 
and initiating preliminary investigations; (2) initiating the 
implementation of corrective actions; (3) conducting management and 
technical reviews; (4) administering the designations and delegations of 
State and private agencies to perform official functions and monitoring 
the performance of the agencies; (5) identifying and, where appropriate, 
waiving and monitoring conflicts of interest; (6) licensing personnel of 
delegated States and designated agencies; (7) registering persons/firms 
engaged in the business of buying grain for sale in foreign commerce, 
and in the business of handling, weighing, or transporting of grain for 
sale in foreign commerce; (8) responding to audits of Grain Inspection 
programs; and (9) reviewing and, when appropriate, approving official 
agencies' fee schedules.

    The Office of International Affairs briefs foreign buyers, assesses 
foreign inspection and weighing techniques, and responds to foreign 
quality and quantity complaints.

    An advisory committee consisting of members from the grain industry 
exists to advise the Agency regarding efficient and economical 
implementation of the USGSA.

    The Grain Quality Improvement Act of 1986 was enacted on November 
10, 1986, to improve the quality of U.S. grain

[[Page 94]]

by prohibiting the introduction and reintroduction of dockage and 
foreign material to grain.

    For 2005, 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

                                     2003 actual  2004 est.   2005 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.....         103          76          18
On-site investigations..............           1           5           5
Designations renewed................          18          19          19
Registration certificates issued....          92          90          90
Investigations......................       1,742       1,550       1,550
Market agencies/dealers registered..       5,827       5,800       5,775
Stockyards posted...................       1,429       1,425       1,420
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.................................         202         202         202

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2003 actual  2004 est.   2005 est.
Enacted/requested:
  Budget Authority..................          38          36          44
  Outlays...........................          32          40          43
Legislative proposal, not subject to 
    PAYGO:
  Budget Authority..................                                 -29
  Outlays...........................                                 -29
                                    ------------------------------------
Total:
  Budget Authority..................          38          36          15
  Outlays...........................          32          40          14
                                    ====================================

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2400-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................          20          22          23
12.1  Civilian personnel benefits.......           5           5           6
21.0  Travel and transportation of 
        persons.........................           1           1           2
23.3  Communications, utilities, and 
        miscellaneous charges...........           1           1           1
25.2  Other services....................           4           8           8
26.0  Supplies and materials............           1           1           1
31.0  Equipment.........................           1           2           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........          33          40          44
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2400-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         325         354         354
---------------------------------------------------------------------------

                          Salaries and Expenses

              (Legislative proposal, not subject to PAYGO)

    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. 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2400-2-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Standardization...................                                  -6
00.04 Packers and Stockyards............                                 -23
09.01 Reimbursable program..............                                  29
                                           ---------   ---------  ----------
10.00   Total new obligations...........
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                                 -29
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............                                  29
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................
    Change in obligated balances:
73.10 Total new obligations.............
    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....                                 -29
    Net budget authority and outlays:
89.00 Budget authority..................                                 -29
90.00 Outlays...........................                                 -29
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2400-2-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................                                 -15
12.1    Civilian personnel benefits.....                                  -5
21.0    Travel and transportation of 
          persons.......................                                  -1
23.3    Communications, utilities, and 
          miscellaneous charges.........                                  -1
25.2    Other services..................                                  -5
31.0    Equipment.......................                                  -2
                                           ---------   ---------  ----------
99.0      Direct obligations............                                 -29
99.0  Reimbursable obligations..........                                  29
                                           ---------   ---------  ----------
99.9    Total new obligations...........
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2400-2-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................                                -231
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................                                 231
---------------------------------------------------------------------------

                                

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; Division A, H.R. 2673, Consolidated Appropriations Bill, FY 
2004.)

[[Page 95]]

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4050-0-3-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.00 Reimbursable program..............          36          42          42
                                           ---------   ---------  ----------
10.00   Total new obligations...........          36          42          42
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           4           4           4
22.00 New budget authority (gross)......          36          42          42
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          40          46          46
23.95 Total new obligations.............         -36         -42         -42
24.40 Unobligated balance carried 
        forward, end of year............           4           4           4
    New budget authority (gross), detail:
      Discretionary:

42.00   Transferred from other accounts.           2
      Mandatory:

69.00   Offsetting collections (cash)...          34          42          42
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          36          42          42
    Change in obligated balances:
72.40 Obligated balance, start of year..          -4          -2          -2
73.10 Total new obligations.............          36          42          42
73.20 Total outlays (gross).............         -34         -42         -42
74.40 Obligated balance, end of year....          -2          -2          -2
    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..................           2
90.00 Outlays...........................           2
---------------------------------------------------------------------------

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

    Fee supported programs include direct services, supervision 
activities and administrative functions. Direct services include 
official grain inspection and weighing by GIPSA employees at certain 
export ports as well as the inspection of U.S. grain shipped through 
Canada. The Agency supervises the inspection and weighing activities 
performed by its own employees. The Agency also oversees the inspection 
and weighing of grain performed by employees of 7 delegated States and 
49 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).

                                     2003 actual  2004 est.   2005 est.
Export grain inspected and/or 
    weighed (million metric tons):
  By Federal personnel..............        71.6        80.3        81.3
  By delegated States...............        24.9        27.9        28.3
Quantity of grain inspected (all 
official inspections) domestically 
million metric tons.................       125.8       132.6       136.7
Number of inspections and 
    reinspections:
  By Federal personnel..............      93,795      90,000      90,000
  By delegated state/official agency 
    licenses........................   1,713,364   1,700,000   1,700,000
Number of appeals...................       3,781       3,700       3,700
Number of appeals carried to the 
Board of Appeals and Review.........         528         525         525
Quantity of rice inspected (million 
metric tons)........................         3.7         3.4         3.8
Quantity of rice exports (million 
metric tons)........................         4.0         3.0         3.1

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4050-0-3-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          19          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..          25          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
25.2  Other services....................           3           3           3
26.0  Supplies and materials............           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          36          42          42
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-4050-0-3-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         382         406         406
---------------------------------------------------------------------------

                                


 
                     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, [$75,430,000] $85,998,000, 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[: Provided further, That, in 
the case of the term of protection for the variety for which certificate 
number 8200179 was issued, on the date of enactment of this Act, the 
Secretary of Agriculture shall issue a new certificate for a term of 
protection of 10 years for the variety, except that the Secretary may 
terminate the certificate (at the end of any calendar year that is more 
than 5 years after the date of issuance of the certificate) if the 
Secretary determines that a new variety of seed (that is substantially 
based on the genetics of the variety for which the certificate was 
issued) is commercially viable and available in sufficient quantities to 
meet market demands].
    Fees may be collected for the cost of standardization activities, as 
established by regulation pursuant to law (31 U.S.C. 9701). (7 U.S.C. 
91-99, 136i-136l, 138-138l, 291-292, 415b-415d, 471-476, 501-508, 581-
599, 951-957, 1031-1056, 1291, 1551-56, 1621-27, 2204(b)(c), 4401-06, 
6501-22; 15 U.S.C. 714-714p; 21 U.S.C. 1031-56; 26 U.S.C. 6804, 7233, 
7263, 7492-93, 7701; 49 U.S.C. 1653.)

               limitation on administrative expenses level

     Not to exceed [$62,577,000] $64,459,000 (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; Division A, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2500-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Market news service.............          30          30          31
00.02   Inspection and standardization..           7           7           7
00.03   Market protection and promotion.          31          32          42
00.04   Wholesale market development....           3           3           3
00.05   Transportation services.........           3           3           3
09.01 Reimbursable program..............          37          66          67
                                           ---------   ---------  ----------
10.00   Total new obligations...........         111         141         153

[[Page 96]]

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          17          27          27
22.00 New budget authority (gross)......         120         141         153
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         137         168         180
23.95 Total new obligations.............        -111        -141        -153
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
24.40 Unobligated balance carried 
        forward, end of year............          27          27          27
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          76          75          86
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............          44          66          67
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         120         141         153
    Change in obligated balances:
72.40 Obligated balance, start of year..          11          18          15
73.10 Total new obligations.............         111         141         153
73.20 Total outlays (gross).............        -102        -145        -152
73.40 Adjustments in expired accounts 
        (net)...........................          -1           2           2
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................           1          -1          -1
74.40 Obligated balance, end of year....          18          15          17
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         103         132         143
86.93 Outlays from discretionary 
        balances........................          -1          13           9
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         102         145         152
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -44         -66         -67
    Net budget authority and outlays:
89.00 Budget authority..................          76          75          86
90.00 Outlays...........................          58          79          85
    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...          13
92.02 Total investments, end of year: 
        Federal securities: Par value...
---------------------------------------------------------------------------

    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

                                     2003 actual  2004 est.   2005 est.
Percentage of reports released on 
time................................         95%         95%         95%

                   COTTON AND TOBACCO USER FEE PROGRAM

                                     2003 actual  2004 est.   2005 est.

Cotton classed (samples in millions)        17.3        17.8        17.8
Tobacco graded at auction markets 
and contract delivery stations 
(million pounds)....................         858         804         769
Imported tobacco inspected at 
markets and ports of entry (million 
kilograms)..........................         367         385         380

         FEDERALLY FUNDED INSPECTION AND PROCUREMENT ACTIVITIES

                                     2003 actual  2004 est.   2005 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

                                     2003 actual  2004 est.   2005 est.
International and U.S. standards in 
effect, end of fiscal year..........         603         604         605
Number of commodities covered.......         226         226         227

    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, lamb, 
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

                                     2003 actual  2004 est.   2005 est.
Pesticide data program:
  Number of analyses performed......      99,500      98,000      98,000
  Percentage of sampling and 
    analysis goal...................        100%        100%        100%
Pesticide recordkeeping:
  Number of State/Federal 
    Inspections conducted...........       4,900       4,800       4,900
  Percentage of sampling goal 
    attained........................        100%        100%        100%
Seed Act:
  Interstate investigations:
    Completed.......................         269         450         500
    Pending.........................         676         575         550
  Seed samples tested...............        2440        2650        2900
  Percentage of cases submitted that 
    are completed...................         85%         90%         92%
Plant Variety Protection Act:
  Percentage of application 
    processing goal completed.......        100%        100%        100%
  Number of applications received...         350         250         250
  Certificates of protection issued.         340         300         300
Research and promotion collections 
(dollars in millions)...............         436         437         439
Percentage of board budgets and 
marketing plans approved within time 
frame goal..........................         93%         92%         92%

    Wholesale market development.--This program is designed to enhance 
the marketing of agricultural commodities in the United States by 
conducting research into more efficient marketing methods for 
agricultural commodities and by providing technical assistance to urban 
areas interested in improving their food distribution facilities.

[[Page 97]]

    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

                                     2003 actual  2004 est.   2005 est.
Number of projects completed........          10          10           9

                   TRANSPORTATION SERVICES ACTIVITIES

                                     2003 actual  2004 est.   2005 est.
Number of projects completed........           8           8           9

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2500-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          29          29          29
11.3      Other than full-time permanent           1           2           2
                                           ---------   ---------  ----------
11.9        Total personnel compensation          30          31          31
12.1    Civilian personnel benefits.....           7           8           8
21.0    Travel and transportation of 
          persons.......................           2           2           2
23.2    Rental payments to others.......           2           1           1
23.3    Communications, utilities, and 
          miscellaneous charges.........           2           2           2
25.2    Other services..................           5           6          16
25.3    Other purchases of goods and 
          services from Government 
          accounts......................          21          20          20
25.7    Operation and maintenance of 
          equipment.....................           1           1           1
26.0    Supplies and materials..........           1           1           2
31.0    Equipment.......................           3           3           3
                                           ---------   ---------  ----------
99.0      Direct obligations............          74          75          86
99.0  Reimbursable obligations..........          37          66          67
                                           ---------   ---------  ----------
99.9    Total new obligations...........         111         141         153
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2500-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         542         562         564
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         597         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)), 
[$3,338,000, of which not less than $2,000,000 shall be used to make 
noncompetitive grants under this heading] $1,347,000. (Division A, H.R. 
2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2501-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........           1           3           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................           1           3           1
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......           1           3           1
23.95 Total new obligations.............          -1          -3          -1
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................           1           3           1
    Change in obligated balances:
72.40 Obligated balance, start of year..           3           2           1
73.10 Total new obligations.............           1           3           1
73.20 Total outlays (gross).............          -1          -2          -2
74.40 Obligated balance, end of year....           2           1           1
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                       1
86.93 Outlays from discretionary 
        balances........................           1           1           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           1           2           2
    Net budget authority and outlays:
89.00 Budget authority..................           1           3           1
90.00 Outlays...........................           1           2           2
---------------------------------------------------------------------------

    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 Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5070-0-2-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............
    Receipts:
02.00 Deposits, Perishable Agricultural 
        Commodities Act fund............           6           8           8
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...           6           8           8
    Appropriations:
05.00 Perishable Agricultural 
        Commodities Act fund............          -6          -8          -8
                                           ---------   ---------  ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5070-0-2-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........         -10           9           9
                                           ---------   ---------  ----------
10.00   Total new obligations...........         -10           9           9
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          10          27          26
22.00 New budget authority (gross)......           6           8           8
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          16          35          34
23.95 Total new obligations.............          10          -9          -9
24.40 Unobligated balance carried 
        forward, end of year............          27          26          25
    New budget authority (gross), detail:
      Mandatory:

60.20   Appropriation (special fund)....           6           8           8
    Change in obligated balances:
72.40 Obligated balance, start of year..           2           2           2
73.10 Total new obligations.............         -10           9           9
73.20 Total outlays (gross).............          11          -8          -8
74.40 Obligated balance, end of year....           2           2           2
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          -6           8           8
86.98 Outlays from mandatory balances...          -5
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         -11           8           8
    Net budget authority and outlays:
89.00 Budget authority..................           6           8           8
90.00 Outlays...........................         -11           8           8
    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...          12
---------------------------------------------------------------------------

    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

[[Page 98]]

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) increased the license fee and phased 
out fees for wholesale grocers and retailers by 1999; (2) provided 
permanent authority to the Secretary of Agriculture to set license and 
reparation complaint filing fees; and (3) repealed 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

                                     2003 actual  2004 est.   2005 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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................           6           6           6
12.1  Civilian personnel benefits.......           2           1           1
23.3  Communications, utilities, and 
        miscellaneous charges...........           1           1           1
25.3  Other purchases of goods and 
        services from Government 
        accounts........................           1           1           1
33.0  Investments and loans.............         -20
                                           ---------   ---------  ----------
99.9    Total new obligations...........         -10           9           9
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-5070-0-2-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          94          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] $15,800,000 for 
formulation and administration of marketing agreements and orders 
pursuant to the Agricultural Marketing Agreement Act of 1937 and the 
Agricultural Act of 1961. (Division A, H.R. 2673, Consolidated 
Appropriations Bill, FY 2004.)

                Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5209-0-2-605      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............      10,084      10,348      10,935
    Receipts:
02.00 30 percent of customs duties, 
        funds for strengthening markets, 
        income, and supply..............       6,062       6,513       6,682
02.40 General fund payment, Funds for 
        strengthening markets, income, 
        and supply......................                       1           1
                                           ---------   ---------  ----------
02.99   Total receipts and collections..       6,062       6,514       6,683
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...      16,146      16,862      17,618
    Appropriations:
05.00 Funds for strengthening markets, 
        income, and supply (section 32).      -5,798      -5,927      -6,200
                                           ---------   ---------  ----------
07.99 Balance, end of year..............      10,348      10,935      11,418
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5209-0-2-605      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

        Commodity program payments:
00.01     Child nutrition program 
            purchases...................         200         400         400
00.02     Emergency surplus removal.....         222         501         415
00.03     Livestock Compensation Program         867
00.04     State option contract.........           1           5           5
00.05     Removal of defective 
            commodities.................           1           1           1
00.07     Direct Payments...............           8
00.08     Deobligations of Prior Year 
            Obligations.................         -40
                                           ---------   ---------  ----------
00.91     Subtotal, Commodity program 
            payments....................       1,259         907         821
01.01 Administrative expenses...........          26          26          28
                                           ---------   ---------  ----------
01.92   Total direct program............       1,285         933         849
09.11 Reimbursable program..............           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,286         934         850
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         193         134         349
22.00 New budget authority (gross)......       1,227       1,148         801
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,420       1,282       1,150
23.95 Total new obligations.............      -1,286        -934        -850
24.40 Unobligated balance carried 
        forward, end of year............         134         349         300
    New budget authority (gross), detail:
      Mandatory:

60.20   Appropriation (special fund)....       5,798       5,927       6,200
61.00   Transferred to other accounts...      -4,821      -4,780      -5,400
62.00   Transferred from other accounts.         250
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................       1,227       1,147         800
69.00 Offsetting collections (cash).....           1           1           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,228       1,148         801
    Change in obligated balances:
72.40 Obligated balance, start of year..          35          41          42
73.10 Total new obligations.............       1,286         934         850
73.20 Total outlays (gross).............      -1,280        -933        -850
74.40 Obligated balance, end of year....          41          42          42
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................       1,052         758         760
86.98 Outlays from mandatory balances...         228         175          90
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,280         933         850
    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..................       1,226       1,147         800
90.00 Outlays...........................       1,279         932         849
---------------------------------------------------------------------------

    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 perishable, non-price supported 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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................          11          13          14
12.1    Civilian personnel benefits.....           3           3           4
21.0    Travel and transportation of 
          persons.......................                       1           1

[[Page 99]]

22.0    Transportation of things........           1           1           1
23.3    Communications, utilities, and 
          miscellaneous charges.........           1           1           1
25.2    Other services..................           5           4           4
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           3           2           2
25.7    Operation and maintenance of 
          equipment.....................           2           1           1
26.0    Supplies and materials: Grants 
          of commodities to States......       1,258         906         820
31.0    Equipment.......................           1           1           1
                                           ---------   ---------  ----------
99.0      Direct obligations............       1,285         933         849
99.0  Reimbursable obligations..........           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,286         934         850
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-5209-0-2-605      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         173         179         180
    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 Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8015-0-7-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............           2           4           4
    Receipts:
02.20 Deposits of fees, inspection and 
        grading of farm products, AMS...         126         118         118
02.40 Payments from general fund, Wool 
        research, development, and prom.           2           2           2
                                           ---------   ---------  ----------
02.99   Total receipts and collections..         128         120         120
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...         130         124         124
    Appropriations:
05.00 Expenses and refunds, inspection 
        and grading of farm products....        -126        -120        -120
                                           ---------   ---------  ----------
07.99 Balance, end of year..............           4           4           4
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8015-0-7-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Dairy products....................           4           6           6
00.02 Fruits and vegetables.............          37          54          54
00.03 Meat grading......................          19          23          23
00.04 Poultry products..................          26          25          25
00.05 Miscellaneous agricultural 
        commodities.....................          10          12          12
                                           ---------   ---------  ----------
10.00   Total new obligations...........          96         120         120
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          19          49          49
22.00 New budget authority (gross)......         126         120         120
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         145         169         169
23.95 Total new obligations.............         -96        -120        -120
24.40 Unobligated balance carried 
        forward, end of year............          49          49          49
    New budget authority (gross), detail:
      Mandatory:

60.26   Appropriation (trust fund)......         126         120         120
    Change in obligated balances:
72.40 Obligated balance, start of year..          24          17          17
73.10 Total new obligations.............          96         120         120
73.20 Total outlays (gross).............        -103        -120        -120
74.40 Obligated balance, end of year....          17          17          17
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          96         115         115
86.98 Outlays from mandatory balances...           7           5           5
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         103         120         120
    Net budget authority and outlays:
89.00 Budget authority..................         126         120         120
90.00 Outlays...........................         103         120         120
    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...          36
---------------------------------------------------------------------------

    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

                                     2003 actual  2004 est.   2005 est.
Weighted average cost per cwt. (1990 
index)..............................       $0.08       $0.09       $0.09

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8015-0-7-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          63          60          60
11.1      Full-time permanent...........
11.3      Other than full-time permanent           6           5           5
11.5      Other personnel compensation..          11           9           9
                                           ---------   ---------  ----------
11.9        Total personnel compensation          80          74          74
12.1    Civilian personnel benefits.....          22          17          17
13.0    Benefits for former personnel...           1           1           1
21.0    Travel and transportation of 
          persons.......................           9           7           7
22.0    Transportation of things........           1
23.2    Rental payments to others.......           1           2           2
23.3    Communications, utilities, and 
          miscellaneous charges.........           3           2           2
24.0    Printing and reproduction.......           1           1           1
25.2    Other services..................           9          10          10
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           5           2           2
26.0    Supplies and materials..........           2           2           2
31.0    Equipment.......................           2           2           2
                                           ---------   ---------  ----------
99.0      Direct obligations............         136         120         120
33.0  Allocation Account: Investments 
        and loans.......................         -40
                                           ---------   ---------  ----------
99.9    Total new obligations...........          96         120         120
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-8015-0-7-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       1,499       1,511       1,511
---------------------------------------------------------------------------

                                

  

                   Milk Market Orders Assessment Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8412-0-8-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Administration....................          33          39          39
09.02 Marketing service.................           7           5           5
                                           ---------   ---------  ----------
10.00   Total new obligations...........          40          44          44

[[Page 100]]

    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          40          44          44
23.95 Total new obligations.............         -40         -44         -44
    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...          40          44          44
    Change in obligated balances:
73.10 Total new obligations.............          40          44          44
73.20 Total outlays (gross).............         -40         -44         -44
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          40          44          44
    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....         -40         -44         -44
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           2
    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...           1           2
92.02 Total investments, end of year: 
        Federal securities: Par value...           2
93.01 Unobligated balance, start of 
        year: Contract authority........
---------------------------------------------------------------------------

    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 non-Federal 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.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8412-0-8-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................          26          28          28
12.1  Civilian personnel benefits.......           5           6           6
21.0  Travel and transportation of 
        persons.........................           2           2           2
23.2  Rental payments to others.........           2           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           1
31.0  Equipment.........................           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          40          44          44
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-8412-0-8-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         443         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), [$71,422,000] $91,582,000: 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). (Division A, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2707-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........          70          71          92
                                           ---------   ---------  ----------
10.00   Total new obligations...........          70          71          92
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          71          71          92
23.95 Total new obligations.............         -70         -71         -92
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          71          71          92
    Change in obligated balances:
72.40 Obligated balance, start of year..          24          19          21
73.10 Total new obligations.............          70          71          92
73.20 Total outlays (gross).............         -77         -69         -85
73.40 Adjustments in expired accounts 
        (net)...........................           2
74.40 Obligated balance, end of year....          19          21          28
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          54          50          64
86.93 Outlays from discretionary 
        balances........................          23          19          21
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          77          69          85
    Net budget authority and outlays:
89.00 Budget authority..................          71          71          92
90.00 Outlays...........................          77          69          85
---------------------------------------------------------------------------

    This appropriation provides funding for the administrative and 
operating expenses of the Risk Management Agency (RMA). The Agricultural 
Risk Protection Act (ARPA) of 2000 significantly enhanced RMA's role in 
protecting the integrity of the Federal crop insurance program for 
farmers. ARPA imposed new regulatory responsibilities and expanded the 
scope of program compliance and monitoring activities. Accordingly, it 
impacted on the amount and type of information RMA collects. The budget 
requests additional funding and staffing to fully implement these 
responsibilities.

    The Federal crop insurance program is delivered through private 
insurance companies. Certain administrative expenses incurred by the 
companies are reimbursed through mandatory funding that is reflected in 
the account for the Federal Crop Insurance Fund.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2707-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          36          37          40
11.3    Other than full-time permanent..           1           1           1
                                           ---------   ---------  ----------

[[Page 101]]


11.9      Total personnel compensation..          37          38          41
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           1
23.3  Communications, utilities, and 
        miscellaneous charges...........           1           1           1
25.2  Other services....................          20          17          35
26.0  Supplies and materials............           1           2           2
31.0  Equipment.........................           1           2           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........          70          71          92
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2707-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         515         568         598
---------------------------------------------------------------------------

                                

                              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. (Division A, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

                                

Public enterprise funds:

                 Federal Crop Insurance Corporation Fund

    For payments as authorized by section 516 of the Federal Crop 
Insurance Act (7 U.S.C. 1516), such sums as may be necessary, to remain 
available until expended. (Division A, H.R. 2673, Consolidated 
Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4085-0-3-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Indemnities.......................       1,278       4,545       2,821
00.02 A&O Reimbursements................         743         802         783
00.03 ARPA Obligations..................          49          77          77
09.01 Reimbursable Program--Indemnities.         832       1,032         994
                                           ---------   ---------  ----------
10.00   Total new obligations...........       2,902       6,456       4,675
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       1,017       1,854         195
22.00 New budget authority (gross)......       3,738       4,797       5,089
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       4,755       6,651       5,284
23.95 Total new obligations.............      -2,902      -6,456      -4,675
24.40 Unobligated balance carried 
        forward, end of year............       1,854         195         609
    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................       2,911       3,765       4,095
61.00   Transferred to other accounts...          -5
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................       2,906       3,765       4,095
69.00 Offsetting collections (cash).....         832       1,032         994
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       3,738       4,797       5,089
    Change in obligated balances:
72.40 Obligated balance, start of year..       1,305         120       1,579
73.10 Total new obligations.............       2,902       6,456       4,675
73.20 Total outlays (gross).............      -4,087      -4,997      -4,679
74.40 Obligated balance, end of year....         120       1,579       1,575
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................       3,070       3,398       3,500
86.98 Outlays from mandatory balances...       1,017       1,599       1,179
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       4,087       4,997       4,679
    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....        -832      -1,032        -994
    Net budget authority and outlays:
89.00 Budget authority..................       2,906       3,765       4,095
90.00 Outlays...........................       3,254       3,965       3,685
---------------------------------------------------------------------------

    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. A Group Risk Income Protection plan 
provides 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.

    The Adjusted Gross Revenue-Lite (AGR-Lite) insurance plan was 
approved in late 2002 and offered for sale in 2003. This product was 
submitted to FCIC through Section 508(h) of the Act and was authorized 
by ARPA. AGR-Lite is available

[[Page 102]]

in most of Pennsylvania and covers whole farm revenue up to $100,000, 
including revenue from animals and animal products. AGR-Lite covers the 
adjusted gross revenue from the whole farm based on five years of tax 
forms and a farm plan. AGR-Lite initially began as a pilot in 
Pennsylvania and was expanded to include selected counties of 
Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, 
New Jersey, New York, Rhode Island, Vermont, and West Virginia.

    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 2003, RMA awarded over 
$24 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, 2003. 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 2003, 218.6 million acres were insured, with an 
estimated $3,430 million in total premium income, including $2,041 
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 2005. Amounts in the 2003 column are as of September 30, 
2003, and pertain to the 2003 crop year.

                                        2003        2004        2005
                                      crop year   crop year   crop year
                                      estimate    estimate    estimate
Number of States....................          50          50          50
Number of counties..................       3,067       3,067       3,067
Insurance in force (millions).......      40,586      42,735      42,051
Insured acreage (millions)..........         219         221         221
                                    ====================================
Producer premium (millions)\1\......       1,389       1,451       1,371
Premium subsidy (millions)\1\.......       2,041       2,142       2,127
                                    ------------------------------------
      Total premium (millions)\1\...       3,430       3,593       3,498
                                    ====================================
Indemnities (million)\1\............       3,825       3,972       3,869
Loss ratio..........................        1.12       1.075       1.075
                                    ====================================

    \1\ Includes amounts that will appear on the books of the reinsured 
companies. The Corporation records will only reflect the net reinsurance 
income and net reinsurance loss.

    Financing.--The Corporation is authorized under the Federal Crop 
Insurance Act, as amended, to use funds from the issuance of capital 
stock which provides working capital for the Corporation.

    Receipts, which are for deposit to this fund, come mainly from 
premiums paid by farmers. The principal payments from this fund are for 
indemnities to insured farmers, and administrative expenses for approved 
insurance providers.

    Premium subsidies are authorized by section 508(b) of the Federal 
Crop Insurance Act, as amended, and are received through appropriations.

                           PREMIUM AND SUBSIDY

                        [In millions of dollars]

                                        2003         2004        2005
                                     fiscal year fiscal year fiscal year
                                       actual      estimate    estimate
Premiums:
  Additional coverage premium 
    subsidy.........................       1,612       1,819       1,915
  Catastrophic coverage--Reinsurance 
    premium subsidy.................         248         225         226
                                    ------------------------------------
    Subtotal, premium subsidy.......       1,860       2,044       2,141
  Producer premium..................       1,072       1,432       1,415
                                    ------------------------------------
      Total premiums................       2,932       3,476       3,556
                                    ====================================
Indemnities:
  Additional coverage...............       3,485       3,666       3,566
  Catastrophic coverage--Reinsurance         283         253         249
                                    ------------------------------------
      Total indemnities.............       3,768       3,919       3,815
                                    ====================================

    For crop years 1948 through 2002, indemnities ($30,485 million) 
exceeded premium income ($27,129 million) by $3,356 million; the loss 
ratio for the period was 1.13.

    The following table summarizes the insurance operations for 2003, 
2004, and 2005:

             NET INCOME OR LOSS (-) ON INSURANCE OPERATIONS

                        [In millions of dollars]

                                        2003        2004        2005
                                     fiscal year fiscal year fiscal year
                                        est.        est.        est.
Producer premium less indemnities...      -2,696      -2,487      -2,400
Interest expense, net...............           0           0           0
Delivery expenses \1\...............        -743        -801        -782
Other income or expense, net........          51          49          49
ARPA costs..........................         -49         -77         -77
Reinsurance underwriting gain (+) or 
loss (-)............................          52        -450        -471
                                    ------------------------------------
Net income or loss (-)..............      -3,385      -3,766      -3,681
                                    ====================================
    \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.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4085-0-3-351    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................       2,567          1,974
1206  Non-Federal assets: Receivables, 
        net.............................         750          1,152
1803  Other Federal assets: Property, 
        plant and equipment, net........           1            100
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       3,318          3,226
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................           1
2105    Other...........................         175              3
      Non-Federal liabilities:

2201    Accounts payable................          70            112
2207    Other...........................       1,750          3,562
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       1,996          3,677
    NET POSITION:
3100  Appropriated capital..............         700            342
3300  Cumulative results of operations..         622           -793
                                        ------------ --------------  ------------  -------------
3999    Total net position..............       1,322           -451
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       3,318          3,226
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected. 

[[Page 103]]

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4085-0-3-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

25.2    Other services-ARPA requirements          49          77          77
25.2    Other services..................         743         802         783
42.0    Insurance claims and indemnities 
          (reinsured buyup).............       1,278       4,545       2,821
                                           ---------   ---------  ----------
99.0      Direct obligations............       2,070       5,424       3,681
42.0  Reimbursable obligations: 
        Insurance claims and indemnities         832       1,032         994
                                           ---------   ---------  ----------
99.9    Total new obligations...........       2,902       6,456       4,675
---------------------------------------------------------------------------

                                


 
                           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, 
[$988,768,000] $1,007,877,000: 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. (Division A, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0600-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Farm Income Support...............         773         762         794
00.02 Conservation Programs.............         140         151         144
00.05 Commodity Operations..............          58          70          70
                                           ---------   ---------  ----------
03.00   Subtotal, direct program........         971         983       1,008
      Reimbursable program:

09.01   Farm loans......................         277         281         305
09.02   Other programs..................         197         106         111
                                           ---------   ---------  ----------
09.99   Subtotal, reimbursable program..         474         387         416
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,445       1,370       1,424
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           2           1
22.00 New budget authority (gross)......       1,445       1,370       1,424
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,448       1,371       1,424
23.95 Total new obligations.............      -1,445      -1,370      -1,424
24.40 Unobligated balance carried 
        forward, end of year............           1
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         977         989       1,008
40.35   Appropriation permanently 
          reduced.......................          -6          -6
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         971         983       1,008
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...         459         387         416
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          15
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......         474         387         416
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,445       1,370       1,424
    Change in obligated balances:
72.40 Obligated balance, start of year..         180         211         158
73.10 Total new obligations.............       1,445       1,370       1,424
73.20 Total outlays (gross).............      -1,408      -1,423      -1,425
73.40 Adjustments in expired accounts 
        (net)...........................          -9
73.45 Recoveries of prior year 
        obligations.....................          -1
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -15
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................          19
74.40 Obligated balance, end of year....         211         158         157
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       1,276       1,269       1,320
86.93 Outlays from discretionary 
        balances........................         132         154         105
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,408       1,423       1,425
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............        -478        -359        -386
88.40     Non-Federal sources...........                     -28         -30
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -478        -387        -416
      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..............          19
    Net budget authority and outlays:
89.00 Budget authority..................         971         983       1,008
90.00 Outlays...........................         930       1,036       1,009
---------------------------------------------------------------------------

    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 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.

    During 2003 FSA also began to consolidate loan servicing functions 
such as billings and mass mailings and is in the process of implementing 
an interactive voice response system to handle routine information 
requests from borrowers. These efforts will help improve customer 
service while also reducing annual costs to the Government. 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 organi

[[Page 104]]

zational constraints. Specifically, the Administration proposes that FSA 
and RD streamline their systems for processing and servicing loans, 
where appropriate, to capitalize on improvements made in information 
technology and organizational structures. Continued focus will also be 
placed on eliminating redundant IT efforts and improving e-government 
services.

    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; 
(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.

    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 USWA 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 USWA 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. Funding 
for farm loan administrative expenses is 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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         162         175         180
11.3      Other than full-time permanent           3           2           3
11.5      Other personnel compensation..           5           6           6
                                           ---------   ---------  ----------
11.9        Total personnel compensation         170         183         189
12.1    Civilian personnel benefits.....          40          45          46
21.0    Travel and transportation of 
          persons.......................           7          12           9
22.0    Transportation of things........           3           3           3
23.3    Communications, utilities, and 
          miscellaneous charges.........           8          16          15
24.0    Printing and reproduction.......           1           1           1
25.2    Other services..................          97          71          67
26.0    Supplies and materials..........           4           4           5
31.0    Equipment.......................           9           8           7
41.0    Grants, subsidies, and 
          contributions.................         631         639         665
42.0    Insurance claims and indemnities           1           1           1
                                           ---------   ---------  ----------
99.0      Direct obligations............         971         983       1,008
99.0  Reimbursable obligations..........         474         387         416
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,445       1,370       1,424
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0600-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       2,510       2,466       2,448
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       3,395       3,451       3,569
---------------------------------------------------------------------------

                                

                         State Mediation Grants

    For grants pursuant to section 502(b) of the Agricultural Credit Act 
of 1987, as amended (7 U.S.C. 5101-5106), [$3,974,000] $4,000,000. 
(Division A, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

[[Page 105]]

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0170-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 State Mediation grants............           4           4           4
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................           4           4           4
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......           4           4           4
23.95 Total new obligations.............          -4          -4          -4
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................           4           4           4
    Change in obligated balances:
72.40 Obligated balance, start of year..           2           3           4
73.10 Total new obligations.............           4           4           4
73.20 Total outlays (gross).............          -3          -3          -4
74.40 Obligated balance, end of year....           3           4           4
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           1           1           1
86.93 Outlays from discretionary 
        balances........................           2           2           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           3           3           4
    Net budget authority and outlays:
89.00 Budget authority..................           4           4           4
90.00 Outlays...........................           3           3           4
---------------------------------------------------------------------------

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

                            GRANT OBLIGATIONS

                                     2003 actual  2004 est.   2005 est.
Number of States receiving grants...          30          33          36
Amount of grants (in millions of 
dollars)............................         3.9         3.9           4

                                

                         Tree Assistance Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2701-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Tree Assistance Payments..........                      13
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                      13
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                      13
23.95 Total new obligations.............                     -13
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                      13
    Change in obligated balances:
72.40 Obligated balance, start of year..           5                      10
73.10 Total new obligations.............                      13
73.20 Total outlays (gross).............                      -3          -2
73.40 Adjustments in expired accounts 
        (net)...........................          -5
74.40 Obligated balance, end of year....                      10           8
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                       3
86.93 Outlays from discretionary 
        balances........................                                   2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                       3           2
    Net budget authority and outlays:
89.00 Budget authority..................                      13
90.00 Outlays...........................                       3           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 2003. The 1998 TAP expired at the end of 2003, and the 1999 TAP 
will expire at the end of 2004.

    The Farm Security and Rural Investment Act of 2002 reauthorized the 
program, with some modifications.

    For FY 2004, Division H of H.R. 2673 appropriates $12.5 million for 
the program in southern California. Division A provides $5 million in 
Commodity Credit Corporation (CCC) funding for eligible producers in New 
York for losses as a result of an ice storm April 4-6, 2003. In 
addition, P.L. 108-83, the Legislative Branch Appropriations Act, 
provides $9.7 million in CCC funding to compensate eligible orchardists 
in Michigan for losses due to fire blight since January 1, 2000.

    No funding is requested for 2005.

                                

                      Conservation Reserve Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3319-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           2
22.21 Unobligated balance transferred to 
        other accounts..................          -2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......
    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. Annual rental 
payments, cost-share payments, and technical assistance for acres 
enrolled in the program are paid through the CCC. Just under $2 million 
in unobligated appropriated funds were available at the beginning of FY 
2003. Approximately $1.8 million was transferred to the USDA Working 
Capital Fund account in FY 2003, leaving an end-of-year balance of just 
over $100 thousand.

    CRP program payment information is included under the Commodity 
Credit Corporation account.

                                

                    Agricultural Conservation Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3315-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           1           2           6
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           2           4
22.21 Unobligated balance transferred to 
        other accounts..................          -2
                                           ---------   ---------  ----------

[[Page 106]]


23.90   Total budgetary resources 
          available for obligation......           1           6           6
24.40 Unobligated balance carried 
        forward, end of year............           2           6           6
    Change in obligated balances:
72.40 Obligated balance, start of year..           7           4
73.45 Recoveries of prior year 
        obligations.....................          -2          -4
74.40 Obligated balance, end of year....           4
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------

    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 2003, 
there were $4.048 million in unliquidated obligations for ACP 
agreements.

                                

                     Emergency Conservation Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3316-0-1-453      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 ECP payments......................          27          46
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          27          46
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          73          46          12
22.00 New budget authority (gross)......                      12
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          73          58          12
23.95 Total new obligations.............         -27         -46
24.40 Unobligated balance carried 
        forward, end of year............          46          12          12
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                      12
    Change in obligated balances:
72.40 Obligated balance, start of year..          29           9
73.10 Total new obligations.............          27          46
73.20 Total outlays (gross).............         -47         -55
74.40 Obligated balance, end of year....           9
    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................          47          55
    Net budget authority and outlays:
89.00 Budget authority..................                      12
90.00 Outlays...........................          47          55
---------------------------------------------------------------------------

    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 2002 or 
2003 for ECP. However, the program continued to operate using 
unobligated funds carried forward from 2001 and recoveries throughout 
the two fiscal years. Under the 2003 program, cost-sharing and technical 
assistance were provided in 38 States and one territory to treat 
farmlands damaged by drought, floods, ice storms, tornadoes, and other 
natural disasters. For FY 2004, Division H of H.R. 2673 provides $12 
million to repair damage caused by wildfire in southern California.

    The 2005 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 farm ownership (7 U.S.C. 1922 et seq.) and operating (7 
U.S.C. 1941 et seq.) loans, Indian tribe land acquisition loans (25 
U.S.C. 488), and boll weevil loans (7 U.S.C. 1989), to be available from 
funds in the Agricultural Credit Insurance Fund, as follows: farm 
ownership loans, [$1,079,158,000] $1,600,000,000, of which 
[$950,000,000] $1,400,000,000 shall be for guaranteed loans and 
[$129,158,000] $200,000,000 shall be for direct loans; operating loans, 
[$2,083,752,000] $2,116,253,000, of which $1,200,000,000 shall be for 
unsubsidized guaranteed loans, [$266,249,000] $266,253,000 shall be for 
subsidized guaranteed loans and [$617,503,000] $650,000,000 shall be for 
direct loans; Indian tribe land acquisition loans, $2,000,000; emergency 
insured loans, $25,000,000 to meet the needs resulting from natural 
disasters; and for boll weevil eradication program loans, [$100,000,000] 
$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, [$33,648,000] 
$18,120,000, of which [$5,130,000] $7,420,000 shall be for guaranteed 
loans, and [$28,518,000] $10,700,000 shall be for direct loans; 
operating loans, [$163,004,000] $139,783,000, of which [$39,960,000] 
$38,760,000 shall be for unsubsidized guaranteed loans, [$34,000,000] 
$35,438,000 shall be for subsidized guaranteed loans, and [$89,044,000] 
$65,585,000 shall be for direct loans; Indian tribe land acquisition 
loans, $105,000; and emergency insured loans to meet the needs resulting 
from natural disasters, $3,235,000.
    In addition, for administrative expenses necessary to carry out the 
direct and guaranteed loan programs, [$290,968,000] $313,011,000, of 
which [$283,020,000] $305,011,000 shall be transferred to and merged 
with the appropriation for ``Farm Service Agency, Salaries and 
Expenses''.
    Funds appropriated by this Act to the Agricultural Credit Insurance 
Program Account for farm ownership and operating direct loans and 
guaranteed loans may be transferred among these programs: Provided, That 
the Committees on Appropriations of both Houses of Congress are notified 
at least 15 days in advance of any transfer.

                         Dairy Indemnity Program

                     (including transfers of funds)

    For necessary expenses involved in making indemnity payments to 
dairy farmers and manufacturers of dairy products under a dairy 
indemnity program, $100,000, to remain available until expended: 
Provided, That such program is carried out by the Secretary in the same 
manner as the dairy indemnity program described in the Agriculture, 
Rural Development, Food and Drug Administration, and Related Agencies 
Appropriations Act, 2001 (Public Law 106-387, 114 Stat. 1549A-12). 
(Division A, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1140-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............         158         143          80
00.02 Guaranteed loan subsidy...........          91          81          82
00.05 Reestimates of direct loan subsidy         214
00.06 Interest on reestimates of direct 
        loan subsidy....................          25
00.07 Reestimates of guaranteed loan 
        subsidy.........................           5           9
00.08 Interest on reestimate of 
        guaranteed loan subsidy.........           2
00.09 Administrative expenses--salaries 
        and expenses....................         284         289         313
00.10 reimbursement of lapsed funds.....          12
                                           ---------   ---------  ----------
10.00   Total new obligations...........         791         522         475
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          68          30
22.00 New budget authority (gross)......         759         493         474

[[Page 107]]

22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         828         523         474
23.95 Total new obligations.............        -791        -522        -475
23.98 Unobligated balance expiring or 
        withdrawn.......................          -6
24.40 Unobligated balance carried 
        forward, end of year............          30
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         515         488         474
40.35   Appropriation permanently 
          reduced.......................          -3          -3
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         512         485         474
      Mandatory:

60.00   Appropriation...................         247           8
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         759         493         474
    Change in obligated balances:
72.40 Obligated balance, start of year..          12          20          39
73.10 Total new obligations.............         791         522         475
73.20 Total outlays (gross).............        -768        -502        -499
73.40 Adjustments in expired accounts 
        (net)...........................         -13
73.45 Recoveries of prior year 
        obligations.....................          -1
74.40 Obligated balance, end of year....          20          39          15
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         509         468         457
86.93 Outlays from discretionary 
        balances........................          12          26          42
86.97 Outlays from new mandatory 
        authority.......................         247           8
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         768         502         499
    Net budget authority and outlays:
89.00 Budget authority..................         759         493         474
90.00 Outlays...........................         768         502         499
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1140-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Farm ownership....................         169         129         200
115002Farm operating....................         690         601         650
115003Emergency disaster................          96
115004Indian tribe land acquisition.....                       2           2
115005Boll weevil eradication...........          99         100          60
115006Seed cotton.......................
                                           ---------   ---------  ----------
115901Total direct loan levels..........       1,054         832         912
    Direct loan subsidy (in percent):
132001Farm ownership....................       11.61       22.08        5.35
132002Farm operating....................       17.25       14.42       10.09
132003Emergency disaster................       20.39       13.83       12.94
132004Indian tribe land acquisition.....        8.95       -0.78        5.27
132005Boll weevil eradication...........       -2.70       -6.07       -5.68
132006Seed cotton.......................        0.00        0.00        0.00
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....       14.71       13.10        8.11
    Direct loan subsidy budget authority:
133001Farm ownership....................          20          28          11
133002Farm operating....................         119          87          66
133003Emergency disaster................          19
133004Indian tribe land acquisition.....
133005Boll weevil eradication...........          -3          -6          -3
133006Seed cotton.......................
                                           ---------   ---------  ----------
133901Total subsidy budget authority....         155         109          74
    Direct loan subsidy outlays:
134001Farm ownership....................          17          27          10
134002Farm operating....................         109          86          63
134003Emergency disaster................          18          26           3
134004Indian tribe land acquisition.....
134005Boll weevil eradication...........          -5          -4          -4
134006Seed cotton.......................
                                           ---------   ---------  ----------
134901Total subsidy outlays.............         139         135          72
    Direct loan upward reestimate subsidy budget 
                authority:
135001Farm ownership....................         130
135002Farm operating....................          57
135003Emergency disaster................          12
135004Indian tribe land acquisition.....
135005Boll weevil eradication...........          30
135006Seed cotton.......................          10
135007Soil and water....................
135008Farm ownership credit sales.......
                                           ---------   ---------  ----------
135901Total upward reestimate budget 
        authority.......................         239
    Direct loan downward reestimate subsidy budget 
                authority:
137001Farm ownership....................          -5        -291
137002Farm operating....................        -146        -440
137003Emergency disaster................          -6         -35
137004Indian tribe land acquisition.....          -4
137005Boll weevil eradication...........         -43        -117
137006Seed cotton.......................                      -2
137007Soil and water....................          -4
137008Farm ownership credit sales.......         -87         -48
                                           ---------   ---------  ----------
137901Total downward reestimate budget 
        authority.......................        -295        -933
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Farm ownership, unsubsidized......       1,231         950       1,400
215002Farm operating, unsubsidized......       1,013       1,200       1,200
215003Farm operating, subsidized........         418         266         266
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......       2,662       2,416       2,866
    Guaranteed loan subsidy (in percent):
232001Farm ownership, unsubsidized......        0.75        0.54        0.53
232002Farm operating, unsubsidized......        3.17        3.33        3.23
232003Farm operating, subsidized........       11.80       12.77       13.31
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....        3.38        3.27        2.83
    Guaranteed loan subsidy budget authority:
233001Farm ownership, unsubsidized......           9           5           7
233002Farm operating, unsubsidized......          32          40          39
233003Farm operating, subsidized........          49          34          35
                                           ---------   ---------  ----------
233901Total subsidy budget authority....          90          79          81
    Guaranteed loan subsidy outlays:
234001Farm ownership, unsubsidized......           9           5           7
234002Farm operating, unsubsidized......          32          40          37
234003Farm operating, subsidized........          49          33          34
                                           ---------   ---------  ----------
234901Total subsidy outlays.............          90          78          78
    Guaranteed loan upward reestimate subsidy 
                budget authority:
235001Farm ownership, unsubsidized......           1
235002Farm operating, unsubsidized......                       1
235003Farm operating, subsidized........           6           7
                                           ---------   ---------  ----------
235901Total upward reestimate budget 
        authority.......................           7           8
    Guaranteed loan downward reestimate subsidy 
                budget authority:
237001Farm ownership, unsubsidized......         -16          -6
237002Farm operating, unsubsidized......         -36         -26
237003Farm operating, subsidized........          -3         -23
                                           ---------   ---------  ----------
237901Total downward reestimate subsidy 
        budget authority................         -55         -55
----------------------------------------------------------------------------

    Administrative expense data:
351001Budget authority..................         287         290         290
358001Outlays from balances.............
359001Outlays from new authority........         272         279         302
---------------------------------------------------------------------------

    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.

    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 fall

[[Page 108]]

out. Indemnification may also be paid for cows producing such milk.

    In 2003, $393 thousand was paid to producers who filed claims under 
the program.

