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

                         THE BUDGET FOR FISCAL YEAR 2006

    [[Page 63]]

                            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, [$5,124,000] $5,127,000: 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, [$669,000] $676,000.

          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, [$3,852,000] $3,846,000: 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,
    [$592,000] $598,000.

       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; [$721,000] $724,000.

                  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, [$595,000] $602,000.

    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, [$631,000] $635,000.

       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, [$741,000] $744,000.

               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, [$632,000] $635,000.

     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,
    [$595,000] $599,000.

               Office of the Assistant Secretary for Civil Rights

        For necessary salaries and expenses of the Office of the Assistant
    Secretary for Civil Rights, [$818,000] $821,000. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9913-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Office of the Secretary...........           3           4           4
    00.02 Under/Assistant Secretaries.......           8           9           9
    00.03 Trade Negotiations and
            Biotechnology Resources.........                       2           2
    00.04 Info Share (CCE/HS)...............          10
    09.01 Homeland Security Reimbursable....          13
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          34          15          15
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          10           3           3
    22.00 New budget authority (gross)......          26          15          15
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          39          18          18
    23.95 Total new obligations.............         -34         -15         -15
    23.98 Unobligated balance expiring or
            withdrawn.......................          -2
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           3           3           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

    68.00   Offsetting collections (cash)...          14
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -3
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          11
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          26          15          15
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          29          14          14
    73.10 Total new obligations.............          34          15          15
    73.20 Total outlays (gross).............         -49         -15         -15
    73.45 Recoveries of prior year
            obligations.....................          -3
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          14          14          14
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          23          12          12
    86.93 Outlays from discretionary
            balances........................          26           3           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          49          15          15
    ----------------------------------------------------------------------------

    [[Page 64]]

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -14
          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..................          15          15          15
    90.00 Outlays...........................          35          15          15
    ---------------------------------------------------------------------------

        The Office of the Secretary covers the overall planning,
    coordination and administration of the Department's programs. This
    includes the Secretary, Deputy Secretary, Under Secretaries, Assistant
    Secretaries, and their immediate staffs, who provide top policy guidance
    for the Department; maintain relationships with agricultural
    organizations and others in the development of farm programs; and
    provide liaison with the Executive Office of the President and Members
    of Congress on all matters pertaining to agricultural policy.

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9913-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           9           9           9
    12.1    Civilian personnel benefits.....           2           2           2
    25.2    Other services..................          10           4           4
                                               ---------   ---------  ----------
    99.0      Direct obligations............          21          15          15
    99.0  Reimbursable obligations..........          13
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          34          15          15
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9913-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          79          87          87
    ---------------------------------------------------------------------------

                             Fund for Rural America

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0012-0-1-999      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          14           7
    73.20 Total outlays (gross).............          -7          -7
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           7           7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           7           7
    ---------------------------------------------------------------------------

        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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Receipts:
    02.00 Gifts and bequests, Departmental
            Administration..................           1           1           1
        Appropriations:
    05.00 Gifts and bequests................          -1          -1          -1
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8203-0-7-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 99.5)...................           1           1           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           3           3
    22.00 New budget authority (gross)......           1           1           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           3           4           4
    23.95 Total new obligations.............          -1          -1          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           3           3           3
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                       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),
    [$10,317,000] $10,539,000.

                            National Appeals Division

        For necessary expenses of the National Appeals Division,
    [$14,331,000] $14,524,000.

                      Office of Budget and Program Analysis

        For necessary expenses of the Office of Budget and Program Analysis,
    [$8,228,000] $8,298,000.

                             Homeland Security Staff

        For necessary expenses of the Homeland Security Staff, [$775,000]
    $1,466,000. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

    [[Page 65]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0705-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Chief Economist...................          11          10          11
    00.03 National Appeals Division.........          14          14          14
    00.04 Budget and Program Analysis.......           7           8           8
    00.05 Homeland Security Staff...........           1           1           1
    09.01 Reimbursable program..............           2           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          34          34          35
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                                   2
    22.00 New budget authority (gross)......          35          36          38
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          35          36          40
    23.95 Total new obligations.............         -34         -34         -35
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                       2           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          31          33          35
          Mandatory:

    62.00   Transferred from other accounts.           2           2           2
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).                       1           1
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           2
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....           2           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          35          36          38
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           7           8           6
    73.10 Total new obligations.............          34          34          35
    73.20 Total outlays (gross).............         -33         -36         -38
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -2
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           8           6           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          32          30          32
    86.93 Outlays from discretionary
            balances........................           1           4           4
    86.97 Outlays from new mandatory
            authority.......................                       2           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          33          36          38
    ----------------------------------------------------------------------------

        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)...................          -2
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          33          35          37
    90.00 Outlays...........................          31          35          37
    ---------------------------------------------------------------------------

        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

                                         2004 actual  2005 est.   2006 est.
    World Agricultural Supply and Demand
    Estimates Reports issued............          12          12          12
    Weekly Weather and Crop Bulletin
    issued..............................          52          52          52

        The National Appeals Division conducts administrative hearings and
    reviews of adverse program decisions made by the Farm Service Agency,
    the Risk Management Agency, the Natural Resources Conservation Service,
    and the Rural Development mission area.

        The Office of Budget and Program Analysis provides overall direction
    and administration of the Department's budgetary functions including:
    development, presentation, and execution of the budget; review of
    program and legislative proposals for programs and budget implications;
    and analysis of program issues and alternatives and preparation of
    summaries of pertinent data to aid Departmental policy officials and
    agency program managers in the decisionmaking process.

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0705-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          20          21          21
    12.1    Civilian personnel benefits.....           4           4           4
    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           1
    25.2    Other services..................           5           4           5
    31.0    Equipment.......................           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          33          33          34
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          34          34          35
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0705-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         228         270         271
        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,
    [$5,742,000] $5,874,000: 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 and the Committee on
    Government Reform of the House of Representatives a report on the
    Department's contracting out policies, including agency budgets for
    contracting out]. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0014-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................           6           6           6

    [[Page 66]]

    09.01 Reimbursable program..............           5           5           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          11          11          11
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           6           6           6
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...                       5           5
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           5
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......           5           5           5
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          11          11          11
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -6          -6          -6
    73.10 Total new obligations.............          11          11          11
    73.20 Total outlays (gross).............         -11         -11         -11
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -5
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           6
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          -6          -6          -6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          11          11          11
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -7          -5          -5
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -5
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           6           6           6
    90.00 Outlays...........................           4           6           6
    ---------------------------------------------------------------------------

        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

                                         2004 actual  2005 est.   2006 est.
    Achieve an unqualified opinion on
    the USDA financial statements....... Unqualified Unqualified Unqualified
    Anti-deficiency violations..........          No          No          No

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0014-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

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

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0014-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          33          48          48
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          15          15          15
    ---------------------------------------------------------------------------

                     Office of the Chief Information Officer

        For necessary expenses of the Office of the Chief Information
    Officer, [$16,595,000] $16,726,000. (Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies Appropriations Act,
    2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0013-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Office of the Chief Information
            Officer.........................          15          16          17
    09.01 Reimbursable program..............          41          39          38
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          56          55          55
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          56          55          55
    23.95 Total new obligations.............         -56         -55         -55
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          15          16          17
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          12          39          38
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          29
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          41          39          38
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          56          55          55
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -3          -7          -7
    73.10 Total new obligations.............          56          55          55
    73.20 Total outlays (gross).............         -47         -55         -55
    73.40 Adjustments in expired accounts
            (net)...........................           1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -29
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          15
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          -7          -7          -7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          27          55          55
    86.93 Outlays from discretionary
            balances........................          20
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          47          55          55
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -25         -39         -38
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -29
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          13
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          15          16          17

    [[Page 67]]

    90.00 Outlays...........................          22          16          17
    ---------------------------------------------------------------------------

        The Clinger-Cohen Act of 1996 required the establishment of a Chief
    Information Officer (CIO) for all major Federal agencies. The Act
    requires USDA to maximize the value of information technology
    acquisitions to improve the efficiency and effectiveness of USDA
    programs. To meet the intent of the law and to provide a Departmental
    focus for information resources management issues, Secretary's
    Memorandum 1030-30, dated August 8, 1996, established the Office of the
    Chief Information Officer (OCIO).

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

        OCIO is leading USDA's E-Government efforts, in coordination with
    the Presidential E-Government Initiatives, to transform the Department's
    delivery of information, programs, and services using E-Government
    channels. OCIO is designing the Department's Enterprise Architecture to
    efficiently support USDA's move towards E-Government 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 and service responsibility for the
    IT component of the Service Center Agencies' computing and
    telecommunications infrastructure. 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 2004     FY 2005     FY 2006
    Percent of all paper transactions
    identified as practicable for
    conversion to electronic access that
    will be completed by milestones.....         65%         85%        100%
    Percent of USDA IT Systems that are
    certified, accredited, or otherwise
    authorized as being properly secured         20%        100%        100%
    Percentage of USDA IT projects that
    are within costs/schedule/
    performance.........................       Est.
                                            Baseline        100%        100%

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0013-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           7           7           7
    12.1    Civilian personnel benefits.....           1           1           1
    25.2    Other services..................           3           4           4
    25.3    Other purchases of goods and
              services from Government
              accounts......................           3           3           3
    26.0    Supplies and materials..........           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          15          16          16
    99.0  Reimbursable obligations..........          40          39          38
    99.5  Below reporting threshold.........           1                       1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          56          55          55
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0013-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          66          72          72
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          17          11          11
    ---------------------------------------------------------------------------

                          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, [$125,585,000]
    $142,465,000, to remain available until expended, for the capital asset
    acquisition of shared information technology systems, including services
    as authorized by 7 U.S.C. 6915-16 and 40 U.S.C. 1421-28: Provided, That
    obligation of these funds shall be consistent with the Department of
    Agriculture Service Center Modernization Plan of the county-based
    agencies, and shall be with the concurrence of the Department's Chief
    Information Officer. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0113-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........         144         125         142
    09.01 Reimbursable program..............          69          31          15
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         213         156         157
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          37          13          13
    22.00 New budget authority (gross)......         189         156         157
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         226         169         170
    23.95 Total new obligations.............        -213        -156        -157
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          13          13          13
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         119         126         142
    40.35   Appropriation permanently
              reduced.......................          -1          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         118         125         142
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          58          31          15
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          13
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          71          31          15
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         189         156         157
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          62          68          68
    73.10 Total new obligations.............         213         156         157
    73.20 Total outlays (gross).............        -194        -156        -157
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -13
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          68          68          68
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         144         156         157
    86.93 Outlays from discretionary
            balances........................          50
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         194         156         157
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -58         -31         -15
          Against gross budget authority only:

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

    [[Page 68]]

        Net budget authority and outlays:
    89.00 Budget authority..................         118         125         142
    90.00 Outlays...........................         136         125         142
    ---------------------------------------------------------------------------

        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. The USDA Service Center Modernization Initiative (SCMI) has
    been working to restructure county field offices, modernize and
    integrate business approaches and replace the current stove-piped and
    aging information systems with a modern common computing environment
    (CCE) that optimizes information sharing, customer service, and staff
    efficiencies. The funds requested under this account would fund
    essential capital investments needed to implement the modernization
    plan. Economies of scale in the procurement and management of
    information technology systems present compelling arguments for
    coordinating information technology investments. Without these
    investments, the Department's ability to provide timely and efficient
    services will continue to erode and the costs of maintaining the
    separate, aging systems will increase. A reorganization that combines
    the information technology (IT) staffs of the SCA into one IT
    organization with OCIO went into effect on November 28, 2004. The new
    organization, the Information Technology Services (ITS), replaces a
    network of cross-agency teams used to co-ordinate IT infrastructure
    investment within the SCA and allows for unified management of the IT
    infrastructure. The ITS delivers the following classes of technology
    services: Acquisition and Asset Management, Application Development and
    Deployment, Customer Support and End User Computing, Data Utility,
    Hosting, Security, Telecommunications and Web Services. Service Level
    Agreements (SLAs) that specify performance metrics will be negotiated
    with the SCA for each class of service.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0113-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.2    Other services..................          85          17          34
    25.3    Other purchases of goods and
              services from Government
              accounts......................          49          41          41
    26.0    Supplies and materials..........           3          20          20
    31.0    Equipment.......................           7          47          47
                                               ---------   ---------  ----------
    99.0      Direct obligations............         144         125         142
    99.0  Reimbursable obligations..........          68          31          15
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         213         156         157
    ---------------------------------------------------------------------------

    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.] (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4609-0-4-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating expenses:

    09.01   Administration..................          37          26          27
    09.02   Communications..................          12           5           5
    09.03   Finance and management..........         192         175         200
    09.04   Information technology..........          88         258         272
    09.05   Executive secretariat...........           3           3           3
    09.06   Corporate systems...............          66          74          76
                                               ---------   ---------  ----------
    09.09   Subtotal, operating expenses....         398         541         583
    09.12 Finance and management............           3          19           4
    09.13 Information technology............           9          11           7
    09.15 Corporate systems.................          14          21          12
                                               ---------   ---------  ----------
    09.19   Subtotal, purchase of equipment.          26          51          23
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         424         592         606
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          82         107          69
    22.00 New budget authority (gross)......         446         554         583
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.22 Unobligated balance transferred
            from other accounts.............           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         530         661         652
    23.95 Total new obligations.............        -424        -592        -606
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         107          69          46
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                      13
    42.00   Transferred from other accounts.           8
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............           8          13
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         383         541         583
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          55
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         438         541         583
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         446         554         583
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           4           2          57
    73.10 Total new obligations.............         424         592         606
    73.20 Total outlays (gross).............        -368        -537        -577
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -55
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           2          57          86
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         324         481         504
    86.93 Outlays from discretionary
            balances........................          44          56          73
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         368         537         577
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -379        -537        -579
    88.40     Non-Federal sources...........          -4          -4          -4
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -383        -541        -583
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -55
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           8          13
    90.00 Outlays...........................         -14          -4          -6
    ---------------------------------------------------------------------------

        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 sys

    [[Page 69]]

    tems, 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,
    2004. Earnings are kept at a low level through adjustments in rates
    charged for services to maintain as nearly as possible the nonprofit
    nature of the fund.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4609-0-4-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............         123         153         172
    11.3    Other than full-time permanent..           2           2           2
    11.5    Other personnel compensation....           4           4           4
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         129         159         178
    12.1  Civilian personnel benefits.......          30          40          47
    21.0  Travel and transportation of
            persons.........................           2           4           4
    22.0  Transportation of things..........           1           1           1
    23.1  Rental payments to GSA............           6           6           5
    23.2  Rental payments to others.........           2           2           2
    23.3  Communications, utilities, and
            miscellaneous charges...........          36          81          69
    24.0  Printing and reproduction.........           1           1           1
    25.2  Other services....................         172         233         257
    26.0  Supplies and materials............           9           9          12
    31.0  Equipment.........................          36          56          30
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         424         592         606
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-4609-0-4-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,990       2,956       2,980
    ---------------------------------------------------------------------------

                             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, [$19,889,000]
    $20,109,000. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3800-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Office of Civil Rights............          17          20          20
    09.01 Reimbursable program..............           4           5           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          21          25          25
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          24          25          25
    23.95 Total new obligations.............         -21         -25         -25
    23.98 Unobligated balance expiring or
            withdrawn.......................          -3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          17          20          20
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           1           5           5
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           6
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......           7           5           5
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          24          25          25
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                      -3          -3
    73.10 Total new obligations.............          21          25          25
    73.20 Total outlays (gross).............         -18         -25         -25
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -6
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          -3          -3          -3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          18          25          25
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -1          -5          -5
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          17          20          20
    90.00 Outlays...........................          17          20          20
    ---------------------------------------------------------------------------

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3800-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          10          14          15
    12.1    Civilian personnel benefits.....           3           3           3
    23.3    Communications, utilities, and
              miscellaneous charges.........           1
    25.2    Other services..................           1           1           1
    25.3    Other purchases of goods and
              services from Government
              accounts......................           1                       1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          16          18          20
    99.0  Reimbursable obligations..........           4           5           5
    99.5  Below reporting threshold.........           1           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          21          25          25
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3800-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         140         181         181
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           8          10          10
    ---------------------------------------------------------------------------

                           DEPARTMENTAL ADMINISTRATION

                                  Federal Funds

    General and special funds:

                           Departmental Administration

                         (including transfers of funds)

        For Departmental Administration, [$22,626,000] $23,103,000, 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

    [[Page 70]]

    by 5 U.S.C. 551-558. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0120-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.08 Direct program....................          23          22          23
    09.01 Reimbursable program..............          14          22          17
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          37          44          40
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          37          44          40
    23.95 Total new obligations.............         -37         -44         -40
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          23          22          23
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           3          22          17
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          11
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          14          22          17
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          37          44          40
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -5         -13         -11
    73.10 Total new obligations.............          37          44          40
    73.20 Total outlays (gross).............         -40         -42         -40
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -11
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           7
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         -13         -11         -11
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          32          42          38
    86.93 Outlays from discretionary
            balances........................           8                       2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          40          42          40
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -9         -22         -17
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -11
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          23          22          23
    90.00 Outlays...........................          31          20          23
    ---------------------------------------------------------------------------

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

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0120-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          14          16          17
    12.1    Civilian personnel benefits.....           3           3           4
    23.3    Communications, utilities, and
              miscellaneous charges.........           1
    25.2    Other services..................           1           1           1
    25.3    Other purchases of goods and
              services from Government
              accounts......................           2           1           1
    26.0    Supplies and materials..........           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          22          21          23
    99.0  Reimbursable obligations..........          14          21          16
    99.5  Below reporting threshold.........           1           2           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          37          44          40
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0120-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         186         225         225
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          51          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.), [$15,532,000] $15,644,000, to
    remain available until expended: Provided, That appropriations and funds
    available herein to the Department for Hazardous Materials Management
    may be transferred to any agency of the Department for its use in
    meeting all requirements pursuant to the above Acts on Federal and non-
    Federal lands. (42 U.S.C. 6961, et seq., 42 U.S.C. 9601, et seq.;
    Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0500-0-1-304      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          17          15          16
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................          17          15          16
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3           2           2
    22.00 New budget authority (gross)......          16          15          16
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          19          17          18
    23.95 Total new obligations.............         -17         -15         -16
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           2           2           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          16          15          16
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          15          18          17
    73.10 Total new obligations.............          17          15          16
    73.20 Total outlays (gross).............         -15         -16         -18
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          18          17          15
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          14          14          14

    [[Page 71]]

    86.93 Outlays from discretionary
            balances........................           1           2           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          15          16          18
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          16          15          16
    90.00 Outlays...........................          15          16          18
    ---------------------------------------------------------------------------

        Under the Comprehensive Environmental Response, Compensation, and
    Liability Act (CERCLA) and the Resource Conservation and Recovery Act
    (RCRA), the Department has the responsibility to meet the same standards
    for 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.

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0500-0-1-304      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           7           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, [$163,870,000] to remain available until expended, as
    follows: for payments to the General Services Administration and the
    Department of Homeland Security for building security, $147,734,000, and
    for buildings operations and maintenance, $74,190,000: 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
    additional, new, or replacement space 15 days after notice thereof is
    transmitted to the Appropriations Committees of both Houses of Congress.
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0117-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Rental payments to GSA: Non-
            recurring repairs...............         128         128         148
    00.02 Building operations and
            maintenance.....................          35          36          71
    00.04 Strategic space plan..............          13                       3
    09.02 Reimbursable program..............           2           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         178         167         225
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          44          25          26
    22.00 New budget authority (gross)......         157         166         225
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1           2           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         202         193         253
    23.95 Total new obligations.............        -178        -167        -225
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          25          26          28
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         156         164         222
    40.35   Appropriation permanently
              reduced.......................          -1          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         155         163         222
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           2           3           3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         157         166         225
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          24          19          18
    73.10 Total new obligations.............         178         167         225
    73.20 Total outlays (gross).............        -181        -166        -227
    73.45 Recoveries of prior year
            obligations.....................          -1          -2          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          19          18          14
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         157         164         223
    86.93 Outlays from discretionary
            balances........................          24           2           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         181         166         227
    ----------------------------------------------------------------------------

        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..................         155         163         222
    90.00 Outlays...........................         179         163         224
    ---------------------------------------------------------------------------

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

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0117-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           7           8           8
    12.1    Civilian personnel benefits.....           1           1           1
    23.1    Rental payments to GSA..........         128         128         148
    23.3    Communications, utilities, and
              miscellaneous charges.........           6           6           6
    25.2    Other services..................          34          21          59
                                               ---------   ---------  ----------
    99.0      Direct obligations............         176         164         222
    99.0  Reimbursable obligations..........           2           3           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         178         167         225
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0117-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          86          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, [$9,365,000]
    $9,509,000: Provided, That not to exceed $2,000,000 may be used for
    farmers' bulletins. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

    [[Page 72]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0150-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

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

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           9          10          11
    23.95 Total new obligations.............          -9         -11         -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:
    72.40 Obligated balance, start of year..                                   2
    73.10 Total new obligations.............           9          11          11
    73.20 Total outlays (gross).............          -9         -10         -11
    73.40 Adjustments in expired accounts
            (net)...........................                       1           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                       2           3
    ----------------------------------------------------------------------------

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

        Offsets:
          Against gross budget authority and outlays:

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

        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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0150-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           6           7           7
    12.1    Civilian personnel benefits.....           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............           7           8           8
    99.0  Reimbursable obligations..........           1           1           1
    99.5  Below reporting threshold.........           1           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           9          11          11
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0150-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          74          90          90
    ---------------------------------------------------------------------------

                         OFFICE OF THE INSPECTOR GENERAL

                                  Federal Funds

    General and special funds:

                         Office of the Inspector General

        For necessary expenses of the Office of the Inspector General,
    including employment pursuant to the Inspector General Act of 1978,
    [$78,289,000] $81,045,000, 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; Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies Appropriations Act,
    2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0900-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          77          78          81
    09.01 Reimbursable program..............           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          80          81          84
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3           4           5
    22.00 New budget authority (gross)......          81          82          85
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          84          86          90
    23.95 Total new obligations.............         -80         -81         -84
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           4           5           6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          77          78          81
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           4           4           4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          81          82          85
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                       4           3
    73.10 Total new obligations.............          80          81          84
    73.20 Total outlays (gross).............         -76         -82         -85
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           4           3           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          73          75          78
    86.93 Outlays from discretionary
            balances........................           3           7           7
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          76          82          85
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -4          -4          -4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          77          78          81
    90.00 Outlays...........................          70          78          81
    ---------------------------------------------------------------------------

        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

    [[Page 73]]

    local government agencies whose purposes are to: (a) promote economy and
    efficiency; (b) prevent and detect fraud and mismanagement; and (c)
    identify and prosecute people involved in fraud or mismanagement.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0900-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          47          49          52
    12.1    Civilian personnel benefits.....          13          13          13
    21.0    Travel and transportation of
              persons.......................           5           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.......................           3           3           3
                                               ---------   ---------  ----------
    99.0      Direct obligations............          76          78          81
    99.0  Reimbursable obligations..........           3           3           3
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          80          81          84
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0900-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         597         721         725
    ---------------------------------------------------------------------------

                          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,
    [$35,861,000] $40,263,000. (7 U.S.C. 2201; 2202, 2214a; Agriculture,
    Rural Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2300-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          35          36          40
    09.00 Reimbursable program..............           1           1           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          36          37          42
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          37          37          42
    23.95 Total new obligations.............         -36         -37         -42
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          35          36          40
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           2           1           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          37          37          42
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           3           2           2
    73.10 Total new obligations.............          36          37          42
    73.20 Total outlays (gross).............         -35         -37         -43
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           2           2           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          33          35          40
    86.93 Outlays from discretionary
            balances........................           2           2           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          35          37          43
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -2          -1          -2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          35          36          40
    90.00 Outlays...........................          35          36          41
    ---------------------------------------------------------------------------

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2300-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          26          27          30
    12.1    Civilian personnel benefits.....           7           7           7
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           1           1           1
    31.0    Equipment.......................                                   1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          35          36          40
    99.0  Reimbursable obligations..........           1           1           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          36          37          42
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2300-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         313         321         332
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           8           9           9
    ---------------------------------------------------------------------------

                            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,
    [$74,768,000] $80,749,000. (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.;
    Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1701-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          71          74          81
    09.00 Reimbursable program..............           2           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          73          76          83
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          73          76          83
    23.95 Total new obligations.............         -73         -76         -83
    ----------------------------------------------------------------------------

    [[Page 74]]

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          71          75          81
    40.35   Appropriation permanently
              reduced.......................                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          71          74          81
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           2           2           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          73          76          83
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          23          29          30
    73.10 Total new obligations.............          73          76          83
    73.20 Total outlays (gross).............         -68         -75         -82
    73.40 Adjustments in expired accounts
            (net)...........................           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          29          30          31
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          56          66          72
    86.93 Outlays from discretionary
            balances........................          12           9          10
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          68          75          82
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................          71          74          81
    90.00 Outlays...........................          66          73          80
    ---------------------------------------------------------------------------

        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 2006 Budget request includes funding to continue the development
    of an integrated and comprehensive data and analysis framework to
    provide a basis for understanding, monitoring, tracking, and identifying
    changes in the food supply and consumption patterns.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1701-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          37          39          39
    11.3      Other than full-time permanent           1           1           1
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          39          41          41
    12.1    Civilian personnel benefits.....           8           8           9
    21.0    Travel and transportation of
              persons.......................           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           2           6          11
    25.3    Other purchases of goods and
              services from Government
              accounts......................          11           9           9
    25.5    Research and development
              contracts.....................           5           5           5
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           2           1           1
    41.0    Grants, subsidies, and
              contributions.................           1           1           2
                                               ---------   ---------  ----------
    99.0      Direct obligations............          71          74          81
    99.0  Reimbursable obligations..........           2           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          73          76          83
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1701-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         433         452         456
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           6           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, [$129,480,000] $145,159,000,
    of which up to [$22,405,000] $29,115,000 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.; Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1801-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Agricultural estimates............          95         101         110
    00.02 Statistical research and service..           4           5           7
    00.03 Census of Agriculture.............          27          26          29
    09.01 Reimbursable program..............          21          21          21
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         147         153         167
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           3
    22.00 New budget authority (gross)......         150         150         167
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         152         153         167
    23.95 Total new obligations.............        -147        -153        -167
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         129         129         145
    40.35   Appropriation permanently
              reduced.......................          -1          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         128         128         145
          Mandatory:

    60.26   Appropriation (trust fund)......           1           1           1
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).          10          10          21
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          11          11
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....          21          21          21
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         150         150         167
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          10          15           5
    73.10 Total new obligations.............         147         153         167
    73.20 Total outlays (gross).............        -140        -152        -166
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -11         -11
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           9
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          15           5           6
    ----------------------------------------------------------------------------

    [[Page 75]]

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         121         135         150
    86.93 Outlays from discretionary
            balances........................          18          16          15
    86.97 Outlays from new mandatory
            authority.......................           1           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         140         152         166
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -16         -16         -18
    88.40     Non-Federal sources...........          -3          -3          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -19         -19         -21
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -11         -11
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           9           9
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         129         129         146
    90.00 Outlays...........................         121         133         145
    ---------------------------------------------------------------------------

        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 2006
    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. Both initiatives are designed to strengthen the quality of
    published data.

        Census of Agriculture.--The Census of Agriculture is conducted every
    five years. A proposed increase of $6.5 million due to cyclical
    activities will be used to finalize content; continue mail list
    development; and streamline and upgrade processing systems in
    preparation for the 2007 Census of Agriculture.

