Appendix - Department of Agriculture

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

THE BUDGET FOR FISCAL YEAR 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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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

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)

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)

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)

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)

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)

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)

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)

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

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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]]

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)

Agricultural Credit Insurance Fund Direct Loan Financing Account

Program and Financing (in millions of dollars)

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)

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)

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)

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

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)

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)

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)

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)

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

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)

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)

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)

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)

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)

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)

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

Emergency Boll Weevil Direct Loan Financing Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1
22.00 New 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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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.

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)

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)

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)

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)

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)

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)

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)

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)

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.

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)

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)

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)

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)

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

[[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)

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)

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)

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

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)

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)

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)

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

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)

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)

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)

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

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)

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)

Rural Electrification and Telecommunications Direct Loan Financing
Account

Program and Financing (in millions of dollars)

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

This account finances loan guarantee commitments.

Rural Electrification and Telecommunications Liquidating Account

Program and Financing (in millions of dollars)

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

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)

Rural Telephone Bank Direct Loan Financing Account

Program and Financing (in millions of dollars)

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

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)

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.

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)

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)

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

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

P.L. 480 Direct Credit Financing Account

Program and Financing (in millions of dollars)

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)

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)

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)

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)

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)

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)

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)

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)

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

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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)

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

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)

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)

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)

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