    The 2005 budget requests $100 thousand for this program. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1140-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.3  Other purchases of goods and 
        services from Government 
        accounts........................         284         289         264
41.0  Grants, subsidies, and 
        contributions...................         507         233         211
                                           ---------   ---------  ----------
99.9    Total new obligations...........         791         522         475
---------------------------------------------------------------------------

                                

    Agricultural Credit Insurance Fund Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4212-0-3-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Loan Obligations...........       1,058       1,035         937
00.02 Advances on Behalf of Borrowers...           1           3           3
00.03 Collateral acquired by default....           1           4           4
00.04 Interest Paid to Treasury.........         342         310         315
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............       1,402       1,352       1,259
08.01 Negative Subsidy..................           5           4           3
08.02 Downward Reestimate...............         204         701
08.04 Interest on downward reestimate...          91         232
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............         300         937           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,702       2,289       1,262
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       2,534       2,132
22.00 New financing authority (gross)...       3,253       3,413       2,454
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          21
22.40 Capital transfer to general fund..                    -937
22.60 Portion applied to repay debt.....      -1,974      -2,319      -1,192
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       3,834       2,289       1,262
23.95 Total new obligations.............      -1,702      -2,289      -1,262
24.40 Unobligated balance carried 
        forward, end of year............       2,132
    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............       1,586       2,084       1,183
69.00 Offsetting collections (cash).....       1,659       1,329       1,271
69.10 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................           8
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................       1,667       1,329       1,271
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       3,253       3,413       2,454
    Change in obligated balances:
72.40 Obligated balance, start of year..         165         108         115
73.10 Total new obligations.............       1,702       2,289       1,262
73.20 Total financing disbursements 
        (gross).........................      -1,729      -2,282      -1,249
73.45 Recoveries of prior year 
        obligations.....................         -21
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -8
74.40 Obligated balance, end of year....         108         115         128
87.00 Total financing disbursements 
        (gross).........................       1,729       2,282       1,249
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal Sources: Reestimate 
            payment from program account        -239
88.00     Federal Sources: Subsidy 
            payment from program account        -144        -139         -76
88.25     Federal Sources: Interest on 
            uninvested funds............        -189        -115        -115
88.40     Repayments of principal.......        -891        -895        -900
88.40     Repayments of interest........        -179        -180        -180
88.40     Interest and principal 
            repayments--judgements......          -4
88.40     Proceeds from sale of acquired 
            property....................          -3
88.40     Undistributed/miscellaneous...         -10
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -1,659      -1,329      -1,271
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............          -8
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............       1,586       2,084       1,183
90.00 Financing disbursements...........          69         953         -22
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4212-0-3-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........       1,006         844         937
1121  Limitation available from carry-
        forward.........................         243         191
1143  Unobligated limitation carried 
        forward (P.L. 106-113)..........        -191
                                           ---------   ---------  ----------
1150    Total direct loan obligations...       1,058       1,035         937
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       4,560       4,545       4,565
      Disbursements:

1231    Direct loan disbursements.......       1,094       1,035         937
1232    Purchase of loans assets from 
          the public....................           6
1251  Repayments: Repayments and 
        prepayments.....................        -900        -961        -980
      Write-offs for default:

1263    Direct loans....................         -62         -54         -57
1264    Other adjustments, net..........        -153
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       4,545       4,565       4,465
---------------------------------------------------------------------------

    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    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....       2,601          1,416
        Investments in US securities:
1106      Receivables, net..............         243
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..       4,416          4,545
1402    Interest receivable.............         181            122
1403    Accounts receivable from 
          foreclosed property...........           4             16
1405    Allowance for subsidy cost (-)..      -1,526           -738
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....       3,075          3,945
1603  Net value of assets related to 
        pre-1992 direct loans receivable 
        and acquired defaulted 
        guaranteed loans receivable: 
        Allowance for estimated uncol- 
        lectible loans and interest (-).         -81
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       5,838          5,361
    LIABILITIES:
2104  Federal liabilities: Resources 
        payable to Treasury.............       5,544          4,428
2207  Non-Federal liabilities: Other....         294            933
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       5,838          5,361
    NET POSITION:
                                        ------------ --------------  ------------  -------------
3999    Total net position..............
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       5,838          5,361
-----------------------------------------------------------------------------------------------

[[Page 109]]


    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

  Agricultural Credit Insurance Fund Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4213-0-3-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Default Claims....................          55          55          55
00.02 Interest Assistance...............         107         110         110
00.03 Guaranteed Debt Offset/Purchases/
        Settlement Expense..............           5           5           5
00.04 Interest to Treasury..............           1           2           2
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............         168         172         172
08.02 Downward reestimate of subsidy....          41          41
08.04 Downward reestimate of subsidy-
        interest........................          14          14
                                           ---------   ---------  ----------
08.91   Subtotal, reestimates...........          55          55
                                           ---------   ---------  ----------
10.00   Total new obligations...........         223         227         172
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         190         180          91
22.00 New financing authority (gross)...         151         138         130
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          61
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         402         318         221
23.95 Total new obligations.............        -223        -227        -172
24.40 Unobligated balance carried 
        forward, end of year............         180          91          49
    New financing authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...         151         138         130
    Change in obligated balances:
72.40 Obligated balance, start of year..         414         404         488
73.10 Total new obligations.............         223         227         172
73.20 Total financing disbursements 
        (gross).........................        -172        -143        -143
73.45 Recoveries of prior year 
        obligations.....................         -61
74.40 Obligated balance, end of year....         404         488         517
87.00 Total financing disbursements 
        (gross).........................         172         143         143
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Payments from program account.         -97         -86         -78
88.25     Interest on uninvested funds..         -31         -25         -25
88.40     Fees and premiums.............         -23         -27         -27
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -151        -138        -130
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........          20           5          13
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4213-0-3-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........       2,766       2,401       2,866
2121  Limitation available from carry-
        forward.........................          88          60
2143  Uncommitted limitation carried 
        forward.........................         -60
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................       2,794       2,461       2,866
2199  Guaranteed amount of guaranteed 
        loan commitments................       2,515       2,215       2,579
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       9,378      10,086      10,570
2231  Disbursements of new guaranteed 
        loans...........................       2,592       2,461       2,866
2251  Repayments and prepayments........      -1,789      -1,900      -2,250
      Adjustments:

2261    Terminations for default that 
          result in loans receivable....          -1          -2          -2
2263    Terminations for default that 
          result in claim payments......         -91         -75         -78
2264    Other adjustments, net..........          -3
                                           ---------   ---------  ----------
2290    Outstanding, end of year........      10,086      10,570      11,106
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       9,079       9,515       9,997
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......          10           9           9
2331    Disbursements for guaranteed 
          loan claims...................           1           2           2
2351    Repayments of loans receivable..          -1          -1          -1
2361    Write-offs of loans receivable..          -1          -1          -1
                                           ---------   ---------  ----------
2390      Outstanding, end of year......           9           9           9
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from loan guarantees committed in 1992 and beyond. The amounts 
in this account are a means of financing and are not included in the 
budget totals.

    This account finances commitments made for farm ownership and 
operating guaranteed loan programs.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4213-0-3-351    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         604            583
        Investments in US securities:
1106      Receivables, net..............          14              9
1206  Non-Federal assets: Receivables, 
        net.............................                          3
      Net value of assets related to 
          post-1991 acquired defaulted 
          guaranteed loans receivable:

1501    Defaulted guaranteed loans 
          receivable, gross.............          10              9
1502    Interest receivable.............           1
1505    Allowance for subsidy cost (-)..          -9            -10
                                        ------------ --------------  ------------  -------------
1599      Net present value of assets 
            related to defaulted 
            guaranteed loans............           2             -1
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         620            594
    LIABILITIES:
      Federal liabilities:

2104    Resources payable to Treasury...           6              6
2105    Other...........................          56             55
      Non-Federal liabilities:

2201    Accounts payable................         414            404
2204    Liabilities for loan guarantees.         144            129
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         620            594
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         620            594
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

         Agricultural Credit Insurance Fund Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4140-0-3-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.08 Loan recoverable costs............           6           6           6
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)............           8           8           8
01.08 Admininstrative expenses--
        Department of Justice fees......           1           1           1
01.13 Interest assistance--guaranteed 
        loans...........................           6           2           2
01.14 Loss settlement expenses 
        guaranteed loans................           1           1           1
01.17 Unclassified costs................                       1           1
01.18 Civil rights settlements..........           8           4           4
                                           ---------   ---------  ----------
01.91   Total operating expenses........          16           9           9
                                           ---------   ---------  ----------
10.00   Total new obligations...........          24          17          17
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          24          17          17
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          19
22.40 Capital transfer to general fund..         -19
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          24          17          17
23.95 Total new obligations.............         -24         -17         -17

[[Page 110]]

    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...         846         672         635
69.27   Capital transfer to general fund        -822        -655        -618
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........          24          17          17
    Change in obligated balances:
72.40 Obligated balance, start of year..          30          18          18
73.10 Total new obligations.............          24          17          17
73.20 Total outlays (gross).............         -16         -16         -16
73.45 Recoveries of prior year 
        obligations.....................         -19
74.40 Obligated balance, end of year....          18          18          20
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          16          16          16
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -6          -6          -6
88.40     Rent on acquired property.....          -1          -1          -1
88.40     Guaranteed loans purchased 
            from holders--principal.....          -1          -1          -1
88.40     Interest on loans.............        -227        -176        -166
88.40     Guaranteed loss recoveries....          -3          -3          -3
88.40     Interest on judgments.........          -1          -2          -2
88.40     Repayments on loans--principal        -562        -440        -415
88.40     Interest shared appreciation..          -2          -2          -2
88.40     Judgments--principal..........          -9          -9          -9
88.40     Shared appreciation recapture.         -21         -19         -17
88.40     Sale of acquired property/
            chattels....................         -10         -10         -10
88.40     Undistributed receipts........          -3          -3          -3
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -846        -672        -635
    Net budget authority and outlays:
89.00 Budget authority..................        -822        -655        -618
90.00 Outlays...........................        -830        -656        -619
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4140-0-3-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       3,783       3,249       2,759
      Repayments:

1251    Repayments and prepayments......        -560        -405        -385
1252    Proceeds from loan asset sales 
          to the public or discounted...         -16
1261  Adjustments: Capitalized interest.         133          12          11
      Write-offs for default:

1263    Direct loans....................         -96         -97         -83
1264    Other adjustments, net\1\.......           5
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       3,249       2,759       2,302
---------------------------------------------------------------------------
    \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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........         297         223         188
2251  Repayments and prepayments........         -74         -35         -30
2264  Adjustments: Other adjustments, 
        net.............................
                                           ---------   ---------  ----------
2290    Outstanding, end of year........         223         188         158
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..         222         169         142
---------------------------------------------------------------------------

    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.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4140-0-3-351    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................          30             18
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............       3,783          3,249
1602    Interest receivable.............         628            573
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................        -777           -541
                                        ------------ --------------  ------------  -------------
1604      Direct loans and interest 
            receivable, net.............       3,634          3,281
1605    Accounts receivable/judgments 
          receivable....................         189            112
1606    Foreclosed property.............          44             32
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................       3,867          3,425
1701    Defaulted guaranteed loans, 
          gross.........................          13             11
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       3,910          3,454
    LIABILITIES:
2104  Federal liabilities: Resources 
        payable to Treasury.............       3,866          3,427
      Non-Federal liabilities:

2201    Accounts payable................          22              9
2204    Liabilities for loan guarantees.          13              8
2207    Other...........................           9             10
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       3,910          3,454
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       3,910          3,454
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4140-0-3-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.2  Other services....................          16           8           8
33.0  Investments and loans.............           8           5           5
43.0  Interest and dividends............                       4           4
                                           ---------   ---------  ----------
99.9    Total new obligations...........          24          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. (Division A, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

                                

                              Federal Funds

Public enterprise funds:

                    Commodity Credit Corporation Fund

                  reimbursement for net realized losses

    For [the current] fiscal year 2005, such sums as may be necessary to 
reimburse the Commodity Credit Corporation for net realized

[[Page 111]]

losses sustained, but not previously reimbursed, pursuant to section 2 
of the Act of August 17, 1961 (15 U.S.C. 713a-11).

                       hazardous waste management

                        (limitation on expenses)

    For [the current] fiscal year 2005, 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). (Division A, H.R. 2673, Consolidated Appropriations Bill, FY 
2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4336-0-3-999      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Commodity purchases and related 
        inventory transactions..........       4,668       2,337       2,561
00.02 Storage, transportation and other 
        obligations.....................         124         292         235
00.03 Export enhancement program........                      28          28
00.04 Market access program.............         103         119         122
00.05 Dairy export incentive program....          52          22          53
00.07 Foreign market development 
        cooperative.....................          32          35          35
00.08 Quality Samples Program...........           1           3           3
00.10 Feed grains.......................       2,666       3,779       4,397
00.11 Wheat.............................       1,308       1,840       3,094
00.12 Rice..............................       1,111       1,105         966
00.13 Cotton............................       2,777         695         832
00.14 Dairy Program.....................       1,851       1,443         900
00.15 Tobacco Program...................          51
00.16 Peanut Program....................       1,591         277         272
00.17 Wool and Mohair Program...........          19          14          14
00.19 Lentils Program...................           2           1           2
00.21 Dry Peas Program..................          11          13          26
00.22 Crop Option Pilot Program.........           1
00.23 Non-Insured Assistance Program....         237         302         324
00.24 Oilseeds Payment Program..........       1,259         322         624
00.25 Marketing Loan Writeoffs..........         190         124         166
00.27 Crop Disaster Program.............       1,867         383
00.28 Other Market Loss Assistance 
        Payments........................         168           1
00.32 Livestock Assistance..............         251         106
00.33 State Payment Transfers...........          34
00.35 Conservation reserve program (CRP)       1,787       1,879       1,956
00.46 Agricultural Management Assistance 
        Program.........................                       6           5
00.47 Reimbursable Agreement/Transfers 
        to State and Federal Agencies...          54          56          56
00.48 Treasury..........................         167         161         283
00.49 Other Interst.....................           9           9          10
00.52 Technical Assistance..............           7           5           4
00.57 Agricultural Managment Assistance 
        Program Technical Assistance....          19           9           9
00.58 Section 416b/FFP/GFEI/BEHT ocean 
        transportation..................         480         123         113
                                           ---------   ---------  ----------
01.92   Total support and related 
          programs......................      22,897      15,489      17,090
09.01 Commodity loans...................      10,718       8,284       9,209
09.02 Commodities Procured--PL480 Titles 
        II / III Commodity Costs........                     601         558
09.04 P. L. 480 ocean transportation....         334         642         597
                                           ---------   ---------  ----------
09.09   Subtotal, reimbursable programs.      11,052       9,527      10,364
                                           ---------   ---------  ----------
10.00   Total new obligations...........      33,949      25,016      27,454
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......      32,737      25,016      27,389
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................       1,192
22.21 Unobligated balance transferred to 
        other accounts..................         -20
22.22 Unobligated balance transferred 
        from other accounts.............                      20
22.60 Portion applied to repay debt.....          40         -20          65
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      33,949      25,016      27,454
23.95 Total new obligations.............     -33,949     -25,016     -27,454
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         309
40.35   Appropriation permanently 
          reduced.......................                                 -65
41.00   Transferred to other accounts...        -378
42.00   Transferred from other accounts.          69
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............                                 -65
      Mandatory:

60.00   Appropriation...................      17,375      22,937      16,452
60.47   Portion applied to repay debt...     -15,619     -20,782     -13,996
61.00   Transferred to other accounts...      -1,756      -2,155      -2,456
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................
67.10   Authority to borrow.............      18,279      13,827      14,749
69.00 Offsetting collections (cash).....      13,322      11,069      12,610
69.10 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         711
69.10 MARAD Cargo Preference 
        Reimbursements..................         425         120          95
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................      14,458      11,189      12,705
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      32,737      25,016      27,389
    Change in obligated balances:
72.40 Obligated balance, start of year..       3,529       4,596       3,487
73.10 Total new obligations.............      33,949      25,016      27,454
73.20 Total outlays (gross).............     -30,554     -26,005     -27,760
73.45 Recoveries of prior year 
        obligations.....................      -1,192
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................        -711
74.00 MARAD Cargo Preference 
        Reimbursements..................        -425        -120         -95
74.40 Obligated balance, end of year....       4,596       3,487       3,086
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                 -65
86.97 Outlays from new mandatory 
        authority.......................      26,137      21,132      14,896
86.98 Outlays from mandatory balances...       4,417       4,873      12,929
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      30,554      26,005      27,760
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Sales to special activities...        -748        -601        -558
88.00     Advances from Foreign 
            Assistance Programs (P.L. 
            480)........................      -1,518      -1,213      -1,208
88.00     Other Revenue.................      -1,615
88.40     Sales and other proceeds......        -370        -200         -49
88.40     Interest Revenue..............         -78         -75        -122
88.40     Loans Repaid..................      -6,074      -7,789      -9,179
88.40     Commodity Certificates 
            Redeemed....................      -2,871      -1,137      -1,433
88.40     Export Credit Sales Program 
            Repayments..................         -22         -29         -39
88.40     Interest Revenue..............         -26         -25         -22
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........     -13,322     -11,069     -12,610
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................      -1,136        -120         -95
    Net budget authority and outlays:
89.00 Budget authority..................      18,279      13,827      14,684
90.00 Outlays...........................      17,232      14,936      15,150
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4336-0-3-999      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
          SHORT TERM CREDIT LOANS
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         334         312         283
1231  Disbursements: Direct loan 
        disbursements...................
1251  Repayments: Repayments and 
        prepayments.....................         -22         -29         -39
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         312         283         244
----------------------------------------------------------------------------

          COMMODITY LOANS
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1131  Direct loan obligations exempt 
        from limitation.................      10,718       8,284       9,209
                                           ---------   ---------  ----------
1150    Total direct loan obligations...      10,718       8,284       9,209
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       1,600       1,644       2,114
1231  Disbursements: Direct loan 
        disbursements...................      10,718       8,284       9,209
1251  Repayments: Repayments and 
        prepayments.....................     -10,485      -7,789      -9,179
1264  Write-offs for default: Other 
        adjustments, net................        -189         -25         -22
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       1,644       2,114       2,122
---------------------------------------------------------------------------

    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.

[[Page 112]]

    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 2004 and 2005 budget estimates: (a) national 
income will rise both in 2004 and 2005 from the present level; (b) 2004 
crop production will decrease from 2003 crop levels for some 
commodities; (c) generally, exports of agricultural commodities in 2005 
are expected to be lower than 2004 levels; (d) yields for the 2004 crops 
are based on recent averages adjusted for trends; and (e) acreage 
allotments and marketing quotas will be in effect for the 2004 crops of 
certain kinds of tobacco.

    It is difficult to accurately forecast requirements for the year 
ending September 30, 2005, 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.

    In 2003, USDA announced it had reserved 2 million Conservation 
Reserve Program acres for the continuous signup program and would make a 
special effort to help enhance wildlife habitat and sequester carbon by 
setting aide 500 thousand acres for bottomland hardwood tree planting. 
During 2003, about 430 thousand acres were signed up for continuous 
practices in signups 25 and 27. Together with the 2 million acres 
already enrolled, this maintains the 4-million-acre goal for continuous 
signup.

    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 general signup was held in FY 2003. Approximately 2 million acres 
were accepted in the program.

    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...................       8,284       1,891           0
  Feed grain payments...............       3,779       3,779       3,779
  Wheat payments....................       1,840       1,840       1,840
  Rice payments.....................       1,105         869       1,105
  Cotton payments...................         695       1,043         695
  Export enhancement program........          28          28          28
  Other support and related.........       5,744       2,776       4,916
Other items not distributed by 
    program:
  Interest..........................         170          72          69
  All other.........................         244         503         246
                                    ------------------------------------
      Total, farm income, marketing 
        assistance loans, and price-
        support programs............      21,889      12,801      12,678
Conservation programs:
  Conservation reserve program......       1,884       1,884       2,204
  Environmental quality incentives 
    program.........................                     198       1,173
  Wetlands reserve program..........                      48         328
  Farmland protection program.......                       3         115
  Soil and water conservation 
    program.........................                       2           2
  Other conservation programs.......                       0         249
                                    ------------------------------------
    Total, conservation programs....       1,884       2,135       4,071
        Total, Commodity Credit 
          Corporation...............      23,773      14,936      16,749
                                    ------------------------------------

                       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.

    Direct Payments and Counter-Cyclical Payments. The 2002 Farm Bill 
established 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  payment acres  
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

[[Page 113]]

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 terminated the marketing quota programs and 
repealed price support programs. The prior quota programs stayed in 
effect for the 2001 crop only, with quota buyout compensation payments 
being made during fiscal years 2002 through 2006. The prior price 
support programs remained 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.

    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 2001 Appropriations Act 
provided $99.8 million and 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 $268.8 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 2005 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

[[Page 114]]

through FY 2006 at the program level of $150 million per year. The 2005 
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. The 2005 Budget assumes funding $125 million for FY 
2005.

    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.

    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. 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 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.

    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.

    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. One such program is 
the Conservation Reserve Program administered by FSA.

    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, 
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.

    The CRP is authorized in all 50 States, Puerto Rico, and the Virgin 
Islands, on all highly erodible cropland, other environmentally 
sensitive cropland, and certain marginal pastureland meeting the 
eligibility criteria. In addition to cropland in areas adjacent to lakes 
and streams that can be devoted to filter strips, and cropland subject 
to overflow and suffering from scour erosion, eligible land may include 
cropland contributing to water quality problems, and other lands posing 
environmental threats. Also eligible for the CRP are water quality or 
wildlife habitat impaired areas that do not meet the highly erodible 
land (HEL) criteria, such as the Chesapeake Bay, Great Lakes, and Long 
Island Sound watershed regions.

    The 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, Wetlands Reserve Program, 
Wildlife Habitat Incentives program, Farm and Ranch Lands Protection 
Program, Conservation Security Program, and Grassland Reserve Program.

    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.

    Loan operations.--The following table reflects commodity loan 
operations of the Corporation:


[[Page 115]]



                        [In millions of dollars]

                Item                 2003 actual  2004 est.   2005 est.
Loans outstanding, gross, start of 
    year:
  Commodity Credit Corporation......       1,600       1,644       2,114
  Additional loans made.............      10,718       8,284       9,209
Deduct:
  Loans repaid......................     -10,485      -7,789      -9,179
  Acquisition of loan collateral....        -149         -25         -22
  Write-offs........................         -40
                                    ------------------------------------
      Total loans outstanding, 
        gross, end of year..........       1,644       2,114       2,122
                                    ====================================

    Inventory operations.--The following table reflects the inventory 
operations applicable to the preceding programs:

                        AGRICULTURAL COMMODITIES

                        [In millions of dollars]

                Item                 2003 actual  2004 est.   2005 est.
On hand, start of year, gross.......       2,487       1,984       1,009
                                    ====================================
Acquisitions:
  Forfeiture of loan collateral.....         150          25          22
  Excess of collateral acquired over 
    loans canceled..................           9           1           1
  Purchases.........................       5,609       2,282       2,521
  Transfers and exchanges...........         -14           0           0
Carrying charges:
  Charges to inventory..............          53          54          39
  Storage and handling (non-add)....          87          73          77
  Transportation (non-add)..........          26          29          20
                                    ------------------------------------
      Total acquisitions............       5,807       2,362       2,583
                                    ====================================
Dispositions:
  Domestic donations to:
    Families........................          41          53          27
    Institutions....................          79         105          31
    School lunch....................           0           0           9
                                    ------------------------------------
      Total domestic donations......         120         158          67
                                    ====================================
  Export donations..................         610         304         304
  Sales and transfers:
    Special programs: Title II, 
      Public Law 480................         748         601         558
    Title III, Public Law 480.......           0
    Other sales.....................       3,241       1,337       1,482
    Net loss or gain (-) on sales 
      and transfers.................       1,590         937         491
                                    ------------------------------------
      Total sales and transfers.....       5,579       2,875       2,531
                                    ====================================
      Total dispositions............       6,310       3,337       2,902
                                    ====================================
On hand, end of year, gross.........       1,984       1,009         690
Allowances for losses...............      -1,708        -869        -594
                                    ------------------------------------
On hand, end of year, net...........         276         140          96
                                    ====================================

    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                 2003 actual  2004 est.   2005 est.
Loans made..........................      10,718       8,284       9,209
Loans repaid........................      10,485       7,789       9,179
Loan collateral forfeited...........         150          25          22
Loans outstanding, end of year......       1,644       2,114       2,122
Acquisitions........................       5,807       2,361       2,583
Cost of commodities sold............       5,579       2,875       2,531
Cost of commodities donated.........         730         462         371
Inventory, end of year..............       1,984       1,009         690
Investment in loans and inventory, 
end of year.........................       3,628       3,123       2,811
Direct producer payments............      14,333      12,958      13,568
Net expenditures....................      17,422      15,482      15,523
Realized losses.....................      22,937      16,749      17,375

    Operating expenses.--The Corporation carries out its functions 
through utilization of employees and facilities of other Government 
agencies. Administrative expenses are incurred by: the Farm Service 
Agency (FSA); the Foreign Agricultural Service; the Natural Resources 
Conservation Service; the Risk Management Agency; other agencies of the 
Department engaged in the Corporation's activities; and the Office of 
the Inspector General for audit functions. Additional expenses are 
incurred by FSA county offices for work related to programs of the 
Corporation, other FSA expenses offset by revenue, custodian, and agency 
expenses of the Federal Reserve banks and lending agencies, and 
miscellaneous costs.

    Expenses are incurred for acquisition, operation, maintenance, 
improvement, or disposition of existing property that the Corporation 
owns or in which it has an interest. These expenses are treated as 
program expenses. Such program expenses include inspection, classing, 
and grading work performed on a fee basis by Federal employees or 
Federal- or State-licensed inspectors; and special services performed by 
Federal agencies within and outside this Department. Most of these 
general expenses, including storage and handling, transportation, 
inspection, classing and grading, and producer storage payments, are 
included in program costs. They are shown in the program and financing 
schedule in the entries entitled ``Storage, transportation, and other 
obligations not included above,'' and ``Producer storage payments.''

    Section 161 of the 1996 Act amended 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. The Section 11 cap of $56 million 
including FSA loan service fees remains at $56 million in fiscal year 
2004.

    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                 2003 actual  2004 est.   2005 est.
Statutory borrowing authority.......      30,000      30,000      30,000
Deduct: Borrowings from Treasury....      18,634      18,998      18,992
Net statutory borrowing authority 
available...........................      11,366      11,002      11,008

    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.


[[Page 116]]



    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]
                                          2003 actual      2004 est.
Realized losses, 1933 to 2003, inclusive                       380,556
 Reimbursements by the Treasury:
  Reimbursements of realized losses:
   Appropriations (64 times)............       354,461
   Note cancellations (6 times).........         2,698
   Less dividends paid to Treasury (4 
    times)..............................          -138
                                         -------------  --------------

    Total reimbursements for net 
     realized losses....................       357,021
                                         -------------  --------------

Other reimbursements:
 Appropriations (2 times)...............           542
 Note cancellation (1 time).............            56
                                         -------------  --------------

  Total other reimbursements............           598
                                         -------------  --------------

  Total.................................                       357,619
                                         -------------  --------------

Realized deficit as of September 30, 
 2003, support and related programs.....                        22,937
                                         -------------  --------------

    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 marketing assistance loans when 
the adjusted world price (for rice and upland cotton) or the posted 
county price (for wheat, feed grains, soybeans, wool, mohair, honey, 
peanuts, dry peas, lentils, small chickpeas, and designated minor 
oilseeds) is lower than the applicable loan rate. The budget assumes 
that commodity certificates may be exchanged for loan collateral through 
crop year 2015.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4336-0-3-999    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....      -1,093         -1,495
        Investments in US securities:
1106      Receivables, net..............         545          1,657
1107      Advances and prepayments......          19              6
      Non-Federal assets:

1206    Receivables, net................          38            103
1207    Advances and prepayments........         105             81
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............       1,964          1,998
1602    Interest receivable.............         143            138
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................        -200            -72
                                        ------------ --------------  ------------  -------------
1604      Direct loans and interest 
            receivable, net.............       1,907          2,064
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................       1,907          2,064
      Other Federal assets:

1802    Inventories and related 
          properties....................         723            276
1803    Property, plant and equipment, 
          net...........................          19             29
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       2,263          2,721
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................         518          1,565
2102    Interest payable................          65             91
2103    Debt............................      17,666         18,653
2105    Other...........................         920          1,212
      Non-Federal liabilities:

2201    Accounts payable................           2            485
2207    Other...........................       2,645          5,513
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............      21,816         27,519
    NET POSITION:
3300  Cumulative results of operations..     -19,553        -24,798
                                        ------------ --------------  ------------  -------------
3999    Total net position..............     -19,553        -24,798
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       2,263          2,721
-----------------------------------------------------------------------------------------------
    Note: Consistent with government-wide practice, information for 2004 
and 2005 was not required to be collected.
    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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

22.0    Transportation of things........         510         152         132
25.2    Other services..................          37         318         208
25.2    Other services: Storage and 
          handling......................          87          72          77
26.0    Supplies and materials: Costs of 
          commodities sold or donated...       4,657       2,337       2,561
41.0    Grants, subsidies, and 
          contributions.................      17,431      12,440      13,819
43.0    Interest and dividends..........         175         170         293
                                           ---------   ---------  ----------
99.0      Direct obligations............      22,897      15,489      17,090
      Reimbursable obligations:

22.0    Transportation of things: P. L. 
          480 ocean transportation......         334         642         598
26.0    Supplies and materials--Cost of 
          Commodities Procured/Donated--
          PL 480........................                     601         557
33.0    Investments and loans...........      10,718       8,284       9,209
                                           ---------   ---------  ----------
99.0      Reimbursable obligations......      11,052       9,527      10,364
                                           ---------   ---------  ----------
99.9    Total new obligations...........      33,949      25,016      27,454
---------------------------------------------------------------------------

                                

        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, 
[$4,152,000] $4,473,000; 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 
[$3,306,000] $3,440,000 may be transferred to and merged with the 
appropriation for ``Foreign Agricultural Service, Salaries and 
Expenses'', and of which [$846,000] $1,033,000 may be transferred to and 
merged with the appropriation for ``Farm Service Agency, Salaries and 
Expenses''. (Division A, H.R. 2673, Consolidated Appropriations Bill, FY 
2004.)

[[Page 117]]

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1336-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Guaranteed loan subsidy...........         170         289         309
00.07 Reestimates of subsidy............         376          60
00.08 Interest on reestimates...........         173           9
00.09 Administrative expenses...........           4           4           4
                                           ---------   ---------  ----------
10.00   Total new obligations...........         723         362         313
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         627         384          91
22.00 New budget authority (gross)......         780         362         313
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................                      91
22.40 Capital transfer to general fund..        -300        -384         -91
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,107         453         313
23.95 Total new obligations.............        -723        -362        -313
24.40 Unobligated balance carried 
        forward, end of year............         384          91
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................           4           4           4
      Mandatory:

60.00   Appropriation...................         227         289         309
60.00   Appropriation--upward reestimate         549          69
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................         776         358         309
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         780         362         313
    Change in obligated balances:
72.40 Obligated balance, start of year..          69         154          87
73.10 Total new obligations.............         723         362         313
73.20 Total outlays (gross).............        -638        -338        -307
73.45 Recoveries of prior year 
        obligations.....................                     -91
74.40 Obligated balance, end of year....         154          87          93
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           4           4           4
86.97 Outlays from new mandatory 
        authority.......................         613         271         216
86.98 Outlays from mandatory balances...          21          63          87
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         638         338         307
    Net budget authority and outlays:
89.00 Budget authority..................         780         362         313
90.00 Outlays...........................         638         338         307
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1336-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Export guarantee program..........       4,146       4,155       4,528
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......       4,146       4,155       4,528
    Guaranteed loan subsidy (in percent):
232001Export guarantee program..........        4.10        6.96        6.82
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....        4.10        6.96        6.82
    Guaranteed loan subsidy budget authority:
233001Export guarantee program..........         170         289         309
                                           ---------   ---------  ----------
233901Total subsidy budget authority....         170         289         309
    Guaranteed loan subsidy outlays:
234001Export guarantee program..........          85         265         303
                                           ---------   ---------  ----------
234901Total subsidy outlays.............          85         265         303
    Guaranteed loan upward reestimate subsidy 
                budget authority:
235001Export guarantee program..........         549          69
                                           ---------   ---------  ----------
235901Total upward reestimate budget 
        authority.......................         549          69
    Guaranteed loan downward reestimate subsidy 
                budget authority:
237001Export guarantee program..........        -552        -856
                                           ---------   ---------  ----------
237901Total downward reestimate subsidy 
        budget authority................        -552        -856
----------------------------------------------------------------------------

    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 2005 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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.3  Other purchases of goods and 
        services from Government 
        accounts........................           4           4           4
41.0  Grants, subsidies, and 
        contributions...................         719         358         309
                                           ---------   ---------  ----------
99.9    Total new obligations...........         723         362         313
---------------------------------------------------------------------------

[[Page 118]]



                                

     Commodity Credit Corporation Export Guarantee Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4337-0-3-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Default claims....................         102         172         184
00.02 Interest on debt to Treasury......          84         141         151
                                           ---------   ---------  ----------
00.91   Subtotal, new loans.............         186         313         335
08.02 Reestimates of guaranteed loan 
        subsidy.........................         389         491
08.04 Interest on reestimates of 
        guaranteed loan subsidy.........         163         365
                                           ---------   ---------  ----------
08.91   Subtotal, reestimates...........         552         856
                                           ---------   ---------  ----------
10.00   Total new obligations...........         738       1,169         335
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........       1,004       1,109         459
22.00 New financing authority (gross)...         939         623         525
22.60 Portion applied to repay debt.....         -96        -104         -78
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,847       1,628         906
23.95 Total new obligations.............        -738      -1,169        -335
24.40 Unobligated balance carried 
        forward, end of year............       1,109         459         571
    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............           1
69.00 Offsetting collections (cash).....         897         623         525
69.10 Receivable from Federal sources...          41
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................         938         623         525
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................         939         623         525
    Change in obligated balances:
72.40 Obligated balance, start of year..         -62        -100         -97
73.10 Total new obligations.............         738       1,169         335
73.20 Total financing disbursements 
        (gross).........................        -736      -1,166        -334
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -41
74.40 Obligated balance, end of year....        -100         -97         -96
87.00 Total financing disbursements 
        (gross).........................         736       1,166         334
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Payments from program account.        -634        -334        -303
88.25     Interest on uninvested funds..         -56         -62         -46
88.40     Loan origination fee..........         -20         -20         -22
88.40     Principal collections.........         -77         -85         -63
88.40     Interest collections..........        -110        -122         -91
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -897        -623        -525
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............         -41
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............           1
90.00 Financing disbursements...........        -161         543        -191
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4337-0-3-351      2003 actual   2004 est.   2005 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.................       4,225       4,155       4,528
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................       4,225       4,155       4,528
2199  Guaranteed amount of guaranteed 
        loan commitments................       4,090       4,022       4,383
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       4,762       3,808       5,198
2231  Disbursements of new guaranteed 
        loans...........................       2,388       4,155       4,528
2251  Repayments and prepayments........      -3,240      -2,593      -3,517
2261  Adjustments: Terminations for 
        default that result in loans 
        receivable......................        -102        -172        -184
                                           ---------   ---------  ----------
2290    Outstanding, end of year........       3,808       5,198       6,025
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       3,656       5,165       5,897
----------------------------------------------------------------------------

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

2310    Outstanding, start of year......         779       1,801       1,888
2331    Disbursements for guaranteed 
          loan claims...................         102         172         184
2351    Repayments of loans receivable..         -77         -85         -63
2364    Other adjustments, net..........         997
                                           ---------   ---------  ----------
2390      Outstanding, end of year......       1,801       1,888       2,009
---------------------------------------------------------------------------

    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    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         942          1,009
1101    Accounts Receivable, net........         291            449
1101    Adjustments.....................
      Net value of assets related to 
          post-1991 acquired defaulted 
          guaranteed loans receivable:

1501    Defaulted guaranteed loans 
          receivable, gross.............       1,759          1,800
1502    Interest receivable.............          47             27
1505    Allowance for subsidy cost (-)..        -770         -1,161
                                        ------------ --------------  ------------  -------------
1599      Net present value of assets 
            related to defaulted 
            guaranteed loans............       1,036            666
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       2,269          2,124
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................          61            101
2103    Debt............................       1,568          1,475
2105    Other...........................         229            526
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.         411             22
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       2,269          2,124
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       2,269          2,124
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

    Commodity Credit Corporation Guaranteed Loans Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4338-0-3-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Operating Expenses................           2           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.3)...................           2           1           1
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          80          86
22.00 New budget authority (gross)......         449         442         455
22.40 Capital transfer to general fund..        -441        -527        -454
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          88           1           1
23.95 Total new obligations.............          -2          -1          -1
24.40 Unobligated balance carried 
        forward, end of year............          86
    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...         449         442         455
    Change in obligated balances:
72.40 Obligated balance, start of year..           1           1           1
73.10 Total new obligations.............           2           1           1
73.20 Total outlays (gross).............          -1          -1          -1
74.40 Obligated balance, end of year....           1           1           1
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           1           1           1

[[Page 119]]

    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.40     Repayments of principal.......        -227        -241        -272
88.40     Interest received on loans....        -213        -201        -183
88.40     Other Non-Federal.............          -9
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -449        -442        -455
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................        -448        -441        -454
---------------------------------------------------------------------------
    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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Addendum:
      Cumulative balance of defaulted guaranteed 
          loans that result in loans receivable:

2310    Outstanding, start of year......       3,785       4,943       4,702
2351    Repayments of loans receivable..        -227        -241        -272
2364    Other adjustments, net..........       1,385
                                           ---------   ---------  ----------
2390      Outstanding, end of year......       4,943       4,702       4,430
---------------------------------------------------------------------------

    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.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4338-0-3-351    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....          81             88
1101    Undepostied Collections.........
1206  Non-Federal assets: Foreign Loans 
        Receivables.....................       5,171          4,943
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1702    Interest receivable.............         165            176
1703    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................      -2,704         -2,324
                                        ------------ --------------  ------------  -------------
1799      Value of assets related to 
            loan guarantees.............      -2,539         -2,148
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       2,713          2,883
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................           1              1
2104    Resources payable to Treasury...       2,681          2,843
2207  Non-Federal liabilities: Other....          31             39
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       2,713          2,883
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       2,713          2,883
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

               Farm Storage Facility Loans Program Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3301-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Farm Storage Loan Subsidy.........           1           1
00.05 Reestimates of direct loan subsidy                       3
00.10 Administrative Expenses--non-
        recoverable costs...............                                   1
                                           ---------   ---------  ----------
10.00   Total new obligations...........           1           4           1
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          12           1
22.00 New budget authority (gross)......           2           4           1
22.40 Capital transfer to general fund..         -12
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           2           5           1
23.95 Total new obligations.............          -1          -4          -1
24.40 Unobligated balance carried 
        forward, end of year............           1
    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................           2           4           1
    Change in obligated balances:
72.40 Obligated balance, start of year..           1           1
73.10 Total new obligations.............           1           4           1
73.20 Total outlays (gross).............          -1          -4          -1
74.40 Obligated balance, end of year....           1
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           1           4           1
    Net budget authority and outlays:
89.00 Budget authority..................           2           4           1
90.00 Outlays...........................           1           4           1
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-3301-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Farm Storage facility loans.......         125          60          60
115002Sugar Storage Facility Loans......          22          22          22
                                           ---------   ---------  ----------
115901Total direct loan levels..........         147          82          82
    Direct loan subsidy (in percent):
132001Farm Storage facility loans.......        1.28        1.22       -1.43
132002Sugar Storage Facility Loans......        1.26       -3.87       -5.25
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....        1.28        0.46       -2.44
    Direct loan subsidy budget authority:
133001Farm Storage facility loans.......           2           1          -1
133002Sugar Storage Facility Loans......                      -1          -1
                                           ---------   ---------  ----------
133901Total subsidy budget authority....           2                      -2
    Direct loan subsidy outlays:
134001Farm Storage facility loans.......           1           1          -1
134002Sugar Storage Facility Loans......                      -1          -1
                                           ---------   ---------  ----------
134901Total subsidy outlays.............           1                      -2
    Direct loan upward reestimate subsidy budget 
                authority:
135001Farm Storage facility loans.......                       3
                                           ---------   ---------  ----------
135901Total upward reestimate budget 
        authority.......................                       3
    Direct loan downward reestimate subsidy budget 
                authority:
137001Farm Storage facility loans.......          -8         -12
                                           ---------   ---------  ----------
137901Total downward reestimate budget 
        authority.......................          -8         -12
----------------------------------------------------------------------------

    Administrative expense data:
351001Budget authority..................                                   1
359001Outlays from new authority........                                   1
---------------------------------------------------------------------------

    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 is a minimum of 7 years with the amount 
and terms being determined as any other commercial loan.

[[Page 120]]

    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 administrative expenses of this program. The 
subsidy amounts are estimated on a prevent value basis; the 
administrative expenses are estimated on a cash basis.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3301-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.3  Other purchases of goods and 
        services from Government 
        accounts........................                                   1
41.0  Grants, subsidies, and 
        contributions...................           1           4
                                           ---------   ---------  ----------
99.9    Total new obligations...........           1           4           1
---------------------------------------------------------------------------

                                

           Farm Storage Facility Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4158-0-3-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans--FSFL................          63          60          60
00.02 Direct Loans--SSFL................                      22          22
00.03 Interest to Treasury..............          14           3           6
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............          77          85          88
08.01 Payment of negative subsidy to 
        receipt account.................                       1           2
08.02 Payment of downward re-estimate to 
        receipt account.................           7          11
08.04 Payment of interest on downward 
        re-estimate to receipt account..           1           1
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............           8          13           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........          85          98          90
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          81          68
22.00 New financing authority (gross)...          83         168         156
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           8
22.60 Portion applied to repay debt.....         -19        -136         -66
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         153         100          90
23.95 Total new obligations.............         -85         -98         -90
24.40 Unobligated balance carried 
        forward, end of year............          68
    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............          72          98          90
69.00 Payments from program account.....           1           4
69.00 Other Federal collections)........          -1
69.00 Interest from Treasury............           8
69.00 Principal.........................          29          43          43
69.00 Interest..........................           8          23          23
69.47 Portion applied to repay debt.....         -34
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................          11          70          66
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................          83         168         156
    Change in obligated balances:
72.40 Obligated balance, start of year..          38          49
73.10 Total new obligations.............          85          98          90
73.20 Total financing disbursements 
        (gross).........................         -66        -148         -90
73.45 Recoveries of prior year 
        obligations.....................          -8
74.40 Obligated balance, end of year....          49
87.00 Total financing disbursements 
        (gross).........................          66         148          90
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Payments from Program Account.          -1          -4
88.00     Other Federal sources.........           1
88.25     Interest on uninvested funds..          -8
88.40     Principal collections.........         -29         -43         -43
88.40     Interest collections..........          -8         -23         -23
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -45         -70         -66
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          38          98          90
90.00 Financing disbursements...........          20          78          24
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4158-0-3-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........
1131  Direct loan obligations exempt 
        from limitation.................          63          60          60
1131  Direct loan obligations exempt 
        from limitation.................                      22          22
                                           ---------   ---------  ----------
1150    Total direct loan obligations...          63          60          60
                                           ---------   ---------  ----------
1150    Total direct loan obligations...                      22          22
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         122         160         207
      Disbursements:

1231    Direct loan disbursements.......          45          69          62
1231    Direct loan disbursements.......                      22          22
1251  Repayments: Repayments and 
        prepayments.....................         -29         -43         -43
      Write-offs for default:

1263    Direct loans....................                      -1          -1
1264    Other adjustments, net..........          22
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         160         207         247
---------------------------------------------------------------------------

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4158-0-3-351    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         118            117
        Investments in US securities:
1106      Receivables, net..............                          4
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..         144            160
1402    Interest receivable.............          10              7
1405    Allowance for subsidy cost (-)..          -3              4
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....         151            171
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         269            292
    LIABILITIES:
      Federal liabilities:

2104    Resources payable to Treasury...         261            280
2105    Other...........................           8             12
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         269            292
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         269            292
-----------------------------------------------------------------------------------------------

    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from direct loans obligated in 1992 and beyond (including 
modifications of direct loans that resulted from obligations in any 
year). The amounts in this account are a means of financing and are not 
included in the budget totals.

                                

                       Apple Loans Program Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3302-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.05 Upward 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

[[Page 121]]

    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 12-3302-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Apple loan program................
                                           ---------   ---------  ----------
115901Total direct loan levels..........
    Direct loan subsidy (in percent):
132001Apple loan program................        0.00
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....        0.00
    Direct loan subsidy budget authority:
133001Apple loan program................
                                           ---------   ---------  ----------
133901Total subsidy budget authority....
    Direct loan subsidy outlays:
134001Apple loan program................
                                           ---------   ---------  ----------
134901Total subsidy outlays.............
    Direct loan upward reestimate subsidy budget 
                authority:
135001Apple loan program................           1
                                           ---------   ---------  ----------
135901Total upward reestimate budget 
        authority.......................           1
    Direct loan downward reestimate subsidy budget 
                authority:
137001Apple loan program................
                                           ---------   ---------  ----------
137901Total downward reestimate budget 
        authority.......................
----------------------------------------------------------------------------

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

    The Agricultural Risk Protection Act of 2000 authorized up to $5 
million for the cost to provide loans to producers of apples for 
economic losses as the result of low prices. Although the program is 
funded through CCC, program management is performed through farm loan 
programs. No further funding is requested for this program.

    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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Payment to Treasury--Interest.....           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........           1           1           1
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          12           5
22.00 New financing authority (gross)...           4           4           2
22.60 Portion applied to repay debt.....         -10          -8          -1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           6           1           1
23.95 Total new obligations.............          -1          -1          -1
24.40 Unobligated balance carried 
        forward, end of year............           5
    New financing authority (gross), detail:
      Discretionary:

47.00   Authority to borrow.............          -2
      Spending authority from offsetting 
          collections:

68.00   Payments from program account...           1
68.00   Interest on uninvested funds and 
          Loan interest.................           1           1           1
68.00   Principal repayments............           4           3           1
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......           6           4           2
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................           4           4           2
    Change in obligated balances:
73.10 Total new obligations.............           1           1           1
73.20 Total financing disbursements 
        (gross).........................          -1          -1          -1
87.00 Total financing disbursements 
        (gross).........................           1           1           1
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Payments from program account.          -1
88.25     Interest on uninvested funds 
            and Loan interest...........          -1          -1          -1
88.40     Principal repayments..........          -4          -3          -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........          -6          -4          -2
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          -2
90.00 Financing disbursements...........          -5          -3          -1
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4211-0-3-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........           9           4           1
1251  Repayments: Repayments and 
        prepayments.....................          -4          -3          -1
1264  Write-offs for default: Other 
        adjustments, net................          -1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........           4           1
---------------------------------------------------------------------------

    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    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....          10              5
        Investments in US securities:
1106      Receivables, net..............           1
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..           8              4
1405    Allowance for subsidy cost (-)..           1              1
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....           9              5
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          20             10
    LIABILITIES:
2104  Federal liabilities: Resources 
        payable to Treasury.............          20             10
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          20             10
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          20             10
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

[[Page 122]]

                                

                  Emergency Boll Weevil Program Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3303-0-1-351      2003 actual   2004 est.   2005 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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct loan subsidy (in percent):
132001Emergency boll weevil loans.......        0.00
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....        0.00
                                           ---------   ---------  ----------
133901Total subsidy budget authority....
    Direct loan upward reestimate subsidy budget 
                authority:
135001Emergency boll weevil loans.......           1
                                           ---------   ---------  ----------
135901Total upward reestimate budget 
        authority.......................           1
----------------------------------------------------------------------------

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

                                

           Emergency Boll Weevil Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4221-0-4-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                       1           1
22.00 New financing authority (gross)...           1           1           1
22.40 Capital transfer to general fund..                      -1          -1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           1           1           1
24.40 Unobligated balance carried 
        forward, end of year............           1           1           1
    New financing authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...           1           1           1
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -1
88.40     Non-Federal sources...........                      -1          -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........          -1          -1          -1
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........          -1          -1          -1
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4221-0-4-351      2003 actual   2004 est.   2005 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........          10          10           9
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    2002 actual    2003 actual     2004 est.      2005 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
1405    Allowance for subsidy cost (-)..          -7             -7
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....           3              3
                                        ------------ --------------  ------------  -------------
1999    Total assets....................           4              3
    LIABILITIES:
2103  Federal liabilities: Debt.........           4              3
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............           4              3
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position           4              3
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                


 
                 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, 
[$853,004,000] $710,412,000, to remain available until expended (7 
U.S.C. 2209b), of which not less than [$9,250,000] $8,915,000 is for 
snow survey and water forecasting, and not less than [$11,500,000] 
$10,454,000 is for operation and establishment of the plant materials 
centers, and of which not less than [$23,500,000] $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 appropria

[[Page 123]]

tion 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 qualified local engineers may be temporarily 
employed at per diem rates to perform the technical planning work of the 
Service[: Provided further, That none of the funds made available under 
this paragraph by this or any other appropriations Act may be used to 
provide technical assistance with respect to programs listed in section 
1241(a) of the Food Security Act of 1985 (16 U.S.C. 3841(a))]. (7 U.S.C. 
2201-02; 16 U.S.C. 590e-2, 1101-5; 33 U.S.C. 7016-11; Division A, H.R. 
2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1000-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Technical assistance..............         712         763         604
00.02 Soil surveys......................          84          89          87
00.03 Snow survey and water forecasting.           9          10           9
00.04 Plant materials centers...........          10          12          11
09.00 Reimbursable program..............          53          67          53
                                           ---------   ---------  ----------
10.00   Total new obligations...........         868         941         764
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          17          29           3
22.00 New budget authority (gross)......         868         915         763
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          12
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         897         944         766
23.95 Total new obligations.............        -868        -941        -764
24.40 Unobligated balance carried 
        forward, end of year............          29           3           3
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         825         853         710
40.35   Appropriation permanently 
          reduced.......................          -5          -5
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         820         848         710
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...          56          67          53
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          -8
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          48          67          53
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         868         915         763
    Change in obligated balances:
72.40 Obligated balance, start of year..         147         204         287
73.10 Total new obligations.............         868         941         764
73.20 Total outlays (gross).............        -806        -858        -768
73.45 Recoveries of prior year 
        obligations.....................         -12
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................           8
74.40 Obligated balance, end of year....         204         287         282
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         729         813         678
86.93 Outlays from discretionary 
        balances........................          77          45          90
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         806         858         768
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -56         -50         -36
88.40     Non-Federal sources...........                     -17         -17
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -56         -67         -53
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................           8
    Net budget authority and outlays:
89.00 Budget authority..................         820         848         710
90.00 Outlays...........................         751         791         715
---------------------------------------------------------------------------

    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.

                          MAIN WORKLOAD FACTORS

                                     2003 Actual  2004 est.   2005 est.
Customers served, number............ 3.8 million 4.0 million 4.0 million
Customers receiving technical 
assistance for planning & 
application number..................     527,000     550,000     550,000
Conservation systems planned, acres.35.1 million36.8 million36.8 million
Erosion reduction applied on 
cropland............................ 6.6 million 6.9 million 6.9 million
Conservation practices applied on 
grazing land........................19.8 million20.8 million20.8 million

    Inventory and monitoring, resource appraisal, and program 
development activities are also funded through this account. Resource 
inventories are conducted to provide soil, water, and related resource 
data for evaluating land-use changes and trends; and for guidance in the 
development and implementation of Federal, State, and local resource 
conservation programs. Resource appraisal and program development 
provides periodic reports to the public and Congress as required by the 
Soil and Water Resources Conservation Act of 1977 as amended.

    Soil surveys.--Soil surveys and investigations are made on the soil 
resources of the Nation's private lands. NRCS provides this information 
as electronic and printed publications for use by the American public 
and other Federal, State and local agencies in making land-use 
decisions. NRCS uses the information for program development, resource 
conservation planning, and installation of planned practices. NRCS 
provides national leadership for the National Cooperative Soil Survey 
and digitizing of soil surveys in cooperation with States, and other 
users of soil survey data. Legislation requires that the Secretary shall 
make a reasonable effort to assure that ``a substantial portion of the 
survey costs for NRCS are to be reimbursed by survey recipients.''