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1801-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          70          72          74
    11.3      Other than full-time permanent           1           1           1
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          72          74          76
    12.1    Civilian personnel benefits.....          18          20          18
    21.0    Travel and transportation of
              persons.......................           3           3           2
    22.0    Transportation of things........           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           5           5           5
    25.2    Other services..................          11          11          25
    25.3    Other purchases of goods and
              services from Government
              accounts......................           8           9           9
    25.7    Operation and maintenance of
              equipment.....................           3           3           3
    26.0    Supplies and materials..........           1           2           2
    31.0    Equipment.......................           4           4           5
                                               ---------   ---------  ----------
    99.0      Direct obligations............         126         132         146
    99.0  Reimbursable obligations..........          21          21          21
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         147         153         167
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1801-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,004       1,260       1,289
        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, [$1,110,887,000] $996,107,000: 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;
    Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1400-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Product Quality/Value Added.....         110         105          98
    00.02   Livestock Production............          95          84          63
    00.03   Crop Production.................         179         197         160
    00.04   Food Safety.....................          96          95          85
    00.05   Livestock Protection............          64          63          65

    [[Page 76]]

    00.06   Crop Protection.................         180         185         156
    00.07   Human nutrition research........          81          84          82
    00.08   Environmental Stewardship.......         213         219         178
    00.09   National Agricultural Library...          23          22          22
    00.10   Repair and maintenance of
              facilities....................          18          18          18
    00.11   Collaborative research program..           6
    00.12   Homeland security...............          21          30          69
    00.13   Construction/Miscellaneous Fees.          13           4
    09.00 Reimbursable program..............          74          80          80
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,173       1,186       1,076
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          17           4
    22.00 New budget authority (gross)......       1,164       1,182       1,076
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,181       1,186       1,076
    23.95 Total new obligations.............      -1,173      -1,186      -1,076
    23.98 Unobligated balance expiring or
            withdrawn.......................          -3
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,089       1,111         996
    40.35   Appropriation permanently
              reduced.......................          -6          -9
    42.00   Transferred from other accounts.           6
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,089       1,102         996
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          26          80          80
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          49
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          75          80          80
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,164       1,182       1,076
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         325         314         310
    73.10 Total new obligations.............       1,173       1,186       1,076
    73.20 Total outlays (gross).............      -1,157      -1,190      -1,097
    73.40 Adjustments in expired accounts
            (net)...........................         -10
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -49
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          32
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         314         310         289
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         890         942         857
    86.93 Outlays from discretionary
            balances........................         267         248         240
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,157       1,190       1,097
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -44         -66         -66
    88.40     Non-Federal sources...........         -13         -14         -14
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -57         -80         -80
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -49
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          31
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,089       1,102         996
    90.00 Outlays...........................       1,099       1,110       1,017
    ---------------------------------------------------------------------------

        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 2006, 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); bovine spongiform encephalopathy (BSE); air
    and water quality; biobased products and bioenergy; sequencing and
    bioinformatics; nutrition and obesity; genetic resources; controlling
    invasive specifics; climate change; agricultural information services
    and cyber security. Consistent with the 2005 Budget, the 2006 Budget
    also proposes to eliminate funding for unrequested Congressional
    earmarks added to the Service since 2001. In 2004, the Service submitted
    81 new patent applications, participated in 44 new Cooperative research
    and development agreements (CRADAs), licensed 29 new products, and
    developed 57 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

    [[Page 77]]

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

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

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

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1400-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         465         483         496
    11.3      Other than full-time permanent          21          22          22
    11.5      Other personnel compensation..          13          13          13
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         499         518         531
    12.1    Civilian personnel benefits.....         128         133         136
    21.0    Travel and transportation of
              persons.......................          20          20          19
    22.0    Transportation of things........           1           1           1
    23.2    Rental payments to others.......           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........          39          40          35
    24.0    Printing and reproduction.......           2           2           2
    25.1    Advisory and assistance services           1           1           1
    25.2    Other services..................           6          10           4
    25.3    Other purchases of goods and
              services from Government
              accounts......................           2           2           2
    25.4    Operation and maintenance of
              facilities....................          37          33          29
    25.5    Research and development
              contracts.....................         187         167          84
    25.7    Operation and maintenance of
              equipment.....................           8           8           7
    25.8    Subsistence and support of
              persons.......................           1           1           1
    26.0    Supplies and materials..........          93          94          82
    31.0    Equipment.......................          50          51          45
    32.0    Land and structures.............           6           7           5
    41.0    Grants, subsidies, and
              contributions.................          18          17          11
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,099       1,106         996
    99.0  Reimbursable obligations..........          74          80          80
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,173       1,186       1,076
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1400-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       8,447       8,485       8,485
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         196         196         196
    ---------------------------------------------------------------------------

                            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, [$187,838,000]
    $64,800,000, to remain available until expended. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2005.)

    [[Page 78]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1401-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Building and facilities projects..         161         180         200
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         161         180         200
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         403         306         312
    22.00 New budget authority (gross)......          64         186          65
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         467         492         377
    23.95 Total new obligations.............        -161        -180        -200
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         306         312         177
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          64         188          65
    40.35   Appropriation permanently
              reduced.......................                      -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          64         186          65
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          83         149         212
    73.10 Total new obligations.............         161         180         200
    73.20 Total outlays (gross).............         -94        -117        -123
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         149         212         289
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          45          28           9
    86.93 Outlays from discretionary
            balances........................          49          89         114
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          94         117         123
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          64         186          65
    90.00 Outlays...........................          94         117         123
    ---------------------------------------------------------------------------

        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 2006 Budget request provides for additional funding
    required for the accelerated completion of the department's animal
    research and diagnostic facilities at Ames, IA; the modernization of the
    foreign weed science laboratory, Frederick, MD and the National
    agricultural library, Beltsville, MD.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1401-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................         156         159         148
    31.0  Equipment.........................           1           1           2
    32.0  Land and structures...............           4          20          50
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         161         180         200
    ---------------------------------------------------------------------------

                                   Trust Funds

                         Miscellaneous Contributed Funds

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Receipts:
    02.20 Deposits of miscellaneous
            contributed funds, Science and
            Educati.........................          14          18          18
        Appropriations:
    05.00 Miscellaneous contributed funds...         -14         -18         -18
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Miscellaneous contributed funds...          19          20          20
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          19          20          20
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          20          15          13
    22.00 New budget authority (gross)......          14          18          18
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          34          33          31
    23.95 Total new obligations.............         -19         -20         -20
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          15          13          11
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......          14          18          18
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           8           8           8
    73.10 Total new obligations.............          19          20          20
    73.20 Total outlays (gross).............         -20         -20         -22
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           8           8           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          14          13          13
    86.98 Outlays from mandatory balances...           6           7           9
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          20          20          22
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          14          18          18
    90.00 Outlays...........................          20          20          22
    ---------------------------------------------------------------------------

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      2004 actual   2005 est.   2006 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....................           1           2           2
    25.5  Research and development contracts           5           5           5
    26.0  Supplies and materials............           4           4           4
    31.0  Equipment.........................           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          19          20          20
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         113         113         113
    ---------------------------------------------------------------------------

          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, [$55,153,000]
    $35,013,000, 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), $43,058,000, including $12,971,000
    for the water quality program, $14,967,000 for the food safety program,
    $4,200,000 for the regional pest management centers program, $4,500,000
    for the Food Quality Protection Act risk mitiga

    [[Page 79]]

    tion program for major food crop systems, $1,400,000 for the crops
    affected by Food Quality Protection Act implementation, $3,131,000 for
    the methyl bromide transition program, and $1,889,000 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, $1,000,000; for
    grants programs authorized under section 2(c)(1)(B) of Public Law 89-
    106, as amended, [$750,000] $2,500,000, to remain available until
    September 30, [2006] 2007 for the critical issues program, and
    [$1,345,000] $1,513,000 for the regional rural development centers
    program; and [$9,000,000] $30,000,000 for the [homeland security
    program] Food and Agriculture Defense Initiative authorized under
    section 1484 of the National Agricultural Research, Extension, and
    Teaching Act of 1977, to remain available until September 30, [2006]
    2007. (7 U.S.C. 450i(c)(1)(B), 3292b, 3351, 7626; Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1502-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.10 Organic Research and Extension
            Init............................           3
    00.20 Water quality.....................          12          13
    00.30 Food safety.......................          13          15
    00.40 Regional pest management centers..           4           4
    00.50 Crops at risk from Food Quality
            Protection Act implementation...           1           1
    00.60 Food Quality Protection Act risk
            mitigation program..............           5           4
    00.70 Methyl bromide transition program.           3           3
    00.71 Homeland Security.................           8           9          30
    00.86 International science and
            education grants................                       2           1
    00.87 Rural development centers.........           1           1           2
    00.88 Organic transition................           2           2
    00.89 Critical issues--plant and animal
            diseases........................                       1           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          52          55          35
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       2           2
    22.00 New budget authority (gross)......          53          55          35
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          53          57          37
    23.95 Total new obligations.............         -52         -55         -35
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           2           2           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          53          55          35
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         108         118         122
    73.10 Total new obligations.............          52          55          35
    73.20 Total outlays (gross).............         -45         -51         -58
    73.40 Adjustments in expired accounts
            (net)...........................           3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         118         122          99
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           6           7          15
    86.93 Outlays from discretionary
            balances........................          39          44          43
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          45          51          58
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          53          55          35
    90.00 Outlays...........................          45          51          58
    ---------------------------------------------------------------------------

        Under the Integrated Activities account, research, education and/or
    extension grants are awarded for competitive and non-competitive
    programs. In 2006, the Budget proposes that Section 406 activities,
    formerly supported under the Integrated account, be supported within the
    Research and Education account. These activities will be funded at $41.9
    million, but the grants will be administered through the National
    Research Initiative (NRI) or the new competitive regional, State or
    local applied research program. This will allow greater flexibility and
    responsiveness to changing needs in these targeted activities.

        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 supports 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.

        Regional Diagnostic Network (homeland security).--As part of the
    Food and Agriculture Defense Initiative, 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 2006 Budget includes an increase to enhance
    agricultural defense.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1502-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           1           1
    25.2  Other services....................           1           1           1
    41.0  Grants, subsidies, and
            contributions...................          50          53          34
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          52          55          35
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1502-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           8           8           4
    ---------------------------------------------------------------------------

               Initiative for Future Agriculture and Food Systems

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1503-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                                 140
    22.00 New budget authority (gross)......                     140        -140
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                     140
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                     140
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.35   Appropriation permanently
              reduced.......................                                -160
    40.36   Unobligated balance permanently
              reduced.......................                                -140
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                                -300
          Mandatory:

    62.00   Transferred from other accounts.                     140         160
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................                     140        -140
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         113          62          28
    73.20 Total outlays (gross).............         -53         -34          -7
    73.40 Adjustments in expired accounts
            (net)...........................           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          62          28          21
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 -15
    86.97 Outlays from new mandatory
            authority.......................                                   8
    86.98 Outlays from mandatory balances...          53          34          14
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          53          34           7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     140        -140
    90.00 Outlays...........................          53          34           7
    ---------------------------------------------------------------------------

        1998 Research Act.--The 2006 Budget proposes to cancel $140 million
    in 2005 funding and $160 million in 2006 fund

    [[Page 80]]

    ing 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,
    [$660,781,000] $545,500,000, as follows: to carry out the provisions of
    the Hatch Act of 1887 (7 U.S.C. 361a-i), [$180,148,000] $89,354,000; for
    grants for cooperative forestry research (16 U.S.C. 582a through a-7),
    [$22,384,000] $11,103,000; for payments to the 1890 land-grant colleges,
    including Tuskegee University and West Virginia State University (7
    U.S.C. 3222), [$37,000,000] $38,250,000, 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)), [$121,284,000] $3,341,000; for
    special grants for agricultural research on improved pest control (7
    U.S.C. 450i(c)), [$15,280,000] $15,006,000; for research grants for the
    state agricultural experiment stations competitively awarded (7 U.S.C.
    450i(c)(1)(A)), $75,000,000; for competitive research grants (7 U.S.C.
    450i(b)), [$181,000,000; for the support of animal health and disease
    programs (7 U.S.C. 3195), $5,098,000; for supplemental and alternative
    crops and products (7 U.S.C. 3319d), $1,196,000; for grants for research
    pursuant to the Critical Agricultural Materials Act (7 U.S.C. 178 et
    seq.), $1,111,000, to remain available until expended] $250,000,000, to
    remain available until expended; for the 1994 research grants program
    for 1994 institutions pursuant to section 536 of Public Law 103-382 (7
    U.S.C. 301 note), [$1,087,000] $998,000, to remain available until
    expended; [for rangeland research grants (7 U.S.C. 3333), $1,000,000];
    for higher education graduate fellowship grants (7 U.S.C. 3152(b)(6)),
    [$3,000,000] $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)),
    $5,500,000; for a higher education multicultural scholars program (7
    U.S.C. 3152(b)(5)), $998,000, to remain available until expended (7
    U.S.C. 2209b); for 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), $5,645,000; 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, [$3,500,000] $2,997,000; for a
    secondary agriculture education program and 2-year post-secondary
    education (7 U.S.C. 3152(j)), $1,000,000; for aquaculture grants (7
    U.S.C. 3322), [$4,000,000] $3,996,000; for sustainable agriculture
    research and education (7 U.S.C. 5811), [$12,500,000] $9,230,000; for a
    program of capacity building grants (7 U.S.C. 3152(b)(4)) to colleges
    eligible to receive funds under the Act of August 30, 1890 (7 U.S.C.
    321-326 and 328), including Tuskegee University and West Virginia State
    University, [$12,411,000] $12,500,000, 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, $2,250,000; [for
    resident instruction grants for insular areas under section 1491 of the
    National Agricultural Research, Extension, and Teaching Policy Act of
    1977 (7 U.S.C. 3363), $500,000]; and for necessary expenses of Research
    and Education Activities, [$42,889,000] $8,832,000, of which $2,750,000
    for the Research, Education, and Economics Information System and
    $2,173,000 for the Electronic Grants Information System, are to remain
    available until expended.
        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. (Agriculture, Rural Development, Food and
    Drug Administration, and Related Agencies Appropriations Act, 2005.)

                   Native American Institutions Endowment Fund

        For the Native American Institutions Endowment Fund authorized by
    Public Law 103-382 (7 U.S.C. 301 note), $12,000,000, to remain available
    until expended. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............          46          55          67
        Receipts:
    02.40 Federal payment, Native American
            institutions endowment fund.....           9          12          12
    02.41 Earnings on investments, Native
            American institutions endowment.           2           2           3
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..          11          14          15
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          57          69          82
        Appropriations:
    05.00 Research and education activities.          -2          -2          -3
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............          55          67          79
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Payments under the Hatch Act......         179         179          89
    00.02 Cooperative forestry research.....          22          22          11
    00.03 Payments to 1890 colleges and
            Tuskegee Univ. and West Virginia
            State College...................          36          37          38
    00.04 Special research grants...........         145         156         108
    00.05 National research initiative
            competitive grants..............         151         270         250
    00.06 Animal health and disease research           5           5
    00.07 Federal administration............          37          43           9
    00.08 Higher education..................          30          35          40
    00.09 Native American Institutions
            Endowment Fund..................          11          14          15
    09.00 Reimbursable program..............          19          17          17
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         635         778         577
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         103         110          19
    22.00 New budget authority (gross)......         641         687         577
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         744         797         596
    23.95 Total new obligations.............        -635        -778        -577
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         110          19          19
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         630         673         557
    40.20   Appropriation (special fund)....           2           2           3
    40.35   Appropriation permanently
              reduced.......................          -4          -5
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         628         670         560
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...                      17          17
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          13
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          13          17          17
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         641         687         577
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         565         665         850
    73.10 Total new obligations.............         635         778         577
    73.20 Total outlays (gross).............        -559        -593        -500
    73.40 Adjustments in expired accounts
            (net)...........................          20
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -13
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          16
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         665         850         927
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         214         360         304
    86.93 Outlays from discretionary
            balances........................         343         233         196
    86.98 Outlays from mandatory balances...           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         559         593         500
    ----------------------------------------------------------------------------

    [[Page 81]]

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -19         -17         -17
          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..............          19
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         628         670         560
    90.00 Outlays...........................         540         576         483
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...          41          52          64
    92.02 Total investments, end of year:
            Federal securities: Par value...          52          64          76
    ---------------------------------------------------------------------------

        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.

        The Budget proposes that beginning in 2006, a portion of funding for
    the Hatch Act, McIntire Stennis Cooperative Forestry, and Animal Health
    and Disease Research Programs be shifted to competively awarded grants.
    The 2006 Budget proposes a new competitively awarded grants program to
    support systemwide research planning and coordination and for regional,
    State, and local research in the areas of new products/new uses, social
    sciences, and the environment. This program will replace some of the
    multistate efforts currently supported by formula funds. In addition,
    the Budget proposes an increase in funding for the NRI.

        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 University.--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 University.

        Special research grants.--This program addresses research areas of
    national interest. Funding is proposed for grant programs in IR-4 minor
    crop pest management, pest management alternatives, and sustainable
    agriculture. Funding is also proposed for integrated pest management.
    Advances in these areas will provide producers with safe, alternative
    pest control methods resulting in more farmers increasing the number of
    acres on which Integrated Pest Management (IPM) methods are used.
    Funding proposed for IR-4 minor crop pest management and minor use
    animal drugs will address the growing need for registration of safe
    pesticides and drugs for minor crops and animals and lead to reduced
    levels of chemical and drug residues in food products by half. These
    pest management programs will be coordinated to address Food Quality and
    Protection Act issues. The IR-4 and IPM programs are contained under
    improved pest control funding. Improved pest control also includes Pest
    Management Alternatives, and Expert IPM Decision Support System
    Programs. A grant program for global change is proposed for research at
    universities as part of a coordinated Federal initiative. Funding is
    also proposed for the National Biological Impact Assessment Program, and
    aquaculture centers. In 2006, a new competitively awarded grants program
    is proposed to support systemwide research, planning and coordination,
    for regional, State and local research in the areas of new products/new
    uses, social sciences and the environment. The 2006 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.

        1994 Institutions Research.--Funding is proposed to continue the
    competitive research grants program to build the research capacity at
    the thirty-three 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. These programs 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.
    Funding is proposed in the 2006 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 (33 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,

    [[Page 82]]

    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 2006 Budget includes an increase for the
    endowment fund.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          15          18          19
    12.1    Civilian personnel benefits.....           4           4           4
    21.0    Travel and transportation of
              persons.......................           2           2           2
    25.1    Advisory and assistance services           1           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
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           1           1           1
    41.0    Grants, subsidies, and
              contributions.................         587         728         526
                                               ---------   ---------  ----------
    99.0      Direct obligations............         616         761         560
    99.0  Reimbursable obligations..........          19          17          17
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         635         778         577
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         202         216         220
        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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

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

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           5           1           1
    23.95 Total new obligations.............          -4
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1           1           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           4           5           5
    73.10 Total new obligations.............           4
    73.20 Total outlays (gross).............          -3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           5           5           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           3
    ----------------------------------------------------------------------------

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

        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 2006.

                              Extension Activities

        For payments to States, the District of Columbia, Puerto Rico, Guam,
    the Virgin Islands, Micronesia, Northern Marianas, and American Samoa,
    [$449,225,000] $431,743,000, 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, [$277,742,000] $275,940,000; payments for extension
    work at the 1994 Institutions under the Smith-Lever Act (7 U.S.C.
    343(b)(3)), $3,273,000; payments for the nutrition and family education
    program for low-income areas under section 3(d) of the Act,
    [$58,909,000] $62,909,000; payments for the pest management program
    under section 3(d) of the Act, [$10,000,000; payments for the farm
    safety program under section 3(d) of the Act, $4,600,000] $10,759,000;
    payments for New Technologies for Ag Extension under Section 3(d) of the
    Act, $3,000,000; payments to upgrade research, extension, and teaching
    facilities at the 1890 land-grant colleges, including Tuskegee
    University and West Virginia State University, as authorized by section
    1447 of Public Law 95-113 (7 U.S.C. 3222b), [$16,912,000] $14,912,000,
    to remain available until expended; payments for youth-at-risk programs
    under section 3(d) of the Smith-Lever Act, [$7,538,000] $8,481,000; for
    youth farm safety education and certification extension grants, to be
    awarded competitively under section 3(d) of the Act, [$444,000]
    $499,000; payments for carrying out the provisions of the Renewable
    Resources Extension Act of 1978 (16 U.S.C. 1671 et seq.), $4,093,000;
    payments for Indian reservation agents under section 3(d) of the Smith-
    Lever Act, [$1,774,000] $1,996,000; payments for sustainable agriculture
    programs under section 3(d) of the Act, [$4,100,000; payments for rural
    health and safety education as authorized by section 502(i) of Public
    Law 92-419 (7 U.S.C. 2662(i)), $1,981,000] $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 University, [$33,133,000] $34,417,000, 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, $2,667,000]; and for necessary expenses of Extension Activities,
    [$22,059,000] $7,672,000. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0502-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Smith-Lever Act, 3(b) and 3(c)....         278         276         276
    00.02 Youth at risk.....................           8           7           8
    00.04 Expanded food and nutrition
            education program (EFNEP).......          52          58          63
    00.05 Pest management...................          10          10          11
    00.06 Farm Safety.......................           5           4
    00.09 Indian reservation extension
            agents..........................           2           2           2
    00.13 Payments to 1890 colleges and
            Tuskegee Univ. and West Virginia
            State College...................          32          33          34
    00.15 Renewable resources extension act.           4           4           4
    00.16 Federal administration............          22          22           8
    00.19 1890 facilities (section 1447)....          19          17          15
    00.21 Sustainable agriculture...........           4           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.           2           2
    00.25 Grants to Youth Serving
            Organizations...................           3           3
    00.26 Risk Management Education.........           5           5           5
    00.27 New Technologies for Ag. Extension                                   3
    09.00 Reimbursable program..............          26          17          17
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         476         468         454
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           6
    22.00 New budget authority (gross)......         470         468         454
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         476         468         454
    23.95 Total new obligations.............        -476        -468        -454
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         442         449         432

    [[Page 83]]

    40.35   Appropriation permanently
              reduced.......................          -3          -3
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         439         446         432
          Mandatory:

    62.00   Transferred from other accounts.           5           5           5
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).           2          17          17
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          24
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....          26          17          17
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         470         468         454
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         294         309         337
    73.10 Total new obligations.............         476         468         454
    73.20 Total outlays (gross).............        -444        -440        -427
    73.40 Adjustments in expired accounts
            (net)...........................          -8
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -24
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          17
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         309         337         364
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         225         285         276
    86.93 Outlays from discretionary
            balances........................         219         155         151
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         444         440         427
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -23         -17         -17
          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..............          21
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         444         451         437
    90.00 Outlays...........................         421         423         410
    ---------------------------------------------------------------------------

        The Cooperative Extension System, a national educational network, is
    a dynamic organization pledged to meeting the country's needs for
    research-based educational programs that will enable people to make
    practical decisions to improve their lives. To accomplish its mission,
    the Cooperative Extension System adjusts programs to meet the shifting
    needs and priorities of the people it serves.

        The nonformal educational network combines the expertise and
    resources of Federal, State, and local partners. The partners in this
    unique System are: (a) The Cooperative State Research, Education, and
    Extension Service at the U.S. Department of Agriculture; (b) Extension
    professionals at land-grant universities throughout the United States
    and its territories; and (c) Extension professionals in nearly all of
    the Nation's 3,150 counties. Thousands of paraprofessionals and nearly 3
    million volunteers support this partnership and magnify its impact.
    Strong linkages with both public and private external groups are also
    crucial to the Cooperative Extension System's strength and vitality.

        Programs supported with Smith-Lever 3(b) and (c) legislated formula
    funds, are the major educational efforts central to the mission of the
    System and common to most Extension units. 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 University
    provide funds to support the Extension's 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 2006, 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, new technologies at Ag Extension, renewable resources
    extension act, and 1994 (Native American) institutions.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0502-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          12          13          14
    12.1    Civilian personnel benefits.....           2           3           3
    21.0    Travel and transportation of
              persons.......................           1           1           1
    25.2    Other services..................           3           2           2
    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.................         433         430         415
                                               ---------   ---------  ----------
    99.0      Direct obligations............         453         451         437
    99.0  Reimbursable obligations..........          23          17          17
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         476         468         454
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0502-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         194         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),
    $5,935,000, to remain available until expended. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0601-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.10 Direct Program Activity...........           6           6           6
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           6           6           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           6           6           6
    23.95 Total new obligations.............          -6          -6          -6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           6           6           6
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           8          10          10
    73.10 Total new obligations.............           6           6           6
    73.20 Total outlays (gross).............          -4          -6          -6
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          10          10          10
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           6           6
    86.93 Outlays from discretionary
            balances........................           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           4           6           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           6           6           6

    [[Page 84]]

    90.00 Outlays...........................           4           6           6
    ---------------------------------------------------------------------------

        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      2004 actual   2005 est.   2006 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, [$814,623,000] $855,162,000, of which
    [$4,119,000] $4,140,000 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 [$47,500,000] $15,834,000 shall be used for the boll weevil
    eradication program for cost share purposes or for debt retirement for
    active eradication zones; of which [$33,197,000] $33,340,000 shall be
    available for a National Animal Identification program: 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 not exceed 10 percent of the current replacement value
    of the building: Provided further, That no funds shall be used to
    implement a national animal identification system prior to notification
    to the Committees on Appropriations which shall include a detailed
    explanation of the components of such system.
        In fiscal year [2005] 2006, 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. (Agriculture, Rural Development, Food and Drug Administration,
    and Related Agencies Appropriations Act, 2005.)

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............         143          88          81
        Receipts:
    02.00 1990 food, agricultural quarantine
            inspection fees.................         258         328         363
    02.20 Fees, Animal welfare user fee
            account.........................                                  11
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         258         328         374
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         401         416         455
        Appropriations:
    05.00 Salaries and expenses.............        -313        -335        -341
    05.10 Salaries and expenses.............                                 -11
                                               ---------   ---------  ----------
    05.99   Total appropriations............        -313        -335        -352
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............          88          81         103
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Pest and disease exclusion........         303         286         306
    00.02 Plant and animal health monitoring         133         198         239
    00.03 Pest and disease management
            programs........................         318         364         342
    00.04 Animal care.......................          16          17           7
    00.05 Scientific and technical services.          70          76          86
    00.06 Contingencies.....................           5           4           4
    00.07 Emergency program funding.........         208          94          30
    00.08 Information Technology
            Infrastructure..................           4           5           5
    00.09 Supplemental Appropriations.......           4
    00.10 Physical/Operational Security.....                                   3
                                               ---------   ---------  ----------
    01.00   Total direct program............       1,061       1,044       1,022
    09.01 Reimbursable program..............          88          89          89
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,149       1,133       1,111
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         283         307         206
    22.00 New budget authority (gross)......       1,128       1,032       1,081
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          46
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,457       1,339       1,287
    23.95 Total new obligations.............      -1,149      -1,133      -1,111
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         307         206         176
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         721         815         855
    40.35   Appropriation permanently
              reduced.......................          -4          -7
    42.00   Transferred from other accounts.         210
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         927         808         855
          Mandatory:

    60.20   Appropriation (special fund)....         313         335         341
    61.00   Transferred to other accounts...        -194        -200        -204
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         119         135         137
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).          78          89          89
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           4
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....          82          89          89
                                               ---------   ---------  ----------

    [[Page 85]]

    70.00   Total new budget authority
              (gross).......................       1,128       1,032       1,081
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         403         436         333
    73.10 Total new obligations.............       1,149       1,133       1,111
    73.20 Total outlays (gross).............      -1,072      -1,236      -1,178
    73.40 Adjustments in expired accounts
            (net)...........................         -11
    73.45 Recoveries of prior year
            obligations.....................         -46
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -4
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          16
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         436         333         266
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         720         776         816
    86.93 Outlays from discretionary
            balances........................         236         301         193
    86.97 Outlays from new mandatory
            authority.......................          93         128         130
    86.98 Outlays from mandatory balances...          23          31          39
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,072       1,236       1,178
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -33         -30         -30
    88.40     Non-Federal sources...........         -66         -59         -59
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -99         -89         -89
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -4
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          21
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,046         943         992
    90.00 Outlays...........................         973       1,147       1,089
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2004 actual  2005 est.   2006 est.
    Enacted/requested:
      Budget Authority..................       1,046         943         992
      Outlays...........................         973       1,147       1,089
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                  11
      Outlays...........................                                  11
                                        ------------------------------------
    Total:
      Budget Authority..................       1,046         943       1,003
      Outlays...........................         973       1,147       1,100
                                        ====================================

        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 2006 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 2006 Budget includes
    significant increases in monitoring programs to enhance agricultural
    defense. The request includes $5,290,000 for the mandated select agents
    program.

        Pest and disease management programs.--The Agency carries out
    programs to control and eradicate infestations and animal diseases that
    threaten the United States; to reduce agricultural losses caused by
    predatory animals, birds, and rodents; to provide technical assistance
    to States, counties, farmer or rancher groups, and foundations; and to
    ensure compliance with interstate movement and disease control
    regulations. Interstate shipments of plants, livestock, and related
    materials are monitored and regulated to prevent the spread of disease.
    APHIS protects agriculture from detrimental animal predators through
    identification, demonstration, and application of the most appropriate
    methods of control. The Budget implements a consistent set of cost-share
    criteria among Federal and non-Federal partners to respond to a plant
    and animal infestation. In addition, the 2006 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 2006 Budget includes
    funding to enhance agricultural defense and for biotech regulatory
    services.