                          MAIN WORKLOAD FACTORS

                                     2003 actual  2004 est.   2005 est.
Acres mapped annually (millions)....        21.7          22          22
Soil surveys released for public 
use, (million acres)................        49.3          55         130

    Snow survey and water supply 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, emergency management, and water quality management.

    Operation of plant materials centers.--The selection and evaluation 
of plant materials are made at 26 plant materials centers through field 
trials to determine their suitability for erosion control, conservation, 
and other environmental improvements. Native plant species will be 
preferred and exotic species introductions phased out for this program.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1000-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         408         427         347
11.3      Other than full-time permanent          10          11           9
11.5      Other personnel compensation..           6           6           5
                                           ---------   ---------  ----------
11.9        Total personnel compensation         424         444         361
12.1    Civilian personnel benefits.....         112         119          98
21.0    Travel and transportation of 
          persons.......................          15          15          12
22.0    Transportation of things........           5           5           4
23.2    Rental payments to others.......          24          24          19
23.3    Communications, utilities, and 
          miscellaneous charges.........          32          33          27
24.0    Printing and reproduction.......           3           3           3
25.2    Other services..................         141         170         137
26.0    Supplies and materials..........          15          16          13
31.0    Equipment.......................          43          44          36
42.0    Insurance claims and indemnities           1           1           1
                                           ---------   ---------  ----------
99.0      Direct obligations............         815         874         711
99.0  Reimbursable obligations..........          53          67          53
                                           ---------   ---------  ----------

[[Page 124]]


99.9    Total new obligations...........         868         941         764
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1000-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       7,942       7,998       6,359
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         297         351         300
---------------------------------------------------------------------------

                                

                     Farm Bill Technical Assistance

    For necessary expenses of the Natural Resources Conservation Service 
in providing technical assistance and administrative support for the 
conservation reserve and wetlands reserve programs authorized under 
subchapters B and C, chapter 1, subtitle D of title XII of the Food 
Security Act of 1985, $92,024,000.

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1006-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Farm Bill Technical Assistance....                                  92
                                           ---------   ---------  ----------
10.00   Total new obligations...........                                  92
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                                  92
23.95 Total new obligations.............                                 -92
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                                  92
    Change in obligated balances:
73.10 Total new obligations.............                                  92
73.20 Total outlays (gross).............                                 -81
74.40 Obligated balance, end of year....                                  11
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                  81
    Net budget authority and outlays:
89.00 Budget authority..................                                  92
90.00 Outlays...........................                                  81
---------------------------------------------------------------------------

    The Farm Bill Technical Assistance account funds the technical 
assistance costs of the Wetlands Reserve Program (WRP) and the 
Conservation Reserve Program (CRP) authorized by the Farm Security and 
Rural Investment Act of 2002 (P.L. 107-171). The financial assistance 
for WRP is provided from the Farm Security and Rural Investment Programs 
account, while the financial assistance for CRP is provided from the 
Commodity Credit Corporation.

    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 for WRP and CRP. 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 WRP and CRP. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1006-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............                                  44
11.3    Other than full-time permanent..                                   1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..                                  45
12.1  Civilian personnel benefits.......                                  12
21.0  Travel and transportation of 
        persons.........................                                   3
23.2  Rental payments to others.........                                   3
23.3  Communications, utilities, and 
        miscellaneous charges...........                                   3
24.0  Printing and reproduction.........                                   1
25.2  Other services....................                                  17
26.0  Supplies and materials............                                   1
31.0  Equipment.........................                                   7
                                           ---------   ---------  ----------
99.9    Total new obligations...........                                  92
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1006-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................                                 934
---------------------------------------------------------------------------

                                

               Farm Security and Rural Investment Programs

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1004-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Wetlands Reserve Program..........         309         299         295
00.02 Environmental Quality Incentives 
        Program.........................         643         888         985
00.03 Ground and Surface Water 
        Conservation....................          54          68          81
00.04 Klamath Basin.....................          12          12          11
00.05 Wildlife Habitat Incentives 
        Program.........................          24          33          59
00.06 Farmland Protection Program.......          78          84         120
00.07 Conservation Security Program.....                      41         209
00.08 Grassland Reserve Program.........          38         101          82
00.09 Conservation Reserve Program......          55         100
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,213       1,626       1,842
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......       1,242       1,626       1,842
23.95 Total new obligations.............      -1,213      -1,626      -1,842
23.98 Unobligated balance expiring or 
        withdrawn.......................         -29
    New budget authority (gross), detail:
      Discretionary:

40.35   Appropriation permanently 
          reduced.......................                                -265
      Mandatory:

60.35   Appropriation permanently 
          reduced.......................                     -80
62.00   Transferred from other accounts.       1,242       1,706       2,107
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................       1,242       1,626       2,107
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,242       1,626       1,842
    Change in obligated balances:
72.40 Obligated balance, start of year..         341         660         486
73.10 Total new obligations.............       1,213       1,626       1,842
73.20 Total outlays (gross).............        -889      -1,800      -1,986
73.40 Adjustments in expired accounts 
        (net)...........................          -6
74.40 Obligated balance, end of year....         660         486         342
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                 -72
86.97 Outlays from new mandatory 
        authority.......................         757       1,319       1,606
86.98 Outlays from mandatory balances...         132         481         452
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         889       1,800       1,986
    Net budget authority and outlays:
89.00 Budget authority..................       1,242       1,626       1,842
90.00 Outlays...........................         889       1,800       1,986
---------------------------------------------------------------------------

    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 
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 funds the 
cost share, monitoring, easement, and other financial assistance 
activities associated with the programs under title II of the 2002 Farm 
Bill. In addition, this account funds the technical assistance costs 
necessary for delivering the Environmental Quality Incentives Program, 
Ground and Surface Water Conservation, Klamath Basin, Wildlife Habitat 
Incentives Program, Farm and Ranchland Protection Program,

[[Page 125]]

Conservation Security Program, and Grassland Reserve Program. In 2005, 
the technical assistance costs for the Conservation Reserve Program and 
Wetlands Reserve Program are funded from the Farm Bill Technical 
Assistance account.

    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.

    Farm and Ranchlands Protection Program (FRPP) 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 subchapter A 
chapter 2, subtitle D. Title XII of the Food Security Act of 1985 as 
added 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 assistance to producers 
who have already implemented high levels of conservation in order to 
reward and maintain their model stewardship. CSP also pays qualified 
producers to do further environmental enhancements to improve natural 
resource conditions on their agricultural operations.

    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.

    NRCS works to deliver these conservation programs using its 
technical field staff and by partnering with public and private entities 
through the Technical Service Provider (TSP) system. NRCS can contract 
with TSPs to help deliver the Farm Bill programs, or agricultural 
producers may select TSPs to help plan and implement conservation 
practices on their operations.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1004-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         143         173         152
11.3      Other than full-time permanent           1           1           1
11.5      Other personnel compensation..           2           2           2
                                           ---------   ---------  ----------
11.9        Total personnel compensation         146         176         155
12.1    Civilian personnel benefits.....          36          45          40
21.0    Travel and transportation of 
          persons.......................           5           7           6
22.0    Transportation of things........                       1           1
23.2    Rental payments to others.......           7          10           9
23.3    Communications, utilities, and 
          miscellaneous charges.........           8          12          10
24.0    Printing and reproduction.......           1           1           1
25.2    Other services..................          60          93          84
26.0    Supplies and materials..........           4           6           6
31.0    Equipment.......................          12          18          15
32.0    Land and structures.............         290         364         353
41.0    Grants, subsidies, and 
          contributions.................         642         893       1,162
                                           ---------   ---------  ----------
99.0      Direct obligations............       1,211       1,626       1,842
99.5  Below reporting threshold.........           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,213       1,626       1,842
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1004-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       2,579       3,660       3,161
---------------------------------------------------------------------------

                                

                     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), [$10,562,000: 
Provided, That none of the funds made available under this paragraph by 
this or any other appropriations Act may be used to provide technical 
assistance with respect to programs listed in section 1241(a) of the 
Food Security Act of 1985 (16 U.S.C. 3841(a))] [$5,032,000] $5,083,000. 
(7 U.S.C. 2201-02; 16 U.S.C. 1101-5; 33 U.S.C. 7016-11; Division A, H.R. 
2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1066-0-1-301      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................          11          11           5
                                           ---------   ---------  ----------
10.00   Total new obligations...........          11          11           5
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          11          11           5
23.95 Total new obligations.............         -11         -11          -5
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          11          11           5
    Change in obligated balances:
72.40 Obligated balance, start of year..           2           2
73.10 Total new obligations.............          11          11           5
73.20 Total outlays (gross).............         -10         -11          -6
74.40 Obligated balance, end of year....           2
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           9           9           4
86.93 Outlays from discretionary 
        balances........................           1           2           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          10          11           6
    Net budget authority and outlays:
89.00 Budget authority..................          11          11           5
90.00 Outlays...........................          10          11           6
---------------------------------------------------------------------------

    Under the authorities of Public Law 83-566, watershed planning 
assistance is provided to States and communities

[[Page 126]]

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 $922 million primarily to local areas and private landowners.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1066-0-1-301      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................           6           6           3
12.1    Civilian personnel benefits.....           2           1           1
25.2    Other services..................           1           1
                                           ---------   ---------  ----------
99.0      Direct obligations............           9           8           4
99.5  Below reporting threshold.........           2           3           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          11          11           5
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1066-0-1-301      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         105          97          46
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................           1           2           1
---------------------------------------------------------------------------

                                

                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 (16 U.S.C. 1001-1005 and 1007-1009), the 
provisions of the Act of April 27, 1935 (16 U.S.C. 590a-f), and in 
accordance with the provisions of laws relating to the activities of the 
Department, [$87,000,000] $40,173,000, to remain available until 
expended[; of which up to $10,000,000 may be available for the 
watersheds authorized under the Flood Control Act (33 U.S.C. 701 and 16 
U.S.C. 1006a)]: Provided, That not to exceed [$40,000,000] $20,173,000 
of this appropriation shall be available for technical assistance: 
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 none of the funds made available under this 
paragraph by this or any other appropriations Act may be used to provide 
technical assistance with respect to programs listed in section 1241(a) 
of the Food Security Act of 1985 (16 U.S.C. 3841(a))]. (7 U.S.C. 2209b, 
2225; 16 U.S.C. 1001-1005, 1007-1009; Division A, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1072-0-1-301      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Watershed operations (P.L. 534).          12          11
00.03   Emergency watershed protection 
          operations....................          63         197
00.04   Small watershed operations (P.L. 
          566)..........................         109          80          40
09.01 Reimbursable program..............          17          23           4
                                           ---------   ---------  ----------
10.00   Total new obligations...........         201         311          44
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         119          53           1
22.00 New budget authority (gross)......         119         259          44
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          16
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         254         312          45
23.95 Total new obligations.............        -201        -311         -44
24.40 Unobligated balance carried 
        forward, end of year............          53           1           1
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         110         237          40
40.35   Appropriation permanently 
          reduced.......................          -1          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         109         236          40
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...          17          23           4
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          -7
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          10          23           4
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         119         259          44
    Change in obligated balances:
72.40 Obligated balance, start of year..         214         244         216
73.10 Total new obligations.............         201         311          44
73.20 Total outlays (gross).............        -162        -339        -138
73.45 Recoveries of prior year 
        obligations.....................         -16
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................           7
74.40 Obligated balance, end of year....         244         216         122
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          91         183          31
86.93 Outlays from discretionary 
        balances........................          71         156         107
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         162         339         138
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -17         -23          -4
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................           7
    Net budget authority and outlays:
89.00 Budget authority..................         109         236          40
90.00 Outlays...........................         145         316         134
---------------------------------------------------------------------------

    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.--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 water

[[Page 127]]

shed is suddenly impaired by flood, fire, wind, earthquake, drought 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. Funding for the 
emergency watershed protection program is typically provided through 
emergency supplemental appropriations. To the extent financial resources 
are available, funding provided for the Watershed and Flood Prevention 
Operations account can be used to meet these types of emergency needs 
should they occur in 2005.

    To improve the delivery and defensibility of the program, NRCS 
published a draft programmatic environmental impact statement and 
proposed regulations for public review and comment to assess various 
program alternatives. Through the public feedback and information 
gathering process, NRCS ultimately will be able to make the program more 
beneficial to communities and the environment.

    Watershed operations authorized by Public Law 78-534.--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 2005.

    Small watershed operations authorized by Public Law 83-566.--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 83-566 or 78-534 projects. No funding for these loans is 
assumed in 2005.

    The following tabulation shows the status of Public Law 83-566 
projects:

                          MAIN WORKLOAD FACTORS

                                     2003 actual  2004 est.   2005 est.
Status of operational projects:
  Projects receiving land treatment.         194         196         199
  Structural projects...............         262         267         269
  Land treatment and structural.....          67          70          71
                                    ------------------------------------
      Subtotal active projects......         523         533         539
  Projects continuing post-
    installation assistance.........         984         974         964
  Inactive projects.................          25          25          25
  Project life completed............          43          53          63
  Deauthorized projects.............         159         159         159
                                    ------------------------------------
      Total operational projects....       1,734       1,744       1,750
                                    ------------------------------------
  New projects approved during year.           1          10           6
                                    ====================================

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1072-0-1-301      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          30          44          11
11.5      Other personnel compensation..           1           2
                                           ---------   ---------  ----------
11.9        Total personnel compensation          31          46          11
12.1    Civilian personnel benefits.....           8          12           3
21.0    Travel and transportation of 
          persons.......................           1           2
23.2    Rental payments to others.......           1           2           1
23.3    Communications, utilities, and 
          miscellaneous charges.........           2           4           1
25.2    Other services..................           9          12           3
25.2    Other services..................          68         104          12
26.0    Supplies and materials..........           1           2
31.0    Equipment.......................           2           3           1
41.0    Grants, subsidies, and 
          contributions.................          59         101           8
                                           ---------   ---------  ----------
99.0      Direct obligations............         182         288          40
99.0  Reimbursable obligations..........          15          21           4
99.5  Below reporting threshold.........           4           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........         201         311          44
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1072-0-1-301      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         568         796         190
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          42          40          17
---------------------------------------------------------------------------

                                

                    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 (16 U.S.C. 1012), and in accordance with the 
provisions of laws relating to the activities of the Department, 
[$29,805,000] $10,091,000, to remain available until expended[: 
Provided, That none of the funds made available under this paragraph by 
this or any other appropriations Act may be used to provide technical 
assistance with respect to programs listed in section 1241(a) of the 
Food Security Act of 1985 (16 U.S.C. 3841(a))]. (16 U.S.C. 1001 et seq.; 
Division A, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1002-0-1-301      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........          29          30          10
                                           ---------   ---------  ----------
10.00   Total new obligations...........          29          30          10
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                       1          95
22.00 New budget authority (gross)......          30         125         -85
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          30         126          10
23.95 Total new obligations.............         -29         -30         -10
24.40 Unobligated balance carried 
        forward, end of year............           1          95
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          30          30          10
40.35   Appropriation permanently 
          reduced.......................                                -150
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          30          30        -140
      Mandatory:

62.00   Transferred from other accounts.                      95          55
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          30         125         -85
    Change in obligated balances:
72.40 Obligated balance, start of year..           4          24          26
73.10 Total new obligations.............          29          30          10
73.20 Total outlays (gross).............         -10         -26          85
74.40 Obligated balance, end of year....          24          26         121

[[Page 128]]

    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           8          20         -95
86.93 Outlays from discretionary 
        balances........................           2           6          10
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          10          26         -85
    Net budget authority and outlays:
89.00 Budget authority..................          30         125         -85
90.00 Outlays...........................          10          26         -85
---------------------------------------------------------------------------

    Under the authorities of section 14 of the Watershed Protection and 
Flood Prevention Act 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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................           6           5           2
12.1    Civilian personnel benefits.....           1           1
25.2    Other services..................           6           8           2
31.0    Equipment.......................           2           2           1
41.0    Grants, subsidies, and 
          contributions.................          13          13           5
                                           ---------   ---------  ----------
99.0      Direct obligations............          28          29          10
99.5  Below reporting threshold.........           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          29          30          10
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1002-0-1-301      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          91          80          26
---------------------------------------------------------------------------

                                

                  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 of the Bankhead-Jones Farm Tenant 
Act (7 U.S.C. 1010-1011; 76 Stat. 607); the Act of April 27, 1935 (16 
U.S.C. 590a-f); and subtitle H of title XV of the Agriculture and Food 
Act of 1981 (16 U.S.C. 3451-3461), [$51,947,000] $50,760,000, to remain 
available until expended[: Provided, That none of the funds made 
available under this paragraph by this or any other appropriations Act 
may be used to provide technical assistance with respect to programs 
listed in section 1241(a) of the Food Security Act of 1985 (16 U.S.C. 
3841(a)): Provided further, That the Secretary shall enter into a 
cooperative or contribution agreement with a national association 
regarding a Resource Conservation and Development program and such 
agreement shall contain the same matching, contribution requirements, 
and funding level, set forth in a similar cooperative or contribution 
agreement with a national association in fiscal year 2002: Provided 
further, That not to exceed $3,504,300, the same amount as in the 
budget, shall be available for national headquarters activities]. (7 
U.S.C. 2225; Division A, H.R. 2673, Consolidated Appropriations Bill, FY 
2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1010-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Technical assistance..............          50          53          51
09.01 Reimbursable program..............                       1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........          50          54          52
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           1           2
22.00 New budget authority (gross)......          51          52          51
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          52          54          51
23.95 Total new obligations.............         -50         -54         -52
24.40 Unobligated balance carried 
        forward, end of year............           2
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          51          52          51
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............                       1           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          51          53          52
    Change in obligated balances:
72.40 Obligated balance, start of year..           8           9           9
73.10 Total new obligations.............          50          54          52
73.20 Total outlays (gross).............         -49         -54         -51
74.40 Obligated balance, end of year....           9           9           8
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          46          48          47
86.93 Outlays from discretionary 
        balances........................           3           6           4
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          49          54          51
    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..................          51          53          50
90.00 Outlays...........................          49          52          50
---------------------------------------------------------------------------

    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 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

                                     2003 actual  2004 est.   2005 est.
Areas authorized at beginning of 
year................................         368         375         375
Areas authorized at end of year.....         375         375         375
Project plans adopted...............       2,084       2,500       2,500
Projects completed..................       4,254       3,000       3,000

                Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1010-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          29          31          29
11.3      Other than full-time permanent           1           1           1
                                           ---------   ---------  ----------

[[Page 129]]


11.9        Total personnel compensation          30          32          30
12.1    Civilian personnel benefits.....           7           8           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..................           7           7           7
26.0    Supplies and materials..........           1           1           1
31.0    Equipment.......................           1           1           1
                                           ---------   ---------  ----------
99.0      Direct obligations............          50          53          50
99.0  Reimbursable obligations..........                       1           1
99.5  Below reporting threshold.........                                   1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          50          54          52
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1010-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         511         540         498
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................           2           5           5
---------------------------------------------------------------------------

                                

                    Biomass Research and Development

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1003-0-1-271      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Biomass Research and Development..          14          14          14
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          14          14          14
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          14          14          14
23.95 Total new obligations.............         -14         -14         -14
    New budget authority (gross), detail:
      Mandatory:

62.00   Transferred from other accounts.          14          14          14
    Change in obligated balances:
72.40 Obligated balance, start of year..                      14
73.10 Total new obligations.............          14          14          14
73.20 Total outlays (gross).............                     -28         -14
74.40 Obligated balance, end of year....          14
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                      14          14
86.98 Outlays from mandatory balances...                      14
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                      28          14
    Net budget authority and outlays:
89.00 Budget authority..................          14          14          14
90.00 Outlays...........................                      28          14
---------------------------------------------------------------------------

    Biomass Research and Development is authorized by the Biomass 
Research and Development Act of 2000. The program provides competitive 
grants for research, development, and demonstration to encourage 
innovation and development related to biomass, and improved 
commercialization of bio-based products and energy. USDA and the 
Department of Energy jointly administer the program.

    Current priorities focus on the following: feedstock development and 
production; biobased products emphasizing environmental and economic 
performance; biomass focused forest management training, in support of 
Title II of the Healthy Forest Restoration Act of 2003; and effective 
and targeted incentive systems for biomass commercialization and 
adoption.

                                

                    Great Plains Conservation Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2268-0-1-302      2003 actual   2004 est.   2005 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..           2           1
73.10 Total new obligations.............                       1
73.20 Total outlays (gross).............                      -1
74.40 Obligated balance, end of year....           1
    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................                       1
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................                       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

                                     2003 actual  2004 est.   2005 est.
Program participants:
  Number of contracts serviced 
    during year.....................         395         395     200,000
  Number of acres under contracts...   1,567,600   1,567,600     794,000

    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.

                                

                       Forestry Incentives Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3336-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           2           4           4
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           4           4           4
24.40 Unobligated balance carried 
        forward, end of year............           4           4           4
    Change in obligated balances:
72.40 Obligated balance, start of year..          18          10           4
73.20 Total outlays (gross).............          -6          -6          -2
73.45 Recoveries of prior year 
        obligations.....................          -2
74.40 Obligated balance, end of year....          10           4           2
    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................           6           6           2
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           5           6           2
---------------------------------------------------------------------------

    No funds are proposed for the Forestry Incentives Program (FIP). The 
FIP was not reauthorized by the Farm Security

[[Page 130]]

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      2003 actual   2004 est.   2005 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..           3           2           1
73.10 Total new obligations.............                       1
73.20 Total outlays (gross).............          -1          -2          -1
74.40 Obligated balance, end of year....           2           1
    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................           1           2           1
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           1           2           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 2005, 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      2003 actual   2004 est.   2005 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
73.10 Total new obligations.............                       1
73.20 Total outlays (gross).............                      -1
74.40 Obligated balance, end of year....           1
    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................                       1
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................                       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.

                                

                        Wetlands Reserve Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1080-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           2           2
24.40 Unobligated balance carried 
        forward, end of year............           2
    Change in obligated balances:
72.40 Obligated balance, start of year..           4           2
73.20 Total outlays (gross).............          -2          -3
74.40 Obligated balance, end of year....           2
    Outlays (gross), detail:
86.98 Outlays from mandatory balances...           2           3
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           1           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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................           1           1
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           1           1

[[Page 131]]

22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           2           1
23.95 Total new obligations.............          -1          -1
24.40 Unobligated balance carried 
        forward, end of year............           1
    Change in obligated balances:
72.40 Obligated balance, start of year..          24          19          15
73.10 Total new obligations.............           1           1
73.20 Total outlays (gross).............          -5          -4          -4
73.45 Recoveries of prior year 
        obligations.....................          -1
74.40 Obligated balance, end of year....          19          15          11
    Outlays (gross), detail:
86.98 Outlays from mandatory balances...           5           4           4
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           5           4           4
---------------------------------------------------------------------------

    Section 1240N of the Food Security Act of 1985, as amended by 
Section 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 only.

                                

                        Rural Clean Water Program

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3337-0-1-304      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           5
22.00 New budget authority (gross)......          -5
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......
    New budget authority (gross), detail:
      Discretionary:

40.36   Unobligated balance permanently 
          reduced (rescinded)...........          -5
    Net budget authority and outlays:
89.00 Budget authority..................          -5
90.00 Outlays...........................
---------------------------------------------------------------------------

    This experimental Rural Clean Water Program, authorized by Public 
Law 96-108 and Public Law 96-528, was a cooperative endeavor among 
farmers, various USDA agencies, and other organizations to develop and 
test means of controlling agricultural nonpoint source water pollution 
in rural areas.

    All final payments have been made and the program was closed out in 
2003. During FY 2003, $5 million in unobligated balances was rescinded 
by the Consolidated Appropriations Resolution, P.L. 108-7. The remaining 
balance of approximately $8 thousand was transferred to the USDA Working 
Capital Fund.

                                

    Agricultural Resource Conservation Demonstration Program Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2086-0-1-351      2003 actual   2004 est.   2005 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 (subsidy 
          reestimate)...................           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 12-2086-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Guaranteed loan upward reestimate subsidy 
                budget authority:
235001Agricultural resource conservation 
        demonstration program...........           1
                                           ---------   ---------  ----------
235901Total upward reestimate budget 
        authority.......................           1
    Guaranteed loan downward reestimate subsidy 
                budget authority:
237001Downward reestimate subsidy budget 
        authority.......................                      -1
                                           ---------   ---------  ----------
237901Total downward reestimate subsidy 
        budget authority................                      -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.

[[Page 132]]

                                

Credit accounts:

    Agricultural Resource Conservation Demonstration Guaranteed Loan 
                            Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4177-0-3-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Interest assistance on guaranteed 
        loans...........................           1           1           1
      Downward Reestimates:

08.04   Interest on reestimates of 
          guaranteed loan subsidy.......                       1
                                           ---------   ---------  ----------
10.00   Total new obligations...........           1           2           1
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           3           2
22.00 New financing authority (gross)...           1                       1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           4           2           1
23.95 Total new obligations.............          -1          -2          -1
24.40 Unobligated balance carried 
        forward, end of year............           2
    New financing authority (gross), detail:
      Discretionary:

47.00   Authority to borrow.............                                   1
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           1
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................           1                       1
    Change in obligated balances:
73.10 Total new obligations.............           1           2           1
73.20 Total financing disbursements 
        (gross).........................          -1          -2          -1
87.00 Total financing disbursements 
        (gross).........................           1           2           1
    Offsets:
      Against gross financing authority and 
          financing disbursements:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -1
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............                                   1
90.00 Financing disbursements...........                       2           1
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4177-0-3-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........          22          12           5
2251  Repayments and prepayments........         -10          -7          -5
                                           ---------   ---------  ----------
2290    Outstanding, end of year........          12           5
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..          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    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................           3              2
                                        ------------ --------------  ------------  -------------
1999    Total assets....................           3              2
    LIABILITIES:
2104  Federal liabilities: Resources 
        payable to Treasury.............           1              1
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.           2              1
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............           3              2
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position           3              2
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

                               Trust Funds

                     Miscellaneous Contributed Funds

                Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8210-0-7-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............           5           5           6
    Receipts:
02.20 Miscellaneous contributed funds...           1           1           1
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...           6           6           7
    Appropriations:
05.00 Miscellaneous contributed funds...          -1
                                           ---------   ---------  ----------
07.99 Balance, end of year..............           5           6           7
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8210-0-7-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........           3           8
                                           ---------   ---------  ----------
10.00   Total new obligations...........           3           8
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          10           8
22.00 New budget authority (gross)......           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          11           8
23.95 Total new obligations.............          -3          -8
24.40 Unobligated balance carried 
        forward, end of year............           8
    New budget authority (gross), detail:
      Mandatory:

60.26   Appropriation (trust fund)......           1
    Change in obligated balances:
72.40 Obligated balance, start of year..           1          -1           3
73.10 Total new obligations.............           3           8
73.20 Total outlays (gross).............          -5          -4          -3
74.40 Obligated balance, end of year....          -1           3
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           1
86.98 Outlays from mandatory balances...           4           4           3
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           5           4           3
    Net budget authority and outlays:
89.00 Budget authority..................           1
90.00 Outlays...........................           5           4           3
---------------------------------------------------------------------------

    Funds received from State and local organizations, and others are 
available for work under cooperative agreements for soil survey, 
watershed protection, and resource conservation and development 
activities. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8210-0-7-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.2  Other services....................           2           8
25.2  Other services....................           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........           3           8
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-8210-0-7-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................           2           1           1
---------------------------------------------------------------------------

[[Page 133]]



                                


 
                            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; 
[$141,869,000] $149,749,000: Provided, That notwithstanding any other 
provision of law, funds appropriated under this section may be used for 
advertising and promotional activities that support the Rural 
Development mission area: 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. (Division A, H.R. 
2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0403-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................         143         141         150
09.01 Reimbursable program..............         486         506         516
                                           ---------   ---------  ----------
10.00   Total new obligations...........         629         647         666
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         631         647         666
23.95 Total new obligations.............        -629        -647        -666
23.98 Unobligated balance expiring or 
        withdrawn.......................          -2
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         146         142         150
40.35   Appropriation permanently 
          reduced.......................          -1          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         145         141         150
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...         485         506         516
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................           1
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......         486         506         516
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         631         647         666
    Change in obligated balances:
72.40 Obligated balance, start of year..         126         131         138
73.10 Total new obligations.............         629         647         666
73.20 Total outlays (gross).............        -622        -640        -662
73.40 Adjustments in expired accounts 
        (net)...........................          -6
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -1
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................           5
74.40 Obligated balance, end of year....         131         138         143
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         533         543         559
86.93 Outlays from discretionary 
        balances........................          89          97         103
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         622         640         662
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -491        -506        -516
      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..............           6
    Net budget authority and outlays:
89.00 Budget authority..................         145         141         150
90.00 Outlays...........................         132         134         146
---------------------------------------------------------------------------

    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 from the former Rural 
Electrification Administration, and the Agricultural Cooperative 
Service. This agency delivers loan and grant programs, as well as 
technical assistance, to cooperatives and rural businesses.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0403-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          74          80          80
11.3      Other than full-time permanent           2           2           2
11.5      Other personnel compensation..           1           1           1
                                           ---------   ---------  ----------
11.9        Total personnel compensation          77          83          83
12.1    Civilian personnel benefits.....          22          20          17
21.0    Travel and transportation of 
          persons.......................           4           4           4
23.2    Rental payments to others.......           4           4           4
23.3    Communications, utilities, and 
          miscellaneous charges.........           6           5           5
24.0    Printing and reproduction.......           1           1           1
25.2    Other services..................           9           9          10
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           5           5           6
25.4    Operation and maintenance of 
          facilities....................           8           7          11
25.7    Operation and maintenance of 
          equipment.....................           1           1           3
26.0    Supplies and materials..........           4           1           1
31.0    Equipment.......................           2           1           5
                                           ---------   ---------  ----------
99.0      Direct obligations............         143         141         150
99.0  Reimbursable obligations..........         486         506         516
                                           ---------   ---------  ----------
99.9    Total new obligations...........         629         647         666
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0403-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       1,478       1,529       1,528
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       5,310       5,499       5,500
---------------------------------------------------------------------------

                                

                   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, [$757,425,000] $541,979,000, to remain available until expended, of 
which [$75,919,000] $29,339,000 shall be for rural community programs 
described in section 381E(d)(1) of such Act; of which [$605,006,000] 
$439,460,000 shall be for the rural utilities programs described in 
sections 381E(d)(2), 306C(a)(2), and 306D of

[[Page 134]]

such Act[, of which not to exceed $500,000 shall be available for the 
rural utilities program described in section 306(a)(2)(B) of such Act, 
and of which not to exceed $1,000,000 shall be available for the rural 
utilities program described in section 306E of such Act]; and of which 
[$76,500,000] $73,180,000 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 amount appropriated for 
rural business and cooperative development programs, $100,000 shall be 
for a pilot program in the State of Alaska to assist communities with 
community planning: Provided further,] That of the total amount 
appropriated in this account, [$24,000,000] $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 [$4,000,000 shall be available for 
community facilities grants to tribal colleges, as authorized by section 
306(a)(19) of the Consolidated Farm and Rural Development Act, and of 
which] $250,000 shall be available for a grant to a qualified national 
organization to provide technical assistance for rural transportation in 
order to promote economic development: [Provided further, That of the 
amount appropriated for rural community programs, $6,000,000 shall be 
available for a Rural Community Development Initiative: Provided 
further, That such funds shall be used solely to develop the capacity 
and ability of private, nonprofit community-based housing and community 
development organizations, low-income rural communities, and Federally 
Recognized Native American Tribes to undertake projects to improve 
housing, community facilities, community and economic development 
projects in rural areas: Provided further, That such funds shall be made 
available to qualified private, nonprofit and public intermediary 
organizations proposing to carry out a program of financial and 
technical assistance: Provided further, That such intermediary 
organizations shall provide matching funds from other sources, including 
Federal funds for related activities, in an amount not less than funds 
provided:] Provided further, That of the amount appropriated for the 
rural business and cooperative development programs, not to exceed 
$500,000 shall be made available for a grant to a qualified national 
organization to provide technical assistance for rural transportation in 
order to promote economic development[; $1,750,000 shall be for grants 
to the Delta Regional Authority (7 U.S.C. 1921 et seq.); and not less 
than $2,000,000 shall be available for grants in accordance with section 
310B(f) of the Consolidated Farm and Rural Development Act]: Provided 
further, That of the amount appropriated for rural utilities programs, 
not to exceed [$25,000,000] $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 [$28,000,000] $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''[, of which $100,000 shall be 
provided to develop a regional system for centralized billing, 
operation, and management of rural water and sewer utilities through 
regional cooperatives, of which 25 percent shall be provided for water 
and sewer projects in regional hubs, and the State of Alaska shall 
provide a 25 percent cost share]; not to exceed [$17,733,000] 
$16,215,000 shall be for technical assistance grants for rural water and 
waste systems pursuant to section 306(a)(14) of such Act[, of which 
$5,513,000 shall be for Rural Community Assistance Programs]; and not to 
exceed [$13,000,000] $9,500,000 shall be for contracting with qualified 
national organizations for a circuit rider program to provide technical 
assistance for rural water systems: [Provided further, That of the 
amount appropriated for the circuit rider program, Alaska shall receive 
two additional full circuit rider contracts and not less than $750,000 
shall be for contracting with qualified national organizations to 
establish a Native American 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] $22,166,000 shall be 
available through June 30, [2004] 2005, 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] 1,081,000 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] $8,503,000 shall be for the rural 
business and cooperative development programs described in section 
381E(d)(3) of such Act: [Provided further, That of the amount 
appropriated for rural community programs, not to exceed $22,000,000 
shall be to provide grants for facilities in rural communities with 
extreme unemployment and severe economic depression (Public Law 106-
387), with 5 percent for administration and capacity building in the 
State rural development offices: Provided further, That of the amount 
appropriated, $28,000,000 shall be transferred to and merged with the 
``Rural Utilities Service, High Energy Cost Grants Account'' to provide 
grants authorized under section 19 of the Rural Electrification Act of 
1936 (7 U.S.C. 918a):] 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''. (Division A, H.R. 2673, Consolidated Appropriations Bill, FY 
2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0400-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............         105          34         102
00.02 Guaranteed loan subsidy...........          36          42          30
00.05 Reestimate of Direct Loan Subsidy.          34
00.06 Interest on Reestimates of Direct 
        Loan Subsidy....................           4
00.07 Reestimates of Guaranteed Loan 
        Subsidy.........................          91
00.08 Interest on Reestimate of 
        Guaranteed Loan Subsidy.........          22
00.11 Water and waste disposal systems 
        grants..........................         622         547         351
00.13 Emergency Community Water 
        Assistance Grants...............          17          18
00.14 Solid waste management grants.....           4           4           4
00.15 Community facility grants.........          23          21          17
00.17 Hazardous weather early warning 
        grants..........................           1
00.18 Economic impact initiative grants.          23          25
00.20 Rural business enterprise grants..          51          48          40
00.21 Rural business opportunity grants.           3           3           3
00.26 Rural Community Development 
        Initiative Grants...............          11          14
00.27 Broadcasting Systems Grants.......                       2
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................       1,048         758         547
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          52          38           5
22.00 New budget authority (gross)......       1,023         725         542
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          16
22.21 Unobligated balance transferred to 
        other accounts..................          -5
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,086         763         547
23.95 Total new obligations.............      -1,048        -758        -547
24.40 Unobligated balance carried 
        forward, end of year............          38           5
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         908         757         542
40.35   Appropriation permanently 
          reduced.......................          -6          -4
41.00   Transferred to other accounts...         -30         -28
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         872         725         542
      Mandatory:

60.00   Appropriation...................         151
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,023         725         542
    Change in obligated balances:
72.40 Obligated balance, start of year..       2,614       2,734       2,584
73.10 Total new obligations.............       1,048         758         547
73.20 Total outlays (gross).............        -908        -908        -870
73.40 Adjustments in expired accounts 
        (net)...........................          -3
73.45 Recoveries of prior year 
        obligations.....................         -16
74.40 Obligated balance, end of year....       2,734       2,584       2,261
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          68          49          41
86.93 Outlays from discretionary 
        balances........................         622         757         758
86.97 Outlays from new mandatory 
        authority.......................         151
86.98 Outlays from mandatory balances...          67         102          71
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         908         908         870
    Net budget authority and outlays:
89.00 Budget authority..................       1,023         725         542
90.00 Outlays...........................         909         908         870
---------------------------------------------------------------------------

[[Page 135]]



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

----------------------------------------------------------------------------
Identification code 12-0400-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Direct water and waste disposal...         779       1,032       1,000
115002Direct community facility.........         261         500         300
115003Direct business and industry......
                                           ---------   ---------  ----------
115901Total direct loan levels..........       1,040       1,532       1,300
    Direct loan subsidy (in percent):
132001Direct water and waste disposal...       11.34        3.33        9.00
132002Direct community facility.........        6.24       -0.71        4.05
132003Direct business and industry......        0.00        0.00        0.00
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....       10.00        1.96        7.85
    Direct loan subsidy budget authority:
133001Direct water and waste disposal...          88          34          90
133002Direct community facility.........          16          -4          12
133003Direct business and industry......
                                           ---------   ---------  ----------
133901Total subsidy budget authority....         104          30         102
    Direct loan subsidy outlays:
134001Direct water and waste disposal...          83          88          78
134002Direct community facility.........          19          18          13
134003Direct business and industry......
                                           ---------   ---------  ----------
134901Total subsidy outlays.............         102         106          91
    Direct loan upward reestimate subsidy budget 
                authority:
135001Direct water and waste disposal...          22
135002Direct community facility.........           3
135003Direct business and industry......          13
                                           ---------   ---------  ----------
135901Total upward reestimate budget 
        authority.......................          38
    Direct loan downward reestimate subsidy budget 
                authority:
137001Direct water and waste disposal...         -27
137002Direct community facility.........          -8
137003Direct business and industry......          -1
                                           ---------   ---------  ----------
137901Total downward reestimate budget 
        authority.......................         -36
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Water and waste disposal loan 
        guarantees......................           4          75          75
215002Community facility loan guarantees         161         210         210
215003Business and industry loan 
        guarantees......................         902         552         600
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......       1,067         837         885
    Guaranteed loan subsidy (in percent):
232001Water and waste disposal loan 
        guarantees......................       -0.81       -0.90       -0.90
232002Community facility loan guarantees       -0.54       -0.60        0.09
232003Business and industry loan 
        guarantees......................        3.97        4.86        5.03
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....        3.28        2.99        3.28
    Guaranteed loan subsidy budget authority:
233001Water and waste disposal loan 
        guarantees......................                      -1          -1
233002Community facility loan guarantees          -1          -1
233003Business and industry loan 
        guarantees......................          36          27          30
                                           ---------   ---------  ----------
233901Total subsidy budget authority....          35          25          29
    Guaranteed loan subsidy outlays:
234001Water and waste disposal loan 
        guarantees......................
234002Community facility loan guarantees
234003Business and industry loan 
        guarantees......................          32          18          29
                                           ---------   ---------  ----------
234901Total subsidy outlays.............          32          18          29
    Guaranteed loan upward reestimate subsidy 
                budget authority:
235002Community facility loan guarantees           4
235003Business and industry loan 
        guarantees......................         109
                                           ---------   ---------  ----------
235901Total upward reestimate budget 
        authority.......................         113
    Guaranteed loan downward reestimate subsidy 
                budget authority:
237001Water and waste disposal loan 
        guarantees......................
237002Community facility loan guarantees
237003Business and industry loan 
        guarantees......................
                                           ---------   ---------  ----------
237901Total downward reestimate subsidy 
        budget authority................
---------------------------------------------------------------------------

    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 2005 for all programs is projected to be near or 
slightly above the 2004 enacted level except for water and waste 
disposal grants and direct community facility 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 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 $1,075 million for these programs in 2005.

    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. $342 million is projected for 
this program in 2005.

    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. $3.5 million is projected for this program in 2005.

    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 2005 is projected to be $527 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 pur

[[Page 136]]

pose of improving the economic climate in rural areas. For direct loans 
no funds were requested or provided since 2002 and no funds are 
requested in 2005. 2005 projections for loan guarantees are $600 
million.

    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. $40 million is projected for this 
purpose in 2005.

    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.

    Northern Great Plains Regional Authority Administrative Expenses

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0404-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........                       1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.2)...................                       1
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                       1
23.95 Total new obligations.............                      -1
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                       2
40.35   Appropriation permanently 
          reduced.......................                      -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............                       1
    Change in obligated balances:
73.10 Total new obligations.............                       1
73.20 Total outlays (gross).............                      -1
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                       1
    Net budget authority and outlays:
89.00 Budget authority..................                       1
90.00 Outlays...........................                       1
---------------------------------------------------------------------------

    The Northern Great Plains Regional Authority was established under 
section 6028 of the Farm Security and Rural Investment Act of 2002 
Public Law 107-171. This account is for the Federal share of the 
administrative expenses associated with the Northern Great Plains 
Regional Authority.

                                


 
                          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, 
[$46,222,000] $42,500,000, to remain available until expended[, of which 
$5,000,000 shall be available for a processing and/or fishery workers 
housing demonstration project in Alaska, Mississippi, Utah, and 
Wisconsin: Provided, That of the total amount appropriated, $1,800,000] 
of which $1,200,000 shall be available through June 30, [2004] 2005, for 
authorized empowerment zones and enterprise communities and communities 
designated by the Secretary of Agriculture as Rural Economic Area 
Partnership Zones. (Division A, H.R. 2673, Consolidated Appropriations 
Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1953-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Farm Labor Housing Grants.........           2           1
00.03 Very low-income housing repair 
        grants..........................          32          32          31
00.04 Very low-income housing repair 
        natural disaster grants.........           2           4
00.05 Supervisory and technical 
        assistance grants...............           1           1           1
00.06 Processing Workers Housing Grants.           1           9
00.07 Rural housing preservation grants.          10           9          10
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          48          56          42
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          12          12
22.00 New budget authority (gross)......          42          46          42
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           3
22.22 Unobligated balance transferred 
        from other accounts.............           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          58          58          42
23.95 Total new obligations.............         -48         -56         -42
24.40 Unobligated balance carried 
        forward, end of year............          12
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          42          46          42
    Change in obligated balances:
72.40 Obligated balance, start of year..          38          31          37
73.10 Total new obligations.............          48          56          42
73.20 Total outlays (gross).............         -52         -50         -45
73.45 Recoveries of prior year 
        obligations.....................          -3
74.40 Obligated balance, end of year....          31          37          35
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          32          29          28
86.93 Outlays from discretionary 
        balances........................          20          21          17
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          52          50          45
    Net budget authority and outlays:
89.00 Budget authority..................          43          46          42
90.00 Outlays...........................          51          50          45
---------------------------------------------------------------------------

    The rural housing for domestic farm labor grant program is 
authorized under section 516 of the Housing Act of 1949, as amended. 
This program was 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 2005.

    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. The Budget provides $1 million for this program in 2005.

[[Page 137]]

    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 2005.

                                

                       Farm Labor Program Account

    For the cost of direct loans, grants, and contracts, as authorized 
by 42 U.S.C. 1484 and 1486, [$36,307,000] $36,765,000, to remain 
available until expended, for direct farm labor housing loans and 
domestic farm labor housing grants and contracts. (Division A, H.R. 
2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1954-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............          28          21          20
00.02 Farm labor housing grants.........           4          20          17
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          32          41          37
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                       5
22.00 New budget authority (gross)......          36          36          37
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          36          41          37
23.95 Total new obligations.............         -32         -41         -37
24.40 Unobligated balance carried 
        forward, end of year............           5
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          36          36          37
    Change in obligated balances:
72.40 Obligated balance, start of year..          59          88         111
73.10 Total new obligations.............          32          41          37
73.20 Total outlays (gross).............          -3         -18         -25
74.40 Obligated balance, end of year....          88         111         123
    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................           3          18          25
    Net budget authority and outlays:
89.00 Budget authority..................          36          36          37
90.00 Outlays...........................           3          18          25
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1954-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Farm Labor Program................          61          42          42
                                           ---------   ---------  ----------
115901Total direct loan levels..........          61          42          42
    Direct loan subsidy (in percent):
132001Farm Labor Program................       49.02       42.73       47.06
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....       49.02       42.73       47.06
    Direct loan subsidy budget authority:
133001Farm Labor Program................          30          18          20
                                           ---------   ---------  ----------
133901Total subsidy budget authority....          30          18          20
    Direct loan subsidy outlays:
134001Farm Labor Program................           1          14          17
                                           ---------   ---------  ----------
134901Total subsidy outlays.............           1          14          17
---------------------------------------------------------------------------

    The account consists of direct farm labor housing loans and domestic 
farm labor housing grants.

    The direct farm labor loan program is authorized under section 514 
and the rural housing for domestic farm labor grant program is 
authorized under section 516 of the Housing Act of 1949, as amended. The 
loans, grants, and contracts are made to public and private nonprofit 
organizations for low-rent housing and related facilities for domestic 
farm labor. Grants assistance may not exceed 90 percent of the cost of a 
project. Loans and grants may be used for construction of new 
structures, site acquisition and development, rehabilitation of existing 
structures, and purchase of furnishings and equipment for dwellings, 
dining halls, community rooms, and infirmaries. Total program level 
provided in 2005 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, [$584,000,000] 
$592,000,000; 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 $20,000 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 the current fiscal year shall be funded for a four-
year period[: Provided further, That any unexpended balances remaining 
at the end of such four-year agreements may be transferred and used for 
the purposes of any debt reduction; maintenance, repair, or 
rehabilitation of any existing projects; preservation; and rental 
assistance activities authorized under title V of the Act], although the 
life of any such agreement may be extended to fully utilize amounts 
obligated. (Division A, H.R. 2673, Consolidated Appropriations Bill, FY 
2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0137-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........         724         582         592
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................         724         582         592
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           3           1
22.00 New budget authority (gross)......         721         581         592
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         724         582         592
23.95 Total new obligations.............        -724        -582        -592
24.40 Unobligated balance carried 
        forward, end of year............           1
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         726         584         592
40.00   Appropriation...................          60          62          61
40.35   Appropriation permanently 
          reduced.......................          -5          -3
40.47   Portion substituted for 
          borrowing authority...........         -60         -62         -61
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         721         581         592
    Change in obligated balances:
72.40 Unpaid obligations, appropriation, 
        start of year...................       2,215       2,282       2,184
72.40 Obligated balance, authority to 
        borrow, start of year...........         566         507         445
73.10 Total new obligations.............         724         582         592
73.20 Total outlays (gross).............        -716        -742        -748
74.40 Obligated balance, appropriation, 
        end of year.....................       2,282       2,184       2,089
74.40 Obligated balance, authority to 
        borrow,end of year..............         507         445         384
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          30          29          30
86.93 Outlays from discretionary 
        balances........................         686         713         718
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         716         742         748
    Net budget authority and outlays:
89.00 Budget authority..................         721         581         592
90.00 Outlays...........................         716         742         748
---------------------------------------------------------------------------

    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

[[Page 138]]

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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..           2           1           1
74.40 Obligated balance, end of year....           1           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[: Provided, That of the total amount appropriated, 
$1,000,000 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]. (Division A, H.R. 2673, Consolidated Appropriations Bill, FY 
2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2006-0-1-604      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........          40          43          34
00.06 Other.............................           2
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          42          43          34
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          30           9
22.00 New budget authority (gross)......          24          34          34
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
22.21 Unobligated balance transferred to 
        other accounts..................          -4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          51          43          34
23.95 Total new obligations.............         -42         -43         -34
24.40 Unobligated balance carried 
        forward, end of year............           9
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          35          34          34
40.36   Unobligated balance permanently 
          reduced.......................         -11
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          24          34          34
    Change in obligated balances:
72.40 Obligated balance, start of year..          37          50          60
73.10 Total new obligations.............          42          43          34
73.20 Total outlays (gross).............         -28         -33         -36
73.45 Recoveries of prior year 
        obligations.....................          -1
74.40 Obligated balance, end of year....          50          60          58
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           8           4           4
86.93 Outlays from discretionary 
        balances........................          20          29          32
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          28          33          36
    Net budget authority and outlays:
89.00 Budget authority..................          24          34          34
90.00 Outlays...........................          28          33          36
---------------------------------------------------------------------------

    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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                                  20
22.00 New budget authority (gross)......                      20         -20
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                      20
24.40 Unobligated balance carried 
        forward, end of year............                      20
    New budget authority (gross), detail:
      Discretionary:

40.35   Appropriation permanently 
          reduced.......................                                 -10
40.36   Unobligated balance permanently 
          reduced.......................                                 -20
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............                                 -30
      Mandatory:

62.00   Transferred from other accounts.                      20          10
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................                      20         -20
    Change in obligated balances:
73.20 Total outlays (gross).............
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                 -20
86.97 Outlays from new mandatory 
        authority.......................                                   6
86.98 Outlays from mandatory balances...                                  14
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........
    Net budget authority and outlays:
89.00 Budget authority..................                      20         -20
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, 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 2005 Budget proposes to cancel the 2003 through 
2005 funding for this program because other programs in Forest Service, 
Federal Emergency Management Agency, and the Bureau of

[[Page 139]]

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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Change in obligated balances:
72.40 Obligated balance, start of year..                      -1
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................          -1           1
74.40 Obligated balance, end of year....          -1
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------

    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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................         286         500         300
00.02 Interest on Treasury borrowing....          80          96         109
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............         366         596         409
08.01 Negative subsidy paid to receipt 
        account.........................                                   1
08.02 Downward reestimate paid to 
        receipt account.................           7
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............           7                       1
                                           ---------   ---------  ----------
10.00   Total new obligations...........         373         596         410
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          23           8
22.00 New financing authority (gross)...         404         588         410
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          65
22.60 Portion applied to repay debt.....         -74
22.70 Balance of authority to borrow 
        withdrawn.......................         -37
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         381         596         410
23.95 Total new obligations.............        -373        -596        -410
24.40 Unobligated balance carried 
        forward, end of year............           8
    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............         249         410         260
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).         162         193         165
68.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........          -7         -15         -15
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....         155         178         150
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................         404         588         410
    Change in obligated balances:
72.40 Obligated balance, start of year..         639         638         926
73.10 Total new obligations.............         373         596         410
73.20 Total financing disbursements 
        (gross).........................        -315        -323        -412
73.45 Recoveries of prior year 
        obligations.....................         -65
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................           7          15          15
74.40 Obligated balance, end of year....         638         926         939
87.00 Total financing disbursements 
        (gross).........................         315         323         412
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -22         -18         -13
88.25     Interest on uninvested funds..         -13         -18         -18
88.40     Repayment of principal........         -70         -76         -48
88.40     Interest received on loans....         -55         -81         -86
88.40     Non-Federal sources...........          -2
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -162        -193        -165
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............           7          15          15
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............         249         410         260
90.00 Financing disbursements...........         153         130         247
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4225-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........         255         500         300
1121  Limitation available from carry-
        forward.........................          11
1131  Direct loan obligations exempt 
        from limitation.................          25
1142  Unobligated direct loan limitation 
        (-).............................          -5
1143  Unobligated limitation carried 
        forward (P.L. xx) (-)...........
                                           ---------   ---------  ----------
1150    Total direct loan obligations...         286         500         300
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       1,137       1,290       1,508
1231  Disbursements: Direct loan 
        disbursements...................         228         317         349
1251  Repayments: Repayments and 
        prepayments.....................         -70         -99        -112
      Write-offs for default:

1263    Direct loans....................          -2
1264    Other adjustments, net..........          -3
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       1,290       1,508       1,745
---------------------------------------------------------------------------

    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    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....          29              5
        Investments in US securities:
1106      Receivables, net..............           1             -2
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..       1,137          1,290
1402    Interest receivable.............          16             17
1404    Foreclosed property.............           2              1
1405    Allowance for subsidy cost (-)..        -111           -108
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....       1,044          1,200
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       1,074          1,203
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................       1,067          1,195
2105    Other...........................           4              8
2203  Non-Federal liabilities: Liability 
        for deposit funds...............           3
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       1,074          1,203
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       1,074          1,203
-----------------------------------------------------------------------------------------------

[[Page 140]]


    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

       Rural Community Facility Guaranteed Loans Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4228-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
08.01 Direct Program Activity...........           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........           3
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           1           3           5
22.00 New financing authority (gross)...           4           2           2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           5           5           7
23.95 Total new obligations.............          -3
24.40 Unobligated balance carried 
        forward, end of year............           3           5           7
    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............           2
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).           7           2           2
68.47     Portion applied to repay debt.          -5
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....           2           2           2
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................           4           2           2
    Change in obligated balances:
72.40 Obligated balance, start of year..           1           1
73.10 Total new obligations.............           3
73.20 Total financing disbursements 
        (gross).........................          -3          -1          -1
74.40 Obligated balance, end of year....           1
87.00 Total financing disbursements 
        (gross).........................           3           1           1
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -4
88.40     Non-Federal sources, Guarantee 
            Fees........................          -1          -2          -2
88.40     Non-Federal sources...........          -2
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........          -7          -2          -2
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          -3
90.00 Financing disbursements...........          -5          -1          -1
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4228-0-3-452      2003 actual   2004 est.   2005 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......................         -49
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................         161         210         210
2199  Guaranteed amount of guaranteed 
        loan commitments................         129         168         168
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........         301         373         461
2231  Disbursements of new guaranteed 
        loans...........................         138         161         187
2251  Repayments and prepayments........         -66         -73         -77
2264  Adjustments: Other adjustments, 
        net.............................
                                           ---------   ---------  ----------
2290    Outstanding, end of year........         373         461         571
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..         373         461         571
---------------------------------------------------------------------------

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from guaranteed loans committed in 1992 and beyond. The 
amounts in this account are a means of financing and are not included in 
the budget totals. Loans made prior to 1992 are recorded in the Rural 
Development Insurance Fund Liquidating Account.