        The 2006 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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         302         307         300
    11.3      Other than full-time permanent           5           6           6
    11.5      Other personnel compensation..           6           5           5
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         313         318         311
    12.1    Civilian personnel benefits.....          91          92          91
    13.0    Benefits for former personnel...           2           2           2
    21.0    Travel and transportation of
              persons.......................          35          33          44
    22.0    Transportation of things........           9           9          11

    [[Page 86]]

    23.1    Rental payments to GSA..........           4           4           5
    23.2    Rental payments to others.......           1           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........          25          22          22
    24.0    Printing and reproduction.......           3           4           4
    25.2    Other services..................         365         350         334
    26.0    Supplies and materials..........          67          61          64
    31.0    Equipment.......................          34          38          38
    32.0    Land and structures.............           1
    41.0    United States-Colombia
              Commission to Prevent Foot-
              and-Mouth Disease.............           1           1           1
    41.0    Joint Screwworm eradication
              programs......................           9           9           9
    41.0    Joint Commission on the
              Mediterranean Fruit Fly.......           6           6           6
    41.0    Other grants, subsidies, and
              contributions.................          81          74          71
    42.0    Other insurance claims and
              indemnities...................          14          19           7
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,061       1,044       1,022
    99.0  Reimbursable obligations..........          88          89          89
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,149       1,133       1,111
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       5,815       5,778       6,055
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         810         833         833
    ---------------------------------------------------------------------------

                              Salaries and Expenses

                  (Legislative proposal, not subject to PAYGO)

        In addition, such sums as may be deposited to the Animal Welfare
    User Fee account may be transferred to this account, to be merged with
    and available for the same purposes as this account, to remain available
    until expended.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-2-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.04 Animal care.......................                                  11
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                  11
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (special fund)....                                  11
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                  11
    73.20 Total outlays (gross).............                                 -11
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                  11
    ----------------------------------------------------------------------------

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

        Legislation will be provided to allow the Department of Agriculture
    to collect fees for animal welfare activities. The agency will be able
    to use the fees to the extent provided in appropriation acts.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-2-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................                                   9
    12.1  Civilian personnel benefits.......                                   2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                  11
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1600-2-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  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, [$4,967,000]
    $4,996,000, to remain available until expended. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1601-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........          16          14           5
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................          16          14           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          20           9
    22.00 New budget authority (gross)......           5           5           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          25          14           5
    23.95 Total new obligations.............         -16         -14          -5
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           9
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           5           5           5
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           5           7           4
    73.10 Total new obligations.............          16          14           5
    73.20 Total outlays (gross).............         -15         -17          -5
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           7           4           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           4           1           1
    86.93 Outlays from discretionary
            balances........................          11          16           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          15          17           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           5           5           5
    90.00 Outlays...........................          15          17           5
    ---------------------------------------------------------------------------

        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 2006 Budget proposes $5 million for this program, which consists
    of repairs, alterations, preventive maintenance, and renovations for
    currently owned APHIS facilities.

    [[Page 87]]

                                   Trust Funds

                            Miscellaneous Trust Funds

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Receipts:
    02.20 Deposits of miscellaneous
            contributed funds, APHIS........          16          14          14
        Appropriations:
    05.01 Miscellaneous trust funds.........         -16         -14         -14
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........           2          14          14
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           2          14          14
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          10          24          24
    22.00 New budget authority (gross)......          16          14          14
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          26          38          38
    23.95 Total new obligations.............          -2         -14         -14
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          24          24          24
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......          16          14          14
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2          -9          -8
    73.10 Total new obligations.............           2          14          14
    73.20 Total outlays (gross).............         -13         -13         -13
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          -9          -8          -7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          11           8           8
    86.98 Outlays from mandatory balances...           2           5           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          13          13          13
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          16          14          14
    90.00 Outlays...........................          13          13          13
    ---------------------------------------------------------------------------

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

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............           6           5           5
    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....................         -10           1           1
    26.0  Supplies and materials............           1           1           1
    31.0  Equipment.........................                       1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           2          14          14
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         136         150         150
    ---------------------------------------------------------------------------

                       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), [$823,760,000]
    $710,717,000, of which no less than [$742,305,000] $630,031,000 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 63 full time equivalent positions above
    the fiscal year 2002 level shall be employed during fiscal year 2005 for
    purposes dedicated solely to inspections and enforcement related to the
    Humane Methods of Slaughter Act: Provided further, That of the amount
    available under this heading, notwithstanding section 704 of this Act
    $3,000,000, available until September 30, 2006, shall be obligated to
    include the Humane Animal Tracking System as part of the Field
    Automation and Information Management System following notification to
    the Committees on Appropriations, which shall include a detailed
    explanation of the components of such system: Provided further,] That of
    the total amount made available under this heading, no less than
    $20,653,000 shall be obligated for regulatory and scientific training:
    Provided further, That this appropriation shall be available pursuant to
    law (7 U.S.C. 2250) for the alteration and repair of buildings and
    improvements, but the cost of altering any one building during the
    fiscal year shall not exceed 10 percent of the current replacement value
    of the building. (7 U.S.C. 450, 1901-06; 10 U.S.C. 2306; 18 U.S.C. 1114;
    21 U.S.C. 451-470, 601-624, 641-645, 661, 671-680, 691-692; 694-695;
    Public Law 99-641; Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-0-1-554      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Receipts:
    02.20 Fees, Food safety inspection user
            fee account.....................                                 139
        Appropriations:
    05.00 Salaries and expenses.............                                -139
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-0-1-554      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................         786         820         711
    09.01 Reimbursable program..............         128         120         123
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         914         940         834
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          27           5           2
    22.00 New budget authority (gross)......         895         937         834
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         922         942         836
    23.95 Total new obligations.............        -914        -940        -834
    23.98 Unobligated balance expiring or
            withdrawn.......................          -5
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           5           2           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         785         824         711

    [[Page 88]]

    40.35   Appropriation permanently
              reduced.......................         -10          -7
    41.00   Transferred to other accounts...          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         774         817         711
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         104         120         123
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          17
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         121         120         123
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         895         937         834
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          88         101         102
    73.10 Total new obligations.............         914         940         834
    73.20 Total outlays (gross).............        -884        -939        -840
    73.40 Adjustments in expired accounts
            (net)...........................         -18
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -17
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          19
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         101         102          96
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         837         896         799
    86.93 Outlays from discretionary
            balances........................          47          43          41
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         884         939         840
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -9
    88.40     Non-Federal sources...........        -116        -120        -123
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -125        -120        -123
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -17
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          21
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         774         817         711
    90.00 Outlays...........................         760         819         717
    ---------------------------------------------------------------------------

        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 2006 Budget proposes a $33 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.

                     FEDERALLY FUNDED INSPECTION ACTIVITIES

                                         2004 actual  2005 est.   2006 est.
    Federally inspected establishments:
      Slaughter plants..................         112         110         108
      Processing plants.................       4,049       4,039       4,035
      Combination slaughter and
        processing plants...............         923         915         912
      Talmadge-Aiken plants.............         364         360         358
      Import establishments.............         135         132         130
      Egg plants........................          70          69          68
      Other plants......................         632         625         617
    Federally inspected and passed
        production (millions of pounds):
      Meat slaughter....................      43,611      44,000      44,000
      Poultry slaughter.................      52,790      54,000      55,000
      Egg products......................       4,000       4,000       4,000
    Import/export activity (millions of
        pounds):
      Meat and poultry imported.........       4,202       4,202       4,202
      Meat and poultry exported.........       8,144       9,000       9,200
    Inspection Review:
      Food safety assessments...........       1,829       1,875       1,950
      In-depth verification reviews.....           5           9          15
    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.........      15,763      17,415      21,285
      Corrective actions completed......         340         378         462
    Product Testing (samples analyzed):
      Food chemistry....................       1,904       1,900       1,900
      Food microbiology.................      86,616     102,000     107,000
      Chemical residues.................      32,527      33,000      33,000
      Antibiotic residues...............     159,826     160,000     160,000
      Pathology samples.................       4,977       5,000       5,000
    Egg Products:
      Food microbiology.................       1,705       1,700       1,700
      Chemical residues.................       1,716       1,700       1,700
    Consumer Education and public
        outreach:
      Meat and poultry hotline calls
        received........................     104,070     109,274     114,738
      Website visits....................  11,190,458  12,000,000  12,900,000
      Electronic messages received......      14,160      14,900      15,600
      Publications distributed..........     948,000     998,700   1,051,600
      Personal contacts (meetings,
        workshops, etc.)................      35,399      40,400      46,300
      E-mail alert service subscribers..       1,119      17,000      25,000
    Epidemiological Investigations:
      Cooperative efforts with State and
        public health offices...........          66          66          66
      Illnesses reported and treated
        b....................       1,689       1,689       1,689
    Field Automation and Information
        Management Project:
      Number of computers to be provided
        to federal field inspection
        staff...........................         917       1,300       1,200
      Number of computers to be provided
        to state field inspection staff.         573         300         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)

                                         2004 actual  2005 est.   2006 est.
    Enacted/requested:
      Budget Authority..................         774         817         711
      Outlays...........................         759         819         717
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                 139
      Outlays...........................                                 139
                                        ------------------------------------
    Total:
      Budget Authority..................         774         817         850
      Outlays...........................         759         819         856
                                        ====================================

                                 Performance Metrics

    ----------------------------------------------------------------------------
    Identification code 12-3700-0-1-554      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Food Safety and Inspection Service:
    44601 Reduction in the prevalence of
            foodborne illness from meat,
            poultry and egg productsIn 1997
            there were 76 million illnesses
            related to foodborne hazards....                     25%
    44602 The prevalence of Salmonella on
            raw meat and poultry products as
            illustrated by: Prevalence of
            Salmonella on broiler chickens
            (%).............................       11.7%       11.7%       11.7%
    44603 Percentage of ready-to-eat meat
            and poultry products testing
            positive for Listeria
            monocytogenes(Listeria is a
            common bacteria that when
            ingested can cause flu-like
            symptoms. The...................                     0.8         0.8
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-0-1-554      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         437         456         389
    11.3      Other than full-time permanent          15          17          14
    11.5      Other personnel compensation..          22          23          20
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         474         496         423
    12.1    Civilian personnel benefits.....         151         160         140
    13.0    Benefits for former personnel...           1           1           1

    [[Page 89]]

    21.0    Travel and transportation of
              persons.......................          31          36          31
    22.0    Transportation of things........           5           5           5
    23.1    Rental payments to GSA..........           1           1           1
    23.2    Rental payments to others.......           1           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........          10           4           3
    24.0    Printing and reproduction.......           1           1           1
    25.1    Advisory and assistance services           2           2           2
    25.2    Other services..................          19          22          17
    25.3    Other purchases of goods and
              services from Government
              accounts......................          18          23          18
    25.4    Operation and maintenance of
              facilities....................           1           1           1
    25.5    Research and development
              contracts.....................                       2           2
    25.7    Operation and maintenance of
              equipment.....................           1
    26.0    Supplies and materials..........          11          13          11
    31.0    Equipment.......................          14           6           5
    41.0    Grants, subsidies, and
              contributions.................          43          44          45
    42.0    Insurance claims and indemnities           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         785         819         708
    99.0  Reimbursable obligations..........         128         120         123
    99.5  Below reporting threshold.........           1           1           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         914         940         834
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3700-0-1-554      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       9,237       9,490       7,512
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         232         236         236
    ---------------------------------------------------------------------------

                              Salaries and Expenses

                  (Legislative proposal, not subject to PAYGO)

        In addition, such sums as may be deposited to the Food Safety
    Inspection User Fee Account may be transferred to this account, to be
    merged with and available for the same purposes as this account, to
    remain available until expended.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-2-1-554      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................                                 139
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                 139
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 139
    23.95 Total new obligations.............                                -139
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (special fund)....                                 139
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                 139
    73.20 Total outlays (gross).............                                -139
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 139
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 139
    90.00 Outlays...........................                                 139
    ---------------------------------------------------------------------------
                                                 -------

        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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-2-1-554      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............                                  81
    11.3    Other than full-time permanent..                                   3
    11.5    Other personnel compensation....                                   3
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..                                  87
    12.1  Civilian personnel benefits.......                                  24
    21.0  Travel and transportation of
            persons.........................                                   6
    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
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                 139
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3700-2-1-554      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................                               2,000
    ---------------------------------------------------------------------------

                                   Trust Funds

          Expenses and Refunds, Inspection and Grading of Farm Products

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Receipts:
    02.20 Deposits of fees, Inspection and
            grading of farm products, Food..           3           3           3
        Appropriations:
    05.00 Expenses and refunds, inspection
            and grading of farm products....          -3          -3          -3
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........           4           4           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           4           4           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           1
    22.00 New budget authority (gross)......           3           3           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           5           4           3
    23.95 Total new obligations.............          -4          -4          -3
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1                       1
    73.10 Total new obligations.............           4           4           3
    73.20 Total outlays (gross).............          -4          -3          -3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                       1           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           3           3           3
    86.98 Outlays from mandatory balances...           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           4           3           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           3           3           3

    [[Page 90]]

    90.00 Outlays...........................           4           3           3
    ---------------------------------------------------------------------------

                                 Performance Metrics

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Food Safety and Inspection Service:
    44601 Reduction in the prevalence of
            foodborne illness from meat,
            poultry and egg productsIn 1997
            there were 76 million illnesses
            related to foodborne hazards....                     25%
    44602 The prevalence of Salmonella on
            raw meat and poultry products as
            illustrated by: Prevalence of
            Salmonella on broiler chickens
            (%).............................       11.7%       11.7%       11.7%
    44603 Percentage of ready-to-eat meat
            and poultry products testing
            positive for Listeria
            monocytogenes(Listeria is a
            common bacteria that when
            ingested can cause flu-like
            symptoms. The...................                     0.8         0.8
    ---------------------------------------------------------------------------

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............           2           2           1
    11.5    Other personnel compensation....           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..           3           3           2
    12.1  Civilian personnel benefits.......           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           4           4           3
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          34          35          35
    ---------------------------------------------------------------------------

             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, [$37,299,000] $15,717,000:
    Provided, That this appropriation shall be available pursuant to law (7
    U.S.C. 2250) for the alteration and repair of buildings and
    improvements, but the cost of altering any one building during the
    fiscal year shall not exceed 10 percent of the current replacement value
    of the building. (7 U.S.C. 71, 74-79, 84-87, 181-229, 1621-27;
    Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2005.)

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Receipts:
    02.20 Fees, Grain inspection, packers
            and stockyards user fee account.                                  25
        Appropriations:
    05.01 Salaries and expenses.............                                 -25
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Standardization...................           4           4
    00.02 Compliance........................           5           6           7
    00.03 Methods development...............           7           7           8
    00.04 Packers and stockyards program....          23          20
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          39          37          15
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4
    22.00 New budget authority (gross)......          36          37          15
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          40          37          15
    23.95 Total new obligations.............         -39         -37         -15
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          36          37          15
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           6          10          10
    73.10 Total new obligations.............          39          37          15
    73.20 Total outlays (gross).............         -35         -37         -18
    73.40 Adjustments in expired accounts
            (net)...........................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          10          10           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          30          31          12
    86.93 Outlays from discretionary
            balances........................           5           6           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          35          37          18
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          36          37          15
    90.00 Outlays...........................          35          37          18
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2004 actual  2005 est.   2006 est.
    Enacted/requested:
      Budget Authority..................          36          37          15
      Outlays...........................          35          37          18
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                  25
      Outlays...........................                                  25
                                        ------------------------------------
    Total:
      Budget Authority..................          36          37          40
      Outlays...........................          35          37          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.

    [[Page 91]]

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

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

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

        The Grain Quality Improvement Act of 1986 was enacted on November
    10, 1986, to improve the quality of U.S. grain by prohibiting the
    introduction and reintroduction of dockage and foreign material to
    grain.

        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.

                              MAIN WORKLOAD FACTORS

                                         2004 actual  2005 est.   2006 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.....          92          40          40
    On-site investigations..............           5           4           4
    Designations renewed................          18          20          18
    Registration certificates issued....         103         105         105
    Investigations......................       1,923       1,550       1,600
    Market agencies/dealers registered..       5,679       5,700       5,700
    Stockyards posted...................       1,423       1,425       1,425
    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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          21          22           8
    12.1  Civilian personnel benefits.......           5           5           2
    21.0  Travel and transportation of
            persons.........................           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1
    25.2  Other services....................           9           5           3
    26.0  Supplies and materials............           1           1           1
    31.0  Equipment.........................           1           2           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          39          37          15
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2400-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         318         338         123
    ---------------------------------------------------------------------------

                              Salaries and Expenses

                  (Legislative proposal, not subject to PAYGO)

        In addition, such sums as may be deposited to the Grain Inspection,
    Packers and Stockyards Administration User Fee Account may be
    transferred to this account, to be merged with and available for the
    same purposes as this account, to remain available until expended.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-2-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Standardization...................                                   5
    00.04 Packers and stockyards program....                                  20
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                  25
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  25
    23.95 Total new obligations.............                                 -25
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (special fund)....                                  25
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                  25
    73.20 Total outlays (gross).............                                 -25
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                  25
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  25
    90.00 Outlays...........................                                  25
    ---------------------------------------------------------------------------

        Legislation will be proposed to permit the collection of fees for
    grain standardization and licensing activities.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-2-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................                                  14
    12.1  Civilian personnel benefits.......                                   4
    21.0  Travel and transportation of
            persons.........................                                   1
    23.3  Communications, utilities, and
            miscellaneous charges...........                                   1
    25.2  Other services....................                                   4
    31.0  Equipment.........................                                   1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                  25
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2400-2-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................                                 215
    ---------------------------------------------------------------------------

    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

    [[Page 92]]

    may be exceeded by up to 10 percent with notification to the Committees
    on Appropriations of both Houses of Congress. (7 U.S.C. 71, 74-79, 84-
    87, 1621-27; Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4050-0-3-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.00 Reimbursable program..............          37          42          42
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          37          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)......          37          42          42
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          41          46          46
    23.95 Total new obligations.............         -37         -42         -42
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           4           4           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          36          42          42
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           1
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          37          42          42
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -4          -1          -1
    73.10 Total new obligations.............          37          42          42
    73.20 Total outlays (gross).............         -33         -42         -42
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          -1          -1          -1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          33          42          42
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -1
    88.40     Non-Federal sources...........         -35         -42         -42
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -36         -42         -42
          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..................
    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).

                                         2004 actual  2005 est.   2006 est.
    Export grain inspected and/or
        weighed (million metric tons):
      By Federal personnel..............        76.2        80.5        84.3
      By delegated States...............        29.5        31.1        32.6
    Quantity of grain inspected (all
    official inspections) domestically
    million metric tons.................       124.6       134.3       133.2
    Number of inspections and
        reinspections:
      By Federal personnel..............     100,996     107,000     112,000
      By delegated state/official agency
        licenses........................   1,688,141   1,779,000   1,865,000
    Number of appeals...................       3,556       3,600       3,600
    Number of appeals carried to the
    Board of Appeals and Review.........         602         600         600
    Quantity of rice inspected (million
    metric tons)........................         2.5         2.7         2.7
    Quantity of rice exports (million
    metric tons)........................         3.3         3.3         3.3

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4050-0-3-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          19          22          22
    11.3    Other than full-time permanent..           1           1           1
    11.5    Other personnel compensation....           6           6           6
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          26          29          29
    12.1  Civilian personnel benefits.......           4           6           6
    21.0  Travel and transportation of
            persons.........................           1           1           1
    23.1  Rental payments to GSA............           1           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.2  Other services....................           3           3           3
    26.0  Supplies and materials............           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          37          42          42
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-4050-0-3-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         372         387         387
    ---------------------------------------------------------------------------

                         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, [$75,698,000] $84,114,000, including
    funds for the wholesale market development program for the design and
    development of wholesale and farmer market facilities for the major
    metropolitan areas of the country: Provided, That this appropriation
    shall be available pursuant to law (7 U.S.C. 2250) for the alteration
    and repair of buildings and improvements, but the cost of altering any
    one building during the fiscal year shall not exceed 10 percent of the
    current replacement value of the building.
        Fees may be collected for the cost of standardization activities, as
    established by regulation pursuant to law (31 U.S.C. 9701). (7 U.S.C.
    91-99, 136i-136l, 138-138l, 291-292, 415b-415d, 471-476, 501-508, 581-
    599, 951-957, 1031-1056, 1291, 1551-56, 1621-27, 2204(b)(c), 4401-06,
    6501-22; 15 U.S.C. 714-714p; 21 U.S.C. 1031-56; 26 U.S.C. 6804, 7233,
    7263, 7492-93, 7701; 49 U.S.C. 1653; Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies Appropriations Act,
    2005.)

                      limitation on administrative expenses

        Not to exceed [$64,459,000] $65,667,000 (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. (Agriculture, Rural Development, Food

    [[Page 93]]

    and Drug Administration, and Related Agencies Appropriations Act, 2005.)

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2500-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Receipts:
    02.01 Fees, Agriculture marketing
            service standardization user fee
            acc.............................                                   3
        Appropriations:
    05.01 Marketing services................                                  -3
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2500-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Market news service.............          30          31          32
    00.02   Inspection and standardization..           7           7           4
    00.03   Market protection and promotion.          32          31          42
    00.04   Wholesale market development....           3           3           3
    00.05   Transportation services.........           3           3           3
    09.01 Reimbursable program..............          47          67          69
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         122         142         153
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          26          25          25
    22.00 New budget authority (gross)......         122         142         153
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         148         167         178
    23.95 Total new obligations.............        -122        -142        -153
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          25          25          25
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          75          75          84
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          47          67          69
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         122         142         153
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          18          19          20
    73.10 Total new obligations.............         122         142         153
    73.20 Total outlays (gross).............        -123        -142        -152
    73.40 Adjustments in expired accounts
            (net)...........................                       2           2
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           2          -1          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          19          20          22
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         117         133         143
    86.93 Outlays from discretionary
            balances........................           6           9           9
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         123         142         152
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -1         -67         -69
    88.40     Non-Federal sources...........         -46
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -47         -67         -69
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          75          75          84
    90.00 Outlays...........................          74          75          83
    ----------------------------------------------------------------------------

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

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2004 actual  2005 est.   2006 est.
    Enacted/requested:
      Budget Authority..................          75          75          84
      Outlays...........................          76          75          83
    Legislative proposal, not subject to
        PAYGO:
      Budget Authority..................                                   3
      Outlays...........................                                   3
                                        ------------------------------------
    Total:
      Budget Authority..................          75          75          87
      Outlays...........................          76          75          86
                                        ====================================

        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

                                         2004 actual  2005 est.   2006 est.
    Percentage of reports released on
    time................................         95%         96%         97%

                       COTTON AND TOBACCO USER FEE PROGRAM

                                         2004 actual  2005 est.   2006 est.

    Cotton classed (samples in millions)        18.3        20.2        17.7
    Tobacco graded at auction markets
    and contract delivery stations
    (million pounds)....................         776         348           0
    Imported tobacco inspected at
    markets and ports of entry (million
    kilograms)..........................         340          60          60

             FEDERALLY FUNDED INSPECTION AND PROCUREMENT ACTIVITIES

                                         2004 actual  2005 est.   2006 est.

    States and Commonwealths with
    cooperative agreements..............          39          39          39
    Percentage of noncomplying shell egg
    lots that are reprocessed or
    diverted............................        100%        100%        100%

                           STANDARDIZATION ACTIVITIES

                                         2004 actual  2005 est.   2006 est.
    International and U.S. standards in
    effect, end of fiscal year..........         343         345         346
    Number of commodities covered.......         146         148         148

        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.

    [[Page 94]]

        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

                                         2004 actual  2005 est.   2006 est.
    Pesticide data program:
      Number of analyses performed......     122,693      80,000      80,000
      Percentage of sampling and
        analysis goal...................        153%        100%        100%
    Pesticide recordkeeping:
      Number of State/Federal
        Inspections conducted...........       4,883       3,700       3,800
      Percentage of sampling goal
        attained........................        100%        100%        100%
    Seed Act:
      Interstate investigations:
        Completed.......................         904         750         750
        Pending.........................         485         425         425
      Seed samples tested...............       1,855       2,000       2,000
      Percentage of cases submitted that
        are completed...................        142%        100%        100%
    Plant Variety Protection Act:
      Percentage of application
        processing goal completed.......        100%        100%        100%
      Number of applications received...         328         250         250
      Certificates of protection issued.         421         325         325
    Research and promotion collections
    (dollars in millions)...............         455         447         452
    Percentage of board budgets and
    marketing plans approved within time
    frame goal..........................         93%         93%         93%

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

        Transportation Services.--The activities are designed to ensure that
    the Nation's transportation systems will adequately serve the needs of
    agriculture and rural areas of the United States.

                     WHOLESALE MARKET DEVELOPMENT ACTIVITIES

                                         2004 actual  2005 est.   2006 est.
    Number of projects completed........          10          10          10

                       TRANSPORTATION SERVICES ACTIVITIES

                                         2004 actual  2005 est.   2006 est.
    Number of projects completed........           8           9           9

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2500-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          29          35          32
    11.3      Other than full-time permanent           2           1           3
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          31          36          35
    12.1    Civilian personnel benefits.....           8          10          10
    21.0    Travel and transportation of
              persons.......................           2           1           2
    23.2    Rental payments to others.......           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           1           1
    25.2    Other services..................           6           5          16
    25.3    Other purchases of goods and
              services from Government
              accounts......................          20          17          16
    25.7    Operation and maintenance of
              equipment.....................           1           1
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           3           2           2
                                               ---------   ---------  ----------
    99.0      Direct obligations............          75          75          84
    99.0  Reimbursable obligations..........          47          67          69
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         122         142         153
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2500-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         522         534         523
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         566         626         626
    ---------------------------------------------------------------------------

                               Marketing Services

                  (Legislative proposal, not subject to PAYGO)

        In addition, such sums as may be deposited to the Agriculture
    Marketing Service Standardization User Fee Account may be transferred to
    this account, to be merged with and available for the same purposes as
    this account, to remain available until expended.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2500-2-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.02   Inspection and standardization..                                   3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                   3
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (special fund)....                                   3
    ----------------------------------------------------------------------------

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

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

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

        Legislation will be proposed to permit the collection of fees for
    standardization activities.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2500-2-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................                                   2
    31.0  Equipment.........................                                   1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                   3
    ---------------------------------------------------------------------------

                       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)),
    [$3,847,000, of which not less than $2,500,000 shall be used to make a
    grant under this heading] $1,347,000. (Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies Appropriations Act,
    2005.)

    [[Page 95]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2501-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........           3          10           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           3          10           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           3          10           1
    23.95 Total new obligations.............          -3         -10          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           3          10           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           5           8
    73.10 Total new obligations.............           3          10           1
    73.20 Total outlays (gross).............          -1          -7          -7
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           5           8           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       3
    86.93 Outlays from discretionary
            balances........................           1           4           7
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           1           7           7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           3          10           1
    90.00 Outlays...........................           1           7           7
    ---------------------------------------------------------------------------

        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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Receipts:
    02.00 Deposits, Perishable Agricultural
            Commodities Act fund............           7           8           8
        Appropriations:
    05.00 Perishable Agricultural
            Commodities Act fund............          -7          -8          -8
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5070-0-2-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........          10           9          10
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          10           9          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          27          24          23
    22.00 New budget authority (gross)......           7           8           8
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          34          32          31
    23.95 Total new obligations.............         -10          -9         -10
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          24          23          21
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.20   Appropriation (special fund)....           7           8           8
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           3           4
    73.10 Total new obligations.............          10           9          10
    73.20 Total outlays (gross).............          -9          -8          -8
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           3           4           6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           7           8           8
    86.98 Outlays from mandatory balances...           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           9           8           8
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           7           8           8
    90.00 Outlays...........................           9           8           8
    ----------------------------------------------------------------------------

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

        License fees are deposited in this special fund and are used to meet
    the costs of administering the Perishable Agricultural Commodities and
    the Produce Agency Acts (7 U.S.C. 491-497, 499a-499s).