    This account finances loan guarantee commitments for essential 
community facilities in rural areas.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4228-0-3-452    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....           3              4
        Investments in US securities:
1106      Receivables, net..............           8              1
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          11              5
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................
2104    Resources payable to Treasury...           6              2
2105    Other liabilities, Federal......                          2
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.           5              1
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          11              5
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          11              5
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

              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] $3,825,185,000 for loans to section 502 borrowers, as 
determined by the Secretary, of which [$1,366,462,000] $1,100,000,000 
shall be for direct loans, and of which [$2,725,172,000] $2,725,185,000 
shall be for unsubsidized guaranteed loans; [$35,004,000] $35,000,000 
for section 504 housing repair loans; [$116,545,000] $60,000,000 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] 11,501,000 for credit sales of acquired property, of which 
up to [$1,500,000] $1,501,000 may be for multi-family credit sales; and 
[$2,400,000] $5,000,000 for section 523 self-help housing land 
development loans.
    For the cost of direct and guaranteed loans, including the cost of 
modifying loans, as defined in section 502 of the Congressional Budget 
Act of 1974, as follows: section 502 loans, [$165,921,000] $160,988,000, 
of which [$126,018,000] $127,380,000 shall be for direct loans, and of 
which [$39,903,000] $33,608,000, to remain available until expended, 
shall be for unsubsidized guaranteed loans; section 504 housing repair 
loans, [$9,612,000;] $10,171,000; repair and rehabilitation of  section 
515 rental housing, [$50,126,000] $28,254,000; section 538 multi-family 
housing guaranteed loans, [$5,950,000] $3,490,000; multi-family credit 
sales of acquired property, [$663,000; and section 523 self-help housing 
land development loans, $75,000] $727,000: Provided, That of the total 
amount appropriated in this paragraph, $7,100,000 shall be available 
through June 30, [2004] 2005, 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, [$443,302,000] $465,886,000, which 
shall be transferred to and merged with the appropriation for ``Rural 
Development, Salaries and Expenses''. (Division A, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2081-0-1-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Loan program:

00.01   Direct loan subsidy.............         267         199         167
00.02   Guaranteed loan subsidy.........          40          46          37

[[Page 141]]

00.05   Reestimates of direct loan 
          subsidy.......................           9
00.06   Interest on reestimates of 
          direct loan subsidy...........           3
00.07   Reestimates of loan guarantee 
          subsidy.......................          36
00.08   Interest on reestimates of loan 
          guarantee subsidy.............          11
00.09   Administrative expenses.........         430         441         466
00.11 Modular housing demonstration 
        grants..........................           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........         797         686         670
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          17          14
22.00 New budget authority (gross)......         791         672         670
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
22.21 Unobligated balance transferred to 
        other accounts..................          -1
22.22 Unobligated balance transferred 
        from other accounts.............           4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         812         686         670
23.95 Total new obligations.............        -797        -686        -670
24.40 Unobligated balance carried 
        forward, end of year............          14
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         738         676         670
40.35   Appropriation permanently 
          reduced.......................          -5          -4
41.00   Transferred to other accounts...          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         732         672         670
      Mandatory:

60.00   Appropriation...................          59
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         791         672         670
    Change in obligated balances:
72.40 Obligated balance, start of year..         181         209         189
73.10 Total new obligations.............         797         686         670
73.20 Total outlays (gross).............        -759        -706        -703
73.40 Adjustments in expired accounts 
        (net)...........................         -10
73.45 Recoveries of prior year 
        obligations.....................          -1
74.40 Obligated balance, end of year....         209         189         156
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         614         575         595
86.93 Outlays from discretionary 
        balances........................          86         131         108
86.97 Outlays from new mandatory 
        authority.......................          59
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         759         706         703
    Net budget authority and outlays:
89.00 Budget authority..................         791         672         670
90.00 Outlays...........................         759         706         703
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-2081-0-1-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Direct 502 single family housing..       1,038       1,351       1,100
115002Direct 502 supplemental...........
115003Direct 502 modular housing........
115004Direct 515 multi-family housing...         115         116          60
115005Direct 515 natural disaster.......           6
115006Direct 504 housing repair.........          32          35          35
115007Direct 504 supplemental...........           1
115008Direct Farm Labor Housing.........
115009Direct Farm Labor Housing Supp....
115010Direct 524 site development.......           1           5           5
115011Single family credit sales........           1          10          10
115012Multi-family credit sales.........           2           1           2
115013Direct 523 self-help housing......           1           2           5
                                           ---------   ---------  ----------
115901Total direct loan levels..........       1,197       1,520       1,217
    Direct loan subsidy (in percent):
132001Direct 502 single family housing..       19.37        9.27       11.58
132002Direct 502 supplemental...........       19.37        9.27       11.58
132003Direct 502 modular housing........       17.92        0.00        0.00
132004Direct 515 multi-family housing...       46.63       43.01       47.09
132005Direct 515 natural disaster.......       46.63       43.01       47.09
132006Direct 504 housing repair.........       31.02       27.46       29.06
132007Direct 504 supplemental...........       31.02       27.46       29.06
132008Direct Farm Labor Housing.........       49.02        0.00        0.00
132009Direct Farm Labor Housing Supp....       49.02        0.00        0.00
132010Direct 524 site development.......        1.09       -0.03       -4.94
132011Single family credit sales........       -9.58      -17.46      -16.23
132012Multi-family credit sales.........       46.68       44.20       48.44
132013Direct 523 self-help housing......        4.41        3.08       -0.47
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....       22.47       12.11       13.48
    Direct loan subsidy budget authority:
133001Direct 502 single family housing..         201         125         127
133002Direct 502 supplemental...........
133003Direct 502 modular housing........
133004Direct 515 multi-family housing...          54          50          28
133005Direct 515 natural disaster.......           3
133006Direct 504 housing repair.........          10          10          10
133007Direct 504 supplemental...........
133008Direct Farm Labor Housing.........
133009Direct Farm Labor Housing Supp....
133010Direct 524 site development.......
133011Single family credit sales........                      -2          -2
133012Multi-family credit sales.........           1           1           1
133013Direct 523 self-help housing......
                                           ---------   ---------  ----------
133901Total subsidy budget authority....         269         184         164
    Direct loan subsidy outlays:
134001Direct 502 single family housing..         171         146         124
134002Direct 502 supplemental...........
134003Direct 502 modular housing........
134004Direct 515 multi-family housing...          42          62          59
134005Direct 515 natural disaster.......           3           3           4
134006Direct 504 housing repair.........           9           9          10
134007Direct 504 supplemental...........                       3           1
134008Direct Farm Labor Housing.........           5           4           1
134009Direct Farm Labor Housing Supp....
134010Direct 524 site development.......
134011Single family credit sales........                      -2          -2
134012Multi-family credit sales.........           1           1           1
134013Direct 523 self-help housing......
                                           ---------   ---------  ----------
134901Total subsidy outlays.............         231         226         198
    Direct loan upward reestimate subsidy budget 
                authority:
135001Direct 502 single family housing..
135004Direct 515 multi-family housing...           2
135006Direct 504 housing repair.........
135008Direct Farm Labor Housing.........           4
135011Single family credit sales........           4
135012Multi-family credit sales.........           1
                                           ---------   ---------  ----------
135901Total upward reestimate budget 
        authority.......................          11
    Direct loan downward reestimate subsidy budget 
                authority:
137001Direct 502 single family housing..        -601
137004Direct 515 multi-family housing...         -64
137006Direct 504 housing repair.........
137008Direct Farm Labor Housing.........
137011Single family credit sales........          -3
137012Multi-family credit sales.........
                                           ---------   ---------  ----------
137901Total downward reestimate budget 
        authority.......................        -668
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Guaranteed 502 single family 
        housing, purchase...............       2,852       2,485       2,500
215002Guaranteed 502, refinancing.......         235         224         225
215003Guarantee 538 multi-family housing          99          99         100
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......       3,186       2,808       2,825
    Guaranteed loan subsidy (in percent):
232001Guaranteed 502 single family 
        housing , purchase..............        1.22        1.57        1.32
232002Guaranteed 502, refinancing.......        0.18        0.29        0.27
232003Guarantee 538 multi-family housing        4.50        5.95        3.49
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....        1.22        1.64        1.31
    Guaranteed loan subsidy budget authority:
233001Guaranteed 502 single family 
        housing , purchase..............          35          39          33
233002Guaranteed 502, refinancing.......                       1           1
233003Guarantee 538 multi-family housing           4           6           3
                                           ---------   ---------  ----------
233901Total subsidy budget authority....          39          46          37
    Guaranteed loan subsidy outlays:
234001Guaranteed 502 single family 
        housing , purchase..............          34          32          33
234002Guaranteed 502, refinancing.......                                   1
234003Guarantee 538 multi-family housing           4           4           4
                                           ---------   ---------  ----------
234901Total subsidy outlays.............          38          36          38
    Guaranteed loan upward reestimate subsidy 
                budget authority:
235001Guaranteed 502 single family 
        housing , purchase..............          47
235002Guaranteed 502, refinancing.......
                                           ---------   ---------  ----------
235901Total upward reestimate budget 
        authority.......................          47
    Guaranteed loan downward reestimate subsidy 
                budget authority:
237001Guaranteed 502 single family 
        housing , purchase..............          -3
237002Guaranteed 502, refinancing.......          -1
                                           ---------   ---------  ----------
237901Total downward reestimate subsidy 
        budget authority................          -4
----------------------------------------------------------------------------

[[Page 142]]


    Administrative expense data:
351001Budget authority..................         430         441         466
358001Outlays from balances.............
359001Outlays from new authority........         430         441         466
---------------------------------------------------------------------------

    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 2005, funds for section 515 rural rental housing loans will be 
limited to repair and rehabilitation only and $60 million is included 
for this purpose. This action 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.

    For 502 guaranteed single family housing loans in 2005, the budget 
reflects an increase in the guarantee fee on new loans to 1.75 percent 
from 1.5 percent. This will be coupled with a general provision that 
would allow the guarantee fee to be financed as part of the loan. The 
ability to finance the guarantee fee is more in line with the housing 
industry, including HUD and VA, and will allow more lower income rural 
Americans to continue to afford these loans. In 2002, RHS approved 
separate risk categories for the guarantee refinancing (refis) and 
guarantees of new loans. As part of that change, RHS also reduced the 
guarantee fee to 0.5 percent for the refis. This change reflected the 
lower risk on refis as compared to an unseasoned borrower receiving a 
new loan. It is also consistent with the rate HUD and VA charge on their 
refis of similar loans.

    As required by the Federal Credit Reform Act of 1990, this account 
records, for this program, the subsidy costs associated with the direct 
loans obligated and loan guarantees committed in 1992 and beyond 
(including credit sales of acquired property), as well as administrative 
expenses of this program. The subsidy amounts are estimated on a present 
value basis; the administrative expenses are estimated on a cash basis.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2081-0-1-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.3  Other purchases of goods and 
        services from Government 
        accounts........................         367         245         204
41.0  Grants, subsidies, and 
        contributions...................         430         441         466
                                           ---------   ---------  ----------
99.9    Total new obligations...........         797         686         670
---------------------------------------------------------------------------

                                

       Rural Housing Insurance Fund Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4215-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans including upward 
        adjustments of prior year 
        obligations.....................       1,252       1,601       1,259
00.02 Advances on behalf of borrowers...          48          75          78
00.03 Collateral acquired by default....           9          16          16
00.04 Interest on Treasury borrowing....         668         711         748
00.06 Other expenses....................           3          14          14
                                           ---------   ---------  ----------
00.91   Subtotal, Operating program.....       1,980       2,417       2,115
08.02 Downward subsidy reestimates paid 
        to receipt account..............         444
08.04 Interest on downward reestimates 
        paid to receipt account.........         224
                                           ---------   ---------  ----------
08.91   Subtotal, Reestimates...........         668
                                           ---------   ---------  ----------
10.00   Total new obligations...........       2,648       2,417       2,115
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         113         619
22.00 New financing authority (gross)...       3,077       2,417       2,115
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          78
22.60 Portion applied to repay debt.....                    -619
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       3,268       2,417       2,115
23.95 Total new obligations.............      -2,648      -2,417      -2,115
24.40 Unobligated balance carried 
        forward, end of year............         619
    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............       1,607       1,459       1,193
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).       1,878       1,877       1,951
68.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........          54         -22         -30
68.47     Portion applied to repay debt.        -462        -897        -999
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....       1,470         958         922
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       3,077       2,417       2,115
    Change in obligated balances:
72.40 Unpaid obligations, fund balance 
        with Treasury, start of year....         552         560         689
73.10 Total new obligations.............       2,648       2,417       2,115
73.20 Total financing disbursements 
        (gross).........................      -2,509      -2,310      -2,225
73.45 Recoveries of prior year 
        obligations.....................         -78
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -54          22          30
74.40 Obligated balance, end of year....         560         689         609
87.00 Total financing disbursements 
        (gross).........................       2,509       2,310       2,225
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: payments from 
            program account.............        -241        -242        -217
88.25     Interest on uninvested funds..         -75         -83         -88
88.40     Non-Federal sources: 
            Repayments of principal.....        -976        -891        -948
88.40     Interest received on loans....        -484        -532        -548
88.40     Payments on judgments.........         -11         -13         -15
88.40     Proceeds on sale of acquired 
            property....................         -27         -33         -35
88.40     Recaptured income.............         -50         -68         -85

[[Page 143]]

88.40     Fees..........................          -8          -7          -7
88.40     Miscellaneous collections.....          -6          -8          -8
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -1,878      -1,877      -1,951
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............         -54          22          30
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............       1,145         562         194
90.00 Financing disbursements...........         631         433         274
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4215-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........       1,260       1,563       1,259
1121  Limitation available from carry-
        forward.........................          38          38
1131  Direct loan obligations exempt 
        from limitation.................
1142  Unobligated direct loan limitation 
        (-).............................         -10
1143  Unobligated limitation carried 
        forward (P.L. xx) (-)...........         -36
                                           ---------   ---------  ----------
1150    Total direct loan obligations...       1,252       1,601       1,259
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........      12,088      12,144      12,669
1231  Disbursements: Direct loan 
        disbursements...................       1,134       1,494       1,369
1251  Repayments: Repayments and 
        prepayments.....................        -985        -891        -948
1261  Adjustments: Capitalized interest.          18          22          25
      Write-offs for default:

1263    Direct loans....................         -76         -78         -81
1264    Other adjustments, net..........         -35         -22         -24
                                           ---------   ---------  ----------
1290    Outstanding, end of year........      12,144      12,669      13,010
---------------------------------------------------------------------------

    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    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         294            256
        Investments in US securities:
1106      Receivables, net..............                         54
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..      12,088         12,144
1402    Interest receivable.............          75             53
1404    Foreclosed property.............          33             30
1405    Allowance for subsidy cost (-)..      -1,904         -1,872
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....      10,292         10,355
                                        ------------ --------------  ------------  -------------
1999    Total assets....................      10,586         10,665
    LIABILITIES:
      Federal liabilities:

2103    Debt............................       9,708         10,300
2104    Liability for subsidy related to 
          undisbursed loans.............
2105    Other...........................         816            359
2207  Non-Federal liabilities: Other....          62              6
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............      10,586         10,665
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position      10,586         10,665
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

     Rural Housing Insurance Fund Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4216-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Default claims....................         104         117         121
00.02 Interest assistance paid to 
        lenders.........................                       4           5
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............         104         121         126
08.02 Payments of downward estimates to 
        receipt account.................           4
08.04 Payment of interest on downward 
        reestimate to receipt account...           1
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............           5
                                           ---------   ---------  ----------
10.00   Total new obligations...........         109         121         126
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         319         361         345
22.00 New financing authority (gross)...         151         106         101
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         470         467         446
23.95 Total new obligations.............        -109        -121        -126
24.40 Unobligated balance carried 
        forward, end of year............         361         345         321
    New financing authority (gross), detail:
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).         151          96         102
68.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........                      10          -1
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....         151         106         101
    Change in obligated balances:
72.40 Obligated balance, start of year..                                 -10
73.10 Total new obligations.............         109         121         126
73.20 Total financing disbursements 
        (gross).........................        -109        -121        -126
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................                     -10           1
74.40 Obligated balance, end of year....                     -10          -9
87.00 Total financing disbursements 
        (gross).........................         109         121         126
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -85         -36         -38
88.25     Interest on uninvested funds..         -19         -20         -18
88.40     Non-Federal sources: guarantee 
            fees........................         -45         -40         -46
88.40     Loss recoveries and other fees          -2
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -151         -96        -102
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............                     -10           1
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........         -42          25          24
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4216-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........       3,186       2,809       2,825
2121  Limitation available from carry-
        forward.........................           4          59
2142  Uncommitted loan guarantee 
        limitation......................          81
2143  Uncommitted limitation carried 
        forward.........................         -80
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................       3,191       2,868       2,825
2199  Guaranteed amount of guaranteed 
        loan commitments................       2,872       2,543       2,599
----------------------------------------------------------------------------

[[Page 144]]


    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........      13,602      13,420      13,809
2231  Disbursements of new guaranteed 
        loans...........................       3,047       2,914       2,837
2251  Repayments and prepayments........      -3,061      -2,408      -2,539
      Adjustments:

2263    Terminations for default that 
          result in claim payments......        -170        -117        -121
2264    Other adjustments, net..........           2
                                           ---------   ---------  ----------
2290    Outstanding, end of year........      13,420      13,809      13,986
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..      12,078      12,428      12,587
---------------------------------------------------------------------------

    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    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         319            361
        Investments in US securities:
1106      Receivables, net..............          21             43
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         340            404
    LIABILITIES:
      Non-Federal liabilities:

2204    Liabilities for loan guarantees.         327            399
2207    Other...........................          13              5
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         340            404
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         340            404
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

            Rural Housing Insurance Fund Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4141-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Capital investment:

00.02   Advances on behalf of borrowers.          56          76          72
00.05   Collateral acquired by default..                       1           2
                                           ---------   ---------  ----------
00.91     Total capital investment......          56          77          74
      Operating expenses:

01.03   Interest on FFB borrowings......         224         158         120
01.04   Premiums paid FFB at redemption 
          of certificates of beneficial 
          ownership.....................         116
01.06   Interest credits on loans sold 
          to investors..................           1           1           1
01.07   Other costs incident to loans...           4           3           2
                                           ---------   ---------  ----------
01.91     Total operating expenses......         345         162         123
                                           ---------   ---------  ----------
10.00   Total new obligations...........         401         239         197
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                     204
22.00 New budget authority (gross)......         528         239         197
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          76
22.40 Capital transfer to general fund..                    -204
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         604         239         197
23.95 Total new obligations.............        -401        -239        -197
24.40 Unobligated balance carried 
        forward, end of year............         204
    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...       1,778       1,591       1,447
69.27   Capital transfer to general fund        -175      -1,352        -550
69.47   Portion applied to repay debt...      -1,075                    -700
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........         528         239         197
    Change in obligated balances:
72.40 Unpaid fund balance with treasury, 
        end of year.....................         230         150         150
73.10 Total new obligations.............         401         239         197
73.20 Total outlays (gross).............        -405        -239        -235
73.45 Recoveries of prior year 
        obligations.....................         -76
74.40 Obligated balance, end of year....         150         150         112
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         264         130         131
86.98 Outlays from mandatory balances...         141         109         104
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         405         239         235
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -5
88.40     Repayments of loans and 
            advances....................      -1,006        -846        -761
88.40     Proceeds from sale of acquired 
            property....................         -25         -24         -22
88.40     Payments on judgments.........         -14         -12         -11
88.40     Interest payments from 
            borrowers...................        -623        -529        -465
88.40     Recapture of subsidies........        -131        -146        -157
88.40     Income from residual 
            investment in loan asset 
            sale........................         -35         -33         -31
88.40     Fees and other revenue........          -5          -1
88.40     Non-Federal sources...........          66
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -1,778      -1,591      -1,447
    Net budget authority and outlays:
89.00 Budget authority..................      -1,250      -1,352      -1,250
90.00 Outlays...........................      -1,373      -1,352      -1,212
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4141-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........      14,995      13,885      12,994
1251  Repayments: Repayments and 
        prepayments.....................      -1,006        -846        -761
1261  Adjustments: Capitalized interest.          17          16          16
      Write-offs for default:

1263    Direct loans....................         -77         -64         -54
1264    Other adjustments, net..........         -44           3           5
                                           ---------   ---------  ----------
1290    Outstanding, end of year........      13,885      12,994      12,200
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4141-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........          16          12           8
2251  Repayments and prepayments........          -4          -4          -2
                                           ---------   ---------  ----------
2290    Outstanding, end of year........          12           8           6
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..          10           7           5
---------------------------------------------------------------------------

    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.

[[Page 145]]

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4141-0-3-371    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         230            353
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............      14,995         13,885
1602    Interest receivable.............         631            654
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................      -5,674         -6,297
                                        ------------ --------------  ------------  -------------
1604      Direct loans and interest 
            receivable, net.............       9,952          8,242
1606    Foreclosed property.............          39             31
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................       9,991          8,273
1901  Other Federal assets: Other assets           4             79
                                        ------------ --------------  ------------  -------------
1999    Total assets....................      10,225          8,705
    LIABILITIES:
      Federal liabilities:

2102    Interest payable................         142            116
2103    Debt............................       2,905          1,830
2104    Resources payable to Treasury...       7,104          6,692
      Non-Federal liabilities:

2203    Debt............................           1              1
2204    Liabilities for loan guarantees.           3
2207    Other...........................          70             66
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............      10,225          8,705
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position      10,225          8,705
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4141-0-3-371      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.2  Other services....................           4           3           2
33.0  Investments and loans.............          56          77          74
41.0  Grants, subsidies, and 
        contributions...................           1           1           1
43.0  Interest and dividends............         340         158         120
                                           ---------   ---------  ----------
99.9    Total new obligations...........         401         239         197
---------------------------------------------------------------------------

                                


 
                   RURAL BUSINESS-COOPERATIVE SERVICE

                              Federal Funds

General and special funds:

         Rural Empowerment Zones and Enterprise Community Grants

    [For grants in connection with second and third rounds of 
empowerment zones and enterprise communities, $12,667,000, to remain 
available until expended, for designated rural empowerment zones and 
rural enterprise communities, as authorized by the Taxpayer Relief Act 
of 1997 and the Omnibus Consolidated and Emergency Supplemental 
Appropriations Act, 1999 (Public Law 105-277): Provided, That of the 
funds appropriated, $1,000,000 shall be made available to third round 
empowerment zones, as authorized by the Community Renewal Tax Relief Act 
(Public Law 106-554).] (Division A, H.R. 2673, Consolidated 
Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0402-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........          27          16
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          27          16
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          16           3
22.00 New budget authority (gross)......          15          13
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          31          16
23.95 Total new obligations.............         -27         -16
24.40 Unobligated balance carried 
        forward, end of year............           3
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          15          13
    Change in obligated balances:
72.40 Obligated balance, start of year..          13          28          20
73.10 Total new obligations.............          27          16
73.20 Total outlays (gross).............         -13         -23         -15
74.40 Obligated balance, end of year....          28          20           5
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           6           4
86.93 Outlays from discretionary 
        balances........................           7          19          15
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          13          23          15
    Net budget authority and outlays:
89.00 Budget authority..................          15          13
90.00 Outlays...........................          13          23          15
---------------------------------------------------------------------------

    The goal of the Empowerment Zone/Enterprise Community (EZ/EC) 
initiative is to revitalize rural communities in a manner that attracts 
private sector investment and thereby provides self-sustaining community 
and economic development. Appropriated funding in 1999 through 2002 was 
provided for EZ/EC's designated as part of the second round of this 
initiative. No additional funds are requested in 2005 because sufficient 
carryover balances are expected.

    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), [$24,000,000] $21,000,000, of which [$2,500,000 shall be for 
cooperative agreements for the appropriate technology transfer for rural 
areas program: Provided, That] 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 [and whose governing 
board and/or membership is comprised of at least 75 percent minority]; 
of which not to exceed $500,000 shall be for cooperative research 
agreements; and of which not to exceed [$15,000,000] $15,500,000, to 
remain available until expended, shall be for value-added agricultural 
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). 
(Division A, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1900-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Rural Cooperative Development 
        Grants..........................           7           7           6
00.10 Value-added Agricultural Product 
        Marketing (mandatory)...........          51          29
00.11 Value added Agricultural Product 
        Marketing (discretionary).......                      15          15
00.12 Appropriate Technology Transfer 
        for Rural Areas.................           2           2
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          60          53          21

[[Page 146]]

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          40          29          40
22.00 New budget authority (gross)......          49          64         -19
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          89          93          21
23.95 Total new obligations.............         -60         -53         -21
24.40 Unobligated balance carried 
        forward, end of year............          29          40
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................           9          24          21
40.35   Appropriation permanently 
          reduced.......................                                 -40
40.36   Unobligated balance permanently 
          reduced.......................                                 -40
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............           9          24         -59
      Mandatory:

62.00   Transferred from other accounts.          40          40          40
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          49          64         -19
    Change in obligated balances:
72.40 Obligated balance, start of year..          24          54          48
73.10 Total new obligations.............          60          53          21
73.20 Total outlays (gross).............         -29         -59           7
73.40 Adjustments in expired accounts 
        (net)...........................          -1
74.40 Obligated balance, end of year....          54          48          76
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           2          18         -44
86.93 Outlays from discretionary 
        balances........................          12           7           7
86.98 Outlays from mandatory balances...          15          34          30
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          29          59          -7
    Net budget authority and outlays:
89.00 Budget authority..................          49          64         -19
90.00 Outlays...........................          29          59          -7
---------------------------------------------------------------------------

    Grants for rural cooperative development were authorized under 
section 310B(e) of the Consolidated Farm and Rural Development Act by 
Public Law 104-127, April 4, 1996. These grants are made available to 
nonprofit corporations and institutions of higher education to fund the 
establishment and operation of centers for rural cooperative 
development. The primary purpose of the centers is the improvement of 
economic conditions of rural areas through the development of new 
cooperatives and improving operations of existing cooperatives. RBS can 
fund up to 75 percent of any project and associated administrative costs 
and requires at least a 25 percent matching share from the applicant 
which must be from non-Federal sources.

    The Appropriate Technology Transfer to Rural Areas (ATTRA) program 
was first authorized by the Food Security Act of 1985. The program 
provides information and technical assistance to agricultural producers 
to adopt sustainable agricultural practices that are environmentally 
friendly and lower production costs. The 2005 Budget provides no funding 
for this purpose.

    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. The 2005 Budget cancels these funds 
for a savings of $80 million. However, $15.5 million in discretionary 
2005 funds is provided for this purpose.

                                

                    Rural Economic Development Grants

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3105-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........           4           4           4
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................           4           4           4
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          22          51          83
22.00 New budget authority (gross)......          33          36          36
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          56          87         119
23.95 Total new obligations.............          -4          -4          -4
24.40 Unobligated balance carried 
        forward, end of year............          51          83         115
    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash)...          16          36          36
69.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          17
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........          33          36          36
    Change in obligated balances:
72.40 Obligated balance, start of year..         -13         -30         -40
73.10 Total new obligations.............           4           4           4
73.20 Total outlays (gross).............          -3         -14         -34
73.45 Recoveries of prior year 
        obligations.....................          -1
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -17
74.40 Obligated balance, end of year....         -30         -40         -70
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                      12          12
86.98 Outlays from mandatory balances...           3           2          22
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           3          14          34
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -16         -36         -36
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -17
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................         -12         -22          -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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program activity...........           1           1           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................           1           1           1
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           6           5           4
23.95 Total new obligations.............          -1          -1          -1
24.40 Unobligated balance carried 
        forward, end of year............           5           4           4
    Change in obligated balances:
72.40 Obligated balance, start of year..           1
73.10 Total new obligations.............           1           1           1
73.20 Total outlays (gross).............          -2          -1          -1
    Outlays (gross), detail:
86.98 Outlays from mandatory balances...           2           1           1

[[Page 147]]

    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................           2           1           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. Additional funds have 
been added to the original authorized amount so that the total available 
for this purpose is now $26.5 million. No additional funds are requested 
in 2005.

                                

                Rural Strategic Investment Program Grants

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1955-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                                 100
22.00 New budget authority (gross)......                     100        -100
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                     100
24.40 Unobligated balance carried 
        forward, end of year............                     100
    New budget authority (gross), detail:
      Discretionary:

40.36   Unobligated balance permanently 
          reduced.......................                                -100
      Mandatory:

62.00   Transferred from other accounts.                     100
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................                     100        -100
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                 -41
86.98 Outlays from mandatory balances...                                  41
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........
    Net budget authority and outlays:
89.00 Budget authority..................                     100        -100
90.00 Outlays...........................
---------------------------------------------------------------------------

    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. 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 2004 these 
funds were blocked from being spent. In 2005, the Budget cancels these 
funds because there is little likelihood that the funds will ever be 
obligated and the program purpose is redundant with the mission of Rural 
Development as a whole and of the Rural Development Council's around the 
country, which Rural Development supports.

                                

Credit accounts:

       Rural Business and Industry Direct Loans Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4223-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Interest on Treasury borrowings...           5           6           6
00.03 Reestimates Payments to Receipt 
        Account.........................           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........           6           6           6
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           8           4
22.00 New financing authority (gross)...           2          13          13
22.60 Portion applied to repay debt.....                     -11          -7
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          10           6           6
23.95 Total new obligations.............          -6          -6          -6
24.40 Unobligated balance carried 
        forward, end of year............           4
    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............           1
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).          25          16          16
68.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........                      -3          -3
68.47     Portion applied to repay debt.         -24
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....           1          13          13
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................           2          13          13
    Change in obligated balances:
72.40 Obligated balance, start of year..           7           6           6
73.10 Total new obligations.............           6           6           6
73.20 Total financing disbursements 
        (gross).........................          -8          -8          -8
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................                       3           3
74.40 Obligated balance, end of year....           6           6           7
87.00 Total financing disbursements 
        (gross).........................           8           8           8
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -13
88.25     Interest on uninvested funds..          -1          -6          -6
88.40     Repayments of principal.......          -6          -6          -6
88.40     Interest received on loans....          -5          -4          -4
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -25         -16         -16
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............                       3           3
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............         -23
90.00 Financing disbursements...........         -17          -8          -8
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4223-0-3-452      2003 actual   2004 est.   2005 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........         112         105         103
1231  Disbursements: Direct loan 
        disbursements...................           2           2           2
1251  Repayments: Repayments and 
        prepayments.....................          -6          -4          -5
1263  Write-offs for default: Direct 
        loans...........................          -3
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         105         103         100
---------------------------------------------------------------------------

    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 sub

[[Page 148]]

sidy 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. Funding for this purpose was discontinued 
beginning in 2002.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4223-0-3-452    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....           6              1
        Investments in US securities:
1106      Receivables, net..............           5              1
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..         112            105
1402    Interest receivable.............          -4
1405    Allowance for subsidy cost (-)..         -34            -39
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....          74             66
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          85             68
    LIABILITIES:
2104  Federal liabilities: Resources 
        payable to Treasury.............          85             68
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          85             68
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          85             68
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

     Rural Business and Industry Guaranteed Loans Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4227-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Default claims....................          41          45          49
00.02 Purchase from Secondary Market....          73          66          73
00.03 Interest to Treasury..............           7           6           6
                                           ---------   ---------  ----------
10.00   Total new obligations...........         121         117         128
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         101         184         139
22.00 New financing authority (gross)...         226          71          89
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          13
22.60 Portion applied to repay debt.....         -34
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         306         255         228
23.95 Total new obligations.............        -121        -117        -128
24.40 Unobligated balance carried 
        forward, end of year............         184         139         100
    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............          25
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).         198          71          89
68.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........           3
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....         201          71          89
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................         226          71          89
    Change in obligated balances:
72.40 Obligated balance, start of year..                      -3
73.10 Total new obligations.............         121         117         128
73.20 Total financing disbursements 
        (gross).........................        -108        -114        -128
73.45 Recoveries of prior year 
        obligations.....................         -13
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -3
74.40 Obligated balance, end of year....          -3
87.00 Total financing disbursements 
        (gross).........................         108         114         128
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............        -141         -20         -29
88.25     Interest on uninvested funds..         -12         -10         -11
88.40     Interest and principal on 
            purchased loans from 
            secondary market............         -41         -37         -44
88.40     Guarantee fees................          -4          -4          -5
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -198         -71         -89
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............          -3
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          25
90.00 Financing disbursements...........         -90          43          39
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4227-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........         845         552         600
2121  Limitation available from carry-
        forward.........................         420         325
2143  Uncommitted limitation carried 
        forward.........................        -358
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................         907         877         600
2199  Guaranteed amount of guaranteed 
        loan commitments................         726         702         480
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........       3,884       4,032       3,878
2231  Disbursements of new guaranteed 
        loans...........................         654         350         240
2251  Repayments and prepayments........        -434        -444        -427
      Adjustments:

2263    Terminations for default that 
          result in claim payments......         -72         -60         -55
2264    Other adjustments, net..........
                                           ---------   ---------  ----------
2290    Outstanding, end of year........       4,032       3,878       3,636
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..       3,226       3,102       2,909
---------------------------------------------------------------------------

    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    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         101            181
        Investments in US securities:
1106      Receivables, net..............         102            203
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         203            384
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................
2104    Resources payable to Treasury...          49             41
2105    Other...........................           8             18
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.         146            325
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         203            384
                                        ------------ --------------  ------------  -------------

[[Page 149]]


4999  Total liabilities and net position         203            384
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

               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] $34,213,000.
    For the cost of direct loans, [$17,308,000] $15,868,000, as 
authorized by the Rural Development Loan Fund (42 U.S.C. 9812(a))[, of 
which $1,724,000 shall be available through June 30, [2004]; for 
Federally Recognized Native American Tribes and of which $3,449,000 
shall be available through June 30, [2004], for the Delta Regional 
Authority (7 U.S.C. 1921 et seq.)]: 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] 2005, 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, [$4,272,000] $6,656,000 shall be transferred to and 
merged with the appropriation for ``Rural Development, Salaries and 
Expenses''. (Division A, H.R. 2673, Consolidated Appropriations Bill, FY 
2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2069-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............          19          17          16
00.09 Administrative expense............           4           4           7
                                           ---------   ---------  ----------
10.00   Total new obligations...........          23          21          23
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          23          21          23
23.95 Total new obligations.............         -23         -21         -23
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          23          21          23
    Change in obligated balances:
72.40 Obligated balance, start of year..          47          49          48
73.10 Total new obligations.............          23          21          23
73.20 Total outlays (gross).............         -16         -21         -24
73.40 Adjustments in expired accounts 
        (net)...........................          -5
74.40 Obligated balance, end of year....          49          48          47
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           4           5           8
86.93 Outlays from discretionary 
        balances........................          12          16          16
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          16          21          24
    Net budget authority and outlays:
89.00 Budget authority..................          23          21          23
90.00 Outlays...........................          16          21          24
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-2069-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Rural development loan fund 
        program.........................          40          40          34
                                           ---------   ---------  ----------
115901Total direct loan levels..........          40          40          34
    Direct loan subsidy (in percent):
132001Rural development loan fund 
        program.........................       48.26       43.27       46.38
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....       48.26       43.27       46.38
    Direct loan subsidy budget authority:
133001Rural development loan fund 
        program.........................          19          17          16
                                           ---------   ---------  ----------
133901Total subsidy budget authority....          19          17          16
    Direct loan subsidy outlays:
134001Rural development loan fund 
        program.........................          12          17          17
                                           ---------   ---------  ----------
134901Total subsidy outlays.............          12          17          17
    Direct loan upward reestimate subsidy budget 
                authority:
135001Rural development loan fund 
        program.........................
                                           ---------   ---------  ----------
135901Total upward reestimate budget 
        authority.......................
    Direct loan downward reestimate subsidy budget 
                authority:
137001Rural development loan fund 
        program.........................          -4
                                           ---------   ---------  ----------
137901Total downward reestimate budget 
        authority.......................          -4
----------------------------------------------------------------------------

    Administrative expense data:
351001Budget authority..................           4           4           7
359001Outlays from new authority........           4           4           7
---------------------------------------------------------------------------

    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 2005 the 
Budget provides $34 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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.3  Other purchases of goods and 
        services from Government 
        accounts........................           4           4           7
41.0  Grants, subsidies, and 
        contributions...................          19          17          16
                                           ---------   ---------  ----------
99.9    Total new obligations...........          23          21          23
---------------------------------------------------------------------------

                                

        Rural Development Loan Fund Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4219-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating program:

00.01   Direct loans....................          40          40          34
00.03   Interest on Treasury borrowing..          14          26          31
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal......................          54          66          65
08.02 Downward subsidy reestimate paid 
        to receipt account..............           3
08.04 Interest on Downward Subsidy 
        Reestimate......................           1
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal......................           4
                                           ---------   ---------  ----------
10.00   Total new obligations...........          58          66          65
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           3
22.00 New financing authority (gross)...          66          68          66
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          10
22.40 Capital transfer to general fund..         -16
22.70 Balance of authority to borrow 
        withdrawn.......................          -5
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          58          68          66
23.95 Total new obligations.............         -58         -66         -65
    New financing authority (gross), detail:
      Discretionary:

47.00   Authority to borrow.............          32          27          24
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...          32          41          42
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................           2
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          34          41          42
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................          66          68          66

[[Page 150]]

    Change in obligated balances:
72.40 Obligated balance, start of year..          52          54          57
73.10 Total new obligations.............          58          66          65
73.20 Total financing disbursements 
        (gross).........................         -44         -63         -68
73.45 Recoveries of prior year 
        obligations.....................         -10
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -2
74.40 Obligated balance, end of year....          54          57          54
87.00 Total financing disbursements 
        (gross).........................          44          63          68
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Payments from program account.         -12         -17         -17
88.25     Interest on uninvested funds..          -3          -5          -5
88.40     Non-Federal sources--repayment 
            of principal................         -14         -14         -15
88.40     Non-Federal sources--interest 
            on loans....................          -3          -5          -5
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -32         -41         -42
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............          -2
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          32          27          24
90.00 Financing disbursements...........          12          22          26
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4219-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........          40          40          34
1131  Direct loan obligations exempt 
        from limitation.................
                                           ---------   ---------  ----------
1150    Total direct loan obligations...          40          40          34
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         335         347         370
1231  Disbursements: Direct loan 
        disbursements...................          26          37          38
1251  Repayments: Repayments and 
        prepayments.....................         -14         -14         -15
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         347         370         393
---------------------------------------------------------------------------

    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    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....          15              4
        Investments in US securities:
1106      Receivables, net..............          47
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..         335            347
1402    Interest receivable.............           1              2
1405    Allowance for subsidy cost (-)..        -150           -150
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....         186            199
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         248            203
    LIABILITIES:
      Federal liabilities:

2104    Resources payable to Treasury...         201            203
2105    Other...........................          47
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         248            203
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         248            203
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

             Rural Development Loan Fund Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4233-0-3-452      2003 actual   2004 est.   2005 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
73.20 Total outlays (gross).............          -1
    Outlays (gross), detail:
86.98 Outlays from mandatory balances...           1
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
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...........................          -3          -4          -4
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4233-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          61          58          54
1231  Disbursements: Direct loan 
        disbursements...................           1
1251  Repayments: Repayments and 
        prepayments.....................          -3          -3          -3
1263  Write-offs for default: Direct 
        loans...........................          -1          -1          -1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          58          54          50
---------------------------------------------------------------------------

    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. 

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4233-0-3-452    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................           2              1
1206  Non-Federal assets: Receivables, 
        net.............................           1              1
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............          61             58
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................         -18            -29
                                        ------------ --------------  ------------  -------------
1604      Direct loans and interest 
            receivable, net.............          43             29
                                        ------------ --------------  ------------  -------------

[[Page 151]]


1699      Value of assets related to 
            direct loans................          43             29
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          46             31
    LIABILITIES:
2104  Federal liabilities: Resources 
        payable to Treasury.............          46             31
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          46             31
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          46             31
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

            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] $25,003.000.
    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] $4,698,000.
    Of the funds derived from interest on the cushion of credit payments 
in the current fiscal year, as authorized by section 313 of the Rural 
Electrification Act of 1936, [$2,792,000] $4,698,000 shall not be 
obligated and [$2,792,000] $4,698,000 are rescinded. (Division A, H.R. 
2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3108-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............           3           3           5
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................           3           3           5
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......           3           3           5
23.95 Total new obligations.............          -3          -3          -5
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................           3           3           5
    Change in obligated balances:
72.40 Obligated balance, start of year..           4           4           3
73.10 Total new obligations.............           3           3           5
73.20 Total outlays (gross).............          -3          -4          -5
74.40 Obligated balance, end of year....           4           3           3
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           1           1           1
86.93 Outlays from discretionary 
        balances........................           2           3           4
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           3           4           5
    Net budget authority and outlays:
89.00 Budget authority..................           3           3           5
90.00 Outlays...........................           3           4           5
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-3108-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Rural economic development loans 
        program.........................          15          15          25
                                           ---------   ---------  ----------
115901Total direct loan levels..........          15          15          25
    Direct loan subsidy (in percent):
132001Rural economic development loans 
        program.........................       21.36       18.61       18.79
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....       21.36       18.61       18.79
    Direct loan subsidy budget authority:
133001Rural economic development loans 
        program.........................           3           3           5
                                           ---------   ---------  ----------
133901Total subsidy budget authority....           3           3           5
    Direct loan subsidy outlays:
134001Rural economic development loans 
        program.........................           3           3           4
                                           ---------   ---------  ----------
134901Total subsidy outlays.............           3           3           4
    Direct loan downward reestimate subsidy budget 
                authority:
137001Rural economic development loans 
        program.........................
                                           ---------   ---------  ----------
137901Total downward reestimate budget 
        authority.......................
---------------------------------------------------------------------------

    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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................          15          15          25
00.03 Interest expense..................           6           9          10
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............          21          24          35
08.89 Downward subsidy reestimate paid 
        to receipt account..............           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          22          24          35
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           9           2
22.00 New financing authority (gross)...          14          25          27
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           2          -1          10
22.70 Balance of authority to borrow 
        withdrawn.......................          -1          -2          -2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          24          24          35
23.95 Total new obligations.............         -22         -24         -35
24.40 Unobligated balance carried 
        forward, end of year............           2
    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............          12          13          14
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).          19          19          19
68.47     Portion applied to repay debt.         -17          -7          -6
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....           2          12          13
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................          14          25          27
    Change in obligated balances:
72.40 Obligated balance, start of year..          12          13          14
73.10 Total new obligations.............          22          24          35
73.20 Total financing disbursements 
        (gross).........................         -18         -24         -28
73.45 Recoveries of prior year 
        obligations.....................          -2           1         -10
74.40 Obligated balance, end of year....          13          14          11
87.00 Total financing disbursements 
        (gross).........................          18          24          28
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal Funds: Program Account          -3          -4          -3
88.25     Interest on uninvested funds..          -1          -1          -2
88.40     Non-Federal sources: Repayment 
            of Principal................         -15         -14         -14
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -19         -19         -19
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          -5           6           8
90.00 Financing disbursements...........          -1           5           9
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4176-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........          15          15          25
                                           ---------   ---------  ----------
1150    Total direct loan obligations...          15          15          25
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          70          73          74

[[Page 152]]

1231  Disbursements: Direct loan 
        disbursements...................          18          15          18
1251  Repayments: Repayments and 
        prepayments.....................         -15         -14         -14
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          73          74          78
---------------------------------------------------------------------------

    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    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................          11              4
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..          77             73
1405    Allowance for subsidy cost (-)..         -12            -10
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....          65             63
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          76             67
    LIABILITIES:
      Federal liabilities:

2104    Resources payable to Treasury...          75             67
2105    Other...........................           1
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          76             67
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          76             67
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

               Rural Business Investment Programs Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1907-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.09 Administrative expense............                       4           1
00.10 Grants............................                                  10
                                           ---------   ---------  ----------
10.00   Total new obligations...........                       4          11
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         100         100          96
22.00 New budget authority (gross)......                                 -65
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         100         100          31
23.95 Total new obligations.............                      -4         -11
24.40 Unobligated balance carried 
        forward, end of year............         100          96          20
    New budget authority (gross), detail:
      Discretionary:

40.36   Unobligated balance permanently 
          reduced.......................                                 -65
    Change in obligated balances:
73.10 Total new obligations.............                       4          11
73.20 Total outlays (gross) (-).........                      -4          21
74.40 Obligated balance, end of year....                                  32
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                                 -32
86.98 Outlays from mandatory balances...                       4          11
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                       4         -21
    Net budget authority and outlays:
89.00 Budget authority..................                                 -65
90.00 Outlays...........................                       4         -21
---------------------------------------------------------------------------

    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. 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.

    In 2004, $96 million of this funding was blocked. For 2005, the 
Budget cancels $65 million of the unobligated balances, leaving $31 
million for these purposes. This is the expected obligation amount for 
these funds because, like many new business programs, the target 
community takes a while to develop. The split of debentures, grants, and 
administrative expenses in FY 2005 and out will be determined as Rural 
Development works with Small Business Administration to implement this 
program.

    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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Rural Business Investment Program.
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......
    Guaranteed loan subsidy (in percent):
232001Rural Business Investment Program.       20.00       20.00       20.00
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....       20.00       20.00       20.00
    Guaranteed loan subsidy budget authority:
233001Rural Business Investment Program.
                                           ---------   ---------  ----------
233901Total subsidy budget authority....
    Guaranteed loan subsidy outlays:
234001Rural Business Investment Program.
                                           ---------   ---------  ----------
234901Total subsidy outlays.............
----------------------------------------------------------------------------

    Administrative expense data:
351001Budget authority..................
358001Outlays from balances.............                       4           1
---------------------------------------------------------------------------

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1907-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.2  Administrative Expenses...........                       4           1
41.0  Grants, subsidies, and 
        contributions...................                                  10
                                           ---------   ---------  ----------
99.9    Total new obligations...........                       4          11
---------------------------------------------------------------------------

      

[[Page 153]]

                        Renewable Energy Program

    For the cost of a program of direct loans, loan guarantees, and 
grants, under the same terms and conditions as authorized by section 
9006 of the Farm Security and Rural Investment Act of 2002 (7 U.S.C. 
8106), [$23,000,000] $10,770,000 for direct and guaranteed 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. 
(Division A, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1908-0-1-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.10 Grants and Guaranteed Subsidy.....          22          23          11
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          22          23          11
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          23          23          11
23.95 Total new obligations.............         -22         -23         -11
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                      23          11
40.35   Appropriation permanently 
          reduced.......................                                 -23
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............                      23         -12
      Mandatory:

60.35   Appropriation permanently 
          reduced.......................                     -23
62.00   Transferred from other accounts.          23          23          23
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................          23                      23
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          23          23          11
    Change in obligated balances:
72.40 Obligated balance, start of year..                      22          25
73.10 Total new obligations.............          22          23          11
73.20 Total outlays (gross).............                     -21         -18
74.40 Obligated balance, end of year....          22          25          20
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                      10          -5
86.93 Outlays from discretionary 
        balances........................                                   9
86.97 Outlays from new mandatory 
        authority.......................                                  10
86.98 Outlays from mandatory balances...                      11           4
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                      21          18
    Net budget authority and outlays:
89.00 Budget authority..................          23          23          11
90.00 Outlays...........................                      21          18
---------------------------------------------------------------------------

    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 2004, the full $23 million is blocked from being spent because 
similar programs within the Federal government can provide this type of 
funding. Similarly, in 2005 the full $23 million in 2005 funds is 
canceled. However, $10,770,000 in discretionary funding is provided for 
this purpose to ensure that any unmet need by other Federal programs can 
potentially be accomodated.