        The Acts are intended to ensure equitable treatment to farmers and
    others in the marketing of fresh and frozen fruits and vegetables.
    Commission merchants, dealers, and brokers handling these products in
    interstate and foreign commerce are licensed. Complaints of violations
    are investigated and violations dealt with by (a) informal agreements
    between the two parties, (b) formal decisions involving payment of
    reparation awards, and/or (c) suspension or revocation of license and/or
    publication of the facts. Beginning October 1, 1994, an additional fee
    was instituted for the filing of formal and informal complaints of
    violations of the Act. The November 1995 amendments to the Perishable
    Agricultural Commodities Act: (1) 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

                                         2004 actual  2005 est.   2006 est.
    Percentage of informal reparation
    complaints completed within time
    frame goal..........................         94%         85%         85%

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5070-0-2-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           6           6           7
    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........................           2           1           1
    33.0  Investments and loans.............          -1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          10           9          10
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-5070-0-2-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          90          95          95
    ---------------------------------------------------------------------------

    [[Page 96]]

        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 [$15,800,000] $16,055,000 for
    formulation and administration of marketing agreements and orders
    pursuant to the Agricultural Marketing Agreement Act of 1937 and the
    Agricultural Act of 1961. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............      10,348      10,724      11,593
        Receipts:
    02.00 30 percent of customs duties,
            funds for strengthening markets,
            i...............................       6,303       6,920       8,015
    02.40 General fund payment, Funds for
            strengthening markets, income, a                       1           1
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..       6,303       6,921       8,016
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...      16,651      17,645      19,609
        Appropriations:
    05.00 Funds for strengthening markets,
            income, and supply (section 32).      -5,927      -6,052      -6,339
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............      10,724      11,593      13,270
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

            Commodity program payments:
    00.01     Child nutrition program
                purchases...................         400         400         400
    00.02     Emergency surplus removal.....         227         301         416
    00.04     State option contract.........                       5           5
    00.05     Removal of defective
                commodities.................                       1           1
    00.06     Disaster Relief...............           9
    00.07     Direct Payments, Hurricane
                Relief......................         219         422
    00.08     Deobligations of Prior Year
                Obligations.................          -6
                                               ---------   ---------  ----------
    00.91     Subtotal, Commodity program
                payments....................         849       1,129         822
    01.01 Administrative expenses...........          25          27          28
                                               ---------   ---------  ----------
    01.92   Total direct program............         874       1,156         850
    09.11 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         875       1,157         851
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         134         408
    22.00 New budget authority (gross)......       1,148         749       1,150
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,282       1,157       1,150
    23.95 Total new obligations.............        -875      -1,157        -851
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         408                     299
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.20   Appropriation (special fund)....       5,927       6,052       6,339
    60.36   Unobligated balance permanently
              reduced.......................                    -163
    61.00   Transferred to other accounts...      -4,780      -5,231      -5,190
    62.00   Transferred from other accounts.                      90
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................       1,147         748       1,149
    69.00 Offsetting collections (cash).....           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,148         749       1,150
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          41          45          45
    73.10 Total new obligations.............         875       1,157         851
    73.20 Total outlays (gross).............        -871      -1,157        -850
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          45          45          46
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         695         704         405
    86.98 Outlays from mandatory balances...         176         453         445
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         871       1,157         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..................       1,147         748       1,149
    90.00 Outlays...........................         871       1,156         849
    ---------------------------------------------------------------------------

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          12          13          15
    12.1    Civilian personnel benefits.....           3           4           4
    21.0    Travel and transportation of
              persons.......................           1           1           1
    22.0    Transportation of things........           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           4           4           4
    25.3    Other purchases of goods and
              services from Government
              accounts......................           2           2           2
    25.7    Operation and maintenance of
              equipment.....................           1           1           1
    26.0    Supplies and materials: Grants
              of commodities to States......         849       1,128         820
    31.0    Equipment.......................                       1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         874       1,156         850
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         875       1,157         851
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         158         179         179
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          13          13          13
    ---------------------------------------------------------------------------

                                   Trust Funds

          Expenses and Refunds, Inspection and Grading of Farm Products

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8015-0-7-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............           4           3           3
        Receipts:
    02.20 Deposits of fees, inspection and
            grading of farm products, AMS...         124         118         121
    02.40 Payments from general fund, Wool
            research, development, and prom.           2           2           2
                                               ---------   ---------  ----------

    [[Page 97]]

    02.99   Total receipts and collections..         126         120         123
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         130         123         126
        Appropriations:
    05.00 Expenses and refunds, inspection
            and grading of farm products....        -127        -120        -123
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           3           3           3
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8015-0-7-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Dairy products....................           6           6           6
    00.02 Fruits and vegetables.............          56          54          54
    00.03 Meat grading......................          24          23          23
    00.04 Poultry products..................          29          25          28
    00.05 Miscellaneous agricultural
            commodities.....................          12          12          12
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         127         120         123
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          51          51          52
    22.00 New budget authority (gross)......         127         121         124
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         178         172         176
    23.95 Total new obligations.............        -127        -120        -123
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          51          52          53
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......         127         120         123
    62.00   Transferred from other accounts.                       1           1
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         127         121         124
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          17          15          14
    73.10 Total new obligations.............         127         120         123
    73.20 Total outlays (gross).............        -129        -121        -128
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          15          14           9
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         127         116         119
    86.98 Outlays from mandatory balances...           2           5           9
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         129         121         128
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         127         121         124
    90.00 Outlays...........................         129         121         128
    ----------------------------------------------------------------------------

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

        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

                                         2004 actual  2005 est.   2006 est.
    Weighted average cost per cwt. (1990
    index)..............................       $0.08       $0.08       $0.08

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8015-0-7-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          66          60          63
    11.3      Other than full-time permanent           6           5           5
    11.5      Other personnel compensation..          10           9           9
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          82          74          77
    12.1    Civilian personnel benefits.....          23          17          17
    13.0    Benefits for former personnel...           1           1           1
    21.0    Travel and transportation of
              persons.......................           6           7           7
    22.0    Transportation of things........           1
    23.2    Rental payments to others.......           2           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           2           2
    24.0    Printing and reproduction.......                       1           1
    25.2    Other services..................          12          10          10
    25.3    Other purchases of goods and
              services from Government
              accounts......................           3           2           2
    26.0    Supplies and materials..........           2           2           2
    31.0    Equipment.......................                       2           2
    41.0    Grants, subsidies, and
              contributions.................           2
                                               ---------   ---------  ----------
    99.0      Direct obligations............         136         120         123
    33.0  Allocation Account: Investments
            and loans.......................          -9
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         127         120         123
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8015-0-7-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,502       1,536       1,554
    ---------------------------------------------------------------------------

                       Milk Market Orders Assessment Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8412-0-8-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Administration....................          43          39          39
    09.02 Marketing service.................           6           5           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          49          44          44
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          49          44          44
    23.95 Total new obligations.............         -49         -44         -44
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          49          44          44
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           5
    73.10 Total new obligations.............          49          44          44
    73.20 Total outlays (gross).............         -54         -44         -44
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          49          44          44
    86.98 Outlays from mandatory balances...           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          54          44          44
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -49         -44         -44
    ----------------------------------------------------------------------------

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

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...           2           1

    [[Page 98]]

    92.02 Total investments, end of year:
            Federal securities: Par value...           1
    ---------------------------------------------------------------------------

        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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................          30          28          28
    12.1  Civilian personnel benefits.......           7           6           6
    21.0  Travel and transportation of
            persons.........................           3           2           2
    23.2  Rental payments to others.........           3           3           3
    23.3  Communications, utilities, and
            miscellaneous charges...........           2           2           2
    25.2  Other services....................           1           1           1
    26.0  Supplies and materials............           1           1           1
    31.0  Equipment.........................           2           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          49          44          44
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8412-0-8-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         472         472         472
    ---------------------------------------------------------------------------

                             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), [$72,044,000] $87,806,000: 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). (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2707-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........          71          71          88
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          71          71          88
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          71          71          88
    23.95 Total new obligations.............         -71         -71         -88
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          71          72          88
    40.35   Appropriation permanently
              reduced.......................                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          71          71          88
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          19          18          20
    73.10 Total new obligations.............          71          71          88
    73.20 Total outlays (gross).............         -71         -69         -83
    73.40 Adjustments in expired accounts
            (net)...........................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          18          20          25
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          52          50          62
    86.93 Outlays from discretionary
            balances........................          19          19          21
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          71          69          83
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          71          71          88
    90.00 Outlays...........................          71          69          83
    ---------------------------------------------------------------------------

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

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2707-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          37          37          41
    11.3    Other than full-time permanent..           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          38          38          42
    12.1  Civilian personnel benefits.......           8           8          10
    21.0  Travel and transportation of
            persons.........................           2           2           2
    23.2  Rental payments to others.........           1           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.2  Other services....................          17          17          30
    26.0  Supplies and materials............           2           2           1
    31.0  Equipment.........................           2           2           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          71          71          88
    ---------------------------------------------------------------------------

    [[Page 99]]

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2707-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         520         568         585
    ---------------------------------------------------------------------------

                                  Corporations

        The following corporations and agencies are hereby authorized to
    make expenditures, within the limits of funds and borrowing authority
    available to each such corporation or agency and in accord with law, and
    to make contracts and commitments without regard to fiscal year
    limitations as provided by section 104 of the Government Corporation
    Control Act as may be necessary in carrying out the programs set forth
    in the budget for the current fiscal year for such corporation or
    agency, except as hereinafter provided. (Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies Appropriations Act,
    2005.)

    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. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4085-0-3-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Indemnities.......................       2,222       2,330       2,788
    00.02 A&O Reimbursements................         859         769         781
    00.03 ARPA Obligations..................          82          76          74
    00.04 Discretionary funding: ARPA
            authorized data mining..........                                   4
    09.01 Reimbursable Program--Indemnities.         928       1,324       1,150
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       4,091       4,499       4,797
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,854       2,057       1,124
    22.00 New budget authority (gross)......       4,294       3,566       4,313
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       6,148       5,623       5,437
    23.95 Total new obligations.............      -4,091      -4,499      -4,797
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       2,057       1,124         640
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

    60.00   Appropriation...................       3,366       2,242       3,159
    61.00   Transferred to other accounts...          -5          -5          -5
    62.00   Transferred from other accounts.           5           5           5
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................       3,366       2,242       3,159
    69.00 Offsetting collections (cash).....         928       1,324       1,150
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       4,294       3,566       4,313
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         220         186          64
    73.10 Total new obligations.............       4,091       4,499       4,797
    73.20 Total outlays (gross).............      -4,126      -4,621      -4,793
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         186          64          68
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                   3
    86.97 Outlays from new mandatory
            authority.......................       2,806       3,566       3,624
    86.98 Outlays from mandatory balances...       1,320       1,055       1,166
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       4,126       4,621       4,793
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....        -928      -1,324      -1,150
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,366       2,242       3,163
    90.00 Outlays...........................       3,198       3,297       3,643
    ---------------------------------------------------------------------------

        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. 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. These programs
    all seek to help ensure a certain level of annual income and are offered
    through private insurance companies. FCIC is also piloting an Adjusted
    Gross Revenue (AGR) program, which is designed to insure a portion of a
    producer's 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 covers whole farm revenue up to $250,000, 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 Alaska (selected counties), Connecticut, Delaware,
    Idaho, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New
    York (selected counties), North Carolina, Oregon, Pennsylvania (except
    Philadelphia County), Rhode Island, Vermont, Washington, and West
    Virginia.

        During 2004, RMA awarded over $23 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

    [[Page 100]]

    of contractors in a base research and development contract that was
    initiated with a period of performance through September 30, 2004. 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 2004, 221 million acres were insured, with an estimated
    $4,193 million in total premium income, including $2,481 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.''

        ARPA provided RMA with mandatory funding to implement data mining
    and data warehousing to improve compliance and integrity in the crop
    insurance program. It is estimated that in its first year of operation,
    data mining prevented nearly $94 million in improper payments and helped
    recover nearly $35 million in improper indemnities. However, the
    authority to use mandatory funding for data mining expires in 2005.
    Therefore, the 2006 Budget includes language to provide $3.6 million to
    continue data mining and data warehousing activities.

        Additionally, the 2006 Budget proposal would tie direct farm
    payments to the purchase of crop insurance. This change will ensure that
    all farmers growing the major commodity corps (e.g. wheat, corn,
    soybeans, and cotton) will have insurance coverage, ensuring that a
    farmer's revenue loss in a disaster will not be greater than 50 percent.
    As part of this proposal, the Administration includes changes to the
    Crop Insurance program that will reduce the premium subsidies to the
    farmers as well as the subsidies in total to the participating insurance
    companies. These changes will allow farmers to become more efficient in
    their risk management and companies to deliver crop insurance in a more
    efficient manner. The government will also realize savings of $140
    million beginning in 2007 as a result of these efficiencies, and the
    need for ad-hoc disaster payments will be reduced.

        The following table compares the scope of the insurance operations
    planned for 2006. Amounts in the 2004 column are as of September 30,
    2004, and pertain to the 2004 crop year.

                                            2004        2005        2006
                                          crop year   crop year   crop year
                                          estimate    estimate    estimate
    Number of States....................          50          50          50
    Number of counties..................       3,067       3,066       3,066
    Insurance in force (millions).......      40,692      40,032      41,336
    Insured acreage (millions)..........         221         222         220
                                        ====================================
    Producer premium (millions)\1\......      $1,712      $1,466      $1,508
    Premium subsidy (millions)\1\.......      $2,481      $2,164      $2,214
                                        ------------------------------------
          Total premium (millions)\1\...      $4,193      $3,630      $3,722
                                        ====================================
    Indemnities (millions)\1\...........      $3,521      $3,903      $4,001
    Loss ratio..........................         .84       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]

                                            2004         2005        2006
                                         fiscal year fiscal year fiscal year
                                           actual      estimate    estimate
    Premiums:
      Additional coverage premium
        subsidy.........................       1,818       2,224       1,936
      Catastrophic coverage--Reinsurance
        premium subsidy.................         226         241         230
                                        ------------------------------------
        Subtotal, premium subsidy.......       2,044       2,465       2,166
      Producer premium..................         928       1,324       1,150
                                        ------------------------------------
          Total premiums................       2,972       3,789       3,316
                                        ====================================
    Indemnities:
      Additional coverage...............       2,898       3,478       3,689
      Catastrophic coverage--Reinsurance         252         176         249
                                        ------------------------------------
          Total indemnities.............       3,150       3,654       3,938
                                        ====================================

        For crop years 1948 through 2003, indemnities ($33,635 million)
    exceeded premium income ($28,057 million) by $5,578 million; the loss
    ratio for the period was 1.20.

        The following table summarizes the insurance operations for 2004,
    2005, and 2006:

                 NET INCOME OR LOSS (-) ON INSURANCE OPERATIONS

                            [In millions of dollars]

                                            2004        2005        2006
                                         fiscal year fiscal year fiscal year
                                            est.        est.        est.
    Producer premium less indemnities...      -2,222      -2,330      -2,788
    Interest expense, net...............           0           0           0
    Delivery expenses \1\...............        -859        -769        -781
    Other income or expense, net........          37          48          48
    ARPA costs..........................         -46         -76         -78
    Reinsurance underwriting gain (+) or
    loss (-)............................        -378        -424        -367
                                        ------------------------------------
    Net income or loss (-)..............      -3,468      -3,551      -3,966
                                        ====================================
        \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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    1,974

    2,160

    1206

    Non-Federal assets: Receivables, net

    1,152

    1,570

    1803

    Other Federal assets: Property, plant and equipment, net

    100

    1

    1999

    Total assets

    3,226

    3,731

        LIABILITIES:
    2105

    Federal liabilities: Other

    3

    3

          Non-Federal liabilities:

    2201

    Accounts payable

    112

    82

    2207

    Other

    3,562

    3,851

    2999

    Total liabilities

    3,677

    3,936

        NET POSITION:
    3100

    Appropriated capital

    342

    828

    3300

    Cumulative results of operations

    -793

    -1,033

    3999

    Total net position

    -451

    -205

    4999

    Total liabilities and net position

    3,226

    3,731

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4085-0-3-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    25.2    Other services-ARPA requirements          82          76          74

    [[Page 101]]

    25.2    Other services..................         859         769         781
    25.2    Other Services--(Proposed
              Legislation)..................                                   4
    42.0    Insurance claims and indemnities
              (reinsured buyup).............       2,222       2,330       2,788
                                               ---------   ---------  ----------
    99.0      Direct obligations............       3,163       3,175       3,647
    42.0  Reimbursable obligations:
            Insurance claims and indemnities         928       1,324       1,150
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       4,091       4,499       4,797
    ---------------------------------------------------------------------------

                               FARM SERVICE AGENCY

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

                         (including transfers of funds)

        For necessary expenses for carrying out the administration and
    implementation of programs administered by the Farm Service Agency,
    [$1,007,597,000] $1,050,875,000: 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. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0600-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Conservation......................         177         181         189
    00.02 Income Support....................         767         783         817
    00.05 Commodity Operations..............          39          40          45
                                               ---------   ---------  ----------
    03.00   Subtotal, direct program........         983       1,004       1,051
    09.01 Farm loans........................         281         291         309
    09.02 Other programs....................         125         120         119
                                               ---------   ---------  ----------
    09.99   Subtotal, reimbursable program..         406         411         428
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,389       1,415       1,479
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,389       1,415       1,479
    23.95 Total new obligations.............      -1,389      -1,415      -1,479
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         989       1,008       1,051
    40.00   Appropriation (Hurricane
              supplemental).................                       4
    40.35   Appropriation permanently
              reduced.......................          -6          -8
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         983       1,004       1,051
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         396         411         428
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          10
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         406         411         428
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,389       1,415       1,479
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         213         153         144
    73.10 Total new obligations.............       1,389       1,415       1,479
    73.20 Total outlays (gross).............      -1,411      -1,424      -1,474
    73.40 Adjustments in expired accounts
            (net)...........................         -37
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -10
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           9
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         153         144         149
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,308       1,312       1,371
    86.93 Outlays from discretionary
            balances........................         103         112         103
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,411       1,424       1,474
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -395        -381        -397
    88.40     Non-Federal sources...........         -11         -30         -31
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -406        -411        -428
          Against gross budget authority only:

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

        Net budget authority and outlays:
    89.00 Budget authority..................         983       1,004       1,051
    90.00 Outlays...........................       1,005       1,013       1,046
    ---------------------------------------------------------------------------

        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 Grasslands Reserve Program (GRP). 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.

        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 as

    [[Page 102]]

    sistance 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 through
    2005, 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 farm planting history; (d)
    notifying producers of established allotments and farm planting
    histories; (e) establishing individual farm allotments and determining
    farm marketing quotas for tobacco through 2005; (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, and implementing administrative processes and
    procedures for contracting, financial reporting, and other financial
    operations. This activity includes: (a) processing producer requests for
    conservation cost-sharing and issuing conservation reserve rental
    payments; and (b) issuing checks for other conservation programs.

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

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

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0600-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         170         163         166
    11.3      Other than full-time permanent           3           3           3
    11.5      Other personnel compensation..           5           7           7
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         178         173         176
    12.1    Civilian personnel benefits.....          45          41          41
    21.0    Travel and transportation of
              persons.......................          11           9           7
    22.0    Transportation of things........           3           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........          11          14          14
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          98         111         127
    26.0    Supplies and materials..........           5           4           4
    31.0    Equipment.......................           4           3           2
    41.0    Grants, subsidies, and
              contributions.................         627         645         676
    42.0    Insurance claims and indemnities                       1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         983       1,004       1,051
    99.0  Reimbursable obligations..........         406         411         428
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,389       1,415       1,479
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0600-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       2,472       2,134       2,122
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       3,411       3,364       3,352
    ---------------------------------------------------------------------------

                             State Mediation Grants

        For grants pursuant to section 502(b) of the Agricultural Credit Act
    of 1987, as amended (7 U.S.C. 5101-5106), [$4,000,000] $4,500,000.
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0170-0-1-351      2004 actual   2005 est.   2006 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
    ----------------------------------------------------------------------------

    [[Page 103]]

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

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           2           2
    86.93 Outlays from discretionary
            balances........................           2           2           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           4           4           4
    ----------------------------------------------------------------------------

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

                                         2004 actual  2005 est.   2006 est.
    Number of States receiving grants...          32          34          36
    Amount of grants (in millions of
    dollars)............................         3.9           4           4

                             Tree Assistance Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2701-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Tree Assistance Payments..........           4
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           4
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           6
    23.95 Total new obligations.............          -4
    23.98 Unobligated balance expiring or
            withdrawn.......................          -2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          12
    41.00   Transferred to other accounts...          -6
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............           6
    ----------------------------------------------------------------------------

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

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

        Net budget authority and outlays:
    89.00 Budget authority..................           6
    90.00 Outlays...........................                       2           2
    ---------------------------------------------------------------------------

        The tree assistance program (TAP) was reauthorized by the Farm
    Security and Rural Investment Act of 2002 with some modifications.

        The 1999 TAP expired at the end of 2004, and all unobligated funds
    were returned to Treasury.

        For 2004, the Consolidated Appropriations Act, P.L. 108-199,
    appropriated $12.5 million for the program in southern California.
    During the fiscal year, $4 million was obligated, $6 million was
    transferred to the USDA Working Capital Fund per Section 704 of P.L.
    108-199, and the remaining $2 million unobligated balance will expire at
    the end of FY 2009. No outlays were made during FY 2004 from funds
    obligated during the fiscal year. P.L. 108-199 also provided $5 million
    in Commodity Credit Corporation (CCC) funding for a program in New York.

        In addition, P.L. 108-83, the Legislative Branch Appropriations Act,
    provided $9.7 million in CCC funding to compensate eligible orchardists
    in Michigan for losses due to fire blight.

        For 2005, no appropriation was provided for TAP. However, the
    following CCC funding was provided by the 2005 Military Construction
    Appropriations and Emergency Hurricane Supplemental Appropriations Act,
    2005: (1) such sums as necessary for assistance to eligible producers
    for specified tree losses; (2) $15 million for timber losses; (3) $10
    million for orchard tree losses; and (4) $8.5 million for assistance to
    eligible pecan producers in designated counties.

        No funding is requested for 2006.

                        Agricultural Conservation Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3315-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           4           1
    22.00 New budget authority (gross)......                      -4
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3           1
    22.21 Unobligated balance transferred to
            other accounts..................          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           4           1           1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           4           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance permanently
              reduced.......................                      -4
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           4           1           2
    73.20 Total outlays (gross).............                       2           2
    73.45 Recoveries of prior year
            obligations.....................          -3          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           1           2           4
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................                      -4
    90.00 Outlays...........................                      -2          -2
    ---------------------------------------------------------------------------

        This program was terminated at the beginning of 1997 in accordance
    with the Federal Agriculture Improvement and Reform Act of 1996. The
    objectives of the Agricultural Conservation Program (ACP) were
    incorporated into the Environmental Quality Incentives Program which is
    funded by the Commodity Credit Corporation and administered under the
    lead of the Natural Resources Conservation Service.

        The primary objective of the program was to conserve soil and water
    resources. Along with annual agreements, cost sharing was authorized for
    long-term agreements of 3-10 years. In 2004 a transfer of $947,623 in
    unobligated funds was made to the USDA Working Capital Fund as
    authorized in Section 704 of the Consolidated Appropriations Act, 2004,
    P.L. 108-199. Outlays to States in 2004 totaled $110 thou

    [[Page 104]]

    sand. At the end of 2004, $1.123 million in unliquidated obligations
    remained for ACP agreements.

                         Emergency Conservation Program

        [For an additional amount for ``Emergency Conservation Program'',
    for expenses resulting from natural disasters, $100,000,000, to remain
    available until expended: Provided, That the amounts provided under this
    heading are designated as an emergency requirement pursuant to section
    402 of S. Con. Res. 95 (108th Congress), as made applicable to the House
    of Representatives by H. Res. 649 (108th Congress) and applicable to the
    Senate by section 14007 of Public Law 108-287.] (Emergency Supplemental
    Appropriations for Hurricane Disasters Assistance Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3316-0-1-453      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 ECP payments......................          27         100          81
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          27         100          81
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          46          31          81
    22.00 New budget authority (gross)......          12         150
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          58         181          81
    23.95 Total new obligations.............         -27        -100         -81
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          31          81
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          12         100
          Mandatory:

    62.00   Transferred from other accounts.                      50
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          12         150
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           9          13          33
    73.10 Total new obligations.............          27         100          81
    73.20 Total outlays (gross).............         -23         -80         -65
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          13          33          49
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                      24
    86.93 Outlays from discretionary
            balances........................          23          44          43
    86.97 Outlays from new mandatory
            authority.......................                      12
    86.98 Outlays from mandatory balances...                                  22
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          23          80          65
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          12         150
    90.00 Outlays...........................          23          80          65
    ---------------------------------------------------------------------------

        The Emergency Conservation Program (ECP) 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
    through 2004 for a nationwide ECP. However, the Consolidated
    Appropriations Act, 2004, P.L. 108-199, provided $12 million to repair
    damage caused by wildfire in southern California. The program continued
    to operate nationwide using unobligated funds carried forward from 2001
    and recoveries throughout the three fiscal years. Under the 2004
    program, cost-sharing and technical assistance were provided in 34
    States and one territory to treat farmlands damaged by drought, floods,
    ice storms, tornadoes, and other natural disasters. Outlays to States in
    FY 2004 totaled $23 million, including $61 thousand for wildfire damage
    in California.

        The Emergency Hurricane Supplemental Appropriations Act, 2005, P.L.
    108-324, provided an additional $150 million for ECP ($100 million in
    direct appropriation and $50 million transferred from the Commodity
    Credit Corporation). These funds are available until expended.

        The 2006 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), emergency insured loans (42 U.S.C. 5121 et seq.), 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,
    [$1,610,000,000] $1,600,000,000, of which $1,400,000,000 shall be for
    guaranteed loans and [$210,000,000] $200,000,000 shall be for direct
    loans; operating loans, [$2,035,000,000] $2,116,253,000, of which
    [$1,100,000,000] $1,200,000,000 shall be for unsubsidized guaranteed
    loans, [$285,000,000] $266,253,000 shall be for subsidized guaranteed
    loans and $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: Provided, That
    the Secretary shall deem the pink bollworm to be a boll weevil for the
    purpose of boll weevil eradication program 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: farm ownership loans, [$18,655,000]
    $16,960,000, of which [$7,420,000] $6,720,000 shall be for guaranteed
    loans, and [$11,235,000] $10,240,000 shall be for direct loans;
    operating loans, [$139,049,000] $134,316,625, of which [$35,530,000]
    $36,360,000 shall be for unsubsidized guaranteed loans, [$37,934,000]
    $33,281,625 shall be for subsidized guaranteed loans, and [$65,585,000]
    $64,675,000 shall be for direct loans; [and] Indian tribe land
    acquisition loans, [$105,000] $80,200; and emergency insured loans to
    meet the needs resulting from natural disasters, $2,735,000.
        In addition, for administrative expenses necessary to carry out the
    direct and guaranteed loan programs, [$301,764,000] $317,137,000, of
    which [$293,764,000] $309,137,000 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 transfer of funds)

        For necessary expenses involved in making indemnity payments to
    dairy farmers and manufacturers of dairy products under a dairy
    indemnity program, $100,000, to remain available until expended:
    Provided, That such program is carried out by the Secretary in the same
    manner as the dairy indemnity program described in the Agriculture,
    Rural Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2001 (Public Law 106-387, 114 Stat. 1549A-12).
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2005.)

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    0101  Negative subsidies/subsidy
            reestimates.....................           4           6          11
    0102  Negative subsidies/subsidy
            reestimates.....................         988         316
    ---------------------------------------------------------------------------

    [[Page 105]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............         123          99          78
    00.02 Guaranteed loan subsidy...........          72          82          76
    00.05 Reestimates of direct loan subsidy                      84
    00.06 Interest on reestimates of direct
            loan subsidy....................                      72
    00.07 Reestimates of guaranteed loan
            subsidy.........................           8           6
    00.08 Interest on reestimate of
            guaranteed loan subsidy.........           1           1
    00.09 Administrative expenses--salaries
            and expenses....................         286         291         309
    00.10 Administrative Expenses--PLCE.....           2           8           8
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         492         643         471
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          30          26           5
    22.00 New budget authority (gross)......         494         620         471
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         525         648         476
    23.95 Total new obligations.............        -492        -643        -471
    23.98 Unobligated balance expiring or
            withdrawn.......................          -7
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          26           5           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         488         460         471
    40.35   Appropriation permanently
              reduced.......................          -3          -4
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         485         456         471
          Mandatory:

    60.00   Appropriation...................           9         164
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         494         620         471
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          20          17          37
    73.10 Total new obligations.............         492         643         471
    73.20 Total outlays (gross).............        -491        -621        -471
    73.40 Adjustments in expired accounts
            (net)...........................          -3
    73.45 Recoveries of prior year
            obligations.....................          -1          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          17          37          37
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         462         432         447
    86.93 Outlays from discretionary
            balances........................          20          25          24
    86.97 Outlays from new mandatory
            authority.......................           9         164
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         491         621         471
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         494         620         471
    90.00 Outlays...........................         491         621         471
    ---------------------------------------------------------------------------

                                 Performance Metrics

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Agricultural Credit Insurance Fund Direct
                    Loans:
    201806Percentage of farm loans targeted
            to beginning and socially
            disadvantaged farmers/ranchers..                     36%         36%
    201807Decrese in average processing time
            (measured in number of days)....                      36          36
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Farm ownership....................         142         208         200
    115002Farm operating....................         609         645         650
    115003Emergency disaster................          30                      25
    115004Indian tribe land acquisition.....           2           2           2
    115005Boll weevil eradication...........          98         100          60
                                               ---------   ---------  ----------
    115901Total direct loan levels..........         881         955         937
        Direct loan subsidy (in percent):
    132001Farm ownership....................       22.08        5.35        5.12
    132002Farm operating....................       14.42       10.09        9.95
    132003Emergency disaster................       13.83       12.94       10.94
    132004Indian tribe land acquisition.....       -0.78        5.27        4.01
    132005Boll weevil eradication...........       -6.07       -5.68      -18.09
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       13.32        7.40        7.14
        Direct loan subsidy budget authority:
    133001Farm ownership....................          31          11          10
    133002Farm operating....................          88          65          65
    133003Emergency disaster................           4                       3
    133004Indian tribe land acquisition.....
    133005Boll weevil eradication...........          -6          -6         -11
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....         117          70          67
        Direct loan subsidy outlays:
    134001Farm ownership....................          30          10           9
    134002Farm operating....................          87          64          65
    134003Emergency disaster................           4                       3
    134004Indian tribe land acquisition.....
    134005Boll weevil eradication...........          -4          -6         -11
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............         117          68          66
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Farm ownership....................
    135002Farm operating....................                       4
    135003Emergency disaster................
    135004Indian Land Acquisition...........
    135005Boll weevil eradication...........                      44
    135006Seed cotton.......................
    135007Soil and Water....................                       4
    135008Farm ownership credit sales.......                     105
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................                     157
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Farm ownership....................        -291
    137002Farm operating....................        -440        -143
    137003Emergency disaster................         -35         -63
    137004Indian tribe land acquisition.....
    137005Boll weevil eradication...........        -117         -68
    137006Seed cotton.......................          -2          -5
    137007Soil and water....................
    137008Farm ownership credit sales.......         -48
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................        -933        -279
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Farm ownership, unsubsidized......       1,114       1,389       1,400
    215002Farm operating, unsubsidized......       1,017       1,091       1,200
    215003Farm operating, subsidized........         271         283         266
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......       2,402       2,763       2,866
        Guaranteed loan subsidy (in percent):
    232001Farm ownership, unsubsidized......        0.54        0.53        0.48
    232002Farm operating, unsubsidized......        3.33        3.23        3.03
    232003Farm operating, subsidized........       12.77       13.31       12.50
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        3.10        2.91        2.66
        Guaranteed loan subsidy budget authority:
    233001Farm ownership, unsubsidized......           6           7           7
    233002Farm operating, unsubsidized......          34          35          36
    233003Farm operating, subsidized........          35          38          33
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....          75          80          76
        Guaranteed loan subsidy outlays:
    234001Farm ownership, unsubsidized......           6           6           6
    234002Farm operating, unsubsidized......          33          32          34
    234003Farm operating, subsidized........          31          39          32
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............          70          77          72
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235001Farm ownership, unsubsidized......           1           2
    235002Farm operating, unsubsidized......           1
    235003Farm operating, subsidized........           7           5
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................           9           7
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237001Farm ownership, unsubsidized......          -6          -7
    237002Farm operating, unsubsidized......         -25         -28
    237003Farm operating, subsidized........         -23          -3
    237004Soil and Water....................          -1
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................         -55         -38
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................         290         291         290

    [[Page 106]]

    359001Outlays from new authority........         279         291         326
    ---------------------------------------------------------------------------

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

        In 2004, $601 thousand was paid to producers who filed claims under
    the program.