                                

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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

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

40.36   Unobligated balance permanently 
          reduced.......................                      -1
    Net budget authority and outlays:
89.00 Budget authority..................                      -1
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. The unobligated balances of this account have been rescinded in 
FY 2004.

                                


 
                         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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........          19          54
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          19          54
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          10          26
22.00 New budget authority (gross)......          30          28
22.22 Unobligated balance transferred 
        from other accounts.............           5
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          45          54
23.95 Total new obligations.............         -19         -54
24.40 Unobligated balance carried 
        forward, end of year............          26
    New budget authority (gross), detail:
      Discretionary:

42.00   Transferred from other accounts.          30          28
    Change in obligated balances:
72.40 Obligated balance, start of year..                                  27
73.10 Total new obligations.............          19          54
73.20 Total outlays (gross).............         -19         -27         -27
74.40 Obligated balance, end of year....                      27
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          19          14
86.93 Outlays from discretionary 
        balances........................                      13          27
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          19          27          27
    Net budget authority and outlays:
89.00 Budget authority..................          30          28
90.00 Outlays...........................          18          27          27
---------------------------------------------------------------------------

    Funding was provided in 2001 through 2004 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

[[Page 154]]

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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Operating program:

00.01   Direct loans....................         801       1,032       1,000
00.02   Interest on Treasury borrowing..         310         458         532
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............       1,111       1,490       1,532
08.01 Subsidy reestimate paid to receipt 
        account.........................          27
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,138       1,490       1,532
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         110         185
22.00 New financing authority (gross)...       1,155       1,275       1,502
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          57          30          30
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,322       1,490       1,532
23.95 Total new obligations.............      -1,138      -1,490      -1,532
24.40 Unobligated balance carried 
        forward, end of year............         185
    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............         685       1,042       1,026
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).         639         538         544
68.00     Offsetting collections (cash).                      60          60
68.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........           2         -54          12
68.47     Portion applied to repay debt.        -171        -311        -140
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....         470         233         476
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       1,155       1,275       1,502
    Change in obligated balances:
72.40 Obligated balance, start of year..       2,285       2,271       2,397
73.10 Total new obligations.............       1,138       1,490       1,532
73.20 Total financing disbursements 
        (gross).........................      -1,092      -1,388      -1,474
73.45 Recoveries of prior year 
        obligations.....................         -57         -30         -30
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -2          54         -12
74.40 Obligated balance, end of year....       2,271       2,397       2,413
87.00 Total financing disbursements 
        (gross).........................       1,092       1,388       1,474
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............        -105         -88         -78
88.25     Interest on uninvested funds..         -38         -38         -39
88.40     Repayment of principal........        -228        -230        -238
88.40     Interest Received on Loans....        -242        -242        -249
88.40     Non-Federal sources...........         -26
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -639        -598        -604
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............          -2          54         -12
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............         514         731         886
90.00 Financing disbursements...........         453         790         870
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4226-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........         789       1,032       1,000
1121  Limitation available from carry-
        forward.........................          12
1131  Direct loan obligations exempt 
        from limitation.................
1142  Unobligated direct loan limitation 
        (-).............................
1143  Unobligated limitation carried 
        forward (P.L. xx) (-)...........
                                           ---------   ---------  ----------
1150    Total direct loan obligations...         801       1,032       1,000
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       5,061       5,565       6,237
1231  Disbursements: Direct loan 
        disbursements...................         754         903         916
1251  Repayments: Repayments and 
        prepayments.....................        -250        -231        -238
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       5,565       6,237       6,915
---------------------------------------------------------------------------

    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    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....          40
        Investments in US securities:
1106      Receivables, net..............           3              4
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..       5,061          5,565
1402    Interest receivable.............          61             50
1405    Allowance for subsidy cost (-)..        -754           -809
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....       4,368          4,806
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       4,411          4,810
    LIABILITIES:
      Federal liabilities:

2103    Debt............................       4,374          4,787
2105    Other...........................          26             23
2207  Non-Federal liabilities: Other....          11
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       4,411          4,810
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       4,411          4,810
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

 Rural Water and Waste Water Disposal Guaranteed Loans Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4218-0-3-452      2003 actual   2004 est.   2005 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

[[Page 155]]

    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      2003 actual   2004 est.   2005 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......................         -71
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................           4          75          75
2199  Guaranteed amount of guaranteed 
        loan commitments................           3          60          60
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........          30          29          50
2231  Disbursements of new guaranteed 
        loans...........................           3          25           5
2251  Repayments and prepayments........          -4          -4          -7
2264  Adjustments: Other adjustments, 
        net.............................
                                           ---------   ---------  ----------
2290    Outstanding, end of year........          29          50          48
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..          29          40          39
---------------------------------------------------------------------------

    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.

                                

   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] $120,000,000; 
municipal rate rural electric loans, [$1,000,000,000] $100,000,000; 
loans made pursuant to section 306 of that Act, rural electric, 
[$2,000,000,000] $1,720,000,000; Treasury rate direct electric loans, 
[$750,000,000] $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, [$120,000,000; and for guaranteed underwriting 
loans pursuant to section 313A, $1,000,000,000] $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] $5,058,000, and the cost of 
telecommunication loans, [$125,000] $100,000: 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, [$37,853,000] $39,933,000 which 
shall be transferred to and merged with the appropriation for ``Rural 
Development, Salaries and Expenses''. (Division A, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1230-0-1-271      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............          12                       5
00.05 Reestimate of direct loan subsidy.         126
00.06 Interest on reestimates of direct 
        loan subsidy....................          17
00.09 Administrative expenses subject to 
        limitation......................          38          38          40
                                           ---------   ---------  ----------
10.00   Total new obligations...........         193          38          45
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         193          38          45
23.95 Total new obligations.............        -193         -38         -45
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          50          38          45
      Mandatory:

60.00   Appropriation...................         143
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         193          38          45
    Change in obligated balances:
72.40 Obligated balance, start of year..          67          63          43
73.10 Total new obligations.............         193          38          45
73.20 Total outlays (gross).............        -197         -59         -53
73.40 Adjustments in expired accounts 
        (net)...........................          -1
74.40 Obligated balance, end of year....          63          43          35
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          38          38          40
86.93 Outlays from discretionary 
        balances........................          16          21          13
86.97 Outlays from new mandatory 
        authority.......................         143
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         197          59          53
    Net budget authority and outlays:
89.00 Budget authority..................         193          38          45
90.00 Outlays...........................         197          59          53
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1230-0-1-271      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Hardship electric.................         120         240         120
115002Municipal electric................         101       1,000         100
115003Treasury electric.................       1,150         750         700
115004FFB electric......................       2,600       1,900       1,620
115005Hardship telephone................          75         145         145
115006Treasury telephone................         288         249         250
115007FFB telephone.....................         120         120         100
                                           ---------   ---------  ----------
115901Total direct loan levels..........       4,454       4,404       3,035
    Direct loan subsidy (in percent):
132001Hardship electric.................        5.71       -2.33        3.04
132002Municipal electric................        4.03       -2.42        1.35
132003Treasury electric.................       -0.04       -0.06       -0.05
132004FFB electric......................       -1.82       -1.99       -2.23
132005Hardship telephone................        1.71       -4.44       -1.21
132006Treasury telephone................        0.05        0.05        0.04
132007FFB telephone.....................       -2.36       -1.85       -1.95
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....       -0.85       -1.73       -1.15
    Direct loan subsidy budget authority:
133001Hardship electric.................           7          -6           4
133002Municipal electric................           4         -24           1
133003Treasury electric.................
133004FFB electric......................         -47         -38         -36
133005Hardship telephone................           1          -6          -2
133006Treasury telephone................
133007FFB telephone.....................          -3          -2          -2
                                           ---------   ---------  ----------
133901Total subsidy budget authority....         -38         -76         -35
    Direct loan subsidy outlays:
134001Hardship electric.................           4           6           3
134002Municipal electric................           9           6           6
134003Treasury electric.................
134004FFB electric......................         -15         -22         -24
134005Hardship telephone................           2           9
134006Treasury telephone................
134007FFB telephone.....................          -1          -1          -1
                                           ---------   ---------  ----------
134901Total subsidy outlays.............          -1          -2         -16
    Direct loan upward reestimate subsidy budget 
                authority:
135001Hardship electric.................           5
135002Municipal electric................           4
135003Treasury electric.................
135004FFB electric......................         129
135005Hardship telephone................           1
135006Treasury telephone................           2
135007FFB telephone.....................           2
                                           ---------   ---------  ----------

[[Page 156]]


135901Total upward reestimate budget 
        authority.......................         143
    Direct loan downward reestimate subsidy budget 
                authority:
137001Hardship electric.................          -2
137002Municipal electric................
137003Treasury electric.................
137004FFB electric......................         -21
137005Hardship telephone................          -8
137006Treasury telephone................          -5
137007FFB telephone.....................          -1
                                           ---------   ---------  ----------
137901Total downward reestimate budget 
        authority.......................         -37
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Guaranteed electric...............                      99         100
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......                      99         100
    Guaranteed loan subsidy (in percent):
232001Guaranteed electric...............        0.08        0.06        0.06
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....        0.08        0.06        0.06
    Guaranteed loan subsidy budget authority:
233001Guaranteed electric...............
                                           ---------   ---------  ----------
233901Total subsidy budget authority....
    Guaranteed loan subsidy outlays:
234001Guaranteed electric...............
                                           ---------   ---------  ----------
234901Total subsidy outlays.............
    Guaranteed loan upward reestimate subsidy 
                budget authority:
235001Guaranteed electric...............
                                           ---------   ---------  ----------
235901Total upward reestimate budget 
        authority.......................
    Guaranteed loan downward reestimate subsidy 
                budget authority:
237001Guaranteed electric...............
                                           ---------   ---------  ----------
237901Total downward reestimate subsidy 
        budget authority................
----------------------------------------------------------------------------

    Administrative expense data:
351001Budget authority..................          38          38          40
359001Outlays from new authority........          38          38          40
---------------------------------------------------------------------------

    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.

    USDA will determine if the current method of issuing loans, ``first 
in; first out,'' provides adequate support to the areas with the highest 
priority needs. USDA will complete an analysis of electric 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, performance measures and targets, as necessary, 
to better define the purpose of the electric and telecommunications 
programs and support future needs of rural communities. These goals, 
measures and targets will be used to develop the 2006 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 cancelled. 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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.3  Other purchases of goods and 
        services from Government 
        accounts........................          38          38          40
41.0  Grants, subsidies, and 
        contributions...................         155                       5
                                           ---------   ---------  ----------
99.9    Total new obligations...........         193          38          45
---------------------------------------------------------------------------

                                

   Rural Electrification and Telecommunications Direct Loan Financing 
                                 Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4208-0-3-271      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................       4,454       4,404       3,035
00.02 Interest on Treasury borrowing....         748         860         950
                                           ---------   ---------  ----------
00.91   Subtotal, Operating program.....       5,202       5,264       3,985
08.01 Negative subsidy paid to receipt 
        account.........................          69          80          39
08.02 Downward reestimate paid to 
        receipt account.................          25
08.04 Interest on downward reestimate 
        paid to receipt account.........          12
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............         106          80          39
                                           ---------   ---------  ----------
10.00   Total new obligations...........       5,308       5,344       4,024
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         363          10
22.00 New financing authority (gross)...       4,923       5,334       4,024
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          32
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       5,318       5,344       4,024
23.95 Total new obligations.............      -5,308      -5,344      -4,024
24.40 Unobligated balance carried 
        forward, end of year............          10
    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............       4,387       4,326       2,881
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).       1,256       1,466       1,699
68.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........          -5         -21         -73
68.47     Portion applied to repay debt.        -715        -437        -483
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....         536       1,008       1,143
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       4,923       5,334       4,024
    Change in obligated balances:
72.40 Obligated balance, start of year..       8,315       9,501      10,471
73.10 Total new obligations.............       5,308       5,344       4,024
73.20 Total financing disbursements 
        (gross).........................      -4,095      -4,395      -4,583
73.45 Recoveries of prior year 
        obligations.....................         -32
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................           5          21          73
74.40 Obligated balance, end of year....       9,501      10,471       9,985

[[Page 157]]

87.00 Total financing disbursements 
        (gross).........................       4,095       4,395       4,583
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Payment from program account..        -159         -21          -9
88.25     Interest on uninvested funds..         -74        -113        -132
88.40     Repayment of principal........        -387        -337        -417
88.40     Interest received on loans....        -636        -995      -1,141
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -1,256      -1,466      -1,699
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............           5          21          73
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............       3,672       3,889       2,398
90.00 Financing disbursements...........       2,839       2,929       2,884
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4208-0-3-271      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........       4,454       4,404       3,035
                                           ---------   ---------  ----------
1150    Total direct loan obligations...       4,454       4,404       3,035
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........      11,188      14,069      17,188
1231  Disbursements: Direct loan 
        disbursements...................       3,268       3,456       3,431
1251  Repayments: Repayments and 
        prepayments.....................        -387        -337        -417
                                           ---------   ---------  ----------
1290    Outstanding, end of year........      14,069      17,188      20,202
---------------------------------------------------------------------------

    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    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         108             18
        Investments in US securities:
1106      Receivables, net..............         171            497
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..       9,697         12,413
1402    Interest receivable.............           4            198
1405    Allowance for subsidy cost (-)..        -537         -1,113
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....       9,164         11,498
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       9,443         12,013
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................                          2
2102    Interest payable................                          2
2103    Debt............................       9,430         12,006
2207  Non-Federal liabilities: Other....          13              3
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       9,443         12,013
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       9,443         12,013
--------------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         129             28
        Investments in US securities:
1106      Receivables, net..............          14             59
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..       1,492          1,656
1402    Interest receivable.............           1              1
1405    Allowance for subsidy cost (-)..         -24            -46
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....       1,469          1,611
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       1,612          1,698
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................
2102    Interest payable................
2103    Debt............................       1,592          1,671
2207  Non-Federal liabilities: Other....          20             27
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       1,612          1,698
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       1,612          1,698
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

Rural Electrification and Telecommunications Guaranteed Loans Financing 
                                Account 

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4209-0-3-271      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........                   1,100         100
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................                   1,100         100
2199  Guaranteed amount of guaranteed 
        loan commitments................                   1,100         100
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........         199         223       1,320
2231  Disbursements of new guaranteed 
        loans...........................          26       1,100         100
2251  Repayments and prepayments........          -2          -3         -36
                                           ---------   ---------  ----------
2290    Outstanding, end of year........         223       1,320       1,384
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..         223       1,320       1,384
---------------------------------------------------------------------------

    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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Interest expense on certificates 
        of beneficial ownership.........         395         395         395
00.02 Interest expense, FFB direct......         559         632         561
00.03 Other interest expense............           7          21          13
00.05 Other.............................          36          42          42
                                           ---------   ---------  ----------
10.00   Total new obligations...........         998       1,090       1,011
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                     286
22.00 New budget authority (gross)......       1,281       1,087       1,006
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           3           3           5
22.40 Capital transfer to general fund..                     -86
22.60 Portion applied to repay debt.....                    -200
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,284       1,090       1,011
23.95 Total new obligations.............        -998      -1,090      -1,011
24.40 Unobligated balance carried 
        forward, end of year............         286
    New budget authority (gross), detail:
      Discretionary:

40.36   Unobligated balance rescission 
          proposal......................                                  -5
      Mandatory:

60.00   Appropriation...................                     178         156
60.36   Unobligated balance permanently 
          reduced.......................          -3          -3
62.00   Transferred from other accounts.          22          20          19
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................          19         195         175

[[Page 158]]

69.00 Offsetting collections (cash).....       3,350       2,090       1,804
69.27 Capital transfer to general fund..         -22
69.47 Portion applied to repay debt.....      -2,066      -1,198        -968
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................       1,262         892         836
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,281       1,087       1,006
    Change in obligated balances:
72.40 Obligated balance, start of year..         312         321         338
73.10 Total new obligations.............         998       1,090       1,011
73.20 Total outlays (gross).............        -985      -1,070        -991
73.45 Recoveries of prior year 
        obligations.....................          -3          -3          -5
74.40 Obligated balance, end of year....         321         338         353
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................         881         892         825
86.98 Outlays from mandatory balances...         104         178         166
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         985       1,070         991
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.40     Loans repaid..................      -1,929      -1,132        -981
88.40     Interest from loans...........      -1,032        -958        -823
88.40     Undistributed Charges.........        -389
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........      -3,350      -2,090      -1,804
    Net budget authority and outlays:
89.00 Budget authority..................      -2,069      -1,003        -798
90.00 Outlays...........................      -2,365      -1,020        -813
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4230-0-3-271      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........      19,412      17,104      15,449
1231  Disbursements: Direct loan 
        disbursements...................           4          12          11
1251  Repayments: Repayments and 
        prepayments.....................      -2,350      -1,553      -1,260
1261  Adjustments: Capitalized interest.          39
      Write-offs for default:

1263    Direct loans....................                    -109         -98
1264    Other adjustments, net..........          -1          -5          -4
                                           ---------   ---------  ----------
1290    Outstanding, end of year........      17,104      15,449      14,098
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4230-0-3-271      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........         317         293         270
2251  Repayments and prepayments........         -24         -17         -16
2263  Adjustments: Terminations for 
        default that result in claim 
        payments........................                      -6          -6
                                           ---------   ---------  ----------
2290    Outstanding, end of year........         293         270         248
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..         293         270         248
---------------------------------------------------------------------------

                          STATUS OF AGENCY DEBT

                        [In millions of dollars]

                                     2003 actual  2004 est.   2005 est.
Agency debt held by FFB:
  Outstanding FFB direct, start of 
    year............................       8,891       8,397       7,454
  Outstanding Certificate of 
    Beneficial Ownership (CBO's), 
    start of year...................       4,270       4,270       4,270
  New agency borrowing, FFB direct..           0           0           0
  Repayments and prepayments, FFB 
    Direct..........................           0           0           0
  Repayments, CBO's.................        -494        -943        -837
                                    ------------------------------------
  Outstanding FFB direct, end of 
    year............................       8,397       7,454       6,617
  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.
    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 cancelled. 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.
    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]

                                     2003 actual  2004 est.   2005 est.
Cumulative RUS financed direct loans      21,851      21,854      21,857
Cumulative FFB financed direct loans      27,084      27,037      26,987
Cumulative RUS funds advanced.......      21,832      21,834      21,834
Unadvanced RUS funds, end of year...          73          69          66
Cumulative RUS principal repaid.....      16,030      16,913      17,678
Cumulative RUS interest paid........      12,205      12,952      13,594
Cumulative loan guarantee 
commitments\1\......................           0           0           0
Number of borrowers.................         718         711         704

    \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]

                                     2003 actual  2004 est.   2005 est.
Cumulative RUS financed direct loans       6,030       6,010       5,990
Cumulative FFB financed direct loans         562         562         562
Cumulative RUS funds advanced.......       5,897       5,905       5,913
Unadvanced RUS funds, end of period.         138         130         122
Cumulative RUS principal repaid.....       4,041       4,290       4,506
Cumulative RUS interest paid........       3,023       3,234       3,415
Cumulative loan guarantee 
commitments \1\.....................           0           0           0
Number of borrowers.................         625         607         589

    \1\ Other lenders--privately financed direct loans, FFB.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4230-0-3-271    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         115            405
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross (Electric)..      17,337         15,263
1602    Interest receivable.............          43              6

[[Page 159]]

1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................      -1,682         -1,935
                                        ------------ --------------  ------------  -------------
1604      Direct loans and interest 
            receivable, net.............      15,698         13,334
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................      15,698         13,334
                                        ------------ --------------  ------------  -------------
1999    Total assets....................      15,813         13,739
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................         780
2102    Interest payable................
2103    Debt............................      16,709         15,016
2104    Resources payable to Treasury...      -1,715         -1,310
2105    Other...........................          39             33
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............      15,813         13,739
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position      15,813         13,739
--------------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................         140            146
      Non-Federal assets:

1201    Investments in non-Federal 
          securities, net...............         430            409
1206    Receivables, net................         780
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross (telephone).       2,076          1,843
1602    Interest receivable.............           6              1
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................        -245           -147
                                        ------------ --------------  ------------  -------------
1604      Direct loans and interest 
            receivable, net.............       1,837          1,697
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................       1,837          1,697
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       3,187          2,252
    LIABILITIES:
      Federal liabilities:

2102    Interest payable................
2103    Debt............................       1,751          1,373
2104    Resources payable to Treasury...       1,424            865
2105    Other...........................           4              3
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       3,179          2,241
    NET POSITION:
3300  Cumulative results of operations..           8             11
                                        ------------ --------------  ------------  -------------
3999    Total net position..............           8             11
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       3,187          2,252
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4230-0-3-271      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.2  Other services....................          36          42          42
33.0  Investments and loans.............           7          21          13
43.0  Interest and dividends............         955       1,027         956
                                           ---------   ---------  ----------
99.9    Total new obligations...........         998       1,090       1,011
---------------------------------------------------------------------------

                                

                  Rural Telephone Bank Program Account

                      (including transfer of funds)

    The Rural Telephone Bank is hereby authorized to make such 
expenditures, within the limits of funds available to such corporation 
in accord with law, and to make such contracts and commitments without 
regard to fiscal year limitations as provided by section 104 of the 
Government Corporation Control Act, as may be necessary in carrying out 
its authorized programs. [During fiscal year 2004 and within the 
resources and authority available, gross obligations for the principal 
amount of direct loans shall be $173,503,000.]
    [In addition, for] For administrative expenses, including audits, 
necessary to [carry out the loan programs, $3,171,000] continue to 
service existing loans, $3,328,000, to be derived by transfer of 
unobligated balances from the Rural Telephone Bank Liquidating Account, 
which shall be transferred to and merged with the appropriation for 
``Rural Development, Salaries and Expenses''. (Division A, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1231-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........           2
00.05 Reestimates of direct loan subsidy           1           5
00.09 Administrative expenses subject to 
        limitation......................           3           3           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........           6           8           3
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......           6           8           3
23.95 Total new obligations.............          -6          -8          -3
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................           5           3
42.00   Transferred from other accounts.                                   3
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............           5           3           3
      Mandatory:

60.00   Appropriation...................           1           5
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................           6           8           3
    Change in obligated balances:
72.40 Obligated balance, start of year..          19          20          18
73.10 Total new obligations.............           6           8           3
73.20 Total outlays (gross).............          -5         -10          -5
74.40 Obligated balance, end of year....          20          18          16
    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.......................           1           5
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           5          10           5
    Net budget authority and outlays:
89.00 Budget authority..................           6           8           3
90.00 Outlays...........................           5          10           5
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1231-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Rural Telephone Bank..............         168         174
                                           ---------   ---------  ----------
115901Total direct loan levels..........         168         174
    Direct loan subsidy (in percent):
132001Rural Telephone Bank..............        1.38       -4.32        0.00
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....        1.38       -4.32        0.00
    Direct loan subsidy budget authority:
133001Rural Telephone Bank..............           2          -7
                                           ---------   ---------  ----------
133901Total subsidy budget authority....           2          -7
    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..............           1           5
                                           ---------   ---------  ----------
135901Total upward reestimate budget 
        authority.......................           1           5
    Direct loan downward reestimate subsidy budget 
                authority:
137001Rural Telephone Bank..............          -4         -18
                                           ---------   ---------  ----------
137901Total downward reestimate budget 
        authority.......................          -4         -18
----------------------------------------------------------------------------

    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.

[[Page 160]]

    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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.2  Other services....................           3           8           3
41.0  Grants, subsidies, and 
        contributions...................           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........           6           8           3
---------------------------------------------------------------------------

                                

           Rural Telephone Bank Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4210-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Loans......................         168         174
00.02 Interest on Treasury borrowing....          24          71          83
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal......................         192         245          83
08.02 Downward reestimates paid to 
        receipt accounts................           3          11
08.04 Interest on downward reestimate 
        paid to receipt account.........           1           7
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal......................           4          18
                                           ---------   ---------  ----------
10.00   Total new obligations...........         196         263          83
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          17           2           5
22.00 New financing authority (gross)...         183         328         151
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          32
22.60 Portion applied to repay debt.....                     -62         -68
22.70 Balance of authority to borrow 
        withdrawn.......................         -34
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         198         268          88
23.95 Total new obligations.............        -196        -263         -83
24.40 Unobligated balance carried 
        forward, end of year............           2           5           5
    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............         170         233          55
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).          94         131         154
68.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........           1          16          -3
68.47     Portion applied to repay debt.         -82         -52         -55
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....          13          95          96
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................         183         328         151
    Change in obligated balances:
72.40 Obligated balance, start of year..       1,091       1,169       1,234
73.10 Total new obligations.............         196         263          83
73.20 Total financing disbursements 
        (gross).........................         -84        -182        -255
73.45 Recoveries of prior year 
        obligations.....................         -32
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -1         -16           3
74.40 Obligated balance, end of year....       1,169       1,234       1,065
87.00 Total financing disbursements 
        (gross).........................          84         182         255
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources: Payment from 
            program account.............          -2          -7          -2
88.25     Interest on uninvested funds..          -6         -17         -21
88.40     Principal received on loans...         -62         -83        -100
88.40     Interest received on loans....         -21         -19         -23
88.40     Sale of RTB Stock.............          -3          -5          -8
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -94        -131        -154
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............          -1         -16           3
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          88         181
90.00 Financing disbursements...........         -10          51         101
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4210-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........         172         174
1142  Unobligated direct loan limitation 
        (-).............................          -4
                                           ---------   ---------  ----------
1150    Total direct loan obligations...         168         174
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         334         328         355
1231  Disbursements: Direct loan 
        disbursements...................          56         110         172
1251  Repayments: Repayments and 
        prepayments.....................         -62         -83        -100
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         328         355         427
---------------------------------------------------------------------------

    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    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....          23             11
        Investments in US securities:
1106      Receivables, net..............           1              5
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..         324            328
1405    Allowance for subsidy cost (-)..                         -2
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....         324            326
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         348            342
    LIABILITIES:
      Federal liabilities:

2103    Debt............................         348            300
2105    Other...........................                         42
      Non-Federal liabilities:

2201    Accounts payable................
2207    Other...........................
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         348            342
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         348            342
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

                Rural Telephone Bank Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4231-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Dividends.........................          28          29          29
                                           ---------   ---------  ----------

[[Page 161]]


10.00   Total new obligations (object 
          class 43.0)...................          28          29          29
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         943       1,201       1,349
22.00 New budget authority (gross)......         272         177          98
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          14
22.21 Unobligated balance transferred to 
        other accounts..................                                  -3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,229       1,378       1,444
23.95 Total new obligations.............         -28         -29         -29
24.40 Unobligated balance carried 
        forward, end of year............       1,201       1,349       1,415
    New budget authority (gross), detail:
      Mandatory:

61.00   Transferred to other accounts...         -22         -20         -19
69.00 Offsetting collections (cash).....         247         261         125
69.10 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          56         -56
69.27 Capital transfer to general fund..          -9
69.47 Portion applied to repay debt.....                      -8          -8
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................         294         197         117
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         272         177          98
    Change in obligated balances:
72.40 Obligated balance, start of year..          99          34          90
73.10 Total new obligations.............          28          29          29
73.20 Total outlays (gross).............         -23         -29         -27
73.45 Recoveries of prior year 
        obligations.....................         -14
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -56          56
74.40 Obligated balance, end of year....          34          90          92
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           7          12          17
86.98 Outlays from mandatory balances...          16          17          10
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          23          29          27
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.20     Interest on Federal securities                     -56
88.40     Loans repaid..................        -205        -157         -77
88.40     Interest from loans...........         -42         -48         -48
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -247        -261        -125
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -56          56
    Net budget authority and outlays:
89.00 Budget authority..................         -31         -28         -27
90.00 Outlays...........................        -224        -232         -98
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4231-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         680         476         321
1231  Disbursements: Direct loan 
        disbursements...................           1           2           2
1251  Repayments: Repayments and 
        prepayments.....................        -205        -157         -77
1263  Write-offs for default: Direct 
        loans...........................                                  -3
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         476         321         243
---------------------------------------------------------------------------

    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 2005.

    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.

    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.

    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]

                                     2003 actual  2004 est.   2005 est.
Cumulative net loans................       2,532       2,534       2,536
Cumulative loan funds, advanced.....       2,470       2,472       2,474
Unadvanced loan funds, end of year..          62          60          58
Cumulative principal repaid.........       1,993       2,150       2,227
Cumulative interest paid............       2,385       2,433       2,481
Number of borrowers.................         286         265         250
                                    ====================================

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4231-0-3-452    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....       1,041          1,235
        Investments in US securities:
1106      Receivables, net..............                         56
1402  Net value of assets related to 
        post-1991 direct loans 
        receivable: Interest receivable.           2              1
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............         680            476
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................          -6             11
                                        ------------ --------------  ------------  -------------
1604      Direct loans and interest 
            receivable, net.............         674            487
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................         674            487
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       1,717          1,779
    LIABILITIES:
      Federal liabilities:

2103    Debt............................
2104    Resources payable to Treasury...         103             55
2105    Other...........................       1,205          1,315
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       1,308          1,370
    NET POSITION:
3300  Cumulative results of operations..         409            409
                                        ------------ --------------  ------------  -------------
3999    Total net position..............         409            409
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       1,717          1,779
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

         Distance Learning, Telemedicine, and Broadband Program

    For [the principal amount of direct distance learning and 
telemedicine loans, $300,000,000; and for] the principal amount of 
direct and guaranteed broadband telecommunication loans, [$602,000,000] 
$331,081,000.
    For grants for telemedicine and distance learning services in rural 
areas, as authorized by 7 U.S.C. 950aaa et seq., [$39,000,000] 
$25,000,000, to remain available until expended[: Provided, That 
$14,000,000 shall be made available to convert analog to digital oper

[[Page 162]]

ation those noncommercial educational television broadcast stations that 
serve rural areas and are qualified for Community Service Grants by the 
Corporation for Public Broadcasting under section 396(k) of the 
Communications Act of 1934, including associated translators, repeaters, 
and studio-to-transmitter links].
    For the cost of broadband loans, as authorized by 7 U.S.C. 901 et 
seq., [$13,116,000: Provided, That the interest rate for such loans 
shall be the cost of borrowing to the Department of the Treasury for 
obligations of comparable maturity: Provided further,] $9,884,000: 
Provided, That the cost of direct loans and guaranteed loans shall be as 
defined in section 502 of the Congressional Budget Act of 1974.
    [In addition, $9,000,000, to remain available until expended, for a 
grant program to finance broadband transmission in rural areas eligible 
for Distance Learning and Telemedicine Program benefits authorized by 7 
U.S.C. 950aaa.] (Division A, H.R. 2673, Consolidated Appropriations 
Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1232-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loan subsidy...............           1          49           8
00.02 Loan guaranteed subsidy...........                       3           2
00.10 Grants............................          67          63          25
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................          68         115          35
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          44          54          20
22.00 New budget authority (gross)......          77          81          15
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         122         135          35
23.95 Total new obligations.............         -68        -115         -35
24.40 Unobligated balance carried 
        forward, end of year............          54          20
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          57          61          35
40.35   Appropriation permanently 
          reduced.......................                                 -20
40.36   Unobligated balance permanently 
          reduced.......................                                 -20
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............          57          61          -5
      Mandatory:

62.00   Transferred from other accounts.          20          20          20
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          77          81          15
    Change in obligated balances:
72.40 Obligated balance, start of year..          68         113         225
73.10 Total new obligations.............          68         115          35
73.20 Total outlays (gross).............         -22          -3         -64
73.45 Recoveries of prior year 
        obligations.....................          -1
74.40 Obligated balance, end of year....         113         225         196
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                       1          -3
86.93 Outlays from discretionary 
        balances........................          22                      54
86.97 Outlays from new mandatory 
        authority.......................                       2           2
86.98 Outlays from mandatory balances...                                  11
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          22           3          64
    Net budget authority and outlays:
89.00 Budget authority..................          77          81          15
90.00 Outlays...........................          22           3          64
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1232-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001Distance Learning and Telemedicine          21
115002Direct Broadband 4% loans.........                                  36
115003Direct Broadband Treasury Rate 
        loans...........................                     598         255
115004Mandatory Broadband 4% loans......                      80
115005Mandatory Broadband Treasury Rate 
        loans...........................          56       1,453
                                           ---------   ---------  ----------
115901Total direct loan levels..........          77       2,131         291
    Direct loan subsidy (in percent):
132001Distance Learning and Telemedicine       -1.15        0.00        0.00
132002Direct Broadband 4% loans.........        0.00        0.00        8.01
132003Direct Broadband Treasury Rate 
        loans...........................        0.00        2.18        2.13
132004Mandatory Broadband 4% loans......        0.00        4.94        0.00
132005Mandatory Broadband Treasury Rate 
        loans...........................        2.22        2.18        0.00
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....        1.30        2.30        2.75
    Direct loan subsidy budget authority:
133001Distance Learning and Telemedicine
133002Direct Broadband 4% loans.........                                   3
133003Direct Broadband Treasury Rate 
        loans...........................                      13           5
133004Mandatory Broadband 4% loans......                       4
133005Mandatory Broadband Treasury Rate 
        loans...........................           1          32
                                           ---------   ---------  ----------
133901Total subsidy budget authority....           1          49           8
    Direct loan subsidy outlays:
134001Distance Learning and Telemedicine
134002Direct Broadband 4% loans.........
134003Direct Broadband Treasury Rate 
        loans...........................                       1           1
134004Mandatory Broadband 4% loans......
134005Mandatory Broadband Treasury Rate 
        loans...........................                       2          18
                                           ---------   ---------  ----------
134901Total subsidy outlays.............                       3          19
    Direct loan upward reestimate subsidy budget 
                authority:
135002Direct Broadband 4% loans.........
                                           ---------   ---------  ----------
135901Total upward reestimate budget 
        authority.......................
    Direct loan downward reestimate subsidy budget 
                authority:
137002Direct Broadband 4% loans.........          -1
                                           ---------   ---------  ----------
137901Total downward reestimate budget 
        authority.......................          -1
----------------------------------------------------------------------------

    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Broadband Guaranteed loans........                                  40
215002Mandatory Broadband Guaranteed 
        loans...........................                      80
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......                      80          40
    Guaranteed loan subsidy (in percent):
232001Broadband Guaranteed loans........        0.00        0.00        3.93
232002Mandatory Broadband Guaranteed 
        loans...........................        0.00        3.90        0.00
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....        0.00        3.75        5.00
    Guaranteed loan subsidy budget authority:
233001Broadband Guaranteed loans........                                   2
233002Mandatory Broadband Guaranteed 
        loans...........................                       3
                                           ---------   ---------  ----------
233901Total subsidy budget authority....                       3           2
    Guaranteed loan subsidy outlays:
234001Broadband Guaranteed loans........
234002Mandatory Broadband Guaranteed 
        loans...........................                                   2
                                           ---------   ---------  ----------
234901Total subsidy outlays.............                                   2
---------------------------------------------------------------------------

    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 
canceling mandatory funding for 2005 and the carryover balances from 
2004 and providing discretionary funding for a program for loans to 
finance installation of broadband transmission capacity (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.

    Due to defaults in 2003, the subsidy rate for the Distance Learning 
and Telemedicine (DLT) program increased significantly. Since there is 
little demand for the DLT loans and the loans now cost the government, 
the budget proposes to not provide any DLT loans in 2005.

[[Page 163]]

                                

  Distance Learning, Telemedicine, and Broadband Direct Loan Financing 
                                 Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4146-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................          77       2,431         291
00.02 Interest on Treasury borrowing....           5           2           4
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal......................          82       2,433         295
08.02 Downward reestimates paid to 
        receipt accounts................           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........          83       2,433         295
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          10          14
22.00 New financing authority (gross)...          89       2,453         349
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          57
22.40 Capital transfer to general fund..          -1
22.60 Portion applied to repay debt.....                     -34         -54
22.70 Balance of authority to borrow 
        withdrawn.......................         -58
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          97       2,433         295
23.95 Total new obligations.............         -83      -2,433        -295
24.40 Unobligated balance carried 
        forward, end of year............          14
    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............          78       2,431         291
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).          10          25          77
68.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........           1          -3         -19
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....          11          22          58
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................          89       2,453         349
    Change in obligated balances:
72.40 Obligated balance, start of year..         204         178       2,590
73.10 Total new obligations.............          83       2,433         295
73.20 Total financing disbursements 
        (gross).........................         -51         -24         -66
73.45 Recoveries of prior year 
        obligations.....................         -57
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -1           3          19
74.40 Obligated balance, end of year....         178       2,590       2,838
87.00 Total financing disbursements 
        (gross).........................          51          24          66
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............          -1          -3         -19
88.25     Interest on uninvested funds..          -2          -2          -5
88.40     Repayment of principal........          -5         -11         -30
88.40     Interest received on loans....          -2          -9         -23
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -10         -25         -77
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............          -1           3          19
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          78       2,431         291
90.00 Financing disbursements...........          41          -1         -11
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4146-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........         300         898         291
1131  Direct loan obligations exempt 
        from limitation.................       1,376       1,533
1142  Unobligated direct loan limitation 
        (-).............................      -1,599
                                           ---------   ---------  ----------
1150    Total direct loan obligations...          77       2,431         291
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........          42          81          94
1231  Disbursements: Direct loan 
        disbursements...................          44          24          66
1251  Repayments: Repayments and 
        prepayments.....................          -5         -11         -30
                                           ---------   ---------  ----------
1290    Outstanding, end of year........          81          94         130
---------------------------------------------------------------------------

    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    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................                          2
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..          49             81
1402    Interest receivable.............                          2
1405    Allowance for subsidy cost (-)..
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....          49             83
                                        ------------ --------------  ------------  -------------
1999    Total assets....................          49             85
    LIABILITIES:
2101  Federal liabilities: Accounts 
        payable.........................          49             85
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............          49             85
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position          49             85
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

  Distance Learning and Telemedicine Guaranteed Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4361-0-3-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                                   3
22.00 New financing authority (gross)...                       3           2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                       3           5
24.40 Unobligated balance carried 
        forward, end of year............                       3           3
    New financing authority (gross), detail:
      Discretionary:

68.10   Spending authority from 
          offsetting collections: Change 
          in uncollected customer 
          payments from Federal sources 
          (unexpired)...................                                   2
      Mandatory:

69.00   Offsetting collections (cash)...                                   2
69.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................                       3          -2
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........                       3
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................                       3           2
    Change in obligated balances:
72.40 Obligated balance, start of year..                                  -3
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................                      -3
74.40 Obligated balance, end of year....                      -3          -3
    Offsets:
      Against gross financing authority and 
          financing disbursements:

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

88.95   Change in receivables from 
          program accounts..............                      -3
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........                                  -2
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4361-0-3-451      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........                                  40
2131  Guaranteed loan commitments exempt 
        from limitation.................                      80
                                           ---------   ---------  ----------

[[Page 164]]


2150    Total guaranteed loan 
          commitments...................                      80          40
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........                                   8
2231  Disbursements of new guaranteed 
        loans...........................                       8          48
2251  Repayments and prepayments........                                  -1
2263  Adjustments: Terminations for 
        default that result in claim 
        payments........................
                                           ---------   ---------  ----------
2290    Outstanding, end of year........                       8          55
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..                       6          44
----------------------------------------------------------------------------

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

2331    Disbursements for guaranteed 
          loan claims...................
2351    Repayments of loans receivable..
---------------------------------------------------------------------------

                                

             Local Television Loan Guarantee Program Account

                      (including transfer of funds)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1233-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Loan guarantee subsidy............                      44
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                      44
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          88          88          44
22.00 New budget authority (gross)......                                 -44
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          88          88
23.95 Total new obligations.............                     -44
24.40 Unobligated balance carried 
        forward, end of year............          88          44
    New budget authority (gross), detail:
      Discretionary:

40.36   Unobligated balance permanently 
          reduced.......................                                 -44
    Change in obligated balances:
72.40 Obligated balance, start of year..                                  35
73.10 Total new obligations.............                      44
73.20 Total outlays (gross).............                      -9         -20
74.40 Obligated balance, end of year....                      35          15
    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................                       2           4
86.98 Outlays from mandatory balances...                       7          16
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                       9          20
    Net budget authority and outlays:
89.00 Budget authority..................                                 -44
90.00 Outlays...........................                       9          20
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1233-0-1-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Guaranteed loan levels supportable by subsidy 
                budget authority:
215001Local television..................                     520
                                           ---------   ---------  ----------
215901Total loan guarantee levels.......                     520
    Guaranteed loan subsidy (in percent):
232001Local television..................                    8.46        0.00
                                           ---------   ---------  ----------
232901Weighted average subsidy rate.....                    8.46        0.00
    Guaranteed loan subsidy budget authority:
233001Local television..................                      44
                                           ---------   ---------  ----------
233901Total subsidy budget authority....                      44
    Guaranteed loan subsidy outlays:
234001Local television..................                       9          20
                                           ---------   ---------  ----------
234901Total subsidy outlays.............                       9          20
---------------------------------------------------------------------------

    The President's budget proposes no additional funds for the Local 
Television Loan Guarantee program. In addition, the budget proposes to 
rescind $44,000,000 in unused budget authority. The remaining budget 
authority is adequate to provide a guaranteed loans for either one 
satellite or multiple cable investments. This could provide service to 
almost 90 percent of the Designated Market Areas, which more than 
fulfills the requirement to provide service to 75 percent of the 
Designated Market Areas.

    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.

            Local Television Loan Guarantee Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4220-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                                  45
22.00 New financing authority (gross)...                      45           3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......                      45          48
24.40 Unobligated balance carried 
        forward, end of year............                      45          50
    New financing authority (gross), detail:
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).                       3           7
68.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........                       6          -4
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....                       9           3
      Mandatory:

69.00   Offsetting collections (cash)...                       7          16
69.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................                      29         -16
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........                      36
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................                      45           3
    Change in obligated balances:
72.40 Obligated balance, start of year..                                 -35
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................                     -35          20
74.40 Obligated balance, end of year....                     -35         -17
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............                      -9         -20
88.25     Interest on uninvested funds..                                  -2
88.40     Non-Federal sources...........                      -1          -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........                     -10         -23
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............                     -35          20
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........                     -10         -23
---------------------------------------------------------------------------

[[Page 165]]



             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4220-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on commitments:
2111  Limitation on guaranteed loans 
        made by private lenders.........
2121  Limitation available from carry-
        forward.........................       1,067       1,040
2131  Guaranteed loan commitments exempt 
        from limitation.................
2143  Uncommitted limitation carried 
        forward.........................      -1,067        -520
                                           ---------   ---------  ----------
2150    Total guaranteed loan 
          commitments...................                     520
2199  Guaranteed amount of guaranteed 
        loan commitments................                     416
----------------------------------------------------------------------------

    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........                                 104
2231  Disbursements of new guaranteed 
        loans...........................                     104         234
2251  Repayments and prepayments........                                  -5
                                           ---------   ---------  ----------
2290    Outstanding, end of year........                     104         333
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..                      83         265
---------------------------------------------------------------------------

    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.

          Rural Development Insurance Fund Liquidating Account 

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4155-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
01.01 Interest on FFB borrowings........         123          73          73
01.05 Interest on Treasury borrowings...           9
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 43.0)...................         132          73          73
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                      77
22.00 New budget authority (gross)......         209         127          73
22.70 Balance of authority to borrow 
        withdrawn.......................                    -131
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         209          73          73
23.95 Total new obligations.............        -132         -73         -73
24.40 Unobligated balance carried 
        forward, end of year............          77
    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................         330         250         208
60.47   Portion applied to repay debt...        -121        -123        -135
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................         209         127          73
69.00 Offsetting collections (cash).....         495         402         354
69.47 Portion applied to repay debt.....        -495        -402        -354
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         209         127          73
    Change in obligated balances:
72.40 Obligated balance, start of year..          55          51          34
73.10 Total new obligations.............         132          73          73
73.20 Total outlays (gross).............        -136         -90         -80
74.40 Obligated balance, end of year....          51          34          27
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................          81          58          65
86.98 Outlays from mandatory balances...          55          32          15
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         136          90          80
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.40     Non-Federal sources...........        -339        -270        -230
88.40     Repayments of guaranteed loans 
            purchased from investors....          -5          -1          -1
88.40     Interest revenue..............        -148        -131        -123
88.40     Other.........................          -3
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -495        -402        -354
    Net budget authority and outlays:
89.00 Budget authority..................        -286        -275        -281
90.00 Outlays...........................        -359        -312        -274
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4155-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       2,808       2,463       2,301
1251  Repayments: Repayments and 
        prepayments.....................        -338        -161        -151
      Write-offs for default:

1263    Direct loans....................          -1          -1          -1
1264    Other adjustments, net..........          -6
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       2,463       2,301       2,149
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4155-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........          80          51          45
2251  Repayments and prepayments........          -2          -6          -5
2263  Adjustments: Terminations for 
        default that result in claim 
        payments........................         -27
                                           ---------   ---------  ----------
2290    Outstanding, end of year........          51          45          40
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..          46          21          17
---------------------------------------------------------------------------

    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.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4155-0-3-452    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................          55            129
1201  Non-Federal assets: Investments in 
        non-Federal securities, net.....          34             34
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............       2,808          2,463
1602    Interest receivable.............          48             26
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................         -33           -392
                                        ------------ --------------  ------------  -------------
1604      Direct loans and interest 
            receivable, net.............       2,823          2,097
                                        ------------ --------------  ------------  -------------

[[Page 166]]


1699      Value of assets related to 
            direct loans................       2,823          2,097
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       2,912          2,260
    LIABILITIES:
      Federal liabilities:

2103    Debt............................       1,421            805
2104    Resources payable to Treasury...       1,433          1,402
      Non-Federal liabilities:

2202    Interest payable................          55             51
2204    Liabilities for loan guarantees.           3              2
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       2,912          2,260
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       2,912          2,260
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

        Rural Communication Development Fund Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4142-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Interest on Treasury borrowing....           3           3
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 43.0)...................           3           3
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                       1
22.00 New budget authority (gross)......           3           2
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           3           3
23.95 Total new obligations.............          -3          -3
24.40 Unobligated balance carried 
        forward, end of year............           1
    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................           3          27
60.47   Portion applied to repay debt...                     -25
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................           3           2
69.00 Offsetting collections (cash).....                                   1
69.27 Capital transfer to general fund..                                  -1
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................           3           2
    Change in obligated balances:
72.40 Obligated balance, start of year..           1           1           1
73.10 Total new obligations.............           3           3
73.20 Total outlays (gross).............          -2          -3
74.40 Obligated balance, end of year....           1           1           1
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           2           2
86.98 Outlays from mandatory balances...                       1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........           2           3
    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....                                  -1
    Net budget authority and outlays:
89.00 Budget authority..................           3           2          -1
90.00 Outlays...........................           2           3          -1
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4142-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........           5           4           4
1251  Repayments: Repayments and 
        prepayments.....................                                  -1
1264  Write-offs for default: Other 
        adjustments, net................          -1
                                           ---------   ---------  ----------
1290    Outstanding, end of year........           4           4           3
---------------------------------------------------------------------------

             Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4142-0-3-452      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of guaranteed loans 
                outstanding:
2210  Outstanding, start of year........           4           4           3
2251  Repayments and prepayments........                      -1
                                           ---------   ---------  ----------
2290    Outstanding, end of year........           4           3           3
----------------------------------------------------------------------------

    Memorandum:
2299  Guaranteed amount of guaranteed 
        loans outstanding, end of year..           4           3           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.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4142-0-3-452    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................           2              2
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............           5              4
1602    Interest receivable.............           1              1
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................          -3             -1
                                        ------------ --------------  ------------  -------------
1604      Direct loans and interest 
            receivable, net.............           3              4
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................           3              4
                                        ------------ --------------  ------------  -------------
1999    Total assets....................           5              6
    LIABILITIES:
      Federal liabilities:

2102    Interest payable................           1              1
2103    Debt............................          25             25
2204  Non-Federal liabilities: 
        Liabilities for loan guarantees.         -21            -20
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............           5              6
    NET POSITION:
3300  Cumulative results of operations..
                                        ------------ --------------  ------------  -------------
3999    Total net position..............
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position           5              6
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                


 
                      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. 1761-176[9] 8), 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), [$132,148,000] $143,077,000: Provided, That the Service may 
utilize advances of funds, or reimburse this appropriation for 
expenditures made on behalf of Federal agencies, public and private 
organizations and institutions under agreements executed pursuant to the 
agricultural food production assistance programs (7 U.S.C. 1737) and the 
foreign assistance programs of the United States Agency for 
International Development: Provided further, That no funds under this

[[Page 167]]

heading shall be available to promote the sale or export of tobacco or 
tobacco products. (Division A, H.R. 2673, Consolidated Appropriations 
Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2900-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Market access...................          31          32          35
00.02   Market development..............          35          36          39
00.03   Market intelligence.............          30          30          33
00.04   Financial marketing assistance..           8           7           8
00.05   Long-term market and 
          infrastructure development....          26          26          28
09.00 Reimbursable program..............          80          74          74
                                           ---------   ---------  ----------
10.00   Total new obligations...........         210         205         217
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          17          15          15
22.00 New budget authority (gross)......         209         204         217
22.22 Unobligated balance transferred 
        from other accounts.............           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         227         219         232
23.95 Total new obligations.............        -210        -205        -217
23.98 Unobligated balance expiring or 
        withdrawn.......................          -2
24.40 Unobligated balance carried 
        forward, end of year............          15          15          15
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         130         131         143
40.35   Appropriation permanently 
          reduced.......................          -1          -1
42.00   Transferred from other accounts.          13
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         142         130         143
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...          49          74          74
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          18
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          67          74          74
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         209         204         217
    Change in obligated balances:
72.40 Obligated balance, start of year..          44          38          38
73.10 Total new obligations.............         210         205         217
73.20 Total outlays (gross).............        -239        -204        -217
73.40 Adjustments in expired accounts 
        (net)...........................          -3
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -18
74.10 Change in uncollected customer 
        payments from Federal sources 
        (expired).......................          44
74.40 Obligated balance, end of year....          38          38          37
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         164         194         206
86.93 Outlays from discretionary 
        balances........................          75          10          11
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         239         204         217
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -84         -74         -74
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -18
88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............          35
    Net budget authority and outlays:
89.00 Budget authority..................         142         130         143
90.00 Outlays...........................         155         131         144
---------------------------------------------------------------------------

    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 de

[[Page 168]]

signed 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 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.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2900-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          53          54          56
11.3      Other than full-time permanent           3           3           3
11.5      Other personnel compensation..           1           1           1
11.8      Special personal services 
            payments....................           2           2           3
                                           ---------   ---------  ----------
11.9        Total personnel compensation          59          60          63
12.1    Civilian personnel benefits.....          16          16          17
21.0    Travel and transportation of 
          persons.......................           5           5           6
22.0    Transportation of things........           1           1           1
23.2    Rental payments to others.......           6           6           6
23.3    Communications, utilities, and 
          miscellaneous charges.........           4           4           5
24.0    Printing and reproduction.......           1           1           1
25.2    Other services..................          33          33          39
25.8    Subsistence and support of 
          persons.......................           1           1           1
26.0    Supplies and materials..........           1           1           1
31.0    Equipment.......................           3           3           3
                                           ---------   ---------  ----------
99.0      Direct obligations............         130         131         143
99.0  Reimbursable obligations..........          80          74          74
                                           ---------   ---------  ----------
99.9    Total new obligations...........         210         205         217
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2900-0-1-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         821         804         804
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         181         201         201
---------------------------------------------------------------------------

                                

                 Trade Adjustment Assistance for Farmers

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1406-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........           2          90          90
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 25.2)...................           2          90          90
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          37          90          90
23.95 Total new obligations.............          -2         -90         -90
23.98 Unobligated balance expiring or 
        withdrawn.......................         -35
    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................          37          90          90
    Change in obligated balances:
73.10 Total new obligations.............           2          90          90
73.20 Total outlays (gross).............          -2         -90         -90
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           2          90          90
    Net budget authority and outlays:
89.00 Budget authority..................          37          90          90
90.00 Outlays...........................           2          90          90
---------------------------------------------------------------------------

    Trade Adjustment Assistance for farmers (TAA) is authorized by Title 
II of the Trade Act of 1974 as amended by Subtitle C of Title I of the 
Trade Act of 2002. The statute authorizes appropriations to the 
Department of Agriculture not to exceed $90 million for each of the 
fiscal years 2003 through 2007 to carry out the program.