        The 2006 Budget requests $100 thousand for this program.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................         259         299         317
    41.0  Grants, subsidies, and
            contributions...................         233         344         154
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         492         643         471
    ---------------------------------------------------------------------------

        Agricultural Credit Insurance Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4212-0-3-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Loan Obligations...........         881       1,132         937
    00.02 Advances on Behalf of Borrowers...           2           3           3
    00.03 Fees, Collateral and Other........           3           4           4
    00.04 Interest Paid to Treasury.........         277         315         315
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............       1,163       1,454       1,259
    08.01 Negative Subsidy..................           6           6          11
    08.02 Downward Reestimate...............         701         231
    08.04 Interest on downward reestimate...         232          47
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............         939         284          11
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,102       1,738       1,270
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       2,134       1,674          -2
    22.00 New financing authority (gross)...       3,531       2,793       2,464
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          14
    22.40 Capital transfer to general fund..        -235        -408
    22.60 Portion applied to repay debt.....      -1,668      -2,323      -1,185
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,776       1,736       1,277
    23.95 Total new obligations.............      -2,102      -1,738      -1,270
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       1,674          -2           7
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............       2,183       1,365       1,192
    69.00 Offsetting collections (cash).....       1,349       1,428       1,272
    69.10 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................       1,348       1,428       1,272
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       3,531       2,793       2,464
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         108          85         171
    73.10 Total new obligations.............       2,102       1,738       1,270
    73.20 Total financing disbursements
            (gross).........................      -2,112      -1,652      -1,244
    73.45 Recoveries of prior year
            obligations.....................         -14
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          85         171         197
    87.00 Total financing disbursements
            (gross).........................       2,112       1,652       1,244
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal Sources: Reestimate
                payment from program account                    -157
    88.00     Federal Sources: Subsidy
                payment from program account        -121         -74         -77
    88.25     Federal Sources: Interest on
                uninvested funds............        -109        -115        -115
    88.40     Repayments of principal.......        -918        -900        -900
    88.40     Repayments of interest........        -172        -180        -180
    88.40     Interest and principal
                repayments--judgements......          -2          -2
    88.40     Proceeds from sale of acquired
                property....................          -2
    88.40     Undistributed/miscellaneous...         -23
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,347      -1,428      -1,272
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           1
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          -2
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............       2,183       1,365       1,192
    90.00 Financing disbursements...........         764         224         -28
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4212-0-3-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................         881       1,132         937
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         881       1,132         937
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       4,545       4,448       4,456
    1231  Disbursements: Direct loan
            disbursements...................         899         962         937
    1251  Repayments: Repayments and
            prepayments.....................        -927        -900        -900
          Write-offs for default:

    1263    Direct loans....................         -67         -54         -57
    1264    Other adjustments, net..........          -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       4,448       4,456       4,436
    ---------------------------------------------------------------------------

        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.

    [[Page 107]]

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    1,416

    1,674

            Investments in US securities:
    1106

    Receivables, net

    156

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    4,545

    4,448

    1402

    Interest receivable

    122

    197

    1403

    Accounts receivable from foreclosed property

    16

    5

    1405

    Allowance for subsidy cost (-)

    -738

    -591

    1499

    Net present value of assets related to direct loans

    3,945

    4,059

    1603

    Net value of assets related to pre-1992 direct loans receivable and
    acquired defaulted guaranteed loans receivable: Allowance for estimated
    uncollectible loans and interest (-)

    -80

    1999

    Total assets

    5,361

    5,809

        LIABILITIES:
    2104

    Federal liabilities: Resources payable to Treasury

    4,428

    5,449

    2207

    Non-Federal liabilities: Other

    933

    360

    2999

    Total liabilities

    5,361

    5,809

    4999

    Total liabilities and net position

    5,361

    5,809

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

      Agricultural Credit Insurance Fund Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4213-0-3-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default Claims....................          60          55          60
    00.02 Interest Assistance...............          68         110         110
    00.03 Guaranteed Debt Offset/Purchases/
            Settlement Expense..............           2           5           5
    00.04 Interest to Treasury..............                       2           2
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............         130         172         177
    08.02 Downward reestimate of subsidy....          41          28
    08.04 Downward reestimate of subsidy-
            interest........................          14          10
                                               ---------   ---------  ----------
    08.91   Subtotal, reestimates...........          55          38
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         185         210         177
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         180         193         119
    22.00 New financing authority (gross)...         136         136         124
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          65
    22.60 Portion applied to repay debt.....          -3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         378         329         243
    23.95 Total new obligations.............        -185        -210        -177
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         193         119          66
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         136         136         124
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         404         351         351
    73.10 Total new obligations.............         185         210         177
    73.20 Total financing disbursements
            (gross).........................        -173        -210        -177
    73.45 Recoveries of prior year
            obligations.....................         -65
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         351         351         351
    87.00 Total financing disbursements
            (gross).........................         173         210         177
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.         -79         -84         -72
    88.25     Interest on uninvested funds..         -27         -25         -25
    88.40     Fees and premiums.............         -30         -27         -27
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -136        -136        -124
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........          36          74          53
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4213-0-3-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........       2,402       2,763       2,866
    2121  Limitation available from carry-
            forward.........................          80          77
    2143  Uncommitted limitation carried
            forward.........................         -80
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       2,402       2,840       2,866
    2199  Guaranteed amount of guaranteed
            loan commitments................       2,347       2,698       2,723
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      10,086      10,224      10,473
    2231  Disbursements of new guaranteed
            loans...........................       2,347       2,579       2,510
    2251  Repayments and prepayments........      -2,123      -2,250      -2,250
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....          -2          -2          -2
    2263    Terminations for default that
              result in claim payments......         -89         -78         -78
    2264    Other adjustments, net..........           5
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      10,224      10,473      10,653
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       9,182       9,949      10,120
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......          10          15          15
    2331    Disbursements for guaranteed
              loan claims...................           2           2           2
    2351    Repayments of loans receivable..          -2          -1          -1
    2361    Write-offs of loans receivable..                      -1          -1
    2364    Other adjustments, net..........           5
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......          15          15          15
    ---------------------------------------------------------------------------

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    583

    544

            Investments in US securities:
    1106

    Receivables, net

    9

    7

    1206

    Non-Federal assets: Receivables, net

    3

    2

          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501

    Defaulted guaranteed loans receivable, gross

    9

    15

    1502

    Interest receivable

    -2

    1505

    Allowance for subsidy cost (-)

    -10

    -12

    1599

    Net present value of assets related to defaulted guaranteed loans

    -1

    1

    1999

    Total assets

    594

    554

    [[Page 108]]

        LIABILITIES:
          Federal liabilities:

    2104

    Resources payable to Treasury

    6

    3

    2105

    Other

    55

    38

          Non-Federal liabilities:

    2201

    Accounts payable

    404

    351

    2204

    Liabilities for loan guarantees

    129

    162

    2999

    Total liabilities

    594

    554

    4999

    Total liabilities and net position

    594

    554

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

             Agricultural Credit Insurance Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.08 Loan recoverable costs............           5           6           6
    00.09 Minor Capital Improvements........                       1           1
    00.10 Costs incident to acquisition of
            property........................           1           1           1
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............           6           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
    01.17 Unclassified costs................           1           1           1
    01.18 Civil rights settlements..........                       4           4
                                               ---------   ---------  ----------
    01.91   Total operating expenses........           8           9           9
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          14          17          17
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                      61
    22.00 New budget authority (gross)......          57          17          17
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          18
    22.40 Capital transfer to general fund..                     -61
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          75          17          17
    23.95 Total new obligations.............         -14         -17         -17
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          61
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         757         648         566
    69.27   Capital transfer to general fund        -700        -631        -549
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          57          17          17
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          18           7          10
    73.10 Total new obligations.............          14          17          17
    73.20 Total outlays (gross).............          -7         -14         -14
    73.45 Recoveries of prior year
            obligations.....................         -18
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           7          10          13
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           7          14          14
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -2          -2          -2
    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.............        -198        -180        -175
    88.40     Guaranteed loss recoveries....                      -1          -1
    88.40     Interest on judgments.........          -1          -2          -2
    88.40     Repayments on loans--principal        -506        -421        -348
    88.40     Interest shared appreciation..
    88.40     Judgments--principal..........         -11         -10          -9
    88.40     Shared appreciation recapture.         -13         -12         -12
    88.40     Sale of acquired property/
                chattels....................         -14         -10          -8
    88.40     Undistributed receipts........         -10          -8          -7
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -757        -648        -566
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -700        -631        -549
    90.00 Outlays...........................        -750        -634        -552
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       3,249       2,702       2,213
    1251  Repayments: Repayments and
            prepayments.....................        -506        -421        -344
    1261  Adjustments: Capitalized interest.           7           7           6
          Write-offs for default:

    1263    Direct loans....................         -80         -75         -69
    1264    Other adjustments, net\1\.......          32
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       2,702       2,213       1,806
    ---------------------------------------------------------------------------
        \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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         223         168         130
    2251  Repayments and prepayments........         -52         -35         -28
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................          -3          -3          -3
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         168         130          99
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         160         124          94
    ---------------------------------------------------------------------------

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    18

    68

    1505

    Net value of assets related to post-1991 acquired defaulted guaranteed
    loans receivable: Allowance for subsidy cost (-)

    -335

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

    1601

    Direct loans, gross

    3,249

    2,702

    1602

    Interest receivable

    573

    503

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -541

    -332

    1604

    Direct loans and interest receivable, net

    3,281

    2,873

    1605

    Accounts receivable/judgments receivable

    112

    113

    1606

    Foreclosed property

    32

    28

    1699

    Value of assets related to direct loans

    3,425

    3,014

    1701

    Defaulted guaranteed loans, gross

    11

    1999

    Total assets

    3,454

    2,747

        LIABILITIES:
    2104

    Federal liabilities: Resources payable to Treasury

    3,427

    2,734

    [[Page 109]]

          Non-Federal liabilities:

    2201

    Accounts payable

    9

    5

    2204

    Liabilities for loan guarantees

    8

    2

    2207

    Other

    10

    6

    2999

    Total liabilities

    3,454

    2,747

    4999

    Total liabilities and net position

    3,454

    2,747

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           6           8           8
    33.0  Investments and loans.............           8           5           5
    43.0  Interest and dividends............                       4           4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          14          17          17
    ---------------------------------------------------------------------------

                          COMMODITY CREDIT CORPORATION

                                  Corporations

        The following corporations and agencies are hereby authorized to
    make expenditures, within the limits of funds and borrowing authority
    available to each such corporation or agency and in accord with law, and
    to make contracts and commitments without regard to fiscal year
    limitations as provided by section 104 of the Government Corporation
    Control Act as may be necessary in carrying out the programs set forth
    in the budget for the current fiscal year for such corporation or
    agency, except as hereinafter provided. (Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies Appropriations Act,
    2005.)

                                  Federal Funds

    Public enterprise funds:

                        Commodity Credit Corporation Fund

                      reimbursement for net realized losses

        For the current fiscal year, such sums as may be necessary to
    reimburse the Commodity Credit Corporation for net realized losses
    sustained, but not previously reimbursed, pursuant to section 2 of the
    Act of August 17, 1961 (15 U.S.C. 713a-11): Provided, That of the funds
    available to the Commodity Credit Corporation under section 11 of the
    Commodity Credit Corporation Charter Act (15 U.S.C 714i) for the conduct
    of its business with the Foreign Agricultural Service, up to $5,000,000
    may be transferred to and used by the Foreign Agricultural Service for
    information resource management activities of the Foreign Agricultural
    Service that are not related to Commodity Credit Corporation business.

                           hazardous waste management

                            (limitation on expenses)

        For the current fiscal year, the Commodity Credit Corporation shall
    not expend more than $5,000,000 for site investigation and cleanup
    expenses, and operations and maintenance expenses to comply with the
    requirement of section 107(g) of the Comprehensive Environmental
    Response, Compensation, and Liability Act (42 U.S.C. 9607(g)), and
    section 6001 of the Resource Conservation and Recovery Act (42 U.S.C.
    6961). (Agriculture, Rural Development, Food and Drug Administration,
    and Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-0-3-999      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Commodity purchases and related
            inventory transactions..........       3,005       4,668       3,746
    00.02 Storage, transportation and other
            obligations.....................         466         606         622
    00.03 Export enhancement program........                      28          28
    00.04 Market access program.............         116         117         141
    00.05 Dairy export incentive program....          15           6          52
    00.07 Foreign market development
            cooperative.....................          37          35          35
    00.08 Quality Samples Program...........           1           2           3
    00.10 Feed grains.......................       2,902       7,873       7,327
    00.11 Wheat.............................       1,223       1,529       2,314
    00.12 Rice..............................         750         581         589
    00.13 Cotton............................       1,474       2,883       2,138
    00.14 Dairy Program.....................         221         444          50
    00.15 Tobacco Program...................                     958         958
    00.16 Peanut Program....................         194         249         212
    00.17 Wool and Mohair Program...........          12          11          11
    00.18 Honey.............................                                  25
    00.21 Dry Peas Program..................          19          26          29
    00.23 Non-Insured Assistance Program....         124         347         326
    00.24 Oilseeds Payment Program..........         672       1,406       3,040
    00.25 Marketing Loan Writeoffs..........         114         637         537
    00.27 Crop Disaster Program.............         804       2,364
    00.32 Livestock Assistance..............         130         450
    00.33 State Payment Transfers...........                       8
    00.34 American Indian Livestock
            Assistance......................                      25
    00.35 Conservation reserve program (CRP)       1,786       1,847       1,926
    00.46 Agricultural Management Assistance
            Program.........................           1
    00.47 Reimbursable Agreement/Transfers
            to State and Federal Agencies...          52          56          56
    00.48 Treasury..........................         104         380         447
    00.49 Other Interest....................           7           7           7
    00.52 Technical Assistance..............          13          87          90
    00.57 Agricultural Managment Assistance
            Program Technical Assistance....           1
    00.58 Section 416b/FFP/GFEI/BEHT ocean
            transportation..................         122         103          79
                                               ---------   ---------  ----------
    01.92   Total support and related
              programs......................      14,365      27,733      24,788
    09.01 Commodity loans...................       9,150      11,944      10,106
    09.02 Commodities Procured--PL480 Titles
            II / III Commodity Costs........         717         500         366
    09.04 P. L. 480 ocean transportation....         838         726         545
                                               ---------   ---------  ----------
    09.09   Subtotal, reimbursable programs.      10,705      13,170      11,017
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      25,070      40,903      35,805
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......      39,984      40,903      35,640
    22.10 Resources available from
            recoveries of prior year
            obligations.....................       1,665
    22.22 Unobligated balance transferred
            from other accounts.............                      20
    22.60 Portion applied to repay debt.....     -16,579         -20         165
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      25,070      40,903      35,805
    23.95 Total new obligations.............     -25,070     -40,903     -35,805
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         190
    40.35   Appropriation permanently
              reduced.......................                                -165
    41.00   Transferred to other accounts...        -210
    42.00   Transferred from other accounts.          20
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                                -165
          Mandatory:

    60.00   Appropriation...................      22,748      12,456      25,690
    60.47   Portion applied to repay debt...     -21,111      -9,860     -23,248
    61.00   Transferred to other accounts...      -1,637      -2,596      -2,442
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................
    67.10   Authority to borrow.............      27,040      24,000      19,622
    69.00 Offsetting collections (cash).....      13,234      17,037      16,189
    69.00 MARAD Cargo Preference
            Reimbursements..................         243          55          24
    69.10 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -203
    69.10 MARAD Cargo Preference
            Reimbursements..................        -330        -189         -30
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................      12,944      16,903      16,183
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      39,984      40,903      35,640
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       4,596       4,389       4,315
    73.10 Total new obligations.............      25,070      40,903      35,805
    73.20 Total outlays (gross).............     -24,145     -41,166     -35,923
    73.45 Recoveries of prior year
            obligations.....................      -1,665
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         533         189          30
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       4,389       4,315       4,227
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                -165
    86.97 Outlays from new mandatory
            authority.......................      17,039      24,584      19,978
    86.98 Outlays from mandatory balances...       7,106      16,582      16,110
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      24,145      41,166      35,923
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Sales to special activities...        -717        -500        -367

    [[Page 110]]

    88.00     Advances from Foreign
                Assistance Programs (P.L.
                480)........................      -1,203      -1,196        -897
    88.00     Other Revenue.................      -2,858         -55         -24
    88.00     Tobacco Assessments...........                    -958      -1,189
    88.40     Sales and other proceeds......        -230        -198        -532
    88.40     Interest Revenue..............        -113         -46        -117
    88.40     Loans Repaid..................      -7,667     -11,369     -10,322
    88.40     Commodity Certificates
                Redeemed....................        -635      -2,709      -2,699
    88.40     Export Credit Sales Program
                Repayments..................         -29         -39         -47
    88.40     Interest Revenue..............         -25         -22         -19
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........     -13,477     -17,092     -16,213
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         533         189          30
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      27,040      24,000      19,457
    90.00 Outlays...........................      10,668      24,074      19,710
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2004 actual  2005 est.   2006 est.
    Enacted/requested:
      Budget Authority..................      27,040      24,000      19,457
      Outlays...........................      10,668      24,074      19,710
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                -587
      Outlays...........................                                -587
                                        ------------------------------------
    Total:
      Budget Authority..................      27,040      24,000      18,870
      Outlays...........................      10,668      24,074      19,123
                                        ====================================

                                 Performance Metrics

    ----------------------------------------------------------------------------
    Identification code 12-4336-0-3-999      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct Crop Payments:
    43801 Percentage of gross farm income
            from government payments (%)....                   6.08%
    43802 Reduction in erroneous payments
            (%).............................                   0.05%
        Bioenergy:
    100001Ethanol's share of total
            transportation fuel use and
            biodiesel's share of total
            diesel fuel use.................                         .375% of to
    100001Program activity and Metrics......                          0.875 % of
    100002Increase in production of
            biodiesel (million gallons).....                       4           4
    100003Increase in production of ethanol
            (million gallons)...............                     200         200
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-0-3-999      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         312         270         232
    1251  Repayments: Repayments and
            prepayments.....................         -29         -38         -47
    1261  Adjustments: Capitalized interest.         -13
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         270         232         185
    ----------------------------------------------------------------------------

        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................       9,150      11,944      10,106
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       9,150      11,944      10,106
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,644       1,802       1,703
    1231  Disbursements: Direct loan
            disbursements...................       9,150      11,944      10,106
    1251  Repayments: Repayments and
            prepayments.....................      -8,932     -11,369     -10,322
          Write-offs for default:

    1263    Direct loans....................         -18
    1264    Other adjustments, net..........         -42        -674         -18
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,802       1,703       1,469
    ---------------------------------------------------------------------------

        The Commodity Credit Corporation (CCC) was created to: stabilize,
    support, and protect farm income and prices; help maintain balanced and
    adequate supplies of agricultural commodities, their products, foods,
    feeds, and fibers; and help in their orderly distribution.

        The Corporation's capital stock of $100 million is held by the U.S.
    Treasury. Under present law, up to $30 billion may be borrowed from the
    U.S. Treasury to finance operations.

        Current, indefinite appropriation authority is requested to cover
    all net realized losses. Appropriations to the Corporation for net
    realized losses have no effect on budget authority, as they are used to
    repay debt directly with the Treasury.

        Budget assumptions.--The following general assumptions form the
    basis for the Corporation's 2005 and 2006 budget estimates: (a) national
    income will rise both in 2005 and 2006 from the present level; (b) 2005
    crop production will decrease from 2004 crop levels for some
    commodities; (c) generally, exports of agricultural commodities in 2006
    are expected to be lower than 2005 levels; (d) yields for the 2005 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, 2006, 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. Within this
    reserved amount, USDA will make a special effort to help enhance
    wildlife habitat and sequester carbon by setting aside 500 thousand
    acres for bottomland hardwood tree planting. In 2004, USDA further
    enhanced CRP by announcing the Northern Bobwhite Quail Initiative and
    additional wetland restoration initiatives. Also in 2004, the
    Administration announced its commitment to full enrollment of CRP and
    that USDA will offer early reenrollment and extensions of expiring
    contracts. During 2004, about 275 thousand acres were signed up for
    continuous practices in signup 28. 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 2004. Approximately 1.2 million acres
    were accepted in the program.

        P.L. 108-498, signed into law December 23, 2004, provides
    independent authority beginning October 1, 2004, for CRP funds to be
    used for technical assistance.

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

        The 2002 Farm Bill provided a total of $176 billion for payments to
    the farm sector, a 74 percent increase over the assistance the previous
    Farm Bill would have provided in the absence of any additional emergency
    assistance. Not all of this assistance is appropriately targeted, and
    many of the programs may need to be reformed as a result of any new
    multilateral long-term trade agreements. Therefore, the Administration
    is proposing the following legislative changes to reduce agricultural
    subsidies, promote more efficient production decisions, and extend
    expiring programs:

         Reducing the payment limit cap for individuals to $250,000
    for crop payments, including all types of marketing loan gains, while
    removing the three-entity-rule.

         Basing marketing loans on historical production.

    [[Page 111]]

         Reducing crop and dairy payments to farmers by 5 percent.
    Payments to farmers from all commodity programs (e.g. marketing loans,
    direct and counter-cyclical payments) would be calculated and payments
    would be reduced by 5 percent.

         The dairy price support program would be required to
    minimize expenditures.

         A sugar marketing assessment is to be paid by sugar
    processors on all processed sugar.

         Extending the Milk Income Loss Compensation program for two
    years.

                                  2005 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...................      11,944       5,023           0
      Feed grain payments...............       7,873       7,969       7,873
      Wheat payments....................       1,529       1,527       1,529
      Rice payments.....................         581         589         581
      Cotton payments...................       2,873       2,800       2,873
      Export enhancement program........          28          28          28
      Other support and related.........      12,171       3,415      10,311
    Other items not distributed by
        program:
      Interest..........................         387         153         319
      All other.........................         190         427         190
                                        ------------------------------------
          Total, farm income, marketing
            assistance loans, and price-
            support programs............      35,577      21,930      23,705
    Conservation programs:
      Conservation reserve program......       1,937       1,937       1,937
      Environmental quality incentives
        program.........................
      Wetlands reserve program..........                      38          38
      Farmland protection program.......
      Soil and water conservation
        program.........................                       4           4
      Other conservation programs.......
                                        ------------------------------------
        Total, conservation programs....       1,937       1,979       1,979
            Total, Commodity Credit
              Corporation...............      37,514      23,909      25,684
                                        ------------------------------------

                           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 through 2004 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 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.

    [[Page 112]]

        Tobacco program. The American Jobs Creation Act of 2004, P.L. 108-
    357, eliminated the program effective with the 2005 crop. In return for
    losing the program, growers and quota holders will receive a buyout. The
    owners of quota will be paid $7 per pound for the quota they hold. The
    actual producers will be paid $3 per pound for the quota they produced.
    The legislation eliminates all geographic and poundage restrictions on
    tobacco production as well as price support. The buyout will be funded
    by assessments on the tobacco product manufacturers and importers. The
    program will cost $10.14 billion, and the growers and quota holders will
    be paid over a 10-year period.

        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. 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
    (MILC), 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. The Administration proposes extending the MILC
    program through December 31, 2007, the duration of the 2002 Farm Bill.

        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.

        Disaster Payments. The Military Construction Appropriations and
    Emergency Hurricane Supplemental Appropriations Act, 2005, P.L. 108-324,
    authorized more than $3 billion in financial relief for farmers,
    ranchers, foresters, and other agricultural producers who incurred
    losses due to weather conditions in recent 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 2006 President's Budget assumes CCC will
    continue to make incentive payments, under the Bioenergy Program, to
    ethanol, biodiesel, and other bioenergy producers to expand production
    of bio-based fuels. Payments shall be made on a portion of the increase
    in agricultural commodities purchased for expanded bioenergy production,
    with smaller and cooperatively-owned facilities receiving higher payment
    rates. This program is authorized by the CCC Charter Act. The 2002 Farm
    Bill extends the program through FY 2006 at the program level of $150
    million per year. The 2006 budget assumes a reduction in funding to $60
    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
    million 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

    [[Page 113]]

    million for FY 2004, $140 million for FY 2005, and $200 million for FY
    2006 and 2007. The 2006 Budget assumes funding of $125 million for FY
    2006.

        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 also donate 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 additional funding 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. The 2006 Budget assumes the $14
    million authorized for use by the Natural Resources Conservation Service
    will not be funded because the assistance AMAP provides is duplicative
    of other priority conservation programs, such as the Environmental
    Quality Incentives Program.

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

                            [In millions of dollars]

                    Item                 2004 actual  2005 est.   2006 est.
    Loans outstanding, gross, start of
        year:
      Commodity Credit Corporation......       1,644       1,802       1,703
      Additional loans made.............       9,150      11,944      10,106
    Deduct:
      Loans repaid......................      -8,932     -11,369     -10,322
      Acquisition of loan collateral....         -25        -673         -18
      Write-offs........................         -35           0           0
                                        ------------------------------------
          Total loans outstanding,
            gross, end of year..........       1,802       1,704       1,469
                                        ====================================

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

                            AGRICULTURAL COMMODITIES

                            [In millions of dollars]

                    Item                 2004 actual  2005 est.   2006 est.
    On hand, start of year, gross.......       1,984         950       1,221
                                        ====================================
    Acquisitions:
      Forfeiture of loan collateral.....          25         673          18
      Excess of collateral acquired over
        loans canceled..................           0           0           0
      Purchases.........................       2,227       4,744       3,734
      Transfers and exchanges...........        -255        -101          -4
    Carrying charges:
      Charges to inventory..............          31          25          15
      Storage and handling (non-add)....          90         110          98
      Transportation (non-add)..........          22          15           8
                                        ------------------------------------
          Total acquisitions............       2,028       5,341       3,763
                                        ====================================
    Dispositions:
      Domestic donations to:
        Families........................         115         102          27

    [[Page 114]]

        Institutions....................         316         154          62
        School lunch....................           0           0           0
                                        ------------------------------------
          Total domestic donations......         431         256          89
                                        ====================================
      Export donations..................         214         216         216
      Sales and transfers:
        Special programs: Title II,
          Public Law 480................         717         500         366
        Title III, Public Law 480.......           0           0           0
        Other sales.....................         865       2,892       3,216
        Net loss or gain (-) on sales
          and transfers.................         836       1,207         760
                                        ------------------------------------
          Total sales and transfers.....       2,418       4,599       4,343
                                        ====================================
          Total dispositions............       3,063       5,071       4,648
                                        ====================================
    On hand, end of year, gross.........         950       1,221         337
    Allowances for losses...............        -809      -1,040        -287
                                        ------------------------------------
    On hand, end of year, net...........         141         181          50
                                        ====================================

        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                 2004 actual  2005 est.   2006 est.
    Loans made..........................       9,150      11,944      10,106
    Loans repaid........................       8,932      11,369      10,322
    Loan collateral forfeited...........          25         673          18
    Loans outstanding, end of year......       1,802       1,703       1,469
    Acquisitions........................       2,028       5,341       3,763
    Cost of commodities sold............       2,418       4,599       4,343
    Cost of commodities donated.........         645         471         305
    Inventory, end of year..............         950       1,221         337
    Investment in loans and inventory,
    end of year.........................       2,752       2,924       1,806
    Direct producer payments............      10,089      21,202      19,037
    Net expenditures....................      10,574      23,893      19,631
    Realized losses.....................      12,456      25,690      23,103

        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
    2005.