    The statute requires the Secretary of Agriculture to provide funds 
to eligible agricultural producers when: (a) the current year's price of 
an agricultural commodity is less than 80 percent of the national 
average price for such commodity for the five marketing years preceding 
the most recent market year; and (b) increases in imports contributed 
importantly to the decline in the price, as determined by the Secretary.

    TAA provides producers of raw commodities, who have been adversely 
affected by import competition, free technical assistance and cash 
benefits of up to $10,000 per year.

    TAA covers farmers, ranchers, fish farmers, and fishermen competing 
with imported aquaculture products. It does not cover the forest 
products industry.

                                

        Scientific Activities Overseas (Foreign Currency Program)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1404-0-1-352      2003 actual   2004 est.   2005 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
73.20 Total outlays (gross).............          -1
    Outlays (gross), detail:
86.93 Outlays from discretionary 
        balances........................           1
    Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays...........................
---------------------------------------------------------------------------



[[Page 169]]



    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

    USDA has multiple food aid programs that provide U.S. commodities, 
technical and financial assistance to address hunger and malnutrition 
needs worldwide. USDA, working with USAID, delivers food aid programs to 
meet emergency needs and fosters economic development activities to 
alleviate global food insecurity.

    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, USDA began 
implementation of the McGovern-Dole International Food for Education and 
Child Nutrition Program authorized by the 2002 Farm Bill. Also in 2003, 
USDA released commodities from the Bill Emerson Humanitarian Trust.

                 SUMMARY OF FOOD ASSISTANCE PROGRAMMING

                        [In millions of dollars]

                                     2003 actual  2004 est.   2005 est.
McGovern-Dole International Food for 
Education and Child Nutrition.......         100          50          75
Public Law 480
  Title I Credit....................          81         127          62
  Title II Grants...................       1,797       1,271       1,185
Food for Progress
  CCC Funded........................         137         128         149
  P.L. 480 Title I Funded...........          82          70          61
CCC Surplus Commodity Donations 
(416)...............................         213         147         147
Bill Emerson Humanitarian Trust.....         212

                                

   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. 1736o-
1), [$50,000,000] $75,000,000, 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. (Division A, H.R. 2673, Consolidated Appropriations 
Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2903-0-1-151      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 McGovern-Dole International Food 
        for Education & Child Nutrition 
        Program.........................         100          50          75
00.02 Reimbursable Program..............                       3           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........         100          53          78
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         100          53          78
23.95 Total new obligations.............        -100         -53         -78
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................                      50          75
      Mandatory:

62.00   Transferred from other accounts.         100
69.00 Offsetting collections (cash).....                       3           3
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         100          53          78
    Change in obligated balances:
72.40 Obligated balance, start of year..                     100
73.10 Total new obligations.............         100          53          78
73.20 Total outlays (gross).............                    -152         -79
74.40 Obligated balance, end of year....         100
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                      50          75
86.97 Outlays from new mandatory 
        authority.......................                       2           3
86.98 Outlays from mandatory balances...                     100           1
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........                     152          79
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........                      -3          -3
    Net budget authority and outlays:
89.00 Budget authority..................         100          50          75
90.00 Outlays...........................                     149          76
---------------------------------------------------------------------------

    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.

    For FY 2003, the Farm Security and Rural Investment Act of 2002 
authorized the transfer of $100,000,000 in Commodity Credit Corporation 
funds to carry out the program. The FY 2004 program will be funded 
through a direct appropriation of $50 million. The FY 2005 budget 
requests $75 million for this program.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2903-0-1-151      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
41.0  Direct obligations: Grants, 
        subsidies, and contributions....         100          50          75
99.0  Reimbursable obligations: 
        Reimbursable obligations........                       3           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........         100          53          78
---------------------------------------------------------------------------

                                

        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] $22,723,000, 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.; Division A, H.R. 2673, Consolidated Appropriations Bill, 
FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2271-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 P.L. 480 grant--Title I: Ocean 
        freight differential (OFD)......          13          28          23
09.00 Reimbursable program..............          17          14          14
                                           ---------   ---------  ----------
10.00   Total new obligations...........          30          42          37
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           8          20
22.00 New budget authority (gross)......          42          42          37
22.22 Unobligated balance transferred 
        from other accounts.............                       4

[[Page 170]]

22.40 Capital transfer to general fund..                     -24
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          50          42          37
23.95 Total new obligations.............         -30         -42         -37
24.40 Unobligated balance carried 
        forward, end of year............          20
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          25          28          23
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...           6
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          11
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          17
      Mandatory:

69.00   Offsetting collections (cash)...                      14          14
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          42          42          37
    Change in obligated balances:
72.40 Obligated balance, start of year..          10           5          19
73.10 Total new obligations.............          30          42          37
73.20 Total outlays (gross).............         -25         -29         -37
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -11
74.40 Obligated balance, end of year....           5          19          18
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           6          16          13
86.93 Outlays from discretionary 
        balances........................          19           5          11
86.97 Outlays from new mandatory 
        authority.......................                       8           8
86.98 Outlays from mandatory balances...                                   5
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          25          29          37
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -6         -14         -14
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -11
    Net budget authority and outlays:
89.00 Budget authority..................          25          28          23
90.00 Outlays...........................          19          15          23
---------------------------------------------------------------------------

    This account funds the title I ocean freight differential program. 

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2271-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
41.0  Direct obligations: Grants, 
        subsidies, and contributions....          13          28          23
99.0  Reimbursable obligations: 
        Reimbursable obligations........          17          14          14
                                           ---------   ---------  ----------
99.9    Total new obligations...........          30          42          37
---------------------------------------------------------------------------

                                

                     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, [$1,192,000,000] $1,185,000,000, to remain 
available until expended. (7 U.S.C. 1691, 1721-26a, 1727-27e, 1731-36g-
3, 1737, 2209b; Division A, H.R. 2673, Consolidated Appropriations Bill, 
FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2278-0-1-151      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Title II..........................       1,779       1,185       1,185
09.01 Reimbursable program..............                      31
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,779       1,216       1,185
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         106         448         413
22.00 New budget authority (gross)......       2,122       1,185       1,185
22.21 Unobligated balance transferred to 
        other accounts..................                      -4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       2,228       1,629       1,598
23.95 Total new obligations.............      -1,779      -1,216      -1,185
24.40 Unobligated balance carried 
        forward, end of year............         448         413         413
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       1,819       1,192       1,185
40.35   Appropriation permanently 
          reduced.......................          -9          -7
41.00   Transferred to other accounts...         -69
42.00   Transferred from other accounts.           1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       1,742       1,185       1,185
      Mandatory:

69.00   Offsetting collections (cash)...          31
69.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         349
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........         380
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       2,122       1,185       1,185
    Change in obligated balances:
72.40 Obligated balance, start of year..         613         950         820
73.10 Total new obligations.............       1,779       1,216       1,185
73.20 Total outlays (gross).............      -1,094      -1,346      -1,223
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................        -349
74.40 Obligated balance, end of year....         950         820         782
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         684         622         622
86.93 Outlays from discretionary 
        balances........................         410         693         601
86.98 Outlays from mandatory balances...                      31
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,094       1,346       1,223
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -31
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................        -349
    Net budget authority and outlays:
89.00 Budget authority..................       1,742       1,185       1,185
90.00 Outlays...........................       1,063       1,346       1,223
---------------------------------------------------------------------------

    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 under this 
title for non-emergency assistance for least-developed countries and for 
urgent and extraordinary relief.

[[Page 171]]

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2278-0-1-151      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
41.0  Direct obligations: Grants, 
        subsidies, and contributions....       1,779       1,185       1,185
99.0  Reimbursable obligations: 
        Reimbursable obligations........                      31
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,779       1,216       1,185
---------------------------------------------------------------------------

                                

Credit accounts:

                 Public Law 480 Title I Program Account

                      (including transfers of funds)

    For the cost, as defined in section 502 of the Congressional Budget 
Act of 1974, of agreements under the Agricultural Trade Development and 
Assistance Act of 1954, and the Food for Progress Act of 1985, including 
the cost of modifying credit arrangements under said Acts, 
[$103,887,000] $86,420,000, to remain available until expended.
    In addition, for administrative expenses to carry out the credit 
program of title I, Public Law 83-480, and the Food for Progress Act of 
1985, to the extent funds appropriated for Public Law 83-480 are 
utilized, [$2,134,000] $4,221,000, of which [$1,075,000] $1,102,000 may 
be transferred to and merged with the appropriation for ``Foreign 
Agricultural Service, Salaries and Expenses'', and of which [$1,059,000] 
$3,119,000 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.; Division A, H.R. 2673, Consolidated Appropriations 
Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2277-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct credit subsidy.............          51          30          26
00.02 Food for Progress Grants..........          22          93          60
00.05 Re-estimates of subsidy...........          12          48
00.06 Interest on re-estimates..........           1          17
00.09 Administrative expenses...........           2           2           4
                                           ---------   ---------  ----------
10.00   Total new obligations...........          88         190          90
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         254         296
22.00 New budget authority (gross)......         129         170          90
22.21 Unobligated balance transferred to 
        other accounts..................                     -20
22.40 Capital transfer to general fund..          -1        -256
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         382         190          90
23.95 Total new obligations.............         -88        -190         -90
24.40 Unobligated balance carried 
        forward, end of year............         296
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         118         106          90
40.35   Appropriation permanently 
          reduced.......................          -1          -1
41.00   Transferred to other accounts...          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         116         105          90
      Mandatory:

60.00   Appropriation...................          13          65
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         129         170          90
    Change in obligated balances:
72.40 Obligated balance, start of year..          71          75          79
73.10 Total new obligations.............          88         190          90
73.20 Total outlays (gross).............         -84        -187        -125
74.40 Obligated balance, end of year....          75          79          45
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           2          61          53
86.93 Outlays from discretionary 
        balances........................          69          61          72
86.97 Outlays from new mandatory 
        authority.......................          13          65
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          84         187         125
    Net budget authority and outlays:
89.00 Budget authority..................         129         170          90
90.00 Outlays...........................          84         187         125
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-2277-0-1-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct loan levels supportable by subsidy 
                budget authority:
115001P. L. 480 title I loans...........          81          38          30
                                           ---------   ---------  ----------
115901Total direct loan levels..........          81          38          30
    Direct loan subsidy (in percent):
132001P. L. 480 title I loans...........       62.84       78.90       86.42
                                           ---------   ---------  ----------
132901Weighted average subsidy rate.....       62.84       78.90       86.42
    Direct loan subsidy budget authority:
133001P. L. 480 title I loans...........          51          30          26
                                           ---------   ---------  ----------
133901Total subsidy budget authority....          51          30          26
    Direct loan subsidy outlays:
134001P. L. 480 title I loans...........          52          51          71
                                           ---------   ---------  ----------
134901Total subsidy outlays.............          52          51          71
    Direct loan upward reestimate subsidy budget 
                authority:
135001P. L. 480 title I loans...........          13          65
                                           ---------   ---------  ----------
135901Total upward reestimate budget 
        authority.......................          13          65
    Direct loan downward reestimate subsidy budget 
                authority:
137001P. L. 480 title I loans...........        -537         -15
137002Food For Progress Title I loans...        -196         -81
                                           ---------   ---------  ----------
137901Total downward reestimate budget 
        authority.......................        -733         -96
----------------------------------------------------------------------------

    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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
25.3  Other purchases of goods and 
        services from Government 
        accounts........................           2           2           4
41.0  Grants, subsidies, and 
        contributions...................          86         188          86
                                           ---------   ---------  ----------
99.9    Total new obligations...........          88         190          90
---------------------------------------------------------------------------

                                

                P.L. 480 Direct Credit Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4049-0-3-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct loans......................          44          38          30
00.02 Interest on Treasury borrowing....          85          42          48
                                           ---------   ---------  ----------
00.91   Direct Program by Activities--
          Subtotal (1 level)............         129          80          78
08.02 Payment of downward reestimate to 
        receipt account.................         472          59
08.04 Payment of interest on downward 
        reestimate to receipt account...         260          45
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............         732         104
                                           ---------   ---------  ----------
10.00   Total new obligations...........         861         184          78
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         314         674
22.00 New financing authority (gross)...       1,386         475         346
22.40 Capital transfer to general fund..                     -87        -113
22.60 Portion applied to repay debt.....        -165        -878        -155
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,535         184          78
23.95 Total new obligations.............        -861        -184         -78

[[Page 172]]

24.40 Unobligated balance carried 
        forward, end of year............         674
    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............       1,092         154          52
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).         278         321         294
68.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........          16
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....         294         321         294
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................       1,386         475         346
    Change in obligated balances:
72.40 Obligated balance, start of year..          46           7          16
73.10 Total new obligations.............         861         184          78
73.20 Total financing disbursements 
        (gross).........................        -882        -175         -79
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -16
74.40 Obligated balance, end of year....           7          16          15
87.00 Total financing disbursements 
        (gross).........................         882         175          79
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Payments from program account.         -65        -116         -71
88.25     Interest on uninvested funds..         -35
88.40     Interest received on loans....         -42         -69         -66
88.40     Principal received on loans...        -136        -136        -157
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -278        -321        -294
      Against gross financing authority only:

88.95   Change in receivables from 
          program accounts..............         -16
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............       1,092         154          52
90.00 Financing disbursements...........         605        -146        -215
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4049-0-3-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Position with respect to appropriations act 
                limitation on obligations:
1111  Limitation on direct loans........          44          38          30
                                           ---------   ---------  ----------
1150    Total direct loan obligations...          44          38          30
----------------------------------------------------------------------------

    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       2,743       2,647       2,536
1231  Disbursements: Direct loan 
        disbursements...................          23          29          31
1251  Repayments: Repayments and 
        prepayments.....................        -119        -140        -157
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       2,647       2,536       2,410
---------------------------------------------------------------------------

    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    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....         346            130
        Investments in US securities:
1106      Receivables, net..............          58            128
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..       2,743          2,647
1402    Interest receivable.............          91            102
1405    Allowance for subsidy cost (-)..      -1,609         -1,670
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....       1,225          1,079
1901  Other Federal assets: Other assets
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       1,629          1,337
    LIABILITIES:
      Federal liabilities:

2101    Accounts payable................          69             50
2102    Interest payable................                          2
2103    Debt............................         128            204
2104    Resources payable to Treasury...         732          1,061
2105    Other...........................         700             20
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       1,629          1,337
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       1,629          1,337
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

                    Debt Reduction--Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4143-0-3-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.02 Interest to Treasury..............           5           5           5
08.02 Payment of downward reestimate to 
        receipt account.................                      48
08.03 Direct Program Activity--payments 
        to liquidating account for debt 
        reduction.......................          42         272
08.04 Payment of interest on downward 
        reestimate to receipt account...                       6
                                           ---------   ---------  ----------
08.91   Direct Program by Activities--
          Subtotal (1 level)............          42         326
                                           ---------   ---------  ----------
10.00   Total new obligations...........          47         331           5
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          51         238
22.00 New financing authority (gross)...         237         127          51
22.40 Capital transfer to general fund..                                 -46
22.60 Portion applied to repay debt.....                     -34
22.70 Balance of authority to borrow 
        withdrawn.......................          -4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         284         331           5
23.95 Total new obligations.............         -47        -331          -5
24.40 Unobligated balance carried 
        forward, end of year............         238
    New financing authority (gross), detail:
      Mandatory:

67.10   Authority to borrow.............          26          82
69.00 Offsetting collections (cash).....          18          15          14
69.00 Offsetting collections (debt 
        reduction)......................         193          30          37
                                           ---------   ---------  ----------
69.90   Spending authority from 
          offsetting collections (total 
          mandatory)....................         211          45          51
                                           ---------   ---------  ----------
70.00   Total new financing authority 
          (gross).......................         237         127          51
    Change in obligated balances:
72.40 Obligated balance, start of year..           4          14
73.10 Total new obligations.............          47         331           5
73.20 Total financing disbursements 
        (gross).........................         -36        -345          -5
74.40 Obligated balance, end of year....          14
87.00 Total financing disbursements 
        (gross).........................          36         345           5
    Offsets:
      Against gross financing authority and 
          financing disbursements:

        Offsetting collections (cash) 
            from:
88.00     Federal sources--Nicaragua 
            Subsidy.....................          -2
88.00     Federal sources--Sierra Leone 
            Subsidy.....................          -4
88.00     Federal sources--Pakistan 
            Subsidy.....................        -187
88.00     Federal sources--Miscellaneous                     -30         -37
88.00     Program Account- upward re-
            estimate....................                      -1
88.25     Interest on uninvested funds..          -8
88.40     Loan Repayments--Principal....         -10          -8          -8
88.40     Loan Repayments- Interest.....                      -6          -6
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -211         -45         -51
    Net financing authority and financing 
        disbursements:
89.00 Financing authority...............          26          82
90.00 Financing disbursements...........        -175         300         -46
---------------------------------------------------------------------------

[[Page 173]]



               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4143-0-3-351      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........         236         334         566
1233  Disbursements: Purchase of loans 
        assets from a liquidating 
        account.........................          42         272
1251  Repayments: Repayments and 
        prepayments.....................          -8         -11         -14
      Write-offs for default:

1263    Direct loans....................                     -29         -37
1264    Other adjustments, net..........          64
                                           ---------   ---------  ----------
1290    Outstanding, end of year........         334         566         515
---------------------------------------------------------------------------

    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    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
      Federal assets:

1101    Fund balances with Treasury.....          30            231
        Investments in US securities:
1106      Receivables, net..............          10             11
      Net value of assets related to 
          post-1991 direct loans 
          receivable:

1401    Direct loans receivable, gross..         236            334
1405    Allowance for subsidy cost (-)..        -149           -215
                                        ------------ --------------  ------------  -------------
1499      Net present value of assets 
            related to direct loans.....          87            119
                                        ------------ --------------  ------------  -------------
1999    Total assets....................         127            361
    LIABILITIES:
      Federal liabilities:

2102    Interest payable................           2
2103    Debt............................          45             71
2105    Other...........................          80            290
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............         127            361
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position         127            361
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

   Expenses, Public Law 480, Foreign Assistance Programs, Agriculture 
                           Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2274-0-1-151      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........           9
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................           9
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          93          89
22.00 New budget authority (gross)......         491
22.40 Capital transfer to general fund..                     -89
22.60 Portion applied to repay debt.....        -486
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......          98
23.95 Total new obligations.............          -9
24.40 Unobligated balance carried 
        forward, end of year............          89
    New budget authority (gross), detail:
      Mandatory:

69.00   Offsetting collections (cash) 
          (Principal and interest)......         492         566         553
69.00   Offsetting collections (Debt 
          Reduction)....................                     297
69.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................           1          -1
69.27   Capital transfer to general fund          -2        -862        -553
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........         491
    Change in obligated balances:
72.40 Obligated balance, start of year..                      -1
73.10 Total new obligations.............           9
73.20 Total outlays (gross).............          -9
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -1           1
74.40 Obligated balance, end of year....          -1
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................           9
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources--debt 
            reduction...................         -29        -297
88.40     Principal and interest 
            collections.................        -289        -566        -553
88.40     Non-Federal sources...........        -172
88.40     Non-Federal sources...........          -2
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........        -492        -863        -553
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          -1           1
    Net budget authority and outlays:
89.00 Budget authority..................          -2        -862        -553
90.00 Outlays...........................        -483        -863        -553
---------------------------------------------------------------------------

               Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2274-0-1-151      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Cumulative balance of direct loans 
                outstanding:
1210  Outstanding, start of year........       7,908       7,545       6,960
      Repayments:

1251    Repayments and prepayments......        -289        -288        -299
1251    Payments from USDA debt 
          reduction finance account.....          -3
      Write-offs for default:

1263    Direct loans....................         -34
1264    Other adjustments, net..........         -37        -297
                                           ---------   ---------  ----------
1290    Outstanding, end of year........       7,545       6,960       6,661
---------------------------------------------------------------------------

    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.

    Financing sales of agricultural commodities for dollars on credit 
terms (title I).--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.

    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.

[[Page 174]]

    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. P.L. 480 funds reimburse 
the Corporation for all of the cost items authorized above.

    In FY 2003, the Consolidated Appropriations Resolution (P.L. 108-7) 
provided $250 million for Title II. The FY 2003 Emergency Wartime 
Supplemental Appropriations Act (P.L. 108-11) provided an additional 
$369 million. Of this amount, $69 million was transferred to the 
Commodity Credit Corporation to acquire commodities for use in 
administering the Bill Emerson Humanitarian Trust.

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-2274-0-1-151    2002 actual    2003 actual     2004 est.      2005 est.
-----------------------------------------------------------------------------------------------
    ASSETS:
1101  Federal assets: Fund balances with 
        Treasury........................                         89
      Net value of assets related to 
          pre-1992 direct loans 
          receivable and acquired 
          defaulted guaranteed loans 
          receivable:

1601    Direct loans, gross.............       7,851          7,545
1602    Interest receivable.............                        679
1603    Allowance for estimated 
          uncollectible loans and 
          interest (-)..................                     -4,649
                                        ------------ --------------  ------------  -------------
1699      Value of assets related to 
            direct loans................       7,851          3,575
                                        ------------ --------------  ------------  -------------
1999    Total assets....................       7,851          3,664
    LIABILITIES:
2104  Federal liabilities: Resources 
        payable to Treasury.............       7,851          3,639
                                        ------------ --------------  ------------  -------------
2999    Total liabilities...............       7,851          3,639
    NET POSITION:
3300  Cumulative results of operations..                         25
                                        ------------ --------------  ------------  -------------
3999    Total net position..............                         25
                                        ------------ --------------  ------------  -------------
4999  Total liabilities and net position       7,851          3,664
-----------------------------------------------------------------------------------------------
    Note: Consistent with Government-wide practice, information for 2004 
and 2005 was not required to be collected.

                                

                     Miscellaneous Contributed Funds

                Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8232-0-7-352      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............
    Receipts:
02.20 Deposits of miscellaneous 
        contributed funds, International 
        coope...........................                       4           4
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...                       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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           2                       4
22.00 New budget authority (gross)......                       4           4
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           2           4           8
24.40 Unobligated balance carried 
        forward, end of year............                       4           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..                                  -4
73.20 Total outlays (gross).............                      -4          -4
74.40 Obligated balance, end of year....                      -4          -8
    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, [$138,304,000, 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] $152,227,000, of 
which not less than [$4,000,000] $7,000,000 shall be available for 
additional activities to improve integrity in the Food Stamp and Child 
Nutrition programs. (Division A, H.R. 2673, Consolidated Appropriations 
Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3508-0-1-605      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Nutrition programs 
          administration................         135         137         152
00.03   Congressional hunger center 
          fellowships...................           3           3
09.01 Reimbursable administrative 
        services provided to Federal 
        agencies........................           1           1           1
                                           ---------   ---------  ----------

[[Page 175]]


10.00   Total new obligations...........         139         141         153
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......         140         141         153
23.95 Total new obligations.............        -139        -141        -153
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         140         141         152
40.35   Appropriation permanently 
          reduced.......................          -1          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         139         140         152
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           1           1           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         140         141         153
    Change in obligated balances:
72.40 Obligated balance, start of year..          16          20          17
73.10 Total new obligations.............         139         141         153
73.20 Total outlays (gross).............        -136        -144        -152
73.40 Adjustments in expired accounts 
        (net)...........................           1
74.40 Obligated balance, end of year....          20          17          18
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         123         124         135
86.93 Outlays from discretionary 
        balances........................          13          20          17
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         136         144         152
    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..................         139         140         152
90.00 Outlays...........................         135         143         151
---------------------------------------------------------------------------

    This account funds the majority of the Federal operating expenses of 
the Food and Nutrition Service.

    Funds are provided for additional activities to improve integrity in 
the Food Stamp and Child Nutrition programs.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3508-0-1-605      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          87          91         100
11.3      Other than full-time permanent           2           2           2
11.5      Other personnel compensation..           1           2           2
                                           ---------   ---------  ----------
11.9        Total personnel compensation          90          95         104
12.1    Civilian personnel benefits.....          19          19          20
21.0    Travel and transportation of 
          persons.......................           3           2           2
23.3    Communications, utilities, and 
          miscellaneous charges.........           2           2           2
25.2    Other services..................          18          16          21
26.0    Supplies and materials..........           2           2           2
31.0    Equipment.......................           1           1           1
41.0    Grants, subsidies, and 
          contributions.................           3           3
                                           ---------   ---------  ----------
99.0      Direct obligations............         138         140         152
99.0  Reimbursable obligations..........           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........         139         141         153
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3508-0-1-605      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       1,337       1,468       1,545
---------------------------------------------------------------------------

                                

                           Food Stamp Program

    For necessary expenses to carry out the Food Stamp Act (7 U.S.C. 
2011 et seq.), [$30,945,981,000] $33,641,798,000, of which 
$3,000,000,000 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 none of the funds made available under this 
heading shall be used for studies and evaluations: Provided further, 
That of the funds made available under this heading and not already 
appropriated to the Food Distribution Program on Indian Reservations 
(FDPIR) established under section 4(b) of the Food Stamp Act of 1977 (7 
U.S.C. 2013(b)), not to exceed $4,000,000 shall be used to purchase 
bison meat for the FDPIR from Native American bison producers as well as 
from producer-owned cooperatives of bison ranchers: Provided further,] 
That funds provided herein shall be expended in accordance with section 
16 of the Food Stamp Act: Provided further, That this appropriation 
shall be subject to any work registration or workfare requirements as 
may be required by law: Provided further, That funds made available for 
Employment and Training under this heading shall remain available until 
expended, as authorized by section 16(h)(1) of the Food Stamp Act: 
Provided further, That notwithstanding section 5(d) of the Food Stamp 
Act of 1977, any additional payment received under chapter 5 of title 
37, United States Code, by a member of the United States Armed Forces 
deployed to a designated combat zone shall be excluded from household 
income for the duration of the member's deployment if the additional pay 
is the result of deployment to or while serving in a combat zone, and it 
was not received immediately prior to serving in the combat zone.
    For making after May 31 of the current fiscal year, benefit payments 
to individuals, and payments to States or other non-Federal entities for 
the necessary current year expenses of carrying out the Food Stamp Act 
above the anticipated level, such sums as may be necessary. (Division A, 
H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3505-0-1-605      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Direct program:

00.01   Benefits issued.................      21,314      24,241      26,214
00.02   State administration............       2,321       2,331       2,378
00.03   Employment and training program.         303         308         293
00.04   Other program costs.............          54          69          69
00.05   Puerto Rico.....................       1,395       1,413       1,443
00.06   Food distribution program on 
          Indian reservations 
          (Commodities in lieu of food 
          stamps).......................          56          60          54
00.07   Food distribution program on 
          Indian reservations 
          (Cooperator administrative 
          expense)......................          26          27          24
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 
          Mariana Islands...............           8           8           8
00.13   Program access..................           5           5           5
00.14   Disregard special military pays 
          for deployed..................                                   3
09.01 Reimbursable program..............          56          56          56
                                           ---------   ---------  ----------
10.00   Total new obligations...........      25,688      28,669      30,698
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          35          26
22.00 New budget authority (gross)......      26,285      31,002      33,698
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          21
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      26,341      31,028      33,698
23.95 Total new obligations.............     -25,688     -28,669     -30,698
23.98 Unobligated balance expiring or 
        withdrawn.......................        -627      -2,359      -3,000
24.40 Unobligated balance carried 
        forward, end of year............          26
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          17          17          26
      Mandatory:

60.00   Appropriation...................      26,297      30,929      33,616
61.00   Transferred to other accounts...         -85
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................      26,212      30,929      33,616
69.00 Offsetting collections (cash).....          56          56          56
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      26,285      31,002      33,698
    Change in obligated balances:
72.40 Obligated balance, start of year..         929       1,233         803
73.10 Total new obligations.............      25,688      28,669      30,698
73.20 Total outlays (gross).............     -25,394     -29,100     -30,724
73.40 Adjustments in expired accounts 
        (net)...........................          32
73.45 Recoveries of prior year 
        obligations.....................         -21
74.40 Obligated balance, end of year....       1,233         803         777
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           8           8          14
86.93 Outlays from discretionary 
        balances........................           9           9           9
86.97 Outlays from new mandatory 
        authority.......................      24,457      27,859      29,879
86.98 Outlays from mandatory balances...         920       1,224         822
                                           ---------   ---------  ----------

[[Page 176]]


87.00   Total outlays (gross)...........      25,394      29,100      30,724
    Offsets:
      Against gross budget authority and outlays:

88.40   Offsetting collections (cash) 
          from: Non-Federal sources.....         -69         -56         -56
      Against gross budget authority only:

88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............          13
    Net budget authority and outlays:
89.00 Budget authority..................      26,229      30,946      33,642
90.00 Outlays...........................      25,325      29,044      30,668
---------------------------------------------------------------------------

    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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................           4           5           5
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.........           2           2           2
24.0    Printing and reproduction.......           2           2           2
25.2    Other services..................          45          59          59
26.0    Supplies and materials..........         185         189         193
41.0    Grants, subsidies, and 
          contributions.................      25,391      28,353      30,378
                                           ---------   ---------  ----------
99.0      Direct obligations............      25,632      28,613      30,642
99.0  Reimbursable obligations..........          56          56          56
                                           ---------   ---------  ----------
99.9    Total new obligations...........      25,688      28,669      30,698
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3505-0-1-605      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          60          66          66
---------------------------------------------------------------------------

                                

                        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; 
[$11,417,441,000] $11,380,557,000, to remain available through September 
30, [2005] 2006, of which [$6,717,780,000] $6,060,860,000 is hereby 
appropriated and [$4,699,661,000] $5,319,697,000 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 $5,000,000 shall be available for 
the Food and Nutrition Service to conduct a study of over and under 
certification errors and the effect on expenditures in the National 
School Lunch and School Breakfast Programs and an assessment of the 
feasibility of using income data matching in those programs: Provided 
further, That except as specifically provided under this heading, none 
of the funds made available under this heading shall be used for studies 
and evaluations: Provided further,] That up to $5,235,000 shall be 
available for independent verification of school food service claims. 
(Division A, H.R. 2673, Consolidated Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3539-0-1-605      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      School lunch program:

00.01   Above 185 of poverty............         405         422         433
00.02   130-185 of poverty..............         789         823         843
00.03   Below 130 of poverty............       5,158       5,378       5,510
                                           ---------   ---------  ----------
00.91   Subtotal, school lunch program..       6,352       6,623       6,786
      School breakfast program:

01.01   Above 185 of poverty............          56          58          61
01.02   130-185 of poverty..............         133         139         145
01.03   Below 130 of poverty............       1,485       1,555       1,620
                                           ---------   ---------  ----------
01.91   Subtotal, school breakfast 
          program.......................       1,674       1,752       1,826
      Child and adult care feeding program:

02.01   Above 185 of poverty............         188         187         194
02.02   130-185 of poverty..............         109         115         120
02.03   Below 130 of poverty............       1,593       1,660       1,731
02.04   Audits..........................          25          28          20
                                           ---------   ---------  ----------
02.91   Subtotal, child and adult care 
          feeding program...............       1,915       1,990       2,065
      Other mandatory activities:

03.01   Summer food service program.....         267         282         295
03.02   Special milk program............          14          14          15
03.03   State administrative expenses...         133         140         148
03.04   Commodity procurement...........         647         442         470
                                           ---------   ---------  ----------
03.91   Subtotal, Other mandatory 
          activities....................       1,061         878         928
      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.           9           9           9
04.04   School breakfast pilots.........           3
04.05   Food safety education...........           1           1           1
04.06   Child nutrition program 
          integrity.....................                       5
04.07   Common roots and CN archive 
          center........................           1
04.08   Performance measurement and 
          program assessment............                                   4
                                           ---------   ---------  ----------
04.91   Subtotal, discretionary 
          activities....................          29          30          29
      Activities with permanent appropriations:

05.01   Food service management 
          institute and information 
          clearinghouse.................           3           3           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........      11,034      11,276      11,637
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         359          13         257
22.00 New budget authority (gross)......      10,691      11,420      11,384
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          87         100
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......      11,137      11,533      11,641
23.95 Total new obligations.............     -11,034     -11,276     -11,637
23.98 Unobligated balance expiring or 
        withdrawn.......................         -89
24.40 Unobligated balance carried 
        forward, end of year............          13         257           3
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................          10          12          11
      Mandatory:

60.00   Appropriation...................       5,827       6,708       6,053
62.00   Transferred from other accounts.       4,831       4,700       5,320
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................      10,658      11,408      11,373
69.00 Offsetting collections (cash).....          23
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................      10,691      11,420      11,384
    Change in obligated balances:
72.40 Obligated balance, start of year..       1,462       1,553       1,272
73.10 Total new obligations.............      11,034      11,276      11,637
73.20 Total outlays (gross).............     -10,854     -11,456     -11,597
73.40 Adjustments in expired accounts 
        (net)...........................          -1
73.45 Recoveries of prior year 
        obligations.....................         -87        -100
74.40 Obligated balance, end of year....       1,553       1,272       1,311
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           5           6           6
86.93 Outlays from discretionary 
        balances........................           3           5           6
86.97 Outlays from new mandatory 
        authority.......................       9,383       9,899      10,211
86.98 Outlays from mandatory balances...       1,463       1,546       1,374
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........      10,854      11,456      11,597

[[Page 177]]

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -28
      Against gross budget authority only:

88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............           5
    Net budget authority and outlays:
89.00 Budget authority..................      10,668      11,420      11,384
90.00 Outlays...........................      10,827      11,456      11,597
---------------------------------------------------------------------------

                 Summary of Budget Authority and Outlays

                        (in millions of dollars)

                                     2003 actual  2004 est.   2005 est.
Enacted/requested:
  Budget Authority..................      10,668      11,420      11,384
  Outlays...........................      10,826      11,456      11,597
Legislative proposal, subject to 
    PAYGO:
  Budget Authority..................                      11          18
  Outlays...........................                      11          18
                                    ------------------------------------
Total:
  Budget Authority..................      10,668      11,431      11,402
  Outlays...........................      10,826      11,467      11,615
                                    ====================================

    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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................           8           8           8
12.1  Civilian personnel benefits.......           2           3           3
21.0  Travel and transportation of 
        persons.........................           1           1           1
24.0  Printing and reproduction.........           3           3           3
25.2  Other services....................           7          15          13
26.0  Supplies and materials 
        (Commodities)...................         647         442         470
41.0  Grants, subsidies, and 
        contributions...................      10,366      10,804      11,139
                                           ---------   ---------  ----------
99.9    Total new obligations...........      11,034      11,276      11,637
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3539-0-1-605      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         131         138         138
---------------------------------------------------------------------------

                                

                        Child Nutrition Programs

                (Legislative proposal, subject to PAYGO)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3539-4-1-605      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.03 National school lunch program.....                       1           1
02.03 Child care food program...........                       9          16
03.01 Summer food service program.......                       1           1
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................                      11          18
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......                      11          18
23.95 Total new obligations.............                     -11         -18
    New budget authority (gross), detail:
      Mandatory:

60.00   Appropriation...................                      11          18
    Change in obligated balances:
73.10 Total new obligations.............                      11          18
73.20 Total outlays (gross).............                     -11         -18
    Outlays (gross), detail:
86.97 Outlays from new mandatory 
        authority.......................                      11          18
    Net budget authority and outlays:
89.00 Budget authority..................                      11          18
90.00 Outlays...........................                      11          18
---------------------------------------------------------------------------

    This legislative proposal would extend expiring provisions of the 
National School Lunch Act through September 2005.

                                

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), [$4,639,232,000] $4,787,250,000, to remain 
available through September 30, [2005] 2006: Provided, That of the total 
amount available, the Secretary shall obligate not less than 
[$15,000,000] $20,000,000 for a breastfeeding support initiative in 
addition to the activities specified in section 17(h)(3)(A) and up to 
[$25,000,000] $20,000,000 for a management information system initiative 
[upon a determination by the Secretary that funds are available to meet 
caseload requirements: Provided further, That up to $4,000,000 shall be 
available for pilot projects to prevent childhood obesity upon a 
determination by the Secretary that funds are available to meet caseload 
requirements: Provided further, That of the total amount available, the 
Secretary shall obligate $23,000,000 for the farmers' market nutrition 
program]: Provided further, 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 none of the funds made 
available under this heading shall be used for studies and evaluations:] 
That notwithstanding section 17(g)(5) of such Act, $7,250,000 shall be 
available to conduct studies and contract for an evaluation of the 
effectiveness of the WIC program, and $5,000,000 shall be available 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. (Division A, H.R. 2673, Consolidated 
Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3510-0-1-605      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct program....................       4,686       4,810       4,868
                                           ---------   ---------  ----------
10.00   Total new obligations (object 
          class 41.0)...................       4,686       4,810       4,868
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          57         190         125
22.00 New budget authority (gross)......       4,697       4,612       4,787
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................         123         133          81
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       4,877       4,935       4,993
23.95 Total new obligations.............      -4,686      -4,810      -4,868
24.40 Unobligated balance carried 
        forward, end of year............         190         125         125
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       4,696       4,639       4,787
40.35   Appropriation permanently 
          reduced.......................                     -27
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       4,696       4,612       4,787
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           1
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       4,697       4,612       4,787
    Change in obligated balances:
72.40 Obligated balance, start of year..         413         423         385
73.10 Total new obligations.............       4,686       4,810       4,868
73.20 Total outlays (gross).............      -4,549      -4,715      -4,900
73.40 Adjustments in expired accounts 
        (net)...........................          -4
73.45 Recoveries of prior year 
        obligations.....................        -123        -133         -81
74.40 Obligated balance, end of year....         423         385         272
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       4,136       4,227       4,390
86.93 Outlays from discretionary 
        balances........................         413         488         510
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       4,549       4,715       4,900

[[Page 178]]

    Offsets:
      Against gross budget authority and outlays:

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

88.96   Portion of offsetting 
          collections (cash) credited to 
          expired accounts..............           1
    Net budget authority and outlays:
89.00 Budget authority..................       4,696       4,612       4,787
90.00 Outlays...........................       4,548       4,715       4,900
---------------------------------------------------------------------------

    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. This request includes funds for pilot projects 
to prevent childhood obesity, a breastfeeding support initiative, a 
project to improve management information systems, studies, 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; [and] special assistance [(in 
a form determined by the Secretary of Agriculture)] for the nuclear 
affected islands, as authorized by section [103(h)(2)] 103(f)(2) of the 
Compact of Free Association [Act of 1985 (48 U.S.C. 1903(h)(2)) (or a 
successor law), $150,000,000] Amendments Act of 2003 (P.L. 108-188); and 
the Farmers' Market Nutrition Program, as authorized by section 17(m) of 
the Child Nutrition Act of 1966, $169,416,000, to remain available 
through September 30, [2005] 2006: Provided, That none of these funds 
shall be available to reimburse the Commodity Credit Corporation for 
commodities donated to the program. (Division A, H.R. 2673, Consolidated 
Appropriations Bill, FY 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3507-0-1-605      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
      Commodity supplemental food program:

00.01   Commodity procurement...........          77          81          72
00.02   Administrative costs............          27          29          26
                                           ---------   ---------  ----------
00.91   Subtotal, commodity supplemental 
          food program..................         104         110          98
      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           1
09.01 Reimbursable program (NSIP).......                                   2
                                           ---------   ---------  ----------
10.00   Total new obligations...........         169         176         186
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........                      11
22.00 New budget authority (gross)......         180         164         186
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           1
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         181         175         186
23.95 Total new obligations.............        -169        -176        -186
24.40 Unobligated balance carried 
        forward, end of year............          11
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         165         150         169
40.35   Appropriation permanently 
          reduced.......................          -1          -1
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         164         149         169
      Mandatory:

62.00   Transferred from other accounts.          15          15          15
      Discretionary:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           1                       2
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         180         164         186
    Change in obligated balances:
72.40 Obligated balance, start of year..          27          28          44
73.10 Total new obligations.............         169         176         186
73.20 Total outlays (gross).............        -167        -160        -176
73.45 Recoveries of prior year 
        obligations.....................          -1
74.40 Obligated balance, end of year....          28          44          56
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         134         129         141
86.93 Outlays from discretionary 
        balances........................          16          15          20
86.97 Outlays from new mandatory 
        authority.......................           9           9           9
86.98 Outlays from mandatory balances...           8           7           6
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         167         160         176
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -1                      -2
    Net budget authority and outlays:
89.00 Budget authority..................         179         164         184
90.00 Outlays...........................         166         160         174
---------------------------------------------------------------------------

    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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
26.0  Supplies and materials 
        (commodities)...................          77          81          74
41.0  Grants, subsidies, and 
        contributions...................          92          95         112
                                           ---------   ---------  ----------
99.9    Total new obligations...........         169         176         186
---------------------------------------------------------------------------

                                

                         Food Donations Programs

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3503-0-1-605      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Nutrition Service Incentives 
        Program.........................          58
00.02 Pacific Island Assistance.........           1
09.01 Reimbursable program (NSIP).......           1           2
                                           ---------   ---------  ----------
10.00   Total new obligations...........          60           2
    Budgetary resources available for obligation:
22.00 New budget authority (gross)......          60           2
23.95 Total new obligations.............         -60          -2
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................           1
42.00   Transferred from other accounts.          58
                                           ---------   ---------  ----------

[[Page 179]]


43.00     Appropriation (total 
            discretionary)..............          59
68.00 Spending authority from offsetting 
        collections: Offsetting 
        collections (cash)..............           1           2
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................          60           2
    Change in obligated balances:
72.40 Obligated balance, start of year..          39           2
73.10 Total new obligations.............          60           2
73.20 Total outlays (gross).............         -97          -4
74.40 Obligated balance, end of year....           2
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................          58           2
86.93 Outlays from discretionary 
        balances........................          39           2
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          97           4
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........          -1          -2
    Net budget authority and outlays:
89.00 Budget authority..................          59
90.00 Outlays...........................          96           2
---------------------------------------------------------------------------

    This account includes prior year amounts for the Nutrition Services 
Incentive Program (NSIP) assistance for the nuclear affected islands and 
disaster relief. NSIP was transferred to the Department of Health and 
Human Services beginning in fiscal year 2003. Assistance for the nuclear 
affected islands and disaster relief are included in the Commodity 
Assistance Program account beginning in fiscal year 2004, assuming 
likely Congressional action.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3503-0-1-605      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
26.0  Supplies and materials (grants of 
        commodities to States)..........           2           2
41.0  Grants, subsidies, and 
        contributions...................          58
                                           ---------   ---------  ----------
99.9    Total new obligations...........          60           2
---------------------------------------------------------------------------

                                


 
                             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, [$1,382,916,000] $1,655,837,000, 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, and for 
the performance of cadastral surveys to designate the boundaries of such 
lands: Provided further, That [of the funds provided under this heading 
for Forest Products, $5,000,000 shall be allocated to the Alaska Region, 
in addition to its normal allocation for the purposes of preparing 
additional timber for sale, to establish a 3-year timber supply and such 
funds may be transferred to other appropriations accounts as necessary 
to maximize accomplishment: Provided further, That of the funds provided 
under this heading, $3,150,000 is for expenses required to implement 
title I of Public Law 106-248, to be segregated in a separate fund 
established by the Secretary of Agriculture: Provided further, That 
within funds available for the purpose of implementing the Valles 
Caldera Preservation Act, notwithstanding the limitations of section 
107(e)(2) of the Valles Caldera Preservation Act (Public Law 106-248), 
for fiscal year 2004, the Chair of the Board of Trustees of the Valles 
Caldera Trust may receive, upon request, compensation for each day 
(including travel time) that the Chair is engaged in the performance of 
the functions of the Board, except that compensation shall not exceed 
the daily equivalent of the annual rate in effect for members of the 
Senior Executive Service at the ES-1 level, and shall be in addition to 
any reimbursement for travel, subsistence and other necessary expenses 
incurred by the Chair in the performance of the Chair's duties].
    [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.]  $266,238,000 is available for hazardous fuels reduction 
activities in accordance with authorities available to the Secretary 
under the Wildland Fire Management Appropriation: Provided further, That 
included in funding for hazardous fuels reduction activities, 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 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. 
(Department of the Interior and Related Agencies Appropriations Act, 
2004).

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1106-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 National forest system............       1,462       1,420       1,697
09.01 Reimbursable program..............          89          89          89
                                           ---------   ---------  ----------
10.00   Total new obligations...........       1,551       1,509       1,786
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         123         134         181
22.00 New budget authority (gross)......       1,516       1,556       1,790
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          46
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       1,685       1,690       1,971
23.95 Total new obligations.............      -1,551      -1,509      -1,786
24.40 Unobligated balance carried 
        forward, end of year............         134         181         185
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       1,362       1,383       1,656
40.35   Appropriation permanently 
          reduced.......................          -9         -17
41.00   Transferred to other accounts...          -1
42.00   Transferred from other accounts.           5          59           3
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       1,357       1,425       1,659
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...         131         131         131
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          28
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......         159         131         131
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       1,516       1,556       1,790
    Change in obligated balances:
72.40 Obligated balance, start of year..         129         138          98
73.10 Total new obligations.............       1,551       1,509       1,786
73.20 Total outlays (gross).............      -1,468      -1,549      -1,755
73.45 Recoveries of prior year 
        obligations.....................         -46
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -28
74.40 Obligated balance, end of year....         138          98         129
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       1,314       1,342       1,541
86.93 Outlays from discretionary 
        balances........................         154         207         214
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       1,468       1,549       1,755

[[Page 180]]

    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -131        -131        -131
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -28
    Net budget authority and outlays:
89.00 Budget authority..................       1,357       1,425       1,659
90.00 Outlays...........................       1,337       1,418       1,624
---------------------------------------------------------------------------

    The 155 National Forests, 20 National Grasslands, and six 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; law enforcement operations; and hazadous fuels 
reduction. These programs maintain the capability to manage natural 
resources in a manner consistent with ecological principles and 
responsibilities.

    The President's Healthy Forest Initiative marks a clear and decisive 
change in direction to remove the causes of severe wildfires instead of 
enduring season after season of devastating fires. Key to this effort is 
the reduction of dense undergrowth that fuels catastrophic fires through 
thinning and prescribed burns. Consistent with the Healthy Forests 
Initiative's focus on management and making better use of existing 
resources, the budget puts additional discretion into the hands of on-
the-ground managers by funding hazardous fuels activities within the 
National Forest System. Funds are included within the National Forest 
System account to conduct all hazardous fuel reduction activities to 
minimize the risk of catastrophic wildfire to communities and natural 
resources by reducing hazardous fuels in forests, woodlands, shrublands, 
and grasslands. Funds are provided to plan, implement, and monitor 
treatments that include prescribed fire, mechanical treatment, and 
chemical treatment.

    In previous years, hazardous fuels funding was appropriated in the 
Wildland Fire Management Account. Transferring hazardous fuels 
activities to the National Forest System will expand coordination and 
also work cohesively with other vegetation management activities on the 
national forests to create a landscape pattern that effectively lessens 
the likelihood of large fires. The focus of the majority of treatments 
is on priority fire-prone landscapes in order to make an efficient and 
effective difference.