        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                 2004 actual  2005 est.   2006 est.
    Statutory borrowing authority.......      30,000      30,000      30,000
    Deduct: Borrowings from Treasury....       8,735      22,237      19,136
    Net statutory borrowing authority
    available...........................      21,265       7,763      10,864

        Note.--Accounts payable, accrued liabilities, and other outstanding
    obligations not reflected on this table do not become charges against
    the statutory borrowing authority until they result in borrowings from
    the Treasury.

        Contract authority.--Price support and other programs required by
    statute may result in the Corporation incurring obligations in excess of
    available funds and borrowing authority. Such obligations are liquidated
    from subsequent appropriations and other funds that may become available
    to the Corporation. Any increase in obligations in excess of available
    fund resources is reported as contract authority in the year involved; a
    decrease is reported as the application of appropriations and other
    funds to liquidate the authority.

        Appropriations.--Under section 2 of Public Law 87-155 annual
    appropriations are authorized for each fiscal year to reimburse the
    Corporation for net realized losses incurred as of the close of each
    year.

        The special activities are financed as indicated in the program
    descriptions above. In addition to certain reimbursements from other
    agencies, appropriations are made for foreign assistance programs.

        Deficit.--The net realized losses of the Corporation have previously
    been reimbursed as follows:

                         SUPPORT AND RELATED PROGRAMS

                           [In millions of dollars]
                                              2004 actual      2005 est.
    Realized losses, 1933 to 2004, inclusive                       393,013
     Reimbursements by the Treasury:
      Reimbursements of realized losses:
       Appropriations (64 times)............       377,399

    [[Page 115]]

       Note cancellations (6 times).........         2,698
       Less dividends paid to Treasury (4
        times)..............................          -138
                                             -------------  --------------

        Total reimbursements for net
         realized losses....................       379,959
                                             -------------  --------------

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

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

      Total.................................                       380,557
                                             -------------  --------------

    Realized deficit as of September 30,
     2003, support and related programs.....                        12,456
                                             -------------  --------------

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    -1,495

    -1,089

            Investments in US securities:
    1106

    Receivables, net

    1,657

    1,153

    1107

    Advances and prepayments

    6

    3

          Non-Federal assets:

    1206

    Receivables, net

    42

    439

    1207

    Advances and prepayments

    91

    35

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

    1601

    Direct loans, gross

    1,998

    2,107

    1602

    Interest receivable

    138

    88

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -72

    -103

    1604

    Direct loans and interest receivable, net

    2,064

    2,092

    1699

    Value of assets related to direct loans

    2,064

    2,092

          Other Federal assets:

    1801

    Cash and other monetary assets

    51

    1802

    Inventories and related properties

    276

    141

    1803

    Property, plant and equipment, net

    29

    48

    1999

    Total assets

    2,721

    2,822

        LIABILITIES:
          Federal liabilities:

    2101

    Accounts payable

    1,565

    1,037

    2102

    Interest payable

    91

    72

    2103

    Debt

    18,653

    8,738

    2105

    Other

    1,212

    2,142

          Non-Federal liabilities:

    2201

    Accounts payable

    485

    314

    2207

    Other

    5,513

    5,456

    2999

    Total liabilities

    27,519

    17,759

        NET POSITION:
    3300

    Cumulative results of operations

    -24,798

    -14,937

    3999

    Total net position

    -24,798

    -14,937

    4999

    Total liabilities and net position

    2,721

    2,822

    -----------------------------------------------------------------------------------------------
        Note: Consistent with government-wide practice, information for 2004
    and 2005 was not required to be collected.
        Note.--In addition to obligations other than liabilities, the
    Corporation does not reflect in its accounts claims by the Corporation
    on which adequate proof has not been established.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-0-3-999      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    22.0    Transportation of things........         144         117          87
    25.2    Other services..................         476         523         490
    25.2    Other services: Storage and
              handling......................          90         110          98
    26.0    Supplies and materials: Costs of
              commodities sold or donated...       3,005       4,668       3,746
    41.0    Grants, subsidies, and
              contributions.................      10,540      21,928      19,913
    43.0    Interest and dividends..........         110         387         454
                                               ---------   ---------  ----------
    99.0      Direct obligations............      14,365      27,733      24,788
          Reimbursable obligations:

    22.0    Transportation of things: P. L.
              480 ocean transportation......         838         726         545
    26.0    Supplies and materials--Cost of
              Commodities Procured/Donated--
              PL 480........................         717         500         366
    33.0    Investments and loans...........       9,150      11,944      10,106
                                               ---------   ---------  ----------
    99.0      Reimbursable obligations......      10,705      13,170      11,017
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      25,070      40,903      35,805
    ---------------------------------------------------------------------------

                        Commodity Credit Corporation Fund

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-4-3-999      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........                                -587
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                -587
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                -587
    23.95 Total new obligations.............                                 587
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                                -587
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..
    73.10 Total new obligations.............                                -587
    73.20 Total outlays (gross).............                                 587
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                -587
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                -587
    90.00 Outlays...........................                                -587
    ---------------------------------------------------------------------------

        The 2002 Farm Bill provided a total of $176 billion in farm-related
    assistance, a 74-percent increase over the assistance the previous Farm
    Bill would have provided in the absence of any additional emergency
    assistance. Not all of this assistance is appropriately targeted, and
    many of the programs may need to be reformed as a result of any new
    multilateral long-term trade agreements. Therefore, the Administration
    is proposing the following legislative changes to reduce agricultural
    subsidies, promote more efficient production decisions, and extend
    expiring programs:

         Reducing the payment limit cap for individuals to $250,000
    for commodity payments, including all types of marketing loan gains,
    while removing the three-entity-rule.

         Basing marketing loans on historical production.

         Reducing crop and dairy payments to farmers by five
    percent. Payments to farmers from all commodity programs (e.g.,
    marketing loans, direct and counter-cyclical payments) would be
    calculated and payments would be reduced by five percent.

    [[Page 116]]

         Requiring the dairy price support program to minimize
    expenditures.

         Imposing a sugar marketing assessment to be paid by sugar
    processors on all processed sugar.

         Extending the Milk Income Loss Compensation program for two
    years.

            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,
    [$4,423,000] $5,279,000; 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
    [$3,421,000] $3,440,000 may be transferred to and merged with the
    appropriation for ``Foreign Agricultural Service, Salaries and
    Expenses'', and of which [$1,002,000] $1,839,000 may be transferred to
    and merged with the appropriation for ``Farm Service Agency, Salaries
    and Expenses''. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1336-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    0101  Negative subsidies/subsidy
            reestimates.....................         432         429
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1336-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........         457         309         393
    00.07 Reestimates of subsidy............          60         104
    00.08 Interest on reestimates...........           9           6
    00.09 Administrative expenses...........           4           4           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         530         423         398
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         384         458         308
    22.00 New budget authority (gross)......         604         423         398
    22.40 Capital transfer to general fund..                    -150        -308
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         988         731         398
    23.95 Total new obligations.............        -530        -423        -398
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         458         308
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           4           4           5
          Mandatory:

    60.00   Appropriation...................         531         309         393
    60.00   Appropriation--upward reestimate          69         110
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         600         419         393
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         604         423         398
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         154         364         357
    73.10 Total new obligations.............         530         423         398
    73.20 Total outlays (gross).............        -320        -430        -373
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         364         357         382
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           4           4           5
    86.97 Outlays from new mandatory
            authority.......................         316         326         275
    86.98 Outlays from mandatory balances...                     100          93
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         320         430         373
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         604         423         398
    90.00 Outlays...........................         320         430         373
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1336-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Export guarantee program..........       4,318       4,528       4,396
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......       4,318       4,528       4,396
        Guaranteed loan subsidy (in percent):
    232001Export guarantee program..........       10.58        6.83        8.93
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....       10.58        6.83        8.93
        Guaranteed loan subsidy budget authority:
    233001Export guarantee program..........         457         309         393
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....         457         309         393
        Guaranteed loan subsidy outlays:
    234001Export guarantee program..........         247         316         368
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............         247         316         368
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235001Export guarantee program..........          69         110
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................          69         110
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237001Export guarantee program..........        -432        -429
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................        -432        -429
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority--administrative
            expenses........................           4           4           5
    359001Outlays from new authority........           4           4           5
    ---------------------------------------------------------------------------

        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 65 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

    [[Page 117]]

    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 2006 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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................           4           4           5
    41.0  Grants, subsidies, and
            contributions...................         526         419         393
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         530         423         398
    ---------------------------------------------------------------------------

         Commodity Credit Corporation Export Guarantee Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4337-0-3-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default claims....................         130         160         160
    00.02 Interest on debt to Treasury......          81          91          91
                                               ---------   ---------  ----------
    00.91   Subtotal, new loans.............         211         251         251
    08.02 Reestimates of guaranteed loan
            subsidy.........................         290         309
    08.04 Interest on reestimates of
            guaranteed loan subsidy.........         142         120
                                               ---------   ---------  ----------
    08.91   Subtotal, reestimates...........         432         429
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         643         680         251
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,109       1,278       1,149
    22.00 New financing authority (gross)...         812         551         696
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,921       1,829       1,845
    23.95 Total new obligations.............        -643        -680        -251
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       1,278       1,149       1,594
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          18
    69.00 Offsetting collections (cash).....         618         731         672
    69.10 Receivable from Federal sources...         176        -180          24
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................         794         551         696
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         812         551         696
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..        -100        -273         -93
    73.10 Total new obligations.............         643         680         251
    73.20 Total financing disbursements
            (gross).........................        -640        -680        -251
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................        -176         180         -24
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..        -273         -93        -117
    87.00 Total financing disbursements
            (gross).........................         640         680         251
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.        -316        -426        -368
    88.25     Interest on uninvested funds..         -61         -40         -40
    88.40     Loan origination fee..........         -22         -30         -29
    88.40     Principal collections.........        -105        -120        -120
    88.40     Interest collections..........        -114        -115        -115
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -618        -731        -672
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............        -176         180         -24
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          18
    90.00 Financing disbursements...........          23         -51        -421
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4337-0-3-351      2004 actual   2005 est.   2006 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.................       4,318       4,528       4,396
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       4,318       4,528       4,396
    2199  Guaranteed amount of guaranteed
            loan commitments................       4,180       4,383       4,256
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       3,808       4,191       4,368
    2231  Disbursements of new guaranteed
            loans...........................       2,758       4,528       4,396
    2251  Repayments and prepayments........      -3,064      -4,191      -4,230
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....        -130        -160        -160
    2264    Other adjustments, net..........         819
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       4,191       4,368       4,374
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       4,168       4,281       4,287
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......       1,800       1,794       1,834
    2331    Disbursements for guaranteed
              loan claims...................         130         160         160
    2351    Repayments of loans receivable..        -105        -120        -120
    2364    Other adjustments, net..........         -31
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       1,794       1,834       1,874
    ---------------------------------------------------------------------------

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

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4337-0-3-351

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    1,009

    1,004

    1101

    Accounts Receivable, net

    449

    359

          Net value of assets related to
              post-1991 acquired defaulted
              guaranteed loans receivable:

    1501

    Defaulted guaranteed loans receivable, gross

    1,800

    1,794

    1502

    Interest receivable

    27

    27

    1505

    Allowance for subsidy cost (-)

    -1,161

    -873

    1599

    Net present value of assets related to defaulted guaranteed loans

    666

    948

    1999

    Total assets

    2,124

    2,311

        LIABILITIES:
          Federal liabilities:

    2101

    Accounts payable

    101

    273

    2103

    Debt

    1,475

    1,491

    [[Page 118]]

    2105

    Other

    526

    305

    2204

    Non-Federal liabilities: Liabilities for loan guarantees

    22

    242

    2999

    Total liabilities

    2,124

    2,311

    4999

    Total liabilities and net position

    2,124

    2,311

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

        Commodity Credit Corporation Guaranteed Loans Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4338-0-3-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Operating Expenses................           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.3)...................           1           1           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          86          66
    22.00 New budget authority (gross)......          28           1           1
    22.40 Capital transfer to general fund..         -47         -66
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          67           1           1
    23.95 Total new obligations.............          -1          -1          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          66
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...         418         456         445
    69.27   Capital transfer to general fund        -390        -455        -444
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          28           1           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           1           1
    73.10 Total new obligations.............           1           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
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -11
    88.40     Repayments of principal.......        -215        -273        -283
    88.40     Interest received on loans....        -192        -183        -162
    88.40     Other resources collected.....
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -418        -456        -445
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -390        -455        -444
    90.00 Outlays...........................        -418        -455        -444
    ---------------------------------------------------------------------------
        Note.--Includes amounts for activities previously funded in the
    Commodity Credit Corporation Fund.

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4338-0-3-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......       4,943       4,709       4,436
    2351    Repayments of loans receivable..        -220        -273        -283
    2364    Other adjustments, net..........         -14
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       4,709       4,436       4,153
    ---------------------------------------------------------------------------

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    88

    67

    1206

    Non-Federal assets: Foreign Loans Receivables

    4,943

    4,709

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

    1702

    Interest receivable

    176

    21

    1703

    Allowance for estimated uncollectible loans and interest (-)

    -2,324

    -2,204

    1799

    Value of assets related to loan guarantees

    -2,148

    -2,183

    1999

    Total assets

    2,883

    2,593

        LIABILITIES:
          Federal liabilities:

    2101

    Accounts payable

    1

    2104

    Resources payable to Treasury

    2,843

    2,586

    2207

    Non-Federal liabilities: Other

    39

    7

    2999

    Total liabilities

    2,883

    2,593

    4999

    Total liabilities and net position

    2,883

    2,593

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

                   Farm Storage Facility Loans Program Account

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3301-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    0101  Negative subsidies/subsidy
            reestimates.....................          12           5
    0102  Negative subsidies/subsidy
            reestimates.....................                       2           1
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3301-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............           1
    00.05 Upward Reestimate.................           3          12
    00.06 Interest on Upward Reestimate.....                       2
    00.09 Non-recoverable costs (FSL).......           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           5          15           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1
    22.00 New budget authority (gross)......           5          15           1
    22.40 Capital transfer to general fund..          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           5          15           1
    23.95 Total new obligations.............          -5         -15          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................           5          15           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           1           1
    73.10 Total new obligations.............           5          15           1
    73.20 Total outlays (gross).............          -5         -15          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           1           1           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           5          15           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           5          15           1
    90.00 Outlays...........................           5          15           1
    ---------------------------------------------------------------------------

    [[Page 119]]

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

    ----------------------------------------------------------------------------
    Identification code 12-3301-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Farm Storage facility loans.......          63          61          64
    115002Sugar Storage Facility Loans......                      22           3
                                               ---------   ---------  ----------
    115901Total direct loan levels..........          63          83          67
        Direct loan subsidy (in percent):
    132001Farm Storage facility loans.......        1.22       -1.43       -1.16
    132002Sugar Storage Facility Loans......       -3.87       -5.25       -5.24
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        1.22       -2.44       -1.34
        Direct loan subsidy budget authority:
    133001Farm Storage facility loans.......           1          -1          -1
    133002Sugar Storage Facility Loans......                      -1
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....           1          -2          -1
        Direct loan subsidy outlays:
    134001Farm Storage facility loans.......           1          -1          -1
    134002Sugar Storage Facility Loans......
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............           1          -1          -1
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Farm Storage facility loans.......           3          14
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................           3          14
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Farm Storage facility loans.......         -12          -5
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................         -12          -5
    ---------------------------------------------------------------------------

        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.

        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.

               Farm Storage Facility Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4158-0-3-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans--FSFL & SSFL.........          63          83          67
    00.03 Payment of interest to Treasury...          14           6           6
                                               ---------   ---------  ----------
    00.91   Obligations associated with
              loans.........................          77          89          73
    08.01 Negative subsidies paid to receipt
            account.........................                       2           1
    08.02 Downward reestimates paid to
            receipt accounts................          11           5
    08.04 Interest on downward reestimates..           1
                                               ---------   ---------  ----------
    08.91   Other obligations by program
              activities....................          12           7           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          89          96          74
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          68          27           8
    22.00 New financing authority (gross)...         100         104         123
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          12
    22.60 Portion applied to repay debt.....         -40         -27         -47
    22.75 Other authority withdrawn.........         -24
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         116         104          84
    23.95 Total new obligations.............         -89         -96         -74
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          27           8          10
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          96          24          44
    69.00 Payments from program account.....           4          14           1
    69.00 Principal.........................          35          52          64
    69.00 Interest collections (cash).......           8           8           8
    69.00 Interest on Uninvested Funds......           6           6           6
    69.47 Portion applied to repay debt.....         -49
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................           4          80          79
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         100         104         123
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          49          39          56
    73.10 Total new obligations.............          89          96          74
    73.20 Total financing disbursements
            (gross).........................         -87         -79         -85
    73.45 Recoveries of prior year
            obligations.....................         -12
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          39          56          45
    87.00 Total financing disbursements
            (gross).........................          87          79          85
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from Program Account.          -4         -14          -1
    88.25     Interest on uninvested funds..          -6          -6          -6
    88.40     Principal collections.........         -35         -52         -64
    88.40     Interest collections..........          -8          -8          -8
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -53         -80         -79
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          47          24          44
    90.00 Financing disbursements...........          34          -1           6
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4158-0-3-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................          63          83          67
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          63          83          67
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         160         187         206
    1231  Disbursements: Direct loan
            disbursements...................          62          71          77
    1251  Repayments: Repayments and
            prepayments.....................         -35         -52         -64
    1263  Write-offs for default: Direct
            loans...........................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         187         206         219
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4158-0-3-351

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    117

    66

            Investments in US securities:
    1106

    Receivables, net

    4

    14

    [[Page 120]]

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    160

    187

    1402

    Interest receivable

    7

    3

    1405

    Allowance for subsidy cost (-)

    4

    -1

    1499

    Net present value of assets related to direct loans

    171

    189

    1999

    Total assets

    292

    269

        LIABILITIES:
          Federal liabilities:

    2103

    Debt payable to Treasury

    280

    264

    2105

    Other Federal Liabilities

    12

    5

    2999

    Total liabilities

    292

    269

    4999

    Total liabilities and net position

    292

    269

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

        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

        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.

               Emergency Boll Weevil Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4221-0-3-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.05 Payment to Treasury--Interest.....           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           6           1
    22.00 New financing authority (gross)...           2
    22.40 Capital transfer to general fund..                      -1
    22.60 Portion applied to repay debt.....          -6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           2
    23.95 Total new obligations.............          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............           2
          Mandatory:

    69.00   Offsetting collections (cash)...           4
    69.47   Portion applied to repay debt...          -4
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................           2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............           1
    73.20 Total financing disbursements
            (gross).........................          -1
    87.00 Total financing disbursements
            (gross).........................           1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..          -1
    88.45     Offsetting governmental
                collections (from non-
                Federal sources)............          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -4
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          -2
    90.00 Financing disbursements...........          -3
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4221-0-3-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          10          10          10
    1251  Repayments: Repayments and
            prepayments.....................
    1263  Write-offs for default: Direct
            loans...........................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          10          10          10
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from 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   12-4221-0-3-351

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          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

    3

    3

        LIABILITIES:
    2103

    Federal liabilities: Debt

    3

    3

    2999

    Total liabilities

    3

    3

    4999

    Total liabilities and net position

    3

    3

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

                               Tobacco Trust Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8161-0-7-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Tobacco Assessment to CCC.........                     958       1,189
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                     958       1,189
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                     958       1,189
    23.95 Total new obligations.............                    -958      -1,189
    ----------------------------------------------------------------------------

    [[Page 121]]

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...                     958       1,189
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                     958       1,189
    73.20 Total outlays (gross).............                    -958      -1,189
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                     958       1,189
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....                    -958      -1,189
    ----------------------------------------------------------------------------

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

                     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,
    [$837,360,000] $767,783,000, to remain available until [June 30, 2006]
    expended, of which not less than [$10,500,000] $10,457,000 is for snow
    survey and water forecasting, and not less than [$14,433,000]
    $10,547,000 is for operation and establishment of the plant materials
    centers, and of which not less than [$23,500,000] $33,000,000 shall be
    for the grazing lands conservation initiative: Provided, That
    appropriations hereunder shall be available pursuant to 7 U.S.C. 2250
    for construction and improvement of buildings and public improvements at
    plant materials centers, except that the cost of alterations and
    improvements to other buildings and other public improvements shall not
    exceed $250,000: Provided further, That when buildings or other
    structures are erected on non-Federal land, that the right to use such
    land is obtained as provided in 7 U.S.C. 2250a: Provided further, That
    this appropriation shall be available for technical assistance and
    related expenses to carry out programs authorized by section 202(c) of
    title II of the Colorado River Basin Salinity Control Act of 1974 (43
    U.S.C. 1592(c)): Provided further, That 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. 1101-5; 33 U.S.C. 7016-11;
    Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1000-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Technical assistance..............         764         743         659
    00.02 Soil surveys......................          87          89          88
    00.03 Snow survey and water forecasting.          10          11          10
    00.04 Plant materials centers...........          12          15          11
    09.00 Reimbursable program..............          41          53          53
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         914         911         821
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          29          49          21
    22.00 New budget authority (gross)......         910         883         821
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          22
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         961         932         842
    23.95 Total new obligations.............        -914        -911        -821
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          49          21          21
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         853         837         768
    40.35   Appropriation permanently
              reduced.......................          -5          -7
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         848         830         768
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............          62          53          53
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         910         883         821
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         204         247         326
    73.10 Total new obligations.............         914         911         821
    73.20 Total outlays (gross).............        -847        -832        -833
    73.45 Recoveries of prior year
            obligations.....................         -22
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         247         326         314
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         758         783         729
    86.93 Outlays from discretionary
            balances........................          89          49         104
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         847         832         833
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -49         -36         -36
    88.40     Non-Federal sources...........         -13         -17         -17
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -62         -53         -53
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         848         830         768
    90.00 Outlays...........................         785         779         780
    ---------------------------------------------------------------------------

        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

                                         2004 Actual  2005 est.   2006 est.
    Customers receiving technical
    assistance for planning &
    application, number.................     255,000     255,000     255,000
    Conservation systems planned on
    cropland and grazing land, acres....32.7 million  30 million27.6 million
    Erosion reduction applied on
    cropland............................ 3.3 million   3 million 2.8 million
    Conservation practices applied on
    grazing land........................ 9.7 million 8.5 million  13 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.

        The 2006 Budget targets funding to national-level conservation
    priorities. The Budget includes an increase of $37 million to provide
    more conservation assistance to help livestock producers to comply with
    environmental regulations. To help ranchers fight and control priority
    invasive species, the Budg

    [[Page 122]]

    et also includes an increase of $9.7 million to the Grazing Lands
    Conservation Initiative. The National Invasive Species Council has
    indentified high-priority invasive species that heavily impact western
    range lands, such as yellow star thistle, leafy spurge, and tamarisk.
    This additional funding will enhance invasive species prevention,
    management, and restoration activities.

        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

                                         2004 actual  2005 est.   2006 est.
    Acres mapped annually (millions)....          28          30          30
    Soil surveys released for public
    use, (million acres)................        50.7          67          90
    Soil surveys available
    electronically on NRCS Web site
    (number cumulative).................       2,024       2,360       2,660

        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.

                                 Performance Metrics

    ----------------------------------------------------------------------------
    Identification code 12-1000-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Conservation Technical Assistance:
    100404Number of acres of wetlands
            created, restored, or enhanced..                  36,054      44,141
    100406Cumulative number of soil surveys
            available in digital form.......                   2,300       2,600
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1000-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         436         433         388
    11.3      Other than full-time permanent           9           9           8
    11.5      Other personnel compensation..           6           6           5
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         451         448         401
    12.1    Civilian personnel benefits.....         135         135         123
    21.0    Travel and transportation of
              persons.......................          18          18          16
    22.0    Transportation of things........           5           5           5
    23.2    Rental payments to others.......          22          22          19
    23.3    Communications, utilities, and
              miscellaneous charges.........          24          23          21
    24.0    Printing and reproduction.......           3           3           3
    25.2    Other services..................         172         161         142
    26.0    Supplies and materials..........          15          15          13
    31.0    Equipment.......................          27          27          24
    42.0    Insurance claims and indemnities           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         873         858         768
    99.0  Reimbursable obligations..........          41          53          53
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         914         911         821
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1000-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       7,943       7,653       6,671
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         226         300         300
    ---------------------------------------------------------------------------

                   Farm Security and Rural Investment Programs

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1004-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Wetlands Reserve Program..........         285         275         321
    00.02 Environmental Quality Incentives
            Program.........................         903       1,017       1,000
    00.03 Ground and Surface Water
            Conservation....................          65          51          60
    00.04 Klamath Basin.....................          19           8           8
    00.05 Wildlife Habitat Incentives
            Program.........................          38          47          60
    00.06 Farm and Ranch Lands Protection
            Program.........................          91         112          84
    00.07 Conservation Security Program.....          40         202         274
    00.08 Grassland Reserve Program.........          57         128
    00.09 Conservation Reserve Program......          62
    00.10 Agricultural Management Assistance
            Program.........................          14          14
    09.00 Reimbursable program-CRP..........                      87          90
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,574       1,941       1,897
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,601       1,941       1,897
    23.95 Total new obligations.............      -1,574      -1,941      -1,897
    23.98 Unobligated balance expiring or
            withdrawn.......................         -29
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.35   Appropriation permanently
              reduced.......................                                -295
          Mandatory:

    62.00   Transferred from other accounts.       1,601       1,854       2,102
    69.00 Offsetting collections (cash).....                      87          90
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,601       1,941       1,897
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         660         835         954
    73.10 Total new obligations.............       1,574       1,941       1,897
    73.20 Total outlays (gross).............      -1,389      -1,822      -1,864
    73.40 Adjustments in expired accounts
            (net)...........................          -9
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         835         954         987
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                -156
    86.97 Outlays from new mandatory
            authority.......................       1,100         941         997
    86.98 Outlays from mandatory balances...         289         881       1,023
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,389       1,822       1,864
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                     -87         -90
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,601       1,854       1,807
    90.00 Outlays...........................       1,389       1,735       1,774
    ---------------------------------------------------------------------------

        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 as

    [[Page 123]]

    sistance 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 Ranch Land Protection Program,
    Conservation Security Program, Grassland Reserve Program, and Wetlands
    Reserve Program.

        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 2002
    increasing to $1.3 billion in 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 Ranch Lands 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.

        Agricultural Management Assistance Program (AMA) is authorized by
    Section 211 of the Agriculture Risk Protection Act of 2000, Subtitle F,
    Section 2501(l)(4)(ii) of the Farm Security and Rural Investment Act of
    2002 provides $20 million annually for financial assistance in 15
    states, as determined by the Secretary, in which participation in the
    Federal Crop Insurance Program is historically low. The program provides
    assistance to producers to mitigate financial risk by using conservation
    measures to reduce soil erosion and improve water quality.

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1004-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         165         157         163
    11.3      Other than full-time permanent           3           2           3
    11.5      Other personnel compensation..           2           2           3
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         170         161         169
    12.1    Civilian personnel benefits.....          49          48          50
    21.0    Travel and transportation of
              persons.......................           5           7           7
    22.0    Transportation of things........           1           1           1
    23.2    Rental payments to others.......          10          10          10
    23.3    Communications, utilities, and
              miscellaneous charges.........          12          15          16
    24.0    Printing and reproduction.......           1           2           1
    25.2    Other services..................          86          82         102
    26.0    Supplies and materials..........           7           9           8
    31.0    Equipment.......................          17          17          16
    32.0    Land and structures.............         270         322         295
    41.0    Grants, subsidies, and
              contributions.................         946       1,180       1,132
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,574       1,854       1,807
    99.0  Reimbursable obligations..........                      87          90
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,574       1,941       1,897
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1004-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       3,043       3,362       3,579
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................                     800         805
    ---------------------------------------------------------------------------

                         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), [$7,083,000:
    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))] $5,141,000. (7 U.S.C.
    2201-02; 16 U.S.C. 1101-5; 33 U.S.C. 7016-11; Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1066-0-1-301      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................          10           7           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          10           7           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          11           7           5
    23.95 Total new obligations.............         -10          -7          -5
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    ----------------------------------------------------------------------------

    [[Page 124]]

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          11           7           5
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           4           3
    73.10 Total new obligations.............          10           7           5
    73.20 Total outlays (gross).............          -9          -8          -6
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           4           3           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           7           6           4
    86.93 Outlays from discretionary
            balances........................           2           2           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           9           8           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          11           7           5
    90.00 Outlays...........................           8           8           6
    ---------------------------------------------------------------------------

        Under the authorities of Public Law 83-566, watershed planning
    assistance is provided to States and communities to address specific
    resource problems on a watershed scale. The funds are used to cooperate
    with other agencies and the States in providing local decision makers
    with resource data, derived from cooperative river basin surveys and
    floodplain management studies, for use in decision making. Watershed
    plans are used to develop the small watershed projects.