    This budget places additional emphasis on hazardous fuels funding 
that expands economic opportunities for rural communities that have 
experienced adverse economic impacts associated with Federal timber 
harvest reductions coupled with an increased threat of wildfire. The 
budget retains the authority to use funds for contracts, utilizes 
appropriate competitive sourcing, and provides an expanded authority for 
local hire. Finally, the budget reflects anticipated increases in fuels 
treatments through increased efficiencies resulting from the use of the 
stewardship contract authority and other administrative and productivity 
improvements resulting from the President's Healthy Forests Initiative.

    Included within the National Forest System account are funds to 
rehabilitate fire damaged wildlands and restore ecosystems impacted by 
wildland fires. This funding will permit immediate actions to reduce 
threats to public safety, property and natural and cultural resources, 
and long-term actions to help restore healthy ecosystems and replace 
infrastructure damaged by fire. Funding will be used to improve overall 
watershed condition and restore severely burned forests and rangeland 
through activities that include reforestation, watershed restoration, 
road and trail rehabilitation, fish and wildlife habitat restoration, 
planting and seeding and preventing invasive plants.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1106-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         633         656         741
11.3      Other than full-time permanent          49          48          57
11.5      Other personnel compensation..          42          41          49
                                           ---------   ---------  ----------
11.9        Total personnel compensation         724         745         847
12.1    Civilian personnel benefits.....         187         194         222
13.0    Benefits for former personnel...          45          26          27
21.0    Travel and transportation of 
          persons.......................          45          46          51
22.0    Transportation of things........          11          12          13
23.1    Rental payments to GSA..........          18          17          20
23.2    Rental payments to others.......          19          19          23
23.3    Communications, utilities, and 
          miscellaneous charges.........          49          49          54
24.0    Printing and reproduction.......           5           4           5
25.1    Advisory and assistance services           1           1           1
25.2    Other services..................         200         155         240
25.3    Other purchases of goods and 
          services from Government 
          accounts......................          86          70          85
25.7    Operation and maintenance of 
          equipment.....................           4           4           5
26.0    Supplies and materials..........          23          38          37
31.0    Equipment.......................          24          23          28
32.0    Land and structures.............           3           2           2
41.0    Grants, subsidies, and 
          contributions.................          16          13          36
42.0    Insurance claims and indemnities           2           2           1
                                           ---------   ---------  ----------
99.0      Direct obligations............       1,462       1,420       1,697
99.0  Reimbursable obligations..........          89          89          89
                                           ---------   ---------  ----------
99.9    Total new obligations...........       1,551       1,509       1,786
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1106-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................      13,968      13,859      15,615
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         481         481         481
    Allocation account:
3001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         990         990         990
---------------------------------------------------------------------------

                                

                   Capital Improvement and Maintenance

    For necessary expenses of the Forest Service, not otherwise provided 
for, [$562,154,000] $501,059,000, to remain available until expended for 
construction, reconstruction, maintenance and acquisition of buildings 
and other facilities, and for construction, reconstruction, repair, 
decommissioning, 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: Provided, That up to $15,000,000 of the funds provided herein for 
road maintenance shall be available for the decommissioning of roads, 
including unauthorized roads not part of

[[Page 181]]

the transportation system, which are no longer needed: Provided further, 
That no funds shall be expended to decommission any system road until 
notice and an opportunity for public comment has been provided on each 
decommissioning project[: Provided further, That the Forest Service 
shall transfer $350,000 appropriated in Public Law 108-7 within the 
Capital Improvement and Maintenance appropriation to the State and 
Private Forestry appropriation, and shall provide these funds for 
planning and construction of backcountry huts in Alaska]. (Department of 
the Interior and Related Agencies Appropriations Act, 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1103-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Capital improvement and 
        maintenance.....................         646         646         508
09.01 Reimbursable program..............          12          13          13
                                           ---------   ---------  ----------
10.00   Total new obligations...........         658         659         521
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         132          79          79
22.00 New budget authority (gross)......         591         660         511
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           4
22.22 Unobligated balance transferred 
        from other accounts.............          10
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         737         739         590
23.95 Total new obligations.............        -658        -659        -521
24.40 Unobligated balance carried 
        forward, end of year............          79          79          70
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         552         562         501
40.35   Appropriation permanently 
          reduced.......................          -4          -7
42.00   Transferred from other accounts.          30          95
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         578         650         501
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...          10          10          10
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................           3
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          13          10          10
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         591         660         511
    Change in obligated balances:
72.40 Obligated balance, start of year..         131         225         250
73.10 Total new obligations.............         658         659         521
73.20 Total outlays (gross).............        -558        -634        -550
73.45 Recoveries of prior year 
        obligations.....................          -4
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -3
74.40 Obligated balance, end of year....         225         250         221
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         434         498         386
86.93 Outlays from discretionary 
        balances........................         124         136         164
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         558         634         550
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -10         -10         -10
      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..................         578         650         501
90.00 Outlays...........................         548         624         540
---------------------------------------------------------------------------

    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 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. The budget 
reflects Forest Service improvements in addressing the deferred 
maintenance backlog based upon agency implementation of PART 
recommendations.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1103-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         159         168         161
11.3      Other than full-time permanent          17          18          17
11.5      Other personnel compensation..          10          11          10
                                           ---------   ---------  ----------
11.9        Total personnel compensation         186         197         188
12.1    Civilian personnel benefits.....          46          49          47
13.0    Benefits for former personnel...           6           6           6
21.0    Travel and transportation of 
          persons.......................          10          10          11
22.0    Transportation of things........           4           3           4
23.1    Rental payments to GSA..........           5           5           5
23.2    Rental payments to others.......           5           5           5
23.3    Communications, utilities, and 
          miscellaneous charges.........          13          14          14
24.0    Printing and reproduction.......           1           1           1
25.2    Other services..................         196         180          86
25.3    Other purchases of goods and 
          services from Government 
          accounts......................          29          28          29
25.4    Operation and maintenance of 
          facilities....................           3           3           3
25.7    Operation and maintenance of 
          equipment.....................           2           2           2
26.0    Supplies and materials..........          43          28          28
31.0    Equipment.......................           8           8           8
32.0    Land and structures.............          80         100          64
41.0    Grants, subsidies, and 
          contributions.................           8           8           8
42.0    Insurance claims and indemnities           1
                                           ---------   ---------  ----------

[[Page 182]]


99.0      Direct obligations............         646         647         509
99.0  Reimbursable obligations..........          12          12          12
                                           ---------   ---------  ----------
99.9    Total new obligations...........         658         659         521
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1103-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       3,782       3,789       3,544
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          49          49          49
    Allocation account:
3001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          71          71          71
---------------------------------------------------------------------------

                                

                      Forest and Rangeland Research

    For necessary expenses of forest and rangeland research as 
authorized by law, [$269,710,000] $280,654,000, to remain available 
until expended[: Provided, That of the funds provided, $52,359,000 is 
for the forest inventory and analysis program].

     Gifts, Donations and Bequests for Forest and Rangeland Research

    For expenses authorized by 16 U.S.C. 1643(b), [$92,000] $65,000, to 
remain available until expended, to be derived from the fund established 
pursuant to the above Act. (Department of the Interior and Related 
Agencies Appropriations Act, 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1104-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.06 Forest and rangeland research.....         292         298         300
09.01 Reimbursable program..............          29          29          29
                                           ---------   ---------  ----------
10.00   Total new obligations...........         321         327         329
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          20          22          22
22.00 New budget authority (gross)......         313         327         328
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           4
22.22 Unobligated balance transferred 
        from other accounts.............           5
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         342         349         350
23.95 Total new obligations.............        -321        -327        -329
24.40 Unobligated balance carried 
        forward, end of year............          22          22          21
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         252         270         281
40.35   Appropriation permanently 
          reduced.......................          -2          -3
42.00   Transferred from other accounts.          34          32          19
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         284         299         300
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...          28          28          28
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................           1
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......          29          28          28
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         313         327         328
    Change in obligated balances:
72.40 Obligated balance, start of year..          81          92          95
73.10 Total new obligations.............         321         327         329
73.20 Total outlays (gross).............        -305        -324        -328
73.45 Recoveries of prior year 
        obligations.....................          -4
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................          -1
74.40 Obligated balance, end of year....          92          95          96
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         232         229         230
86.93 Outlays from discretionary 
        balances........................          73          95          98
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         305         324         328
    Offsets:
      Against gross budget authority and outlays:

        Offsetting collections (cash) 
            from:
88.00     Federal sources...............         -27         -28         -28
88.40     Non-Federal sources...........          -1
                                           ---------   ---------  ----------
88.90       Total, offsetting 
              collections (cash)........         -28         -28         -28
      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..................         284         299         300
90.00 Outlays...........................         277         296         300
---------------------------------------------------------------------------

    Forest Service Research & Development (FS R&D) is one of the world's 
leading forestry research organizations. It conducts ecological and 
social science research to understand ecosystems, how humans influence 
those ecosystems, and how forests can be managed sustainably to enable 
both environmental conservation and economic expansion. Research is 
conducted at six Research Stations, the Forest Products Laboratory, and 
the International Institute of Tropical Forestry located in Puerto Rico.

    In FY 2005, the body of knowledge and technologies will be expanded 
to improve forest and rangeland managers' abilities to reintroduce fire 
to its natural role, control exotic plants, insects, and pathogens, and 
keep losses from native insects and pathogens to an acceptable level. FS 
R&D researchers will be answering land managers' scientific questions 
about fire behavior, risk assessment and mitigation for multiple 
hazards, and utilization opportunities for the biomass that contributes 
to overcrowded, unhealthy forests. Increased funding will be provided 
for invasive species to accelerate research vital to a rapid management 
response; and watershed research to provide improved tools for land 
managers to restore native vegetation on sites disturbed by fire, and 
address other issues such as climate change.

    The Forest Inventory and Analysis program will continue to provide 
up-to-date information on status and trends in America's forest 
resources including the distribution and type of forest; growth, 
harvest, and mortality; forest structure and composition; soils; 
vegetative diversity; and fuel loads.

    Efficient delivery of science is essential to successful 
implementation of the President's Healthy Forest Initiative. The budget 
includes funds to optimize the delivery of research findings by 
improving Forest Service management of investments in research, 
development, and applications. Funds will be targeted to leading-edge 
technical assistance on a competitive basis.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1104-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         127         134         136
11.3      Other than full-time permanent           8           9           9
11.5      Other personnel compensation..           4           4           4
                                           ---------   ---------  ----------
11.9        Total personnel compensation         139         147         149
12.1    Civilian personnel benefits.....          35          37          38
13.0    Benefits for former personnel...           1           1           1
21.0    Travel and transportation of 
          persons.......................          10          10          11
22.0    Transportation of things........           2           2           2
23.1    Rental payments to GSA..........           4           4           4
23.2    Rental payments to others.......           3           3           3
23.3    Communications, utilities, and 
          miscellaneous charges.........          10          10          10
24.0    Printing and reproduction.......           1           1           1
25.2    Other services..................          32          48          46

[[Page 183]]

25.3    Other purchases of goods and 
          services from Government 
          accounts......................           7           8           8
25.7    Operation and maintenance of 
          equipment.....................           1           1           1
26.0    Supplies and materials..........          29           8           8
31.0    Equipment.......................           7           7           7
32.0    Land and structures.............           1           1           1
41.0    Grants, subsidies, and 
          contributions.................          10          10          10
                                           ---------   ---------  ----------
99.0      Direct obligations............         292         298         300
99.0  Reimbursable obligations..........          27          27          29
99.5  Below reporting threshold.........           2           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........         321         327         329
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1104-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       2,808       2,798       2,786
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         106         106         106
---------------------------------------------------------------------------

                                

                       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 and for restoring and 
rehabilitating forests damaged by pests or invasive plants, cooperative 
forestry, and education and land conservation activities and conducting 
an international program as authorized, [$308,140,000] $294,388,000, to 
remain available until expended, [as authorized by law] of which 
[$64,934,000] $172,672,000 is to be derived from the Land and Water 
Conservation Fund: Provided, That [none of the funds provided under this 
heading for the acquisition of lands or interests in lands shall be 
available until the Forest Service notifies the House Committee on 
Appropriations and the Senate Committee on Appropriations, in writing, 
of specific contractual and grant details including the non-Federal cost 
share of each project, related to the acquisition of lands or interests 
in lands to be undertaken with such funds: Provided further, That each 
forest legacy grant shall be for a specific project or set of specific 
tasks: Provided further, That grants for acquisition of lands or 
conservation easements shall require that the State demonstrates that 25 
percent of the total value of the project is comprised of a non-Federal 
cost share: Provided further, That notwithstanding any other provision 
of law, of the funds provided under this heading, $500,000 shall be made 
available to Kake Tribal Corporation as an advance direct lump sum 
payment to implement the Kake Tribal Corporation Land Transfer Act 
(Public Law 106-283)] up to $10,000,000 may be used by the Secretary 
solely for: (1) rapid response to new introductions of non-native or 
invasive pests or pathogens for which no previous Federal funding has 
been identified to address, or (2) for a limited number of instances in 
which any pest populations increase at over 150 percent of levels 
monitored for that species in the immediately preceding fiscal year and 
failure to suppress those populations would lead to a 10-percent 
increase of annual forest or stand mortality over ambient mortality 
levels. (Department of the Interior and Related Agencies Appropriations 
Act, 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1105-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 State and private forestry........         461         466         355
09.01 Reimbursable program..............          27           9           9
                                           ---------   ---------  ----------
10.00   Total new obligations...........         488         475         364
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          65          62          52
22.00 New budget authority (gross)......         457         465         350
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           9
22.22 Unobligated balance transferred 
        from other accounts.............          20
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         551         527         402
23.95 Total new obligations.............        -488        -475        -364
23.98 Unobligated balance expiring or 
        withdrawn.......................          -1
24.40 Unobligated balance carried 
        forward, end of year............          62          52          38
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................         287         268         121
40.20   Appropriation (LWCF)............                      65         173
40.35   Appropriation permanently 
          reduced.......................                                 -30
40.36   Unobligated balance permanently 
          reduced.......................                                 -10
40.37   Appropriation temporarily 
          reduced.......................          -2          -4
41.00   Transferred to other accounts...         -50
42.00   Transferred from other accounts.         119         125          55
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         354         454         309
      Mandatory:

62.00   Transferred from other accounts.          50                      30
      Spending authority from offsetting 
          collections:

        Discretionary:
68.00     Offsetting collections (cash).          11          11          11
68.10     Change in uncollected customer 
            payments from Federal 
            sources (unexpired).........          42
                                           ---------   ---------  ----------
68.90       Spending authority from 
              offsetting collections 
              (total discretionary).....          53          11          11
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         457         465         350
    Change in obligated balances:
72.40 Obligated balance, start of year..         343         446         455
73.10 Total new obligations.............         488         475         364
73.20 Total outlays (gross).............        -334        -466        -379
73.45 Recoveries of prior year 
        obligations.....................          -9
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................         -42
74.40 Obligated balance, end of year....         446         455         439
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         148         349         240
86.93 Outlays from discretionary 
        balances........................         186         112         116
86.97 Outlays from new mandatory 
        authority.......................                                  23
86.98 Outlays from mandatory balances...                       5
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         334         466         379
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........         -11         -11         -11
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................         -42
    Net budget authority and outlays:
89.00 Budget authority..................         404         454         339
90.00 Outlays...........................         323         455         368
---------------------------------------------------------------------------

    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. The 
budget includes $10 million for rapid responses to new introductions of 
non-native or invasive pests or pathogens for which no previous Federal 
funding has been identified. Funds may be used when and where new 
invasive species have been identified and where pest populations 
increased sufficiently over the previous year's level and where failure 
to suppress those populations would lead to significant mortality over 
ambient levels.

    Cooperative Fire Protection.--Includes funding to enhance the 
capacity of States to provide coordinated fire suppression response, 
reduce hazardous fuels in and adjacent to communities, 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 maintains the integrity of our 
country's valuable forest lands. Increased funding is provided for the 
Forest Legacy program, a Federal

[[Page 184]]

program that partners with States to protect environmentally sensitive 
forest lands. Additional funding is also provided for the Forest 
Stewardship program, which will bring 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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........          47          47          43
11.3      Other than full-time permanent           3           3           3
11.5      Other personnel compensation..           2           2           2
                                           ---------   ---------  ----------
11.9        Total personnel compensation          52          52          48
12.1    Civilian personnel benefits.....          12          12          11
21.0    Travel and transportation of 
          persons.......................           8           8           7
22.0    Transportation of things........           1           1           1
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.........           2           2           2
24.0    Printing and reproduction.......           1           1           1
25.2    Other services..................          43          90          44
25.3    Other purchases of goods and 
          services from Government 
          accounts......................           4           4           4
26.0    Supplies and materials..........           3           3           3
31.0    Equipment.......................           1           2           1
41.0    Grants, subsidies, and 
          contributions.................         332         289         231
                                           ---------   ---------  ----------
99.0      Direct obligations............         461         466         355
99.0  Reimbursable obligations..........          27           9           9
                                           ---------   ---------  ----------
99.9    Total new obligations...........         488         475         364
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1105-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         953         930         835
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          54          54          54
---------------------------------------------------------------------------

                                

        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] 
$5,962,000, to remain available until expended, of which not to exceed 
$100,000 per annum may be used to reimburse the Office of the General 
Counsel, Department of Agriculture, for salaries and related expenses 
incurred in providing legal services in relation to subsistence 
management. (Department of the Interior and Related Agencies 
Appropriations Act, 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1119-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Direct Program Activity...........           5           6           6
                                           ---------   ---------  ----------
10.00   Total new obligations...........           5           6           6
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           1           1           1
22.00 New budget authority (gross)......           6           6           6
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           7           7           7
23.95 Total new obligations.............          -5          -6          -6
24.40 Unobligated balance carried 
        forward, end of year............           1           1           1
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................           6           6           6
    Change in obligated balances:
72.40 Obligated balance, start of year..           3           2           2
73.10 Total new obligations.............           5           6           6
73.20 Total outlays (gross).............          -6          -6          -6
74.40 Obligated balance, end of year....           2           2           2
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           6           6           6
    Net budget authority and outlays:
89.00 Budget authority..................           6           6           6
90.00 Outlays...........................           6           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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................           1           2           2
12.1  Civilian personnel benefits.......           1           1           1
25.2  Other services....................           3           3           3
                                           ---------   ---------  ----------
99.9    Total new obligations...........           5           6           6
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1119-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          25          25          25
---------------------------------------------------------------------------

                                

                        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, [$1,643,212,000] $1,428,886,000, 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 any unobligated balances remaining may be 
transferred to the ``National Forest System'' account and available 
without further appropriation to fund vegetative treatments that improve 
condition class: Provided further, That such funds shall be available to 
reimburse State and other cooperating entities for services provided in 
response to wildfire and other emergencies or disasters to the extent 
such reimbursements by the Forest Service for non-fire emergencies are 
fully repaid by the responsible emergency management agency: [Provided 
further, That not less than 50 percent of any unobligated balances 
remaining (exclusive of amounts for hazardous fuels reduction) at the 
end of fiscal year 2003 2004 shall be transferred, as repayment for past 
advances that have not been repaid, to the fund established pursuant to 
section 3 of Public Law 71-319 (16 U.S.C. 576 et seq.): Provided 
further, That notwithstanding any other provision of law, $8,000,000 of 
funds appropriated under this appropriation shall be used for Fire 
Science Research in support of the Joint Fire Science Program: Provided 
further, That all authorities for the use of funds, including the use of 
contracts, grants, and cooperative agreements, available to execute the 
Forest and Rangeland Research appropriation, are also available in the 
utilization of these funds for Fire Science Research:] Provided further, 
That funds provided shall be available for emergency rehabilitation and 
restoration, [hazardous fuels reduction activities in the urban-

[[Page 185]]

wildland interface,] support to Federal emergency response, and wildfire 
suppression activities of the Forest Service: Provided further, That of 
the funds provided, [$236,392,000 is for hazardous fuels reduction 
activities, $7,000,000] $3,000,000 is for rehabilitation and 
restoration, [$22,300,000] $19,361,000 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.), 
[$51,700,000] $34,245,000 is for State fire assistance, [$8,240,000] 
$8,000,000 is for volunteer fire assistance, [$25,000,000] $12,653,000 
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 transfers of any amounts in excess 
of those authorized in this paragraph, shall require [approval of] 
notification to the House and Senate Committees on Appropriations [in 
compliance with reprogramming procedures contained in the statement of 
managers accompanying this Act]: 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 included in 
funding for hazardous fuel reduction is $5,000,000 for implementing the 
Community Forest Restoration Act, Public Law 106-393, title VI, and any 
portion of such funds shall be available for use on non-Federal lands in 
accordance with authorities available to the Forest Service under the 
State and Private Forestry Appropriation: Provided further, That 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 applicable to hazardous fuel reduction 
activities under the wildland fire management accounts:] Provided 
further, That [notwithstanding Federal Government procurement and 
contracting laws, the Secretaries may conduct fuel reduction treatments, 
rehabilitation and restoration, and other activities authorized under 
this heading on and adjacent to Federal lands using grants and 
cooperative agreements: Provided further, That notwithstanding Federal 
Government procurement and contracting laws, in order to provide 
employment and training opportunities to people in rural communities, 
the Secretaries may award contracts, including contracts for monitoring 
activities, to local private, non-profit, or cooperative entities; Youth 
Conservation Corps crews or related partnerships, with State, local and 
non-profit youth groups; small or micro-businesses; or other entities 
that will hire or train a significant percentage of local people to 
complete such contracts: Provided further, That the authorities 
described above relating to contracts, grants, and cooperative 
agreements are available until all funds provided in this title for 
hazardous fuels reduction activities in the urban wildland interface are 
obligated: Provided further, That the Secretary of the Interior and the 
Secretary of Agriculture may authorize the transfer of funds 
appropriated for wildland fire management, in an aggregate amount not to 
exceed $12,000,000, between the Departments when such transfers would 
facilitate and expedite jointly funded wildland fire management programs 
and projects.] The Secretary of Agriculture may use the amounts 
appropriated under this title of this Act for rehabilitation and 
restoration and other activities authorized under this heading, on 
Federal land or on adjacent non-Federal land for activities that benefit 
resources on Federal land
    [For an additional amount, $301,000,000, to repay prior year 
advances from other appropriations from which funds were transferred for 
wildfire suppression and emergency rehabilitation activities: Provided, 
That this additional amount is designated by the Congress as an 
emergency requirement pursuant to section 502 of H. Con. Res. 95 (108th 
Congress), the concurrent resolution on the budget for fiscal year 2004: 
Provided further, That this additional amount and $253,000,000 of the 
funds appropriated to the Forest Service for the repayment of advances 
for fire suppression in Public Law 108-83, shall be transferred to the 
following Forest Service accounts: $96,000,000 to the Land Acquisition 
account, $95,000,000 to the Capital Improvement and Maintenance account, 
$9,000,000 to the Working Capital Fund, $52,000,000 to the National 
Forest System account, $31,000,000 to the State and Private Forestry 
account, $10,000,000 to the Forest and Rangeland Research account, 
$35,000,000 to the Salvage Sale fund, $28,000,000 to the Timber 
Purchaser Election account, $154,000,000 to the Knutson Vandenburg fund, 
$20,000,000 to the Brush Disposal account, $14,000,000 to the Forest 
Service Recreation Fee Demonstration fund, and $10,000,000 to the Forest 
Land Enhancement Program account.] (Department of the Interior and 
Related Agencies Appropriations Act, 2004.)

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1115-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Wildland fire management..........       2,193       1,729       1,542
09.01 Reimbursable program..............         199         199         199
                                           ---------   ---------  ----------
10.00   Total new obligations...........       2,392       1,928       1,741
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         444         439         235
22.00 New budget authority (gross)......       2,358       1,724       1,641
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................          19
22.21 Unobligated balance transferred to 
        other accounts..................         -15
22.22 Unobligated balance transferred 
        from other accounts.............          25
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......       2,831       2,163       1,876
23.95 Total new obligations.............      -2,392      -1,928      -1,741
24.40 Unobligated balance carried 
        forward, end of year............         439         235         135
    New budget authority (gross), detail:
      Discretionary:

40.00   Appropriation...................       2,299       1,969       1,429
40.35   Appropriation permanently 
          reduced.......................          -9         -21
41.00   Transferred to other accounts...        -266        -513         -77
42.00   Transferred from other accounts.          50
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............       2,074       1,435       1,352
      Spending authority from offsetting 
          collections:

68.00   Offsetting collections (cash)...         289         289         289
68.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          -5
                                           ---------   ---------  ----------
68.90     Spending authority from 
            offsetting collections 
            (total discretionary).......         284         289         289
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................       2,358       1,724       1,641
    Change in obligated balances:
72.40 Obligated balance, start of year..         185         328         544
73.10 Total new obligations.............       2,392       1,928       1,741
73.20 Total outlays (gross).............      -2,234      -1,712      -1,677
73.45 Recoveries of prior year 
        obligations.....................         -19
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................           5
74.40 Obligated balance, end of year....         328         544         608
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................       1,616       1,552       1,477
86.93 Outlays from discretionary 
        balances........................         618         160         200
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........       2,234       1,712       1,677
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -289        -289        -289
      Against gross budget authority only:

88.95   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................           5
    Net budget authority and outlays:
89.00 Budget authority..................       2,074       1,435       1,352
90.00 Outlays...........................       1,945       1,423       1,388
---------------------------------------------------------------------------

    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.

    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.

[[Page 186]]

    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.

    The budget addresses Federal wildfire suppression costs that have 
exceeded $1 billion for three out of the last four years. Specifically, 
the Administration proposes that the Forest Service:

     LDevelop cost containment performance measures and clearer 
rules concerning the use of suppression resources, including incentives 
for rapid demobilization.

     LComplete updated fire management plans. Continue 
development of LANDFIRE with the Department of the Interior and the 
National Association of State Foresters and begin integration of 
LANDFIRE's geospatially-based information into fire management plans.

     LAllocate not less than 50% of suppression funds to Forest 
Service regions and permit regions to retain the majority of unobligated 
funds for use in hazardous fuels reduction activities in subsequent 
fiscal years.

    Additionally, 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. 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 facilitate and 
expedite USDA and Department of the Interior jointly funded wildland 
fire management programs and projects.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1115-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

        Personnel compensation:
11.1      Full-time permanent...........         355         346         251
11.3      Other than full-time permanent          62          47          37
11.5      Other personnel compensation..         279          34          24
                                           ---------   ---------  ----------
11.9        Total personnel compensation         696         427         312
12.1    Civilian personnel benefits.....         142         126          93
13.0    Benefits for former personnel...          20          20          19
21.0    Travel and transportation of 
          persons.......................          67          67          63
22.0    Transportation of things........           8           8           8
23.1    Rental payments to GSA..........          10          11           9
23.2    Rental payments to others.......          16          17          13
23.3    Communications, utilities, and 
          miscellaneous charges.........          36          36          31
24.0    Printing and reproduction.......           1           1           1
25.2    Other services..................         980         787         799
25.3    Other purchases of goods and 
          services from Government 
          accounts......................          87          86          76
25.7    Operation and maintenance of 
          equipment.....................           5           5           4
26.0    Supplies and materials..........          76          89          91
31.0    Equipment.......................          21          21          17
32.0    Land and structures.............           1
41.0    Grants, subsidies, and 
          contributions.................          27          28           6
                                           ---------   ---------  ----------
99.0      Direct obligations............       2,193       1,729       1,542
99.0  Reimbursable obligations..........         199         199         199
                                           ---------   ---------  ----------
99.9    Total new obligations...........       2,392       1,928       1,741
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1115-0-1-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................      11,299       9,667       7,067
    Reimbursable:
2001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          35          35          35
---------------------------------------------------------------------------

                                

                          Range Betterment Fund

    For necessary expenses of range rehabilitation, protection, and 
improvement, 50 percent of all moneys received during the prior fiscal 
year, as fees for grazing domestic livestock on lands in National 
Forests in the 16 Western States, pursuant to section 401(b)(1) of 
Public Law 94-579, as amended, to remain available until expended, of 
which not to exceed 6 percent shall be available for administrative 
expenses associated with on-the-ground range rehabilitation, protection, 
and improvements. (Department of the Interior and Related Agencies 
Appropriations Act, 2004.)

                Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5207-0-2-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............           2           4           6
    Receipts:
02.20 Receipts, Cooperative range 
        improvements....................           5           5           5
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...           7           9          11
    Appropriations:
05.00 Range betterment fund.............          -3          -3          -3
                                           ---------   ---------  ----------
07.99 Balance, end of year..............           4           6           8
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5207-0-2-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Range betterment fund.............           3           3           3
                                           ---------   ---------  ----------
10.00   Total new obligations...........           3           3           3
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........           2           1           1
22.00 New budget authority (gross)......           3           3           3
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......           5           4           4
23.95 Total new obligations.............          -3          -3          -3
24.40 Unobligated balance carried 
        forward, end of year............           1           1           1
    New budget authority (gross), detail:
      Discretionary:

40.20   Appropriation (special fund)....           3           3           3
    Change in obligated balances:
72.40 Obligated balance, start of year..                       1           1
73.10 Total new obligations.............           3           3           3
73.20 Total outlays (gross).............          -3          -3          -3
74.40 Obligated balance, end of year....           1           1           1
    Outlays (gross), detail:
86.90 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

[[Page 187]]

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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
11.1  Personnel compensation: Full-time 
        permanent.......................           1           1           1
25.2  Other services....................           1           1           1
26.0  Supplies and materials............           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........           3           3           3
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-5207-0-2-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................          31          29          30
---------------------------------------------------------------------------

                                

                            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, [$67,191,000] $66,885,000, 
to be derived from the Land and Water Conservation Fund and to remain 
available until expended[: Provided, That notwithstanding any 
limitations of the Land and Water Conservation Fund Act (16 U.S.C. 460l-
9), the Secretary of Agriculture is henceforth authorized to utilize any 
funds appropriated under this heading from the Land and Water 
Conservation Fund to acquire Mental Health Trust lands in Alaska and, 
upon Federal acquisition, the boundaries of the Tongass National Forest 
shall be deemed modified to include such lands].

         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] 
$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 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. 
4601-516-617a, 555a; P.L. 96-586; P.L. 76-589, 76-591; 78-310, and 16 
U.S.C. 484a; Department of the Interior and Related Agencies 
Appropriations Act, 2004.)

                Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9923-0-2-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............           5           1           2
    Receipts:
02.20 National forest lands under 
        special acts....................           2           2           2
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...           7           3           4
    Appropriations:
05.00 Land acquisition..................          -6          -1          -1
                                           ---------   ---------  ----------
07.99 Balance, end of year..............           1           2           3
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9923-0-2-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Land acquisition..................         173         164          73
09.01 Reimbursable program..............           4           4           4
                                           ---------   ---------  ----------
10.00   Total new obligations...........         177         168          77
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          27          31          27
22.00 New budget authority (gross)......         181         163          68
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         208         194          95
23.95 Total new obligations.............        -177        -168         -77
24.40 Unobligated balance carried 
        forward, end of year............          31          27          18
    New budget authority (gross), detail:
      Discretionary:

40.20   Appropriation (LWCF)............         133          67          67
40.20   Appropriation (special act).....           6           1           1
40.37   Appropriation temporarily 
          reduced.......................          -1          -1
42.00   Transferred from other accounts.          43          96
                                           ---------   ---------  ----------
43.00     Appropriation (total 
            discretionary)..............         181         163          68
    Change in obligated balances:
72.40 Obligated balance, start of year..           5          18          33
73.10 Total new obligations.............         177         168          77
73.20 Total outlays (gross).............        -164        -154        -100
74.40 Obligated balance, end of year....          18          33           9
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................         160         108          45
86.93 Outlays from discretionary 
        balances........................           4          46          55
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         164         154         100
    Net budget authority and outlays:
89.00 Budget authority..................         181         163          68
90.00 Outlays...........................         164         154         100
---------------------------------------------------------------------------

    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 or from non-Federal parties for authorized 
expenditures.

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9923-0-2-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................           8           4           4
12.1    Civilian personnel benefits.....           2           1           1
23.3    Communications, utilities, and 
          miscellaneous charges.........         -12           2           2
25.2    Other services..................           1          14           6
32.0    Land and structures.............         174         144          60
                                           ---------   ---------  ----------
99.0      Direct obligations............         173         165          73
99.0  Reimbursable obligations..........           4           3           4
                                           ---------   ---------  ----------
99.9    Total new obligations...........         177         168          77
---------------------------------------------------------------------------

[[Page 188]]



                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9923-0-2-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................         142          65          64
---------------------------------------------------------------------------

                                

                 Forest Service Permanent Appropriations

                Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9921-0-2-999      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............         124         -90         149
    Receipts:
02.20 National forests fund.............        -233
02.21 Charges, user fees, and natural 
        resource utilization, Land betwe           4           4           4
02.22 National forests fund, Payments to 
        States..........................         303         303         303
02.23 Timber roads, Purchaser elections.          19           7           7
02.24 National forests fund, Roads and 
        trails for States...............          46          15          15
02.25 Timber salvage sales..............          58          59          59
02.26 Deposits, Brush disposal..........          12          13          15
02.27 Rents and charges for quarters, 
        Forest Service..................           7           8           8
02.28 Timber sales pipeline restoration 
        fund............................          12           8           8
02.29 Recreational fee demonstration 
        program, Forest Service.........          39          42
02.30 Legislative proposal, recreation 
        fees............................
02.31 Midewin national tallgrass prairie 
        rental fees.....................           1           1           1
02.32 National grasslands...............          11          11          11
02.33 Miscellaneous special funds, 
        Forest Service..................           5           5           5
02.34 National forest fund..............          13          10          10
02.35 Fees, operation, and maintenance 
        of recreation facilities, Forest 
        Service.........................           6           6           6
                                           ---------   ---------  ----------
02.99   Total receipts and collections..         303         492         452
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...         427         402         601
    Appropriations:
05.00 Forest Service permanent 
        appropriations..................        -517        -253        -263
                                           ---------   ---------  ----------
07.99 Balance, end of year..............         -90         149         338
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9921-0-2-999      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Payments to States, county 
        projects........................         304         366         370
00.02 Recreation fee collection costs...           1           1           1
00.03 Payments to States, national 
        forests fund....................         138
00.04 Timber roads, purchaser elections.                      35           7
00.05 Roads and trails for States, 10-
        percent fund....................          18          15          15
00.06 Timber salvage sales..............          70         114          80
00.07 Expenses, brush disposal..........          11          36          17
00.08 Payment to Minnesota..............           2
00.09 Restoration of forestlands and 
        improvements....................           2           9           9
00.10 Operation and maintenance of 
        quarters........................           7           8           9
00.11 Timber sales pipeline restoration 
        fund............................           2
00.12 Recreation fee demonstration 
        program.........................          37          56          46
00.13 Timber sales pipeline preparation.                       1           1
00.14 Payments to Counties, national 
        grasslands......................          -1
00.15 Land between the Lakes NRA Mgmt 
        Fund............................                       4           4
00.16 Timber pipeline, recreation 
        backlog.........................                       1           1
                                           ---------   ---------  ----------
10.00   Total new obligations...........         591         646         560
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          20         236         220
22.00 New budget authority (gross)......         808         630         543
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           3
22.21 Unobligated balance transferred to 
        other accounts..................          -5
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         826         866         763
23.95 Total new obligations.............        -591        -646        -560
24.40 Unobligated balance carried 
        forward, end of year............         236         220         203
    New budget authority (gross), detail:
      Discretionary:

42.00   Transferred from other accounts.           7          97
      Mandatory:

60.00   Appropriation...................         283         280         280
60.20   Appropriation (special fund)....         517         253         263
62.00   Transferred from other accounts.           1
                                           ---------   ---------  ----------
62.50     Appropriation (total 
            mandatory)..................         801         533         543
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         808         630         543
    Change in obligated balances:
72.40 Obligated balance, start of year..          32          80          89
73.10 Total new obligations.............         591         646         560
73.20 Total outlays (gross).............        -532        -637        -613
73.40 Adjustments in expired accounts 
        (net)...........................          -8
73.45 Recoveries of prior year 
        obligations.....................          -3
74.40 Obligated balance, end of year....          80          89          36
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                      87
86.93 Outlays from discretionary 
        balances........................                                  71
86.97 Outlays from new mandatory 
        authority.......................         439         500         509
86.98 Outlays from mandatory balances...          93          50          33
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         532         637         613
    Net budget authority and outlays:
89.00 Budget authority..................         808         630         543
90.00 Outlays...........................         532         637         613
---------------------------------------------------------------------------

    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

[[Page 189]]

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.

    Forest Botanical Products.--This pilot program established by 
Section 339 of the Consolidated Appropriations Act of FY 2000 (P.L. 106-
113) provides for the recovery of fair market value for the sale of 
forest botanical products; the collection of fees to cover the costs of 
analyzing, granting, modifying, and monitoring the harvest of these 
products; the determination of sustainable harvest levels; and the 
establishment of personal use levels for which fees would not be 
collected.

    Administration of Rights-of-Way and Other Land Uses.--Fees collected 
from applicants and holders of special use authorizations are available 
to recover costs for processing applications and monitoring compliance 
with special use authorizations (31 U.S.C. 9701; 43 U.S.C. 1764(g); 30 
U.S.C. 815(1)).

               Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9921-0-2-999      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          56          57          57
11.3    Other than full-time permanent..          11          11          12
11.5    Other personnel compensation....           7           7           7
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          74          75          76
12.1  Civilian personnel benefits.......          16          17          17
13.0  Benefits for former personnel.....           1           2           2
21.0  Travel and transportation of 
        persons.........................           2           3           3
22.0  Transportation of things..........          -1
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...........           4           4           4
24.0  Printing and reproduction.........           1           1           1
25.2  Other services....................          67          55          60
25.3  Other purchases of goods and 
        services from Government 
        accounts........................           7           7           7
25.7  Operation and maintenance of 
        equipment.......................           1           1           1
26.0  Supplies and materials............           6          15          16
31.0  Equipment.........................           2           2           2
32.0  Land and structures...............          11          12          12
41.0  Grants, subsidies, and 
        contributions...................         398         450         357
                                           ---------   ---------  ----------
99.9    Total new obligations...........         591         646         560
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9921-0-2-999      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       1,939       1,899       1,886
---------------------------------------------------------------------------

    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.

    The budget includes 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 PART assessment of the Forest Legacy program found that the 
program is valuable and generally has strong man

[[Page 190]]

agement. Recent evaluations and program redesign have led to 
improvements. To build upon these improvements the budget includes a 
proposal to transfer titles acquired through Forest Legacy. The proposal 
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.

    This budget includes a proposal to amend the Small Tracts Act, the 
Sisk Act, and the Townsite Act, which provide the Secretary the 
authority to sell or exchange land, to provide more efficient real 
estate management of National Forest System lands and facilities. The 
amendments would allow the Agency to collect and expend funds without 
appropriation. It would raise the maximum acreage for sale or exchange 
of lands under Small Tracts Act for lands that cannot be efficiently 
managed and deletes the value limitation for use of this authority. The 
proposal would add administrative sites as a category of lands which are 
subject to disposition. The Sisk Act would be amended by making eligible 
for conveyance, a public entities' land that is covered in a special use 
authorization. The requirement that the lands conveyed under the Sisk 
Act be used for the same purposes as prior to the conveyance would also 
been eliminated.

    Also included in the budget is a proposal to improve the ability of 
the Forest Service and Native American and Alaska Native Tribes to 
achieve goals of mutual interest. This includes authorities regarding 
the use of and access to National Forest System lands; forest products 
for traditional and cultural purposes; repatriation and reburial; and 
research, development and collaboration with Tribal Governments. These 
authorities would streamline and clarify several areas of interest 
between the Forest Service and Native American and Alaska Native Tribes.

    In addition, the budget proposes to reauthorize the Federal and 
State Cooperative Watershed Restoration and Community Protection in 
Colorado (``Good Neighbor'') Authority. This authority allows for the 
Secretary of Agriculture, via cooperative agreement or contract 
(including sole source contract), to permit the Colorado State Forest 
Service to perform watershed restoration and protection services on 
National Forest System lands in the State of Colorado when similar and 
complementary watershed restoration and protection services are being 
performed by the State Forest Service on adjacent State or private 
lands. The types of services include treatment of insect infected trees, 
reduction of hazardous fuels, and other activities to restore or improve 
watersheds or fish and wildlife habitat across ownership boundaries. 
Proposed changes to existing language would: extend authority to 
September 30, 2009, and provide new authority for the Bureau of Land 
Management.

                                

Intragovernmental funds:

                          Working Capital Fund

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4605-0-4-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.01 Working Capital fund..............         260         260         260
                                           ---------   ---------  ----------
10.00   Total new obligations...........         260         260         260
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........          76          68          52
22.00 New budget authority (gross)......         263         245         236
22.10 Resources available from 
        recoveries of prior year 
        obligations.....................           9
22.21 Unobligated balance transferred to 
        other accounts..................         -20
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         328         313         288
23.95 Total new obligations.............        -260        -260        -260
24.40 Unobligated balance carried 
        forward, end of year............          68          52          28
    New budget authority (gross), detail:
      Discretionary:

42.00   Transferred from other accounts.          30           9
      Mandatory:

69.00   Offsetting collections (cash)...         236         236         236
69.10   Change in uncollected customer 
          payments from Federal sources 
          (unexpired)...................          -3
                                           ---------   ---------  ----------
69.90     Spending authority from 
            offsetting collections 
            (total mandatory)...........         233         236         236
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         263         245         236

[[Page 191]]

    Change in obligated balances:
72.40 Obligated balance, start of year..          32          66          72
73.10 Total new obligations.............         260         260         260
73.20 Total outlays (gross).............        -220        -254        -238
73.45 Recoveries of prior year 
        obligations.....................          -9
74.00 Change in uncollected customer 
        payments from Federal sources 
        (unexpired).....................           3
74.40 Obligated balance, end of year....          66          72          94
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................                       8
86.93 Outlays from discretionary 
        balances........................                                   1
86.97 Outlays from new mandatory 
        authority.......................         186         220         212
86.98 Outlays from mandatory balances...          34          26          25
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........         220         254         238
    Offsets:
      Against gross budget authority and outlays:

88.00   Offsetting collections (cash) 
          from: Federal sources.........        -236        -236        -236
      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..................          30           9
90.00 Outlays...........................         -16          18           2
---------------------------------------------------------------------------

    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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
13.0  Benefits for former personnel.....           1
21.0  Travel and transportation of 
        persons.........................           3           3           3
22.0  Transportation of things..........           1           1           1
23.2  Rental payments to others.........           1           1           1
23.3  Communications, utilities, and 
        miscellaneous charges...........           2           2           2
24.0  Printing and reproduction.........           1           1           1
25.3  Other purchases of goods and 
        services from Government 
        accounts........................          28           5           5
25.7  Operation and maintenance of 
        equipment.......................          18          19          19
26.0  Supplies and materials............          87          91          91
31.0  Equipment.........................         118         137         137
                                           ---------   ---------  ----------
99.9    Total new obligations...........         260         260         260
---------------------------------------------------------------------------
    Note.--Personnel totals are included with personnel totals of all other 
Forest Service programs.

                                

                               Trust Funds

                       Forest Service Trust Funds

                Unavailable Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9974-0-7-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
01.99 Balance, start of year............
    Receipts:
02.00 Transfers from general fund of 
        amounts equal to certain customs          30          30          30
02.20 Forest Service cooperative fund...         107         108         108
02.40 Transfer from TVA for land between 
        the lakes trust fund............           1           1           1
02.45 Repayments to K-V trust fund......                     154
                                           ---------   ---------  ----------
02.99   Total receipts and collections..         138         293         139
                                           ---------   ---------  ----------
04.00 Total: Balances and collections...         138         293         139
    Appropriations:
05.00 Forest Service trust funds........        -138        -293        -139
                                           ---------   ---------  ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9974-0-7-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

    Obligations by program activity:
00.01 Forest Service trust funds........          70         137         164
                                           ---------   ---------  ----------
10.00   Total new obligations...........          70         137         164
    Budgetary resources available for obligation:
21.40 Unobligated balance carried 
        forward, start of year..........         226         297         453
22.00 New budget authority (gross)......         141         293         139
                                           ---------   ---------  ----------
23.90   Total budgetary resources 
          available for obligation......         367         590         592
23.95 Total new obligations.............         -70        -137        -164
24.40 Unobligated balance carried 
        forward, end of year............         297         453         428
    New budget authority (gross), detail:
      Mandatory:

60.26   Appropriation (trust fund)......         138         293         139
      Discretionary:

68.00   Spending authority from 
          offsetting collections: 
          Offsetting collections (cash).           3
                                           ---------   ---------  ----------
70.00   Total new budget authority 
          (gross).......................         141         293         139
    Change in obligated balances:
72.40 Obligated balance, start of year..          23          60          57
73.10 Total new obligations.............          70         137         164
73.20 Total outlays (gross).............         -34        -140        -139
74.40 Obligated balance, end of year....          60          57          82
    Outlays (gross), detail:
86.90 Outlays from new discretionary 
        authority.......................           1
86.97 Outlays from new mandatory 
        authority.......................         125         111         111
86.98 Outlays from mandatory balances...         -92          29          28
                                           ---------   ---------  ----------
87.00   Total outlays (gross)...........          34         140         139
    Offsets:
      Against gross budget authority and outlays:

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

[[Page 192]]

    Net budget authority and outlays:
89.00 Budget authority..................         138         293         139
90.00 Outlays...........................          30         140         139
    Memorandum (non-add) entries:
92.01 Total investments, start of year: 
        Federal securities: Par value...           2           3           3
92.02 Total investments, end of year: 
        Federal securities: Par value...           3           3           3
---------------------------------------------------------------------------

    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      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............          42          44          44
11.3    Other than full-time permanent..           7           7           7
11.5    Other personnel compensation....           4           4           4
                                           ---------   ---------  ----------
11.9      Total personnel compensation..          53          55          55
12.1  Civilian personnel benefits.......          13          13          14
13.0  Benefits for former personnel.....           2           2           2
21.0  Travel and transportation of 
        persons.........................           3           3           3
22.0  Transportation of things..........                       1           1
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...........           3           3           3
25.2  Other services....................        -230          27          53
25.3  Other purchases of goods and 
        services from Government 
        accounts........................          24          12          12
26.0  Supplies and materials............         192          11          11
31.0  Equipment.........................           2           2           2
32.0  Land and structures...............           5           5           5
41.0  Grants, subsidies, and 
        contributions...................           1           1           1
                                           ---------   ---------  ----------
99.9    Total new obligations...........          70         137         164
---------------------------------------------------------------------------

                              Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9974-0-7-302      2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
    Direct:
1001  Total compensable workyears: 
        Civilian full-time equivalent 
        employment......................       1,281       1,253       1,245
---------------------------------------------------------------------------

                                

         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; 
purchase, operation, [and] maintenance [of aircraft], and acquisition of 
aircraft from excess sources to maintain the operable fleet at 195 
aircraft for use in Forest Service wildland fire programs and other 
Forest Service programs; notwithstanding other provisions of law, 
existing aircraft being replaced may be sold, with proceeds derived or 
trade-in value used to offset the purchase price for the replacement 
aircraft; (2) services pursuant to 7 U.S.C. 2225, and not to exceed 
$100,000 for employment under 5 U.S.C. 3109; (3) purchase, erection, and 
alteration of buildings and other public improvements (7 U.S.C. 2250); 
(4) acquisition of land, waters, and interests therein pursuant to 7 
U.S.C. 428a; (5) for expenses pursuant to the Volunteers in the National 
Forest Act of 1972 (16 U.S.C. 558a, 558d, and 558a note); (6) the cost 
of uniforms as authorized by 5 U.S.C. 5901-5902; and (7) for debt 
collection contracts in accordance with 31 U.S.C. 3718(c).
    [None of the funds made available under this Act shall be obligated 
or expended to abolish any region, to move or close any regional office 
for National Forest System administration of the Forest Service, 
Department of Agriculture without the consent of the House and Senate 
Committees on Appropriations.]
    Any appropriations or funds available to the Forest Service may be 
transferred to the Wildland Fire Management appropriation for forest 
firefighting, emergency rehabilitation of burned-over or damaged lands 
or waters under its jurisdiction, and fire preparedness due to severe 
burning conditions [if and only if all previously appropriated emergency 
contingent funds under the heading ``Wildland Fire Management'' have 
been released by the President and apportioned and all wildfire 
suppression funds under the heading ``Wildland Fire Management'' are 
obligated].
    [The first transfer of funds into the Wildland Fire Management 
account shall include unobligated funds, if available, from the Land 
Acquisition account and the Forest Legacy program within the State and 
Private Forestry account.]
    Funds appropriated to the Forest Service shall be available for 
assistance to or through the Agency for International Development and 
the Foreign Agricultural Service in connection with forest and rangeland 
research, technical information, and assistance in foreign countries, 
and shall be available to support forestry and related natural resource 
activities outside the United States and its territories and 
possessions, including technical assistance, education and training, and 
cooperation with United States and international organizations.
    [None of the funds made available to the Forest Service under this 
Act shall be subject to transfer under the provisions of section 702(b) 
of the Department of Agriculture Organic Act of 1944 (7 U.S.C. 2257) or 
7 U.S.C. 147b unless the proposed transfer is approved in advance by the 
House and Senate Committees on Appropriations in compliance with the 
reprogramming procedures contained in the statement of managers 
accompanying this Act.]
    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 section 8002 of the Farm Security and Rural Investment Act of 2002. 
Not less than $40,000,000 of funds under such section is hereby 
cancelled.
    [None of the funds available to the Forest Service may be 
reprogrammed without the advance approval of the House and Senate 
Committees on Appropriations in accordance with the reprogramming 
procedures contained in the statement of managers accompanying this 
Act.]
    No funds available to the Forest Service shall be transferred to the 
Working Capital Fund of the Department of Agriculture that exceed the 
total amount transferred during fiscal year 2000 for such purposes 
without [the] advance [approval of] notification to the House and Senate 
Committees on Appropriations.
    Funds available to the Forest Service shall be available to conduct 
a program of not less than $2,000,000 for high priority projects within 
the scope of the approved budget which shall be carried out by the Youth 
Conservation Corps.