        Watershed work plans are prepared by sponsoring local organizations
    with the Department's assistance or through State and local resources.
    After work plans are approved by the Department or Congress (projects
    where the estimated Federal contribution will exceed $5 million require
    congressional approval), financial assistance is provided for specific
    works of improvements. Since 1944, the Federal Government has invested
    over $8.5 billion to develop a watershed infrastructure through the
    Small Watershed program. The investment yields annual benefits estimated
    at $922 million primarily to local areas and private landowners.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1066-0-1-301      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

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

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1066-0-1-301      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          73          51          36
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           1           1           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, $75,576,000, 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 $35,000,000 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;
    Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2005.)

                    [Emergency Watershed Protection Program]

        [For an additional amount for ``Emergency Watershed Protection
    Program'' to repair damages to the waterways and watersheds resulting
    from natural disasters, $250,000,000, to remain available until
    expended: Provided, That the amounts provided under this heading are
    designated as an emergency requirement pursuant to section 402 of S.
    Con. Res. 95 (108th Congress), as made applicable to the House of
    Representatives by H. Res. 649 (108th Congress) and applicable to the
    Senate by section 14007 of Public Law 108-287.] (Emergency Supplemental
    Appropriations for Hurricane Disasters Assistance Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1072-0-1-301      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Watershed operations (P.L. 534).          12          11
    00.03   Emergency watershed protection
              operations....................          44         408
    00.04   Small watershed operations (P.L.
              566)..........................          89          69
    09.01 Reimbursable program..............          11          11
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         156         499
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          53         161
    22.00 New budget authority (gross)......         244         338
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          22
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         319         499
    23.95 Total new obligations.............        -156        -499
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         161
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         237         326
    40.35   Appropriation permanently
              reduced.......................          -1          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         236         325
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          15          13
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -7
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......           8          13
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         244         338
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         244         252         437
    73.10 Total new obligations.............         156         499
    73.20 Total outlays (gross).............        -134        -314        -272
    73.45 Recoveries of prior year
            obligations.....................         -22
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           7
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         252         437         165
    ----------------------------------------------------------------------------

    [[Page 125]]

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          81         207
    86.93 Outlays from discretionary
            balances........................          53         107         272
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         134         314         272
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -11         -13
    88.40     Non-Federal sources...........          -4
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -15         -13
          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..................         236         325
    90.00 Outlays...........................         119         301         272
    ---------------------------------------------------------------------------

        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 watershed
    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 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.

        The 2006 Budget redirects this program's resources to other priority
    programs within the Agency.

        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 is
    used for financial assistance. The 2006 Budget redirects this program's
    resources to other priority programs within the Agency.

        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 2006.

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

                              MAIN WORKLOAD FACTORS

                                         2004 actual  2005 est.   2006 est.
    Status of operational projects:
      Projects receiving land treatment.         175         167         159
      Structural projects...............         274         273         271
      Land treatment and structural.....          98          97          97
                                        ------------------------------------
          Subtotal active projects......         547         537         527
      Projects continuing post-
        installation assistance.........         987       1,000       1,013
      Inactive projects.................          25          25          25
      Project life completed............          41          43          45
      Deauthorized projects.............         155         155         155
                                        ------------------------------------
          Total operational projects....       1,755       1,760       1,765
                                        ------------------------------------
      New projects approved during year.           5           5           5
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1072-0-1-301      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          23          51
    11.5      Other personnel compensation..           1           4
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          24          55
    12.1    Civilian personnel benefits.....           6          14
    21.0    Travel and transportation of
              persons.......................           1           3
    23.2    Rental payments to others.......           1           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           3
    25.2    Other services..................           8          15
    25.2    Other services..................          43         127
    26.0    Supplies and materials..........           1           3
    31.0    Equipment.......................           2           7
    41.0    Grants, subsidies, and
              contributions.................          57         259
                                               ---------   ---------  ----------
    99.0      Direct obligations............         144         488
    99.0  Reimbursable obligations..........          11          11
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         156         499
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1072-0-1-301      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         398         839
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          34          33
    ---------------------------------------------------------------------------

                        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,
    [$27,500,000] $15,125,000, 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.;
    Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2005.)

    [[Page 126]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1002-0-1-301      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........          29          28          15
    09.01 Reimbursable program..............           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          30          29          15
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           2         150
    22.00 New budget authority (gross)......          31         177        -135
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          32         179          15
    23.95 Total new obligations.............         -30         -29         -15
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           2         150
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          30          27          15
    40.35   Appropriation permanently
              reduced.......................                                -210
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          30          27        -195
          Mandatory:

    62.00   Transferred from other accounts.                     150          60
          Discretionary:

    68.10   Spending authority from
              offsetting collections: Change
              in uncollected customer
              payments from Federal sources
              (unexpired)...................           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          31         177        -135
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          24          33          34
    73.10 Total new obligations.............          30          29          15
    73.20 Total outlays (gross).............         -20         -28         114
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          33          34         163
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          11          18        -133
    86.93 Outlays from discretionary
            balances........................           9          10          19
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          20          28        -114
    ----------------------------------------------------------------------------

        Offsets:
          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..................          30         177        -135
    90.00 Outlays...........................          19          28        -114
    ---------------------------------------------------------------------------

        Under the authorities of section 14 of the Watershed Protection and
    Flood Prevention Act assistance is provided to communities to address
    concerns about local aging dams. NRCS may provide technical and
    financial assistance for the planning, design, and implementation of
    rehabilitation projects that may include upgrading or removing the dams.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1002-0-1-301      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           7           5           3
    12.1    Civilian personnel benefits.....           2           2           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1
    25.2    Other services..................           7           6           3
    25.2    Other services..................           9          10           6
    41.0    Grants, subsidies, and
              contributions.................           3           3           2
                                               ---------   ---------  ----------
    99.0      Direct obligations............          29          27          15
    99.0  Reimbursable obligations..........           1           1
    99.5  Below reporting threshold.........                       1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          30          29          15
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1002-0-1-301      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         108          84          47
    ---------------------------------------------------------------------------

                      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), [$51,641,000] $25,600,000, 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 shall be available for national
    headquarters activities]. (7 U.S.C. 2225; Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1010-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Technical assistance..............          53          51          26
    09.01 Reimbursable program..............                       1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          53          52          27
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           1           1
    22.00 New budget authority (gross)......          52          52          27
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          54          53          28
    23.95 Total new obligations.............         -53         -52         -27
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          52          51          26
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............                       1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          52          52          27
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           9          10          10
    73.10 Total new obligations.............          53          52          27
    73.20 Total outlays (gross).............         -51         -52         -32
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          10          10           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          46          47          24
    86.93 Outlays from discretionary
            balances........................           5           5           8
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          51          52          32
    ----------------------------------------------------------------------------

        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..................          52          51          26
    90.00 Outlays...........................          51          51          31
    ---------------------------------------------------------------------------

    [[Page 127]]

        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. These coordinators help the area councils develop plans
    and proposals to compete for financial assistance from other Federal,
    State and private sources.

        The 2006 Budget proposes new policy for the RC&D Program that phases
    out Federal support for the local planning areas after 20 years of
    funding support. At that point, these local communities should have the
    experience and capacity to identify, plan for, and address their
    priorities. This policy would cancel Federal support for 189 RC&D areas
    in the 2006 Budget. This policy is based on a finding that the program
    is duplicative of other USDA and Federal resource conservation and rural
    development programs. Also, the program does not prioritize and target
    funding based on need or performance.

        The following tabulation shows the status of RC&D areas authorized
    to receive technical and financial assistance.

                              MAIN WORKLOAD FACTORS

                                         2004 actual  2005 est.   2006 est.
    Areas funded at beginning of year...         375         375         186
    Areas funded at end of year.........         375         375         186
    Project plans adopted...............       2,023       2,000       1,000
    Projects completed..................       4,586       3,000       1,500

                    Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1010-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          31          30          15
    11.3      Other than full-time permanent           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          32          31          16
    12.1    Civilian personnel benefits.....           8           7           4
    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           1
    25.2    Other services..................           7           7           3
    26.0    Supplies and materials..........           1           1
    31.0    Equipment.......................           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          53          51          26
    99.0  Reimbursable obligations..........                       1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          53          52          27
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1010-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         515         498         243
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           2           3           3
    ---------------------------------------------------------------------------

                        Biomass Research and Development

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1003-0-1-271      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Biomass Research and Development..          14          14          12
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          14          14          12
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       1           1
    22.00 New budget authority (gross)......          14          14          12
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          14          15          13
    23.95 Total new obligations.............         -14         -14         -12
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.35   Appropriation permanently
              reduced.......................                                  -2
          Mandatory:

    62.00   Transferred from other accounts.          14          14          14
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          14          14          12
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          14          25          25
    73.10 Total new obligations.............          14          14          12
    73.20 Total outlays (gross).............          -3         -14         -12
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          25          25          25
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                  -2
    86.97 Outlays from new mandatory
            authority.......................           3          14          14
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           3          14          12
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          14          14          12
    90.00 Outlays...........................           3          14          12
    ---------------------------------------------------------------------------

        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 biobased 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; integrated resource management and biomass use; and
    effective and targeted incentive systems for biomass commercialization
    and adoption.

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1003-0-1-271      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           2           2           2
    ---------------------------------------------------------------------------

                        Great Plains Conservation Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2268-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           2

    [[Page 128]]

    22.00 New budget authority (gross)......                      -2
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           2
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance permanently
              reduced.......................                      -2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1
    73.20 Total outlays (gross).............                                   1
    73.45 Recoveries of prior year
            obligations.....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                   1
    ----------------------------------------------------------------------------

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

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

                                         2004 actual  2005 est.   2006 est.
    Program participants:
      Number of contracts serviced
        during year.....................         395         222         111
      Number of acres under contracts...   1,567,600     641,748     320,790

        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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4           5
    22.00 New budget authority (gross)......                      -5
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           6
    23.95 Total new obligations.............          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance permanently
              reduced.......................                      -5
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          10           7           6
    73.10 Total new obligations.............           1
    73.20 Total outlays (gross).............          -2          -1           2
    73.45 Recoveries of prior year
            obligations.....................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           7           6           8
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................                      -5
    90.00 Outlays...........................           2           1          -2
    ---------------------------------------------------------------------------

        No funds are proposed for the Forestry Incentives Program (FIP). The
    FIP was not reauthorized by the Farm Security and Rural Investment Act
    of 2002 (P.L. 107-171). Prior-year account balances are maintained in
    this account until expended.

        FIP shares up to 65 percent of the cost of tree planting and timber
    stand improvement. The percentage cost-shared depends on the rate set in
    a particular State and county by NRCS, after consulting with the State
    forester. The program is available in designated counties based on a
    Forest Service survey of total eligible private timberland available for
    production of timber products. Technical assistance is provided by the
    Forest Service.

                               Water Bank Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3320-0-1-302      2004 actual   2005 est.   2006 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......           1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance permanently
              reduced.......................                      -1
    ----------------------------------------------------------------------------

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

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

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

    [[Page 129]]

    priation to this account as authorized under the Water Bank Extension
    Act of 1994. The 2006 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      2004 actual   2005 est.   2006 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:
    73.10 Total new obligations.............                       1
    73.20 Total outlays (gross).............                      -1
    ----------------------------------------------------------------------------

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

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

        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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.03 Technical Assistance..............           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           1           1
    23.95 Total new obligations.............          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1           1           1
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           1
    ----------------------------------------------------------------------------

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

        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).

        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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           2           2
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           2           2           2
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           2           2           2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          19          16          14
    73.20 Total outlays (gross).............          -2          -2          -2
    73.45 Recoveries of prior year
            obligations.....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          16          14          12
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           2           2           2
    ----------------------------------------------------------------------------

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

        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
    vegeta

    [[Page 130]]

    tion, 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.

        Agricultural Resource Conservation Demonstration Program Account

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

    ----------------------------------------------------------------------------
    Identification code 12-2086-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        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.

    Credit accounts:

        Agricultural Resource Conservation Demonstration Guaranteed Loan
                                Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4177-0-3-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Interest Payment to Treasury......                       1
    08.02 Downward Reestimate Payment to
            receipt account.................           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           1           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           1
    23.95 Total new obligations.............          -1          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............           1           1
    73.20 Total financing disbursements
            (gross).........................          -1
    87.00 Total financing disbursements
            (gross).........................           1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........           1
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4177-0-3-351      2004 actual   2005 est.   2006 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........          12
    2251  Repayments and prepayments........         -12
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........
    ----------------------------------------------------------------------------

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

        This program, also known as ``Farms for the Future,'' provides
    guarantees and interest assistance on loans made to State trust funds,
    who in turn finance acquisitions to preserve farmland in selected
    states. No guarantees have been made since 1993.

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

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4177-0-3-351

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    2

    1

    1999

    Total assets

    2

    1

        LIABILITIES:
    2104

    Federal liabilities: Resources payable to Treasury

    2

    1

    2999

    Total liabilities

    2

    1

    4999

    Total liabilities and net position

    2

    1

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

                                   Trust Funds

                         Miscellaneous Contributed Funds

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............           5           5           5
        Receipts:
    02.20 Miscellaneous contributed funds...           1           1           1
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           6           6           6
        Appropriations:
    05.01 National Agricultural Statistics
            Service.........................          -1          -1          -1
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           5           5           5
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........           4           5
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................           4           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           8           5
    23.95 Total new obligations.............          -4          -5
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           5
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -1           1           3
    73.10 Total new obligations.............           4           5

    [[Page 131]]

    73.20 Total outlays (gross).............          -1          -3          -3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           1           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           1           3           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           1           3           3
    ---------------------------------------------------------------------------

        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.

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................           1           1           1
    ---------------------------------------------------------------------------

                                RURAL DEVELOPMENT

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

                         (including transfers of funds)

        For necessary expenses for carrying out the administration and
    implementation of programs in the Rural Development mission area,
    including activities with institutions concerning the development and
    operation of agricultural cooperatives; and for cooperative agreements;
    [$148,452,000] $167,849,000: Provided, [That of funds appropriated under
    this title for salaries and expenses, not less than $5,000,000 shall be
    used to complete the consolidation of Rural Development activities in
    St. Louis, to the Goodfellow facility also in St. Louis: Provided
    further,] 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. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0403-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct program....................         141         147         168
    09.01 Reimbursable program..............         499         490         515
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         640         637         683
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         641         637         683
    23.95 Total new obligations.............        -640        -637        -683
    23.98 Unobligated balance expiring or
            withdrawn.......................          -2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         142         148         168
    40.35   Appropriation permanently
              reduced.......................          -1          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         141         147         168
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............         500         490         515
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         641         637         683
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         131         130         129
    73.10 Total new obligations.............         640         637         683
    73.20 Total outlays (gross).............        -633        -638        -676
    73.40 Adjustments in expired accounts
            (net)...........................          -9
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         130         129         136
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         552         535         574
    86.93 Outlays from discretionary
            balances........................          81         103         102
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         633         638         676
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -501        -490        -515
          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..................         141         147         168
    90.00 Outlays...........................         132         148         161
    ---------------------------------------------------------------------------

        Since 2001, Rural Development has had a consolidated Salaries and
    Expenses account to administer all Rural Development programs, including
    programs administered by the Rural Utilities Service (RUS), the Rural
    Housing Service (RHS), and the Rural Business-Cooperative Service (RBS).

        RUS provides grants, direct loans and loan guarantees to suppliers
    of electric, telecommunications (for general purpose and for distance
    learning/telemedicine), and water and wastewater services in rural
    areas. Through the water and wastewater program, RUS also provides
    technical assistance. The programs are administered in Washington, DC.
    The Rural Development field office staff performs the services related
    to the water and wastewater grant and loan programs. For the electric
    and telecommunication loans, general field representatives visit
    borrowers periodically and maintain liaisons between the borrowers and
    headquarters.

        RHS was formed from the Rural Housing section of the Farmers Home
    Administration and the Community Facilities Division of the Rural
    Development Administration. RHS delivers rural housing and community
    facility programs through a system of State, area, and local offices.

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0403-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          79          82          99
    11.3      Other than full-time permanent           1           2           1
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          81          85         101
    12.1    Civilian personnel benefits.....          20          23          26
    21.0    Travel and transportation of
              persons.......................           3           4           4
    23.1    Rental payments to GSA..........           6           5           6
    23.2    Rental payments to others.......           2           3           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           5           5           3
    24.0    Printing and reproduction.......           1           1           1
    25.1    Advisory and assistance services           8                       1
    25.2    Other services..................           1           1          12
    25.3    Other purchases of goods and
              services from Government
              accounts......................                       6           5
    25.4    Operation and maintenance of
              facilities....................           2           2           2
    25.5    Research and development
              contracts.....................           5           5           1
    25.6    Medical care....................           3           3

    [[Page 132]]

    25.7    Operation and maintenance of
              equipment.....................                       1           2
    26.0    Supplies and materials..........           2           2           1
    31.0    Equipment.......................           1           1           1
    42.0    Insurance claims and indemnities           1                       1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         141         147         168
    99.0  Reimbursable obligations..........         499         490         515
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         640         637         683
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-0403-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,399       1,686       1,493
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       5,267       5,186       5,379
    ---------------------------------------------------------------------------

                       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, [$716,049,000] $521,689,000, to remain available until expended, of
    which [$89,180,000] $27,806,000 shall be for rural community programs
    described in section 381E(d)(1) of such Act; of which [$552,689,000]
    $449,662,000 shall be for the rural utilities programs described in
    sections 381E(d)(2), 306C(a)(2), and 306D of 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 [$74,180,000]
    $44,221,000 shall be for the rural business and cooperative development
    programs described in sections 381E(d)(3) and 310B(f) of such Act:
    Provided, That of the total amount appropriated in this account,
    [$25,000,000] $9,000,000 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 $4,500,000 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, $6,350,000 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; $1,000,000 shall be for grants to
    the Delta Regional Authority (7 U.S.C. 1921 et seq.) for any purpose
    under this heading:] 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 [$26,000,000] $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 2 percent
    available to administer the program and/or 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, and grantees may use up to 5 percent of
    grant funds, not to exceed $35,000 per community, for the completion of
    comprehensive community safe water plans]; not to exceed [$18,250,000]
    $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
    $5,600,000 shall be for Rural Community Assistance Programs and not less
    than $800,000 shall be for a qualified national Native American
    organization to provide technical assistance for rural water systems for
    tribal communities]; and not to exceed [$13,500,000] $9,500,000 shall be
    for contracting with qualified national organizations for a circuit
    rider program to provide technical assistance for rural water systems:
    Provided further, That of the total amount appropriated, not to exceed
    [$22,166,000] $13,367,000 shall be available through June 30, [2005]
    2006, for authorized empowerment zones and enterprise communities and
    communities designated by the Secretary of Agriculture as Rural Economic
    Area Partnership Zones; of which [$1,081,000] $1,067,000 shall be for
    the rural community programs described in section 381E(d)(1) of such
    Act, of which [$12,582,000] $12,000,000 shall be for the rural utilities
    programs described in section 381E(d)(2) of such Act, and of which
    [$8,503,000] $300,000 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 $21,000,000 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''. (Agriculture,
    Rural Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2005.)
        [For an additional amount for the ``Rural Community Advancement
    Program'', $68,000,000, to remain available until expended: Provided,
    That $50,000,000 shall be available for water and waste disposal grants
    as authorized by 7 U.S.C. 1926(a): Provided further, That $18,000,000
    shall be for the cost of community facility direct loans and grants as
    authorized by 7 U.S.C. 1926(a): Provided further, That loans and grants
    under this heading shall be available for projects in communities
    affected by hurricanes and tropical storms in calendar year 2003 or
    2004: Provided further, That the amounts provided under this heading are
    designated as an emergency requirement pursuant to section 402 of S.
    Con. Res. 95 (108th Congress), as made applicable to the House of
    Representatives by H. Res. 649 (108th Congress) and applicable to the
    Senate by section 14007 of Public Law 108-287.] (Emergency Supplemental
    Appropriations for Hurricane Disasters Assistance Act, 2005.)

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0400-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    0102  Negative subsidies/subsidy
            reestimates.....................         102
    0104  Negative subsidies/subsidy
            reestimates.....................          19
    0106  Negative subsidies/subsidy
            reestimates.....................          18
    0107  Negative subsidies/subsidy
            reestimates.....................           1
    ---------------------------------------------------------------------------

    [[Page 133]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0400-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............          30         113          79
    00.02 Guaranteed loan subsidy...........          47          32          45
    00.05 Reestimate of Direct Loan Subsidy.          36
    00.06 Interest on Reestimates of Direct
            Loan Subsidy....................           9
    00.07 Reestimates of Guaranteed Loan
            Subsidy.........................          35
    00.08 Interest on Reestimate of
            Guaranteed Loan Subsidy.........           9
    00.11 Water and waste disposal systems
            grants..........................         554         448         377
    00.12 Water and waste disposal systems
            emergency supplemental grants...                      50
    00.13 Emergency and imminent community
            water assistance grants.........          15          23
    00.14 Solid waste management grants.....           3           4           4
    00.15 Community facility grants.........          21          30          17
    00.16 Community facility emergency
            supplemental grants.............                      13
    00.18 Economic impact initiative grants.          23          21
    00.20 Rural business enterprise grants..          50          44
    00.21 Rural business opportunity grants.           3           6
    00.26 Rural Community Development
            Initiative Grants...............           7          13
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         842         797         522
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          38          42
    22.00 New budget authority (gross)......         814         755         522
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          32
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         884         797         522
    23.95 Total new obligations.............        -842        -797        -522
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          42
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         757         721         522
    40.00   Appropriation, Hurricane
              Supplemental..................                      68
    40.35   Appropriation permanently
              reduced.......................          -4          -6
    41.00   Transferred to other accounts...         -28         -28
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         725         755         522
          Mandatory:

    60.00   Appropriation...................          89
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         814         755         522
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,734       2,637       2,536
    73.10 Total new obligations.............         842         797         522
    73.20 Total outlays (gross).............        -906        -898        -842
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    73.45 Recoveries of prior year
            obligations.....................         -32
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       2,637       2,536       2,216
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          78          55          44
    86.93 Outlays from discretionary
            balances........................         637         771         755
    86.97 Outlays from new mandatory
            authority.......................          89
    86.98 Outlays from mandatory balances...         102          72          43
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         906         898         842
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         814         755         522
    90.00 Outlays...........................         906         898         842
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-0400-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Direct water and waste disposal...         895         992       1,000
    115002Direct community facility.........         500         433         300
                                               ---------   ---------  ----------
    115901Total direct loan levels..........       1,395       1,425       1,300
        Direct loan subsidy (in percent):
    132001Direct water and waste disposal...        3.33        9.00        6.91
    132002Direct community facility.........       -0.71        4.05        3.35
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        1.88        7.50        6.09
        Direct loan subsidy budget authority:
    133001Direct water and waste disposal...          30          89          69
    133002Direct community facility.........          -3          18          10
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....          27         107          79
        Direct loan subsidy outlays:
    134001Direct water and waste disposal...          71          80          72
    134002Direct community facility.........          14          14          14
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............          85          94          86
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Direct water and waste disposal...
    135002Direct community facility.........           1
    135003Direct business and industry......          45
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................          46
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Direct water and waste disposal...        -101
    137002Direct community facility.........         -18
    137003Direct business and industry......
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................        -119
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Water and waste disposal loan
            guarantees......................          41          75          75
    215002Community facility loan guarantees         205         210         210
    215003Business and industry loan
            guarantees......................         971         600         899
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......       1,217         885       1,184
        Guaranteed loan subsidy (in percent):
    232001Water and waste disposal loan
            guarantees......................       -0.90       -0.90       -0.90
    232002Community facility loan guarantees       -0.60        0.09        0.36
    232003Business and industry loan
            guarantees......................        4.86        5.03        4.92
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        3.75        3.36        3.74
        Guaranteed loan subsidy budget authority:
    233001Water and waste disposal loan
            guarantees......................                      -1          -1
    233002Community facility loan guarantees          -1                       1
    233003Business and industry loan
            guarantees......................          47          30          44
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....          46          29          44
        Guaranteed loan subsidy outlays:
    234002Community facility loan guarantees          -1
    234003Business and industry loan
            guarantees......................          42          13          29
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............          41          13          29
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235002Community facility loan guarantees           3
    235003Business and industry loan
            guarantees......................          41
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................          44
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237001Downward reestimate subsidy budget
            authority.......................         -20
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................         -20
    ---------------------------------------------------------------------------

        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 2006 for all programs is projected to be near or
    slightly above the 2006 enacted level except for guaranteed business and
    industry 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.

    [[Page 134]]

        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 billion for these programs in 2006.

        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. $377 million is projected for
    this program in 2006.

        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 2006.

        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 2006 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 purpose 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 2006. 2006 projections for loan guarantees
    are $899 million.

        No funding is provided in this account for the rural business
    enterprise grants or the rural business opportunity grants. For grants
    like these that are for community organizations to stimulate economic
    development, the FY 2006 Budget proposes to consolidate them into a new
    economic and community development program to be administered by the
    Department of Commerce. The new program would be designed to achieve
    greater results and focus on communities most in need of assistance.

                    Northern Great Plains Regional Authority

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0404-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           2           1
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           2           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.20 Total outlays (gross).............          -1          -1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           2           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,
    [$43,992,000] $41,000,000, to remain available until expended[:
    Provided, That $3,000,000 shall be made available for loans to private
    non-profit organizations, or such non-profit organizations' affiliate
    loan funds and State housing finance agencies, to carry out a housing
    demonstration program to provide revolving loans for the preservation of
    low-income multi-family housing projects: Provided further, That loans
    under such demonstration program shall have an interest rate of not more
    than 1 percent direct loan to the recipient: Provided further, That the
    Secretary may defer the interest and principal payment to the Rural
    Housing Service for up to 3 years and the term of such loans shall not
    exceed 30 years: Provided further, That of the total amount
    appropriated, $1,800,000] of which $1,200,000 shall be available through
    June 30, [2005] 2006, for authorized empowerment zones and enterprise
    communities and communities designated by the Secretary of Agriculture
    as Rural Economic Area Partnership Zones. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2005.)
        [For an additional amount for ``Rural Housing Assistance Grants'',
    $13,000,000, to remain available until expended, of which $8,000,000
    shall be for grants and contracts for very low-income housing repair,
    made by the Rural Housing Service, as authorized by 42 U.S.C. 1474, and
    of which $5,000,000 shall be for domestic farm labor housing grants and
    contracts, as authorized by 42 U.S.C. 1486: Provided, That of the funds
    made available for domestic farm labor housing grants, the Secretary may
    use up to $3,000,000 to provide grants authorized under 42 U.S.C.
    5177a(a): Provided further, That such grants and contracts under this
    heading shall only be available for projects in communities affected by
    hurricanes and tropical storms in calendar year 2003 or 2004: Provided
    further, That the amounts provided under this heading are designated as
    an emergency requirement pursuant to section 402 of S. Con. Res. 95
    (108th Congress), as made applicable to the House of Representatives by
    H. Res. 649 (108th Congress) and applicable to the Senate by section
    14007 of Public Law 108-287.] (Emergency Supplemental Appropriations for
    Hurricane Disasters Assistance Act, 2005.)

    [[Page 135]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1953-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Domestic Farm Labor housing
            natural disaster grants.........                       5
    00.03 Very low-income housing repair
            grants..........................          31          31          30
    00.04 Very low-income housing repair
            natural disaster grants.........           2           9
    00.05 Supervisory and technical
            assistance grants...............           2           1           1
    00.06 Processing Workers Housing Grants.                       8
    00.07 Rural housing preservation grants.           9           9          10
    00.09 Multi-Family Housing Preservation
            Demo Revolving Fund.............                       3
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          44          66          41
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          10          11           1
    22.00 New budget authority (gross)......          46          56          41
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
    22.21 Unobligated balance transferred to
            other accounts..................          -4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          54          67          42
    23.95 Total new obligations.............         -44         -66         -41
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          11           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          46          57          41
    40.36   Unobligated balance permanently
              reduced.......................                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          46          56          41
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          32          29          29
    73.10 Total new obligations.............          44          66          41
    73.20 Total outlays (gross).............         -45         -66         -48
    73.45 Recoveries of prior year
            obligations.....................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          29          29          22
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          30          36          27
    86.93 Outlays from discretionary
            balances........................          15          30          21
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          45          66          48
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          46          56          41
    90.00 Outlays...........................          45          66          48
    ---------------------------------------------------------------------------

        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 $30 million
    for this program in 2006.

        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 2006.

        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 2006.