[[Page 193]]

    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, [$3,000,000] up to $2,250,000 may 
be advanced in a lump sum to the National Forest Foundation to aid 
conservation partnership projects in support of the Forest Service 
mission, without regard to when the Foundation incurs expenses, for 
administrative expenses or projects on or benefitting National Forest 
System lands or related to Forest Service programs: Provided, That of 
the Federal funds made available to the Foundation, no more than 
$350,000 shall be available for administrative expenses: Provided 
further, That the Foundation shall obtain, by the end of the period of 
Federal financial assistance, private contributions to match on at least 
one-for-one basis funds made available by the Forest Service: Provided 
further, That the Foundation may transfer Federal funds to a non-Federal 
recipient for a project at the same rate that the recipient has obtained 
the non-Federal matching funds: Provided further, That 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 to 
aid conservation partnership projects in support of the Forest Service 
mission, 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.
    [Not later than 60 days after the date of the enactment of this Act, 
the Secretary of Agriculture shall submit to Congress, and make 
available to interested persons, a report containing the results of a 
management review of outfitter and guiding operations in the John Muir, 
Ansel Adams, and Dinkey Lakes Wilderness Areas of the Inyo and Sierra 
National Forests, California. The report shall include information 
regarding: (1) how the Secretary intends to minimize adverse impacts on 
the historic access rights of special use permittees in these three 
wilderness areas; and (2) how the Secretary intends to ensure timely 
compliance with the requirements of the National Environmental Policy 
Act of 1969 (42 U.S.C. 4321 et seq.).]
    Notwithstanding any other provision of law, any appropriations or 
funds available to the Forest Service not to exceed $500,000 may be used 
to reimburse the Office of the General Counsel (OGC), Department of 
Agriculture, for travel and related expenses incurred as a result of OGC 
assistance or participation requested by the Forest Service at meetings, 
training sessions, management reviews, land purchase negotiations and 
similar non-litigation related matters. Future budget justifications for 
both the Forest Service and the Department of Agriculture should clearly 
display the sums previously transferred and the requested funding 
transfers.
    Any appropriations or funds available to the Forest Service may be 
used for necessary expenses in the event of law enforcement emergencies 
as necessary to protect natural resources and public or employee 
safety[: Provided, That such amounts shall not exceed $1,000,000].
    [From funds available to the Forest Service in this Act for payment 
of costs in accordance with subsection 413(d) of Title IV, Public Law 
108-7, $3,000,000 shall be transferred by the Secretary of Agriculture 
to the Secretary of the Treasury to make reimbursement payments as 
provided in such subsection.]
    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.
    The Secretary of Agriculture may transfer or reimburse funds 
available to the Forest Service, 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.
    [Beginning on June 30, 2001 and concluding on December 31, 2004, an] 
An  eligible individual who is employed in any project funded under 
title V of the Older American Act of 1965 (42 U.S.C. 3056 et seq.) and 
administered by the Forest Service shall be considered to be a Federal 
employee for purposes of chapter 171 of title 28, United States Code.
    Any funds appropriated to the Forest Service may be used to meet the 
non-Federal share requirement in section 502(c) of the Older American 
Act of 1965 (42 U.S.C. 3056(c)(2)).
    [The Secretary of Agriculture may authorize the sale of excess 
buildings, facilities, and other properties owned by the Forest Service 
and located on the Wasatch-Cache 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 acquisition and 
construction of administrative sites on the Wasatch-Cache National 
Forest.] (Department of the Interior and Related Agencies Appropriations 
Act, 2004.)

                                


 
                      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 the 
current fiscal year under this Act shall be available for the purchase, 
in addition to those specifically provided for, of not to exceed [398] 
388 passenger motor vehicles, of which [396] 388 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. Funds appropriated by this Act shall be available for 
employment pursuant to the second sentence of section 706(a) of the 
Department of Agriculture Organic Act of 1944 (7 U.S.C. 2225) and 5 
U.S.C. 3109.
    Sec. 704. The Secretary of Agriculture may transfer unobligated 
balances of discretionary funds appropriated by this Act or other 
available unobligated discretionary balances of the Department of 
Agriculture to the Working Capital Fund for the acquisition of plant and 
capital equipment necessary for the delivery of financial, 
administrative, and information technology services of primary benefit 
to the agencies of the Department of Agriculture: Provided, That none of 
the funds made available by this Act or any other Act shall be 
transferred to the Working Capital Fund without the prior approval of 
the agency administrator: Provided further, That none of the funds 
transferred to the Working Capital Fund pursuant to this section shall 
be available for obligation [without the] unless prior [approval of] 
notification has been transmitted to the Committees on Appropriations of 
both Houses of Congress.
    Sec. 705. New obligational authority provided for the following 
appropriation items in this Act shall remain available until expended: 
Animal and Plant Health Inspection Service, the contingency fund to meet 
emergency conditions, information technology infrastructure, fruit fly 
program, emerging plant pests, boll weevil program, [and] up to 25 
percent of the screwworm program, and up to $6,000,000 in the emergency 
management systems program for the vaccine bank; 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.

[[Page 194]]

    Sec. 706. No part of any appropriation contained in this Act shall 
remain available for obligation beyond the current fiscal year unless 
expressly so provided herein.
    Sec. 707. Not to exceed $50,000 of the appropriations available to 
the Department of Agriculture in this Act shall be available to provide 
appropriate orientation and language training pursuant to section 606C 
of the Act of August 28, 1954 (7 U.S.C. 1766b).
    Sec. 708. No funds appropriated by this Act may be used to pay 
negotiated indirect cost rates on cooperative agreements or similar 
arrangements between the United States Department of Agriculture and 
nonprofit institutions in excess of 10 percent of the total direct cost 
of the agreement when the purpose of such cooperative arrangements is to 
carry out programs of mutual interest between the two parties. This does 
not preclude appropriate payment of indirect costs on grants and 
contracts with such institutions when such indirect costs are computed 
on a similar basis for all agencies for which appropriations are 
provided in this Act.
    Sec. 709. None of the funds in this Act shall be available to 
restrict the authority of the Commodity Credit Corporation to lease 
space for its own use or to lease space on behalf of other agencies of 
the Department of Agriculture when such space will be jointly occupied.
    Sec. 710. None of the funds in this Act shall be available to pay 
indirect costs charged against competitive agricultural research, 
education, or extension grant awards issued by the Cooperative State 
Research, Education, and Extension Service that exceed [20] 25 percent 
of total Federal funds provided under each award: Provided, That 
notwithstanding section 1462 of the National Agricultural Research, 
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3310), funds 
provided by this Act for grants awarded competitively by the Cooperative 
State Research, Education, and Extension Service shall be available to 
pay full allowable indirect costs for each grant awarded under section 9 
of the Small Business Act (15 U.S.C. 638).
    Sec. 711. Notwithstanding any other provision of this Act, all loan 
levels provided in this Act shall be considered estimates, not 
limitations.
    Sec. 712. Appropriations to the Department of Agriculture for the 
cost of direct and guaranteed loans made available in the current fiscal 
year shall remain available until expended to cover obligations made in 
the current fiscal year for the following accounts: the Rural 
Development Loan Fund program account, the Rural Telephone Bank program 
account, the Rural Electrification and Telecommunication Loans program 
account, the Rural Housing Insurance Fund program account, and the Rural 
Economic Development Loans program account.
    [Sec. 713. None of the funds in this Act may be used to retire more 
than 5 percent of the Class A stock of the Rural Telephone Bank or to 
maintain any account or subaccount within the accounting records of the 
Rural Telephone Bank the creation of which has not specifically been 
authorized by statute: Provided, That notwithstanding any other 
provision of law, none of the funds appropriated or otherwise made 
available in this Act may be used to transfer to the Treasury or to the 
Federal Financing Bank any unobligated balance of the Rural Telephone 
Bank telephone liquidating account which is in excess of current 
requirements and such balance shall receive interest as set forth for 
financial accounts in section 505(c) of the Federal Credit Reform Act of 
1990.]
    [Sec. 714. Of the funds made available by this Act, not more than 
$1,800,000 shall be used to cover necessary expenses of activities 
related to all advisory committees, panels, commissions, and task forces 
of the Department of Agriculture, except for panels used to comply with 
negotiated rule makings and panels used to evaluate competitively 
awarded grants.]
    Sec. [715] 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. 716. No employee of the Department of Agriculture may be 
detailed or assigned from an agency or office funded by this Act to any 
other agency or office of the Department for more than 30 days unless 
the individual's employing agency or office is fully reimbursed by the 
receiving agency or office for the salary and expenses of the employee 
for the period of assignment.]
    [Sec. 717. None of the funds appropriated or otherwise made 
available to the Department of Agriculture shall be used to transmit or 
otherwise make available to any non-Department of Agriculture employee 
questions or responses to questions that are a result of information 
requested for the appropriations hearing process.]
    Sec. [718] 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] unless prior [approval of] 
notification has been transmitted to the Committees on Appropriations of 
both Houses of Congress.
    [Sec. 719. (a) None of the funds provided by this Act, or provided 
by previous Appropriations Acts to the agencies funded by this Act that 
remain available for obligation or expenditure in the current fiscal 
year, or provided from any accounts in the Treasury of the United States 
derived by the collection of fees available to the agencies funded by 
this Act, shall be available for obligation or expenditure through a 
reprogramming of funds which: (1) creates new programs; (2) eliminates a 
program, project, or activity; (3) increases funds or personnel by any 
means for any project or activity for which funds have been denied or 
restricted; (4) relocates an office or employees; (5) reorganizes 
offices, programs, or activities; or (6) contracts out or privatizes any 
functions or activities presently performed by Federal employees; unless 
the Committees on Appropriations of both Houses of Congress are notified 
15 days in advance of such reprogramming of funds.
    (b) None of the funds provided by this Act, or provided by previous 
Appropriations Acts to the agencies funded by this Act that remain 
available for obligation or expenditure in the current fiscal year, or 
provided from any accounts in the Treasury of the United States derived 
by the collection of fees available to the agencies funded by this Act, 
shall be available for obligation or expenditure for activities, 
programs, or projects through a reprogramming of funds in excess of 
$500,000 or 10 percent, whichever is less, that: (1) augments existing 
programs, projects, or activities; (2) reduces by 10 percent funding for 
any existing program, project, or activity, or numbers of personnel by 
10 percent as approved by Congress; or (3) results from any general 
savings from a reduction in personnel which would result in a change in 
existing programs, activities, or projects as approved by Congress; 
unless the Committees on Appropriations of both Houses of Congress are 
notified 15 days in advance of such reprogramming of funds.
    (c) The Secretary of Agriculture, the Secretary of Health and Human 
Services, or the Chairman of the Commodity Futures Trading Commission 
shall notify the Committees on Appropriations of both Houses of Congress 
before implementing a program or activity not carried out during the 
previous fiscal year unless the program or activity is funded by this 
Act or specifically funded by any other Act.]
    Sec. [720] 715. With the exception of funds needed to administer and 
conduct oversight of grants awarded and obligations incurred in prior 
fiscal years, none of the funds appropriated or otherwise made available 
by this or any other Act may be used to pay the salaries and expenses of 
personnel to carry out the provisions of section 401 of Public Law 105-
185, the Initiative for Future Agriculture and Food Systems (7 U.S.C. 
7621). Funds under section 401 for fiscal year 2005 are hereby 
cancelled.
    [Sec. 721. None of the funds appropriated by this or any other Act 
shall be used to pay the salaries and expenses of personnel who prepare 
or submit appropriations language as part of the President's Budget 
submission to the Congress of the United States for programs under the 
jurisdiction of the Appropriations Subcommittees on Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies that 
assumes revenues or reflects a reduction from the previous year due to 
user fees proposals that have not been enacted into law prior to the 
submission of the Budget unless such Budget submission identifies which 
additional spending reductions should occur in the event the user fees 
proposals are not enacted prior to the date of the convening of a 
committee of conference for the fiscal year 2005 appropriations Act.]
    [Sec. 722. None of the funds made available by this or any other Act 
may be used to close or relocate a state Rural Development office unless 
or until cost effectiveness and enhancement of program delivery have 
been determined.]
    [Sec. 723. In addition to amounts otherwise appropriated or made 
available by this Act, $3,000,000 is appropriated for the purpose of 
providing Bill Emerson and Mickey Leland Hunger Fellowships, as 
authorized by Public Law 108-58.]

[[Page 195]]

    Sec. [724] 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. 725. Of any shipments of commodities made pursuant to section 
416(b) of the Agricultural Act of 1949 (7 U.S.C. 1431(b)), the Secretary 
of Agriculture shall, to the extent practicable, direct that tonnage 
equal in value to not more than $25,000,000 shall be made available to 
foreign countries to assist in mitigating the effects of the Human 
Immunodeficiency Virus and Acquired Immune Deficiency Syndrome on 
communities, including the provision of--
        (1) agricultural commodities to--
                (A) individuals with Human Immunodeficiency Virus or 
            Acquired Immune Deficiency Syndrome in the communities; and
                (B) households in the communities, particularly 
            individuals caring for orphaned children; and
        (2) agricultural commodities monetized to provide other 
    assistance (including assistance under microcredit and 
    microenterprise programs) to create or restore sustainable 
    livelihoods among individuals in the communities, particularly 
    individuals caring for orphaned children.]
    [Sec. 726. Section 375(e)(6)(B) of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2008j(e)(6)(B)) is amended by striking 
``$26,499,000'' and inserting ``$26,998,000''.]
    [Sec. 727. Notwithstanding any other provision of law, the Natural 
Resources Conservation Service may provide financial and technical 
assistance through the Watershed and Flood Prevention Operations program 
for the Kuhn Bayou and Ditch 26 Improvement projects in Arkansas, the 
Matanuska River erosion control project in Alaska, the DuPage County 
Sawmill Creek Watershed project in Illinois, and the Coal Creek project 
in Utah, and four flood control structures in Marmaton, Kansas.]
    [Sec. 728. Notwithstanding any other provision of law, the Secretary 
shall consider the County of Lawrence, Ohio; the City of Havelock, North 
Carolina; the City of Portsmouth, Ohio; the City of Binghamton, New 
York; the Town of Vestal, New York; the City of Ithaca, New York; the 
City of Casa Grande, Arizona; the City of Clarksdale, Mississippi; the 
City of Coachella, California; the City of Salinas, California; the City 
of Watsonville, California; the City of Hollister, California; the 
Municipality of Carolina, Puerto Rico; and the City of Kinston, North 
Carolina, as meeting the eligibility requirements for loans and grants 
programs in the Rural Development mission area.]
    [Sec. 729. Notwithstanding any other provision of law, the Natural 
Resources Conservation Service shall provide financial and technical 
assistance to the DuPage County, Illinois, Kress Creek Watershed Plan, 
from funds available for the Watershed and Flood Prevention Operations 
program, not to exceed $1,600,000 and Rockhouse Creek Watershed, Leslie 
County, Kentucky, not to exceed $1,000,000.]
    [Sec. 730. None of the funds made available in this Act may be 
transferred to any department, agency, or instrumentality of the United 
States Government, except pursuant to a transfer made by, or transfer 
authority provided in, this or any other appropriation Act.]
    [Sec. 731. None of the funds made available to the Food and Drug 
Administration by this Act shall be used to close or relocate, or to 
plan to close or relocate, the Food and Drug Administration Division of 
Pharmaceutical Analysis in St. Louis, Missouri, outside the city or 
county limits of St. Louis, Missouri.]
    Sec. [732] 717. Agencies and offices of the Department of 
Agriculture may utilize any unobligated salaries and expenses funds to 
reimburse the Office of the General Counsel for salaries and expenses of 
personnel, and for other related expenses, incurred in representing such 
agencies and offices in the resolution of complaints by employees or 
applicants for employment, and in cases and other matters pending before 
the Equal Employment Opportunity Commission, the Federal Labor Relations 
Authority, or the Merit Systems Protection Board [with the prior 
approval of] after notification has been transmitted to the Committees 
on Appropriations of both Houses of Congress.
    Sec. [733] 718. Notwithstanding any other provision of law, of the 
funds made available in this Act for competitive research grants (7 
U.S.C. 450i(b)), the Secretary may use up to 20 percent of the amount 
provided to carry out a competitive grants program under the same terms 
and conditions as those provided in section 401 of the Agricultural 
Research, Extension, and Education Reform Act of 1998 (7 U.S.C. 7621)[, 
including requests for proposals for grants for critical emerging issues 
described in section 401(c)(1) of that Act for which the Secretary has 
not issued requests for proposals for grants in fiscal year 2002 or 
2003].
    [Sec. 734. None of the funds appropriated or made available by this 
or any other Act may be used to pay the salaries and expenses of 
personnel to carry out section 14(h)(1) of the Watershed Protection and 
Flood Prevention Act (16 U.S.C. 1012(h)(1)).]
    [Sec. 735. Notwithstanding any other provision of law, the Natural 
Resources Conservation Service shall provide financial and technical 
assistance through the Watershed and Flood Prevention Operations program 
to carry out the Upper Tygart Valley Watershed project, West Virginia: 
Provided, That the Natural Resources Conservation Service is authorized 
to provide 100 percent of the engineering assistance and 75 percent cost 
share for installation of the water supply component of this project.]
    [Sec. 736. None of the funds appropriated or made available by this 
or any other Act may be used to pay the salaries and expenses of 
personnel to carry out subtitle I of the Consolidated Farm and Rural 
Development Act (7 U.S.C. 2009dd through dd-7).]
    [Sec. 737. None of the funds appropriated or made available by this 
or any other Act may be used to pay the salaries and expenses of 
personnel to carry out section 6405 of Public Law 107-171 (7 U.S.C. 
2655).]
    [Sec. 738. 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 provisions of sections 7404(a)(1) and 
7404(c)(1) of Public Law 107-171.]
    [Sec. 739. The Agricultural Marketing Service and the Grain 
Inspection, Packers and Stockyards Administration, that have statutory 
authority to purchase interest bearing investments outside of the 
Treasury, are not required to establish obligations and outlays for 
those investments, provided those investments are insured by the Federal 
Deposit Insurance Corporation or are collateralized at the Federal 
Reserve with securities approved by the Federal Reserve, operating under 
the guidelines of the United States Department of the Treasury.]
    [Sec. 740. Of the funds made available under section 27(a) of the 
Food Stamp Act of 1977 (7 U.S.C. 2011 et seq.), the Secretary may use up 
to $10,000,000 for costs associated with the distribution of 
commodities.]
    [Sec. 741. 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 enroll in excess of 189,144 acres in the 
calendar year 2004 wetlands reserve program as authorized by 16 U.S.C. 
3837.]
    [Sec. 742. None of the funds made available in fiscal year 2004 or 
preceding fiscal years for programs authorized under the Agricultural 
Trade Development and Assistance Act of 1954 (7 U.S.C. 1691 et seq.) in 
excess of $20,000,000 shall be used to reimburse the Commodity Credit 
Corporation for the release of eligible commodities under section 
302(f)(2)(A) of the Bill Emerson Humanitarian Trust Act (7 U.S.C. 1736f-
1): Provided, That any such funds made available to reimburse the 
Commodity Credit Corporation shall only be used pursuant to section 
302(b)(2)(B)(i) of the Bill Emerson Humanitarian Trust Act.]
    [Sec. 743. 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 who carry out an environmental quality incentives 
program authorized by chapter 4 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3839aa et seq.) in excess of 
$975,000,000.]
    [Sec. 744. Notwithstanding any other provision of law, the Natural 
Resources Conservation Service may provide from appropriated funds 
financial and technical assistance to the Dry Creek project, Utah.]
    Sec. [745] 719. The Secretary of Agriculture is authorized to permit 
employees of the United States Department of Agriculture to carry and 
use firearms for personal protection while conducting field work in 
remote locations in the performance of their official duties.
    Sec. [746] 720. 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 expend the $23,000,000 made available by 
section 9006(f) of the Farm Security and Rural Investment Act of 2002 (7 
U.S.C. 8106(f)).
    [Sec. 747. Access to Broadband Telecommunications Services in Rural 
Areas. 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 expend the $20,000,000 made available

[[Page 196]]

by section 601(j)(1)(A) of the Rural Electrification Act of 1936 (7 
U.S.C. 950bb(j)(1)(A)) for fiscal year 2004.]
    [Sec. 748. 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 expend the $40,000,000 made available by 
section 231(b)(4) of the Agricultural Risk Protection Act of 2000 (7 
U.S.C. 1621 note) for fiscal year 2004.]
    [Sec. 749. Section 285 of the Agricultural Marketing Act of 1946 (16 
U.S.C. 1638d et seq.) is amended by striking ``2004'' and inserting in 
lieu thereof ``2006, except for `farm-raised fish' and `wild fish' which 
shall be September 30, 2004''.]
    [Sec. 750. (a) Notwithstanding subsections (c) and (e)(2) of section 
313A of the Rural Electrification Act (7 U.S.C. 940c(c) and (e)(2)) in 
implementing section 313A of that Act, the Secretary shall, with the 
consent of the lender, structure the schedule for payment of the annual 
fee, not to exceed an average of 30 basis points per year for the term 
of the loan, to ensure that sufficient funds are available to pay the 
subsidy costs for note guarantees under that section; and
    (b) The Secretary shall publish a proposed rule to carry out section 
313A of the Rural Electrification Act of 1936 within 60 days of 
enactment of this Act.]
    [Sec. 751. Any unobligated balances in the Alternative Agricultural 
Research and Commercialization Revolving Fund are hereby rescinded.]
    [Sec. 752. Not more than $41,443,000 for fiscal year 2004 of the 
funds appropriated or otherwise made available by this or any other Act 
shall be used to carry out the conservation security program established 
under subchapter A of chapter 2 of subtitle D of title XII of the Food 
Security Act of 1985 (16 U.S.C. 3838 et seq.).]
    [Sec. 753. 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 a ground and surface water 
conservation program authorized by section 2301 of Public Law 107-171, 
the Farm Security and Rural Investment Act of 2002, in excess of 
$51,000,000.]
    [Sec. 754. 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 section 2502 of Public Law 107-171, 
the Farm Security and Rural Investment Act of 2002, in excess of 
$42,000,000.]
    [Sec. 755. 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 section 2503 of Public Law 107-171, 
the Farm Security and Rural Investment Act of 2002, in excess of 
$112,044,000.]
    [Sec. 756. (a) Assistance for Commercial Tree Losses.--The Secretary 
of Agriculture shall use $5,000,000 of the funds of the Commodity Credit 
Corporation to provide assistance under the Tree Assistance Program, 
subtitle C of title X of the Farm Security and Rural Investment Act of 
2002 (7 U.S.C. 8201 et seq.), to tree-fruit growers located in a 
federally declared disaster area in the State of New York who suffered 
tree losses in 2003 as a result of an April 4-6, 2003, icestorm.
    (b) The Secretary of Agriculture shall use $10,000,000 of the funds 
of the Commodity Credit Corporation, to remain available until expended, 
to compensate commercial citrus and lime growers in the State of Florida 
for tree replacement and for lost production with respect to trees 
removed to control citrus canker, and with respect to certified citrus 
nursery stocks within the citrus canker quarantine areas, as determined 
by the Secretary. For a grower to receive assistance for a tree under 
this section, the tree must have been removed after September 30, 2001.]
    [Sec. 757. There is hereby appropriated $1,500,000 to carry out 
section 6028 of Public Law 107-171, the Farm Security and Rural 
Investment Act of 2002: Provided, That notwithstanding section 
383B(g)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 
2009bb-1(g)(1)), the Federal share of the administrative expenses of the 
Northern Great Plains Regional Authority for fiscal year 2004 shall be 
100 percent.]
    [Sec. 758. Section 204(a)(3) of the Agricultural Trade Development 
and Assistance Act of 1954 (7 U.S.C. 1724(a)(3)) is amended by striking 
everything from ``the Committee on Foreign Affairs'' through ``the 
Committee on'' and inserting in lieu thereof ``the Committees on 
International Relations, Agriculture and Appropriations of the House of 
Representatives, and the Committees on Appropriations and''.]
    [Sec. 759. None of the funds appropriated or made available by this 
or any other Act may be used to pay the salaries and expenses of 
personnel to carry out section 6029 of Public Law 107-171, the Farm 
Security and Rural Investment Act of 2002: Provided, That this section 
shall not apply to activities related to the promulgation of regulations 
or the receipt and review of applications for the Rural Business 
Investment Program.]
    [Sec. 760. None of the funds appropriated or otherwise made 
available in this Act shall be expended to violate Public Law 105-264.]
    [Sec. 761. Cost-Sharing for Animal and Plant Health Emergency 
Programs. None of the funds made available by this Act may be used to 
issue a final rule in furtherance of, or otherwise implement, the 
proposed rule on cost-sharing for animal and plant health emergency 
programs of the Animal and Plant Health Inspection Service published on 
July 8, 2003 (Docket No. 02-062-1; 68 Fed. Reg. 40541).]
    Sec. [762] 721. Agencies and offices of the Department of 
Agriculture may utilize any available discretionary funds to cover the 
costs of preparing, or contracting for the preparation of, final agency 
decisions regarding complaints of discrimination in employment or 
program activities arising within such agencies and offices.
    [Sec. 763. Notwithstanding any other provision of law, for any 
fiscal year, in the case of a high cost isolated rural area in Alaska 
that is not connected to a road system, the maximum level for the single 
family housing assistance shall be 150 percent of the average income 
level in the metropolitan areas of the State and 115 percent of all 
other eligible areas of the State.]
    [Sec. 764. There is hereby appropriated $1,000,000, to remain 
available until expended, for the Denali Commission to address 
deficiencies in solid waste disposal sites which threaten to contaminate 
rural drinking water supplies.]
    [Sec. 765. Notwithstanding any other provision of law, the Secretary 
shall consider the City of Vicksburg, Mississippi; the City of Aberdeen, 
South Dakota; and the City of Starkville, Mississippi as meeting the 
requirements of a rural area contained in section 520 of the Housing Act 
of 1949 (42 U.S.C. 1490) until receipt of the decennial Census for the 
year 2010.]
    [Sec. 766. Notwithstanding any other provision of law, the Secretary 
shall consider the City of Berlin, New Hampshire; the City of Guymon, 
Oklahoma; the City of Shawnee, Oklahoma; and the City of Altus, 
Oklahoma, to be eligible for loans and grants provided through the Rural 
Community Advancement Program until receipt of the decennial Census in 
the year 2010.]
    [Sec. 767. None of the funds made available in this Act may be used 
to study, complete a study of, or enter into a contract with a private 
party to carry out, without specific authorization in a subsequent Act 
of Congress, a competitive sourcing activity of the Secretary of 
Agriculture, including support personnel of the Department of 
Agriculture, relating to rural development or farm loan programs.]
    [Sec. 768. Section 501(b)(5)(B) of the Housing Act of 1949 (42 
U.S.C. 1471(b)(5)(B)) is amended by striking ``for fiscal years 2002 and 
2003,''.]
    [Sec. 769. Agricultural Management Assistance. Section 524(b)(4)(B) 
of the Federal Crop Insurance Act (7 U.S.C. 1524(b)(4)(B)) is amended--
        (1) in clause (i), by striking ``clause (ii)'' and inserting 
    ``clauses (ii) and (iii)''; and
        (2) by adding at the end the following:
    ``(iii) Certain uses.--Of the amounts made available to carry out 
this subsection for each fiscal years 2004 through 2007 the Commodity 
Credit Corporation shall use not less than--
    ``(I) $14,000,000 to carry out subparagraphs (A), (B), and (C) of 
            paragraph (2) through the Natural Resources Conservation 
            Service;
    ``(II) $1,000,000 to provide organic certification cost share 
            assistance through the Agricultural Marketing Service; and
    ``(III) $5,000,000 to conduct activities to carry out subparagraph 
            (F) of paragraph (2) through the Risk Management Agency.''.
    Sec. 770. Hereafter, no funds provided in this or any other Act 
shall be available to the Secretary of Agriculture acting through the 
Foreign Agricultural Service to promote the sale or export of tobacco or 
tobacco products.]
    [Sec. 771. In General.--Section 3(o)(4) of the Food Stamp Act of 
1977, as amended (7 U.S.C. 2012(o)(4)), is amended by inserting before 
the period at the end the following: ``, and except that on October 1, 
2003, in the case of households residing in Alaska and Hawaii the 
Secretary may not reduce the cost of such diet in effect on September 
30, 2002''.
    (b) Effective Date.--The amendment made by subsection (a) shall be 
effective beginning on September 30, 2003.]

[[Page 197]]

    [Sec. 772. Section 601(b)(2) of the Rural Electrification Act of 
1936 (7 U.S.C. 950bb(b)(2)) is amended to read as follows:
        ``(2) Eligible rural community.--The term `eligible rural 
    community' means any area of the United States that is not contained 
    in an incorporated city or town with a population in excess of 
    20,000 inhabitants.''.]
    [Sec. 773. Notwithstanding any other provision of law, for all 
activities under programs of the Rural Development Mission Area within 
the County of Honolulu, Hawaii, the Secretary may designate any portion 
of the county as a rural area or eligible rural community that the 
Secretary determines is not urban in character: Provided, That the 
Secretary shall not include in any such rural area or eligible rural 
community any area included in the Honolulu Census Designated Place as 
determined by the Secretary of Commerce.]
    [Sec. 774. The first sentence of section 306(g)(1) of the National 
Housing Act (12 U.S.C. 1721(g)(1)) is amended--
        (1) by striking ``or title V of the Housing Act of 1949''; and
        (2) by inserting after ``1944'' the following: ``, title V of 
    the Housing Act of 1949,''.]
    [Sec. 775. Notwithstanding the provisions of the Consolidated Farm 
and Rural Development Act (including the associated regulations) 
governing the Community Facilities Program, the Secretary may allow all 
Community Facility Program facility borrowers and grantees to enter into 
contracts with not-for-profit third parties for services consistent with 
the requirements of the Program, grant, and/or loan: Provided, That the 
contracts protect the interests of the Government regarding cost, 
liability, maintenance, and administrative fees.]
    Sec. [776] 722. Notwithstanding any other provision of law, the 
Secretary of Agriculture may use appropriations available to the 
Secretary for activities authorized under sections 426-426c of title 7, 
United States Code, under this or any other Act, to enter into 
cooperative agreements, with a State, political subdivision, or agency 
thereof, a public or private agency, organization, or any other person, 
to lease aircraft if the Secretary determines that the objectives of the 
agreement will: (1) serve a mutual interest of the parties to the 
agreement in carrying out the programs administered by the Animal and 
Plant Health Inspection Service, Wildlife Services; and (2) all parties 
will contribute resources to the accomplishment of these objectives; 
award of a cooperative agreement authorized by the Secretary may be made 
for an initial term not to exceed 5 years.
    [Sec. 777. Citrus Canker Assistance.--Section 211 of the 
Agricultural Assistance Act of 2003 (117 Stat. 545) is amended--
        (1) in the section heading, by inserting ``TREE REPLACEMENT 
    AND'' after ``FOR''; and
        (2) in subsection (a), by inserting ``tree replacement and'' 
    after ``Florida for''.]
    [Sec. 778. Sun Grant Research Initiative. (a) Short Title.--This 
section may be cited as the ``Sun Grant Research Initiative Act of 
2003''.
    (b) Research, Extension, and Educational Programs on Biobased Energy 
Technologies and Products.--Title IX of the Farm Security and Rural 
Investment Act of 2002 (7 U.S.C. 8101 et seq.) is amended by adding at 
the end the following:

 ``SEC. 9011. RESEARCH, EXTENSION, AND EDUCATIONAL PROGRAMS ON BIOBASED 
                    ENERGY TECHNOLOGIES AND PRODUCTS.

    ``(a) Purposes.--The purposes of the programs established under this 
section are--
        ``(1) to enhance national energy security through the 
    development, distribution, and implementation of biobased energy 
    technologies;
        ``(2) to promote diversification in, and the environmental 
    sustainability of, agricultural production in the United States 
    through biobased energy and product technologies;
        ``(3) to promote economic diversification in rural areas of the 
    United States through biobased energy and product technologies; and
        ``(4) to enhance the efficiency of bioenergy and biomass 
    research and development programs through improved coordination and 
    collaboration between the Department of Agriculture, the Department 
    of Energy, and the land-grant colleges and universities.
    ``(b) Definitions.--In this section:
        ``(1) Land-grant colleges and universities.--The term `land-
    grant colleges and universities' means--
                ``(A) 1862 Institutions (as defined in section 2 of the 
            Agricultural Research, Extension, and Education Reform Act 
            of 1998 (7 U.S.C. 7601));
                ``(B) 1890 Institutions (as defined in section 2 of that 
            Act) and West Virginia State College; and
                ``(C) 1994 Institutions (as defined in section 2 of that 
            Act).
        ``(2) Secretary.--The term `Secretary' means the Secretary of 
    Agriculture.
    ``(c) Establishment.--To carry out the purposes described in 
subsection (a), the Secretary shall establish programs under which--
        ``(1) the Secretary shall provide grants to sun grant centers 
    specified in subsection (d); and
        ``(2) the sun grant centers shall use the grants in accordance 
    with this section.
    ``(d) Grants to Centers.--The Secretary shall use amounts made 
available for a fiscal year under subsection (j) to provide a grants in 
equal amounts to each of the following sun grant centers:
        ``(1) North-central center.--A north-central sun grant center at 
    South Dakota State University for the region composed of the States 
    of Illinois, Indiana, Iowa, Minnesota, Montana, Nebraska, North 
    Dakota, South Dakota, Wisconsin, and Wyoming.
        ``(2) Southeastern center.--A southeastern sun grant center at 
    the University of Tennessee at Knoxville for the region composed 
    of--
                ``(A) the States of Alabama, Florida, Georgia, Kentucky, 
            Mississippi, North Carolina, South Carolina, Tennessee, and 
            Virginia;
                ``(B) the Commonwealth of Puerto Rico; and
                ``(C) the United States Virgin Islands.
        ``(3) South-central center.--A south-central sun grant center at 
    Oklahoma State University for the region composed of the States of 
    Arkansas, Colorado, Kansas, Louisiana, Missouri, New Mexico, 
    Oklahoma, and Texas.
        ``(4) Western center.--A western sun grant center at Oregon 
    State University for the region composed of--
                ``(A) the States of Alaska, Arizona, California, Hawaii, 
            Idaho, Nevada, Oregon, Utah, and Washington; and
                ``(B) territories and possessions of the United States 
            (other than the territories referred to in subparagraphs (B) 
            and (C) of paragraph (2)).
        ``(5) Northeastern center.--A northeastern sun grant center at 
    Cornell University for the region composed of the States of 
    Connecticut, Delaware, Massachusetts, Maryland, Maine, Michigan, New 
    Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, 
    Vermont, and West Virginia.
    ``(e) Use of Funds.--
        ``(1) Centers of excellence.--Of the amount of funds that are 
    made available for a fiscal year to a sun grant center under 
    subsection (d), the center shall use not more than 25 percent of the 
    amount for administration to support excellence in science, 
    engineering, and economics at the center to promote the purposes 
    described in subsection (a) through the State agricultural 
    experiment station, cooperative extension services, and relevant 
    educational programs of the university.
        ``(2) Grants to land-grant colleges and universities.--
                ``(A) In general.--The sun grant center established for 
            a region shall use the funds that remain available for a 
            fiscal year after expenditures made under paragraph (1) to 
            provide competitive grants to land-grant colleges and 
            universities in the region of the sun grant center to 
            conduct, consistent with the purposes described in 
            subsection (a), multiinstitutional and multistate--
    ``(i) research, extension, and educational programs on technology 
development; and
    ``(ii) integrated research, extension, and educational programs on 
technology implementation.
                ``(B) Programs.--Of the amount of funds that are used to 
            provide grants for a fiscal year under subparagraph (A), the 
            center shall use--
    ``(i) not less than 30 percent of the funds to carry out programs 
described in subparagraph (A)(i); and
    ``(ii) not less than 30 percent of the funds to carry out programs 
described in subparagraph (A)(ii).
        ``(3) Indirect costs.--A sun grant center may not recover the 
    indirect costs of making grants under paragraph (2) to other land-
    grant colleges and universities.
    ``(f) Plan.--
        ``(1) In general.--Subject to the availability of funds under 
    subsection (j), in cooperation with other land-grant colleges and 
    universities and private industry in accordance with paragraph (2), 
    the sun grant centers shall jointly develop and submit to the 
    Secretary,

[[Page 198]]

    for approval, a plan for addressing at the State and regional levels 
    the bioenergy, biomass, and gasification research priorities of the 
    Department of Agriculture and the Department of Energy for the 
    making of grants under paragraphs (1) and (2) of subsection (e).
        ``(2) Gasification coordination.--
                ``(A) In general.--In developing the plan under 
            paragraph (1) with respect to gasification research, the sun 
            grant centers identified in paragraphs (1) and (2) of 
            subsection (d) shall coordinate with land grant colleges and 
            universities in their respective regions that have ongoing 
            research activities with respect to the research.
                ``(B) Funding.--Funds made available under subsection 
            (d) to the sun grant center identified in subsection (e)(2) 
            shall be available to carry out planning coordination under 
            paragraph (1) of this subsection.
    ``(g) Grants to Other Land-Grant Colleges and Universities.--
        ``(1) Priority for grants.--In making grants under subsection 
    (e)(2), a sun grant center shall give a higher priority to programs 
    that are consistent with the plan approved by the Secretary under 
    subsection (f).
        ``(2) Term of grants.--The term of a grant provided by a sun 
    grant center under subsection (e)(2) shall not exceed 5 years.
    ``(h) Grant Information Analysis Center.--The sun grant centers 
shall maintain a Sun Grant Information Analysis Center at the sun grant 
center specified in subsection (d)(1) to provide sun grant centers 
analysis and data management support.
    ``(i) Annual Reports.--Not later than 90 days after the end of a 
year for which a sun grant center receives a grant under subsection (d), 
the sun grant center shall submit to the Secretary a report that 
describes the policies, priorities, and operations of the program 
carried out by the center during the year, including a description of 
progress made in facilitating the priorities described in subsection 
(f).
    ``(j) Authorization of Appropriations.--
        ``(1) In general.--There are authorized to be appropriated to 
    carry out this section--
                ``(A) $25,000,000 for fiscal year 2005;
                ``(B) $50,000,000 for fiscal year 2006; and
                ``(C) $75,000,000 for each of fiscal years 2007 through 
            2010.
        ``(2) Grant information analysis center.--Of amounts made 
    available under paragraph (1), not more than $4,000,000 for each 
    fiscal year shall be made available to carry out subsection (h).''.]
    [Sec. 779. Rural Electrification. For fiscal year 2004, the 
Secretary of Agriculture may use any unobligated carryover funds made 
available for any program administered by the Rural Utilities Service 
(not including funds made available under the heading ``Rural Community 
Advancement Program'' in any Act of appropriation) to carry out section 
315 of the Rural Electrification Act of 1936 (7 U.S.C. 940e).]
    [Sec. 780. Limitation on Allocation of Purchase Prices for Butter 
and Nonfat Dry Milk. None of the funds made available by this Act may be 
used to pay the salaries or expenses of employees of the Department of 
Agriculture to allocate the rate of price support between the purchase 
prices for nonfat dry milk and butter in a manner that does not support 
the price of milk in accordance with section 1501(b) of the Farm 
Security and Rural Investment Act of 2002 (7 U.S.C. 7981(b)).]
    [Sec. 781. Emergency Watershed Protection Program. Notwithstanding 
any other provision of law, the Secretary of Agriculture is authorized 
to make funding and other assistance available through the emergency 
watershed protection program under section 403 of the Agricultural 
Credit Act of 1978 (16 U.S.C. 2203) to repair and prevent damage to non-
Federal land in watersheds that have been impaired by fires initiated by 
the Federal Government and to waive cost sharing requirements for the 
funding and assistance.]
    [Sec. 782. The Secretary may waive the requirements regarding small 
and emerging rural business as authorized under the Rural Business 
Enterprise Grant program for the purpose of a lease for the Oakridge 
Oregon Industrial Park.]
    [Sec. 783. Water and Waste Disposal Grant to the Alaska Department 
of Community and Economic Development. Notwithstanding any other 
provision of law--
        (1) the Alaska Department of Community and Economic Development 
    shall be eligible to receive a water and waste disposal grant under 
    section 306(a) of the Consolidated Farm and Rural Development Act (7 
    U.S.C. 1926(a)) in an amount that is equal to not more than 75 
    percent of the total cost of providing water and sewer service to 
    the proposed hospital in the Matanuska-Susitna Borough, Alaska; and
        (2) the Alaska Department of Community and Economic Development 
    shall be allowed to pass the grant funds through to the local 
    government entity that will provide water and sewer service to the 
    hospital.]
    [Sec. 784. None of the funds provided in this Act may be used for 
salaries and expenses to carry out any regulation or rule insofar as it 
would make ineligible for enrollment in the conservation reserve program 
established under subchapter B of chapter 1 of subtitle D of title XII 
of the Food Security Act of 1985 (16 U.S.C. 3831 et seq.) land that is 
planted to hardwood trees as of the date of enactment of this Act and 
was enrolled in the conservation reserve program under a contract that 
expired prior to calendar year 2002.]
    [Sec. 785. Water and Waste Disposal Grant to the City of Postville, 
Iowa. Notwithstanding any other provision of law, the City of Postville, 
Iowa, shall be eligible to receive a water and waste disposal grant 
under section 306(a) of the Consolidated Farm and Rural Development Act 
(7 U.S.C. 1926(a)) in an amount that is equal to not more than 75 
percent of the total cost of providing water and sewer service in the 
city.]
    [Sec. 786. None of the funds appropriated or otherwise made 
available by this Act shall be used to pay the salaries and expenses of 
personnel to implement a reorganization of regional conservationists 
and/or regional offices of the Natural Resources Conservation Service 
without the prior approval of the Committees on Appropriations.]
    [Sec. 787. Of the unobligated balance available to the Food Safety 
and Inspection Service for the field automation and information 
management project at the beginning of fiscal year 2004, $5,000,000 is 
hereby rescinded.]
    Sec. [788] 723. The matter under the heading ``Integrated 
Activities'' in Division A--Agriculture, Rural Development, Food and 
Drug Administration, and Related Agencies Programs Appropriations, 2003, 
Title I--Agricultural Programs, in Public Law 108-7 is amended by 
striking ``7 U.S.C. 3291'' and inserting in its place ``7 U.S.C. 
3292b''.
    [Sec. 789. Notwithstanding any other provision of law, the City of 
Great Falls, Montana shall be considered a rural area for purposes of 
eligibility for business and industry guaranteed loans under section 
310B(a)(1) of the Consolidated Farm and Rural Development Act (7 U.S.C. 
1932(a)(1)).]
    Sec. 724. 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 $1,000,000,000;
    (b) a wildlife habitat incentives program authorized by 16 U.S.C. 
3839bb, et seq., in excess of $60,000,000;
    (c) a forest land enhancement program authorized by section 8002 of 
Public Law 107-171. Not less than $40,000,000 of funds under such 
section are hereby cancelled;
    (d) a conservation security program authorized by 16 U.S.C. 3838, et 
seq., in excess of $209,411,000;
    (e) a rural strategic investment program as authorized by section 
6030 of Public Law 107-171. Funds under such section for fiscal year 
2005 are hereby cancelled;
    (f)(1) Section 384S(a)(1) of the Consolidated Farm and Rural 
Development Act (as amended by the Farm Security and Rural Investment 
Act of 2002) is further amended by striking ``$280,000,000'' and 
inserting ``$60,000,000''; and
    (2) From the funds made available by section 384S(a)(2) of the 
Consolidated Farm and Rural Development Act (as amended by the Farm 
Security and Rural Investment Act of 2002), $21,000,000 is cancelled;
    (g) a small watershed rehabilitation program as authorized by 
section 14(h)(1) of 16 U.S.C. 1012(h)(1). Funds under such section for 
fiscal year 2005 are hereby cancelled;
    (h) a rural firefighter grant program as authorized by section 6405 
of Public Law 107-171. Funds under such section for fiscal year 2005 are 
hereby cancelled;
    (i) a broadband program as authorized by section 601(j)(A) of 7 
U.S.C. 950bb(j)(1)(A). Funds under such section for fiscal year 2005 are 
hereby cancelled;

[[Page 199]]

    (j) a value added grant program as authorized by section 231(b)(4) 
of 7 U.S.C. 1621 note. Funds under such section for fiscal year 2005 are 
hereby cancelled;
    (k) a bioenergy program as authorized by section 9010 of Public Law 
107-171. Funds under such section in excess of $100,000,000, for fiscal 
year 2005 are hereby cancelled; and
    (l) a market access program authorized by section 211(c) of 7 U.S.C. 
5641(c). Funds under such section in excess of $125,000,000, for fiscal 
year 2005 are hereby cancelled.
    Sec. 725. Of the unobligated balances in the Local Television Loan 
Guarantee Program account, $44,000,000, are hereby rescinded.
    Sec. 726. 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.
    ``(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. 727. 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.
    ``(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. 728. Section 502(h)(6)(C) of the Housing Act of 1949 (42 U.S.C. 
1472(h)(6)(C)) is amended by adding, ``, plus the guarantee fee as 
authorized by subsection (h)(7)'' after the phrase, ``whichever is 
less'', in each of paragraphs (i) and (ii). (Division A, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

                                

    [Sec. 101. Section 1241(a)(3) of the Food Security Act of 1985 (16 
U.S.C. 3841(a)(3)) is amended by striking ``, using'' and all that 
follows through ``2013''.]
    [Sec. 102. (a) Of the funds appropriated under the heading 
``Emergency Preparedness and Response, Disaster Relief'' in chapter 2 of 
title I of Public Law 108-106, $225,000,000 are rescinded.]
    [(b) In addition to amounts appropriated in Public Law 108-108 for 
``Forest Service, Wildland Fire Management'' for hazardous fuels 
reduction, hazard mitigation, and rehabilitation activities of the 
Forest Service in southern California, $25,000,000, to remain available 
until expended.]
    [(c) In addition to amounts appropriated in Public Law 108-108 for 
``Forest Service, State and Private Forestry'' for hazard mitigation, 
fuels reduction, and forest health protection and mitigation activities 
on State and private lands in southern California, $25,000,000, to 
remain available until expended.]
    [(d) In addition to amounts made available elsewhere in this Act for 
the ``Department of Agriculture, Emergency Watershed Protection 
Program'' to carry out additional activities in response to the recent 
wildfires in southern California, including the provision of technical 
and financial assistance to respond to the tree mortality emergency in 
Los Angeles, Riverside, San Diego and San Bernardino Counties, 
California, $150,000,000, to remain available until expended.]
    [(e) For an additional amount for the tree assistance program in 
southern California under subtitle C of title X of the Farm Security and 
Rural Investment Act of 2002 (7 U.S.C. 8201 et seq.), $12,500,000.]
    [(f) For an additional amount for the emergency conservation program 
in southern California under title IV of the Agricultural Credit Act of 
1978 (16 U.S.C. 2201 et seq.), $12,000,000.]
    [(g) For an additional amount for the livestock indemnity program in 
southern California under the heading ``COMMODITY CREDIT CORPORATION 
FUND'' in chapter 1 of title I of the 1999 Emergency Supplemental 
Appropriations Act (Public Law 106-31; 113 Stat. 59), $500,000.]
    [(h) The amounts provided or made available by this section are 
designated by the Congress as an emergency requirement pursuant to 
section 502 of H. Con. Res. 95 (108th Congress), the concurrent 
resolution on the budget for fiscal year 2004.] (Division H, H.R. 2673, 
Consolidated Appropriations Bill, FY 2004.)

                                

                      General Fund Receipt Accounts

                           (in millions of dollars)

----------------------------------------------------------------------------
                                         2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
Offsetting receipts from the public:
  12-181100  National grasslands........          34          18          18
  12-270110  Agriculture credit 
    insurance, Negative subsidies.......           5           4           3
  12-270130  Agriculture credit 
    insurance, Downward reestimates of 
    subsidies...........................         350         988
  12-270210  Rural electrification and 
    telephone loans, Negative subsidies.          30          20          35
  12-270230  Rural electrification and 
    telephone loans, Downward 
    reestimates of subsidies............          37
  12-270330  Rural water and waste 
    disposal, Downward reestimates of 
    subsidies...........................          27
  12-270510  Rural community facility, 
    Negative subsidies..................           1
  12-270530  Rural community facility, 
    Downward reestimates of subsidies...           8
  12-270630  Rural housing insurance, 
    Downward reestimates of subsidies...         673
  12-270730  Rural business and 
    industry, Downward reestimates of 
    subsidies...........................           1
  12-270830  P.L. 480 loan program, 
    Downward reestimates of subsidies...         537          22
  12-271030  Rural development loans, 
    Downward reestimates of subsidies...           4
  12-271130  Rural telephone bank loans, 
    Downward reestimates of subsidies...           4          18
  12-271330  Economic development loans, 
    Downward reestimates of subsidies...           1
  12-271630  P.L. 480 loan program, food 
    for progress credits, Downward 
    reestimates of subsidies............         196          81
  12-274630  Downward reestimates, 
    distance learning, telemedicine, and 
    broadband program...................           1
  12-275610  Negative subsidies, farm 
    storage facility loans..............                       1           2
  12-275630  Farm storage facility 
    loans, Downward reestimate of 
    subsidies...........................           8          12
  12-275730  Commodity Credit 
    Corporation export guarantee 
    financing, Downward reestimate of 
    subsidies...........................         552         856
  12-277030  Agricultural resource 
    conservation demonstration, downward 
    reestimates of subsidies............                       1
                                           ---------   ---------  ----------
General Fund Offsetting receipts from 
 the public.............................       2,469       2,021          58
---------------------------------------------------------------------------

                                

                   Other Consolidated Receipt Accounts

                           (in millions of dollars)

----------------------------------------------------------------------------
                                         2003 actual   2004 est.   2005 est.
----------------------------------------------------------------------------
  12-977210  Miscellaneous contributed 
    funds...............................           1           1           1
---------------------------------------------------------------------------