                           Farm Labor Program Account

        For the cost of direct loans, grants, and contracts, as authorized
    by 42 U.S.C. 1484 and 1486, [$34,118,000] $32,728,000, to remain
    available until expended, for direct farm labor housing loans and
    domestic farm labor housing grants and contracts. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1954-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............          15          20          19
    00.11 Farm labor housing grants.........          18          24          14
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          33          44          33
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           5          10
    22.00 New budget authority (gross)......          36          34          33
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          43          44          33
    23.95 Total new obligations.............         -33         -44         -33
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          36          34          33
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          88         104         123
    73.10 Total new obligations.............          33          44          33
    73.20 Total outlays (gross).............         -15         -25         -27
    73.45 Recoveries of prior year
            obligations.....................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         104         123         129
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          15          25          27
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          36          34          33
    90.00 Outlays...........................          15          25          27
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1954-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Farm Labor Program................          36          38          42
                                               ---------   ---------  ----------
    115901Total direct loan levels..........          36          38          42
        Direct loan subsidy (in percent):
    132001Farm Labor Program................       42.73       47.06       44.59
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       42.73       47.06       44.59
        Direct loan subsidy budget authority:
    133001Farm Labor Program................          15          18          19
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....          15          18          19
        Direct loan subsidy outlays:
    134001Farm Labor Program................          10           7           9
                                               ---------   ---------  ----------

    [[Page 136]]

    134901Total subsidy outlays.............          10           7           9
    ---------------------------------------------------------------------------

        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 2006 is $56 million ($14 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, [$592,000,000]
    $650,026,000; 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, up to
    $5,900,000 [shall] may 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. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0137-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........         581         587         650
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         581         587         650
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         581         587         650
    23.95 Total new obligations.............        -581        -587        -650
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         584         592         650
    40.00   Appropriation...................          60          60          59
    40.35   Appropriation permanently
              reduced.......................          -3          -5
    40.47   Portion substituted for
              borrowing authority...........         -60         -60         -59
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         581         587         650
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Unpaid obligations, appropriation,
            start of year...................       2,789       2,593       2,732
    73.10 Total new obligations.............         581         587         650
    73.20 Total outlays (gross).............        -775        -448        -460
    73.40 Adjustments in expired accounts
            (net)...........................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance,
              appropriation, end of year....       2,593       2,732       2,922
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          44          47          52
    86.93 Outlays from discretionary
            balances........................         731         401         408
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         775         448         460
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         581         587         650
    90.00 Outlays...........................         775         448         460
    ---------------------------------------------------------------------------

        The rental assistance program is authorized under section 521(a)(2)
    of the Housing Act of 1949, as amended, and is designed to reduce rents
    paid by very low-income and low-income families living in RHS-financed
    rural rental and farm labor housing projects. Funding under this account
    is provided for renewals of existing rental assistance contracts,
    assistance for newly constructed units financed by the section 515 rural
    rental and cooperative housing program or the 514/516 farm labor housing
    loan and grant programs, and for additional servicing assistance for
    existing projects. Assistance is also provided in lieu of debt
    forgiveness or payments for eligible households to subsidize tenant
    rents in projects purchased by eligible nonprofit organizations or
    public agencies as authorized by section 502(c)(5)(D) of the Act.

        From 1978 through 1991, the rental assistance program was funded
    under the Rural Housing Insurance Fund. Beginning in 1992, pursuant to
    Credit Reform, a separate grant account was established for this
    program.

                          Rural Housing Voucher Program

        For the rural housing voucher program, authorized by section 542 of
    the Housing Act of 1949, but notwithstanding subsection (b) of such
    section, $214,000,000, to remain available until expended, of which up
    to $10,000,000 may be transferred to and merged with ``Salaries And
    Expenses,'' Rural Development, to be used only for administrative
    expenses relating to the revitalization of USDA's multifamily housing
    portfolio.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2002-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........                                 214
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                 214
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 214
    23.95 Total new obligations.............                                -214
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                 214
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           1           1
    73.10 Total new obligations.............                                 214
    73.20 Total outlays (gross).............                                 -64
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           1           1         151
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                  64
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 214
    90.00 Outlays...........................                                  64
    ---------------------------------------------------------------------------

        USDA's portfolio of multifamily housing projects provides housing
    for nearly half a million low-income families, many

    [[Page 137]]

    of whom are elderly. Recent Federal court rulings allow projects that
    received their financing prior to 1989 to prepay and leave the program.
    A recent assessment of the capital and operating needs of the projects
    indicated that about 10 percent of the projects have economically viable
    prepayment potential and that about 46,000 tenants of these projects
    risk substantial rent increases and possible loss of their housing if
    these projects are prepaid. Current law allows USDA to assist these
    families by providing them with letters of priority and vouchers which
    have not been funded to date. The 2006 Budget includes $214 million for
    USDA to establish a tenant protection program for this purpose. The 2006
    Budget amends the current law to allow the number of vouchers issued to
    exceed 5,000 and to allow vouchers to be used in places other than 515
    projects. Further, USDA is exploring ways to address the capital needs
    of those projects that stay in the program. USDA expects to develop a
    comprehensive approach that would include an appropriate sharing of
    costs with project sponsors, and tenant protection for residents who
    would otherwise be adversely affected in a prepayment situation in 2005.

        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, 2005, for authorized
    empowerment zones and enterprise communities and communities designated
    by the Secretary of Agriculture as Rural Economic Area Partnership
    Zones]. (Agriculture, Rural Development, Food and Drug Administration,
    and Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2006-0-1-604      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........          35          42          34
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          35          42          34
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           9           8
    22.00 New budget authority (gross)......          34          34          34
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          44          42          34
    23.95 Total new obligations.............         -35         -42         -34
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          34          34          34
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          50          52          56
    73.10 Total new obligations.............          35          42          34
    73.20 Total outlays (gross).............         -32         -38         -38
    73.45 Recoveries of prior year
            obligations.....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          52          56          52
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           6           6           6
    86.93 Outlays from discretionary
            balances........................          26          32          32
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          32          38          38
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          34          34          34
    90.00 Outlays...........................          32          38          38
    ---------------------------------------------------------------------------

        This program is authorized under section 523 of the Housing Act of
    1949, as amended. Grants and contracts are made for the purpose of
    providing technical and supervisory assistance to groups of families to
    enable them to build their own homes through the mutual exchange of
    labor.

                             Rural Community Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1956-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                                  30
    22.00 New budget authority (gross)......                      30         -30
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                      30
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                      30
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.35   Appropriation permanently
              reduced.......................                                 -10
    40.36   Unobligated balance permanently
              reduced.......................                                 -30
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                                 -40
          Mandatory:

    62.00   Transferred from other accounts.                      30          10
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................                      30         -30
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 -27
    86.97 Outlays from new mandatory
            authority.......................                                   7
    86.98 Outlays from mandatory balances...                                  20
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                      30         -30
    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 2006 Budget proposes to cancel the 2003 through
    2006 funding for this program because other programs in Forest Service,
    Federal Emergency Management Agency, and the Bureau of Land Management
    provide significant funding for this purpose.

    [[Page 138]]

                     Rural Community Fire Protection Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2067-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -1
    73.20 Total outlays (gross).............           1
    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..
    ----------------------------------------------------------------------------

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

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

        This assistance was authorized by section 7 of the Cooperative
    Forestry Assistance Act of 1978 (16 U.S.C. 2106). Grants are made to
    public bodies to organize, train, and equip local firefighting forces,
    including those of Indian tribes or other Native American groups, to
    prevent, control, and suppress fires threatening human lives, crops,
    livestock, farmsteads or other improvements, pastures, orchards,
    wildlife, rangeland, woodland, and other resources in rural areas.

    Credit accounts:

             Rural Community Facility Direct Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4225-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................         500         478         300
    00.02 Interest on Treasury borrowing....          87         110         110
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............         587         588         410
    08.01 Negative subsidy paid to receipt
            account.........................           3
    08.02 Downward reestimate paid to
            receipt account.................          18
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............          21
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         608         588         410
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           8          22
    22.00 New financing authority (gross)...         620         566         410
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          29
    22.70 Balance of authority to borrow
            withdrawn.......................         -26
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         631         588         410
    23.95 Total new obligations.............        -608        -588        -410
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          22
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............         521
          Mandatory:

    67.10   Authority to borrow.............                     398         235
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).         179         167         176
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         -17           1          -1
    68.47     Portion applied to repay debt.         -63
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....          99         168         175
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         620         566         410
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         638         898         999
    73.10 Total new obligations.............         608         588         410
    73.20 Total financing disbursements
            (gross).........................        -336        -486        -560
    73.45 Recoveries of prior year
            obligations.....................         -29
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          17          -1           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         898         999         850
    87.00 Total financing disbursements
            (gross).........................         336         486         560
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -15         -14         -13
    88.25     Interest on uninvested funds..         -13         -18         -20
    88.40     Repayment of principal........        -151         -49         -55
    88.40     Interest received on loans....                     -86         -88
    88.40     Non-Federal sources...........
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -179        -167        -176
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          17          -1           1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         458         398         235
    90.00 Financing disbursements...........         158         319         384
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4225-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................         500         478         300
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         500         478         300
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,290       1,424       1,745
    1231  Disbursements: Direct loan
            disbursements...................         231         375         439
    1251  Repayments: Repayments and
            prepayments.....................         -89         -48         -55
          Write-offs for default:

    1263    Direct loans....................          -5          -6          -8
    1264    Other adjustments, net..........          -3
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,424       1,745       2,121
    ---------------------------------------------------------------------------

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    5

    27

            Investments in US securities:
    1106

    Receivables, net

    -2

    -2

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    1,290

    1,424

    1402

    Interest receivable

    17

    20

    1404

    Foreclosed property

    1

    2

    1405

    Allowance for subsidy cost (-)

    -108

    -87

    1499

    Net present value of assets related to direct loans

    1,200

    1,359

    1999

    Total assets

    1,203

    1,384

        LIABILITIES:
          Federal liabilities:

    2101

    Accounts payable

    1,195

    1,376

    [[Page 139]]

    2105

    Other

    8

    8

    2999

    Total liabilities

    1,203

    1,384

    4999

    Total liabilities and net position

    1,203

    1,384

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

           Rural Community Facility Guaranteed Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4228-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default Claims....................          12
    00.02 Interest to Treasury..............           1           1           1
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............          13           1           1
    08.01 Negative subsidy paid to receipt
            account.........................           1
    08.02 Downward reestimate paid to
            receipt account.................           2
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          16           1           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3           4          10
    22.00 New financing authority (gross)...          17           7           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          20          11          12
    23.95 Total new obligations.............         -16          -1          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           4          10          11
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............          13           3
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...           5           2           2
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................                       2
    68.47   Portion applied to repay debt...          -1
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......           4           4           2
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          17           7           2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           2           1
    73.10 Total new obligations.............          16           1           1
    73.20 Total financing disbursements
            (gross).........................         -15
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................                      -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           2           1           2
    87.00 Total financing disbursements
            (gross).........................          15
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -3
    88.25     Interest on uninvested funds..          -1          -1
    88.40     Non-Federal sources, Guarantee
                Fees........................          -1          -1          -2
    88.40     Non-Federal sources...........
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -5          -2          -2
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............                      -2
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          12           3
    90.00 Financing disbursements...........          11          -2          -2
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4228-0-3-452      2004 actual   2005 est.   2006 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.................         205         210         210
    2142  Uncommitted loan guarantee
            limitation......................
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................         205         210         210
    2199  Guaranteed amount of guaranteed
            loan commitments................         164         168         168
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         373         434         434
    2231  Disbursements of new guaranteed
            loans...........................         135          87         192
    2251  Repayments and prepayments........         -62         -74         -80
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................         -12         -13         -17
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         434         434         529
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         376         360         371
    ---------------------------------------------------------------------------

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    4

    6

            Investments in US securities:
    1106

    Receivables, net

    1

    15

    1999

    Total assets

    5

    21

        LIABILITIES:
          Federal liabilities:

    2104

    Resources payable to Treasury

    2

    14

    2105

    Other liabilities, Federal

    2

    2204

    Non-Federal liabilities: Liabilities for loan guarantees

    1

    7

    2999

    Total liabilities

    5

    21

    4999

    Total liabilities and net position

    5

    21

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

                  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:
    [$4,459,297,000] $4,681,033,000 for loans to section 502 borrowers, as
    determined by the Secretary, of which [$1,150,000,000] $1,000,000,000
    shall be for direct loans, and of which [$3,309,297,000] $3,681,033,000
    shall be for unsubsidized guaranteed loans; [$35,000,000] $35,969,000
    for section 504 housing repair loans; [$100,000,000] $27,027,000 for
    section 515 rental housing; [$100,000,000] $200,000,000 for section 538
    guaranteed multi-family housing loans; [$5,045,000] $5,000,000 for
    section 524 site loans; [$11,501,000] $11,500,000 for credit sales of
    acquired property, of which up to [$1,501,000] $1,500,000 may be for
    multi-family credit sales; and [$10,000,000] $5,048,000 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, [$166,778,000] $154,800,000,
    of which [$133,170,000] $113,900,000 shall be for direct loans, and of
    which [$33,608,000] $40,900,000, to remain available until expended,
    shall be for unsubsidized guaranteed loans; section 504 housing repair
    loans, [$10,171,000] $10,521,000; repair and rehabilitation of section
    515 rental housing, [$47,090,000] $12,400,000; section 538 multi-family
    housing guaranteed loans, [$3,490,000] $10,840,000; multi-family credit
    sales of acquired property, [$727,000] $681,000; section 523 self-help
    housing and development loans, $52,000: Provided, That of the total
    amount appropriated in this paragraph, [$7,100,000] $2,500,000 shall be
    available through

    [[Page 140]]

    June 30, [2005] 2006, for authorized empowerment zones and enterprise
    communities and communities designated by the Secretary of Agriculture
    as Rural Economic Area Partnership Zones[: Provided further, That any
    funds under this paragraph initially allocated by the Secretary for
    housing projects in the State of Alaska that are not obligated by
    September 30, 2005, shall be carried over until September 30, 2006, and
    made available for such housing projects only in the State of Alaska].
        In addition, for administrative expenses necessary to carry out the
    direct and guaranteed loan programs, [$448,342,000] $465,886,000, which
    shall be transferred to and merged with the appropriation for ``Rural
    Development, Salaries and Expenses''. (Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies Appropriations Act,
    2005.)
        [For additional gross obligations for the principal amount of direct
    loans as authorized by title V of the Housing Act of 1949, to be
    available from funds in the rural housing insurance fund, $17,000,000
    for section 504 housing repair loans: Provided, That this loan level
    shall be considered an estimate and not a limitation.]
        [For the additional cost of direct loans, including the cost of
    modifying loans, as defined in section 502 of the Congressional Budget
    Act of 1974: section 504 housing repair loans, $5,000,000, to remain
    available until expended: Provided, That such loans shall only be
    available for projects in communities affected by hurricanes and
    tropical storms in calendar year 2003 or 2004: Provided further, That
    the amounts provided under this heading are designated as an emergency
    requirement pursuant to section 402 of S. Con. Res. 95 (108th Congress),
    as made applicable to the House of Representatives by H. Res. 649 (108th
    Congress) and applicable to the Senate by section 14007 of Public Law
    108-287.] (Emergency Supplemental Appropriations for Hurricane Disasters
    Assistance Act, 2005.)

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    0101  Negative subsidies/subsidy
            reestimates.....................         167
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............         185         202         137
    00.02 Guaranteed loan subsidy...........          54          37          52
    00.05 Reestimates of direct loan subsidy          68
    00.06 Interest on reestimates of direct
            loan subsidy....................          46
    00.07 Reestimates of loan guarantee
            subsidy.........................          55
    00.08 Interest on reestimates of loan
            guarantee subsidy...............          13
    00.09 Administrative expenses...........         441         445         466
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         862         684         655
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          14          11
    22.00 New budget authority (gross)......         853         673         655
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
    22.22 Unobligated balance transferred
            from other accounts.............           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         873         684         655
    23.95 Total new obligations.............        -862        -684        -655
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          11
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         676         676         655
    40.00   Appropriation, hurricane
              supplemental..................                       5
    40.35   Appropriation permanently
              reduced.......................          -4          -5
    40.36   Unobligated balance permanently
              reduced.......................                      -3
    41.00   Transferred to other accounts...          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         671         673         655
          Mandatory:

    60.00   Appropriation...................         182
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         853         673         655
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         209         176         182
    73.10 Total new obligations.............         862         684         655
    73.20 Total outlays (gross).............        -880        -678        -690
    73.40 Adjustments in expired accounts
            (net)...........................         -13
    73.45 Recoveries of prior year
            obligations.....................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         176         182         147
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         590         582         595
    86.93 Outlays from discretionary
            balances........................         108          96          95
    86.97 Outlays from new mandatory
            authority.......................         182
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         880         678         690
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         853         673         655
    90.00 Outlays...........................         880         678         690
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Direct 502 single family housing..       1,351       1,141       1,000
    115004Direct 515 multi-family housing...         114          99          27
    115006Direct 515 multi-family housing,
            natural disaster................           3
    115007Direct 504 housing repair.........          33          35          36
    115008Direct 504 housing repair, natural
            disaster........................           1
    115009Direct 504, hurricane supplemental                      17
    115012Direct 524 site development.......           3           5           5
    115013Direct 523 self-help housing......           3           5           5
    115014Single family credit sales........           1          10          10
    115015Multi-family credit sales.........                       2           2
                                               ---------   ---------  ----------
    115901Total direct loan levels..........       1,509       1,314       1,085
        Direct loan subsidy (in percent):
    132001Direct 502 single family housing..        9.27       11.58       11.39
    132002Direct 502 supplemental...........        9.27       11.58       11.39
    132003Direct 502 modular housing........        1.24        0.00        0.00
    132004Direct 515 multi-family housing...       43.01       47.09       45.88
    132005Direct 515 No Year loans..........       43.01       47.09       45.88
    132006Direct 515 natural disaster.......       43.01       47.09       45.88
    132007Direct 504 housing repair.........       27.46       29.06       29.25
    132008Direct 504 natural disaster.......       27.46       29.06       29.25
    132009Direct 504 hurricane supplemental.       27.46       29.06       29.25
    132010Direct Farm Labor Housing.........       42.73       47.06       44.59
    132011Direct Farm Labor Housing Supp....       42.73       47.06       44.59
    132012Direct 524 site development.......       -0.03       -4.94       -3.51
    132013Direct 523 self-help housing......        3.08       -0.47        1.03
    132014Single family credit sales........      -17.46      -16.23      -14.53
    132015Multi-family credit sales.........       44.20       48.44       45.40
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       12.25       14.68       12.55
        Direct loan subsidy budget authority:
    133001Direct 502 single family housing..         125         132         114
    133004Direct 515 multi-family housing...          50          47          12
    133006Direct 515 natural disaster.......           1
    133007Direct 504 housing repair.........           9          10          10
    133008Direct 504 natural disaster.......
    133009Direct 504 hurricane supplemental.                       5
    133012Direct 524 site loans.............
    133013Direct 523 self-help loans........
    133014Single family credit sales........                      -2          -1
    133015Multi-family credit sales.........                       1           1
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....         185         193         136
        Direct loan subsidy outlays:
    134001Direct 502 single family housing..         140         140         117
    134004Direct 515 multi-family housing...          49          49          45
    134005Direct 515 no year regular loans..
    134006Direct 515 natural disaster.......           2           2           3
    134007Direct 504 housing repair.........           9           8          10
    134008Direct 504 natural disaster.......
    134009Direct 504, hurricane supplemental                       4           1
    134010Direct Farm Labor Housing.........           2           2
    134011Direct Farm Labor Housing natural
            disaster........................           1
    134012Direct 524 site loans.............
    134013Direct 523 self-help loans........
    134014Single family credit sales........           2
    134015Multi-family housing credit sales.                       1           1
                                               ---------   ---------  ----------

    [[Page 141]]

    134901Total subsidy outlays.............         205         206         177
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Direct 502 single family housing..          21
    135004Direct 515 multi-family housing...          78
    135007Direct 504 housing loans..........          12
    135010Direct Farm Labor Housing.........           3
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................         114
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Direct 502 single family housing..        -152
    137004Direct 515 multi-family housing...          -1
    137007Direct 504 housing loans..........          -4
    137010Direct Farm Labor Housing.........          -2
    137013Direct 523 self-help housing......          -1
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................        -160
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Guaranteed 502 single family
            housing , purchase..............       3,184       3,059       3,474
    215002Guaranteed 502, refinancing.......          50         223         207
    215003Guarantee 538 multi-family housing          99          99         200
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......       3,333       3,381       3,881
        Guaranteed loan subsidy (in percent):
    232001Guaranteed 502 single family
            housing , purchase..............        1.57        1.07        1.16
    232002Guaranteed 502, refinancing.......        0.29        0.27        0.29
    232003Guarantee 538 multi-family housing        5.95        3.49        5.42
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        1.68        1.09        1.33
        Guaranteed loan subsidy budget authority:
    233001Guaranteed 502 single family
            housing , purchase..............          48          33          40
    233002Guaranteed 502, refinancing.......                       1           1
    233003Guarantee 538 multi-family housing           6           3          11
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....          54          37          52
        Guaranteed loan subsidy outlays:
    234001Guaranteed 502 single family
            housing , purchase..............          47          24          36
    234002Guaranteed 502, refinancing.......                       1           1
    234003Guarantee 538 multi-family housing           5           2           8
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............          52          27          45
        Guaranteed loan upward reestimate subsidy
                    budget authority:
    235001Guaranteed 502 single family
            housing , purchase..............          68
                                               ---------   ---------  ----------
    235901Total upward reestimate budget
            authority.......................          68
        Guaranteed loan downward reestimate subsidy
                    budget authority:
    237001Guaranteed 502 single family
            housing , purchase..............          -5
    237002Guaranteed 502, refinancing.......
    237003Guaranteed 538 multi-family
            housing.........................          -1
                                               ---------   ---------  ----------
    237901Total downward reestimate subsidy
            budget authority................          -6
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................         441         445         466
    359001Outlays from new authority........         441         445         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 2006, funds for section 515 rural rental housing loans will be
    limited to repair and rehabilitation only and $27 million is included
    for this purpose. In conjunction with this, RHS will begin to revitalize
    the existing 515 portfolio by implementing a voucher program to assist
    tenants that have been displaced due to property owners prepaying their
    loans. Additional authorizations are anticipated to assist in
    revitalizing the portfolio. The relevant legislative proposals will be
    developed and submitted during 2005.

        For 502 guaranteed single family housing loans in 2006, the Budget
    reflects an increase in the guarantee fee on new loans to 2.0 percent,
    consistent with the 2005 Appropriations Act. The ability to finance the
    guarantee fee is more in line with the housing industry, including HUD
    and VA, and will allow more lower income rural Americans to continue to
    afford these loans. In 2002, RHS approved separate risk categories for
    the guarantee refinancing (refis) and guarantees of new loans. As part
    of that change, RHS also reduced the guarantee fee to 0.5 percent for
    the refis. This change reflected the lower risk on refis as compared to
    an unseasoned borrower receiving a new loan. It is also consistent with
    the rate HUD and VA charge on their refis of similar loans.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the direct
    loans obligated and loan guarantees committed in 1992 and beyond
    (including credit sales of acquired property), as well as administrative
    expenses of this program. The subsidy amounts are estimated on a present
    value basis; the administrative expenses are estimated on a cash basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................         441         445         466
    41.0  Grants, subsidies, and
            contributions...................         421         239         189
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         862         684         655
    ---------------------------------------------------------------------------

           Rural Housing Insurance Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4215-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans including upward
            adjustments of prior year
            obligations.....................       1,545       1,377       1,127
    00.02 Advances on behalf of borrowers...          40
    00.04 Interest on Treasury borrowing....         703         711         748
    00.06 Other expenses....................          22          14          14
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating program.....       2,310       2,102       1,889
    08.02 Downward subsidy reestimates paid
            to receipt account..............         132
    08.04 Interest on downward reestimates
            paid to receipt account.........          27
                                               ---------   ---------  ----------
    08.91   Subtotal, Reestimates...........         159
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,469       2,102       1,889
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         619         607
    22.00 New financing authority (gross)...       2,434       2,142       1,990
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          91
    22.60 Portion applied to repay debt.....                    -647        -101
    22.70 Balance of authority to borrow
            withdrawn.......................         -67
                                               ---------   ---------  ----------

    [[Page 142]]

    23.90   Total budgetary resources
              available for obligation......       3,077       2,102       1,889
    23.95 Total new obligations.............      -2,469      -2,102      -1,889
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         607
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............       1,550
          Mandatory:

    67.10   Authority to borrow.............                   1,211       1,216
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).       1,999       1,960       1,803
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         -31         -30         -30
    68.47     Portion applied to repay debt.      -1,084        -999        -999
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....         884         931         774
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       2,434       2,142       1,990
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Unpaid obligations, fund balance
            with Treasury, start of year....         560         703         647
    73.10 Total new obligations.............       2,469       2,102       1,889
    73.20 Total financing disbursements
            (gross).........................      -2,266      -2,188      -1,877
    73.45 Recoveries of prior year
            obligations.....................         -91
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          31          30          30
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         703         647         689
    87.00 Total financing disbursements
            (gross).........................       2,266       2,188       1,877
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: payments from
                program account.............        -329        -213        -186
    88.00     Federal sources...............           2
    88.25     Interest on uninvested funds..         -99         -88         -85
    88.40     Non-Federal sources:
                Repayments of principal.....      -1,026        -948        -844
    88.40     Interest received on loans....        -537        -561        -544
    88.40     Payments on judgments.........                     -15         -14
    88.40     Proceeds on sale of acquired
                property....................                     -35         -33
    88.40     Recaptured income.............                     -85         -83
    88.40     Fees..........................          -9          -7          -7
    88.40     Miscellaneous collections.....          -1          -8          -7
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,999      -1,960      -1,803
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          31          30          30
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         466         212         217
    90.00 Financing disbursements...........         267         228          74
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4215-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................       1,545       1,377       1,127
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       1,545       1,377       1,127
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      12,144      12,451      12,792
    1231  Disbursements: Direct loan
            disbursements...................       1,393       1,369       1,029
    1251  Repayments: Repayments and
            prepayments.....................      -1,009        -948        -988
    1261  Adjustments: Capitalized interest.          13          25          25
          Write-offs for default:

    1263    Direct loans....................         -67         -81         -83
    1264    Other adjustments, net..........         -23         -24         -25
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      12,451      12,792      12,750
    ---------------------------------------------------------------------------

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    256

    235

            Investments in US securities:
    1106

    Receivables, net

    54

    14

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    12,144

    12,451

    1402

    Interest receivable

    53

    69

    1404

    Foreclosed property

    30

    23

    1405

    Allowance for subsidy cost (-)

    -1,872

    -1,979

    1499

    Net present value of assets related to direct loans

    10,355

    10,564

    1999

    Total assets

    10,665

    10,813

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    10,300

    10,547

    2105

    Other

    359

    267

    2207

    Non-Federal liabilities: Other

    6

    -1

    2999

    Total liabilities

    10,665

    10,813

    4999

    Total liabilities and net position

    10,665

    10,813

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

         Rural Housing Insurance Fund Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4216-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default claims....................         122         134         146
    00.02 Interest assistance paid to
            lenders.........................                       1           1
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............         122         135         147
    08.02 Payments of downward estimates to
            receipt account.................           5
    08.04 Payment of interest on downward
            reestimate to receipt account...           2
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............           7
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         129         135         147
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         361         433         396
    22.00 New financing authority (gross)...         201          98         117
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         562         531         513

    [[Page 143]]

    23.95 Total new obligations.............        -129        -135        -147
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         433         396         366
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............           7           8           8
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         194          91         110
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................                      -1          -1
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         194          90         109
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         201          98         117
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............         129         135         147
    73.20 Total financing disbursements
            (gross).........................        -129        -136        -148
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................                       1           1
    87.00 Total financing disbursements
            (gross).........................         129         136         148
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -120         -27         -46
    88.25     Interest on uninvested funds..         -19         -18         -18
    88.40     Non-Federal sources: guarantee
                fees........................         -55         -46         -46
    88.40     Loss recoveries and other fees
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -194         -91        -110
          Against gross financing authority only:

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

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           7           8           8
    90.00 Financing disbursements...........         -66          45          38
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4216-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........
    2131  Guaranteed loan commitments exempt
            from limitation.................       3,333       3,381       3,881
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       3,333       3,381       3,881
    2199  Guaranteed amount of guaranteed
            loan commitments................       3,000       3,043       3,493
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      13,420      13,856      14,020
    2231  Disbursements of new guaranteed
            loans...........................       3,420       2,837       2,824
    2251  Repayments and prepayments........      -2,862      -2,539      -2,644
          Adjustments:

    2263    Terminations for default that
              result in claim payments......        -122        -134        -146
    2264    Other adjustments, net..........
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      13,856      14,020      14,054
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      12,470      12,618      12,649
    ---------------------------------------------------------------------------

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    361

    427

            Investments in US securities:
    1106

    Receivables, net

    43

    34

    1999

    Total assets

    404

    461

        LIABILITIES:
          Non-Federal liabilities:

    2204

    Liabilities for loan guarantees

    399

    440

    2207

    Other

    5

    21

    2999

    Total liabilities

    404

    461

    4999

    Total liabilities and net position

    404

    461

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

                Rural Housing Insurance Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Capital investment:

    00.02   Advances on behalf of borrowers.          53          50          46
    00.05   Collateral acquired by default..           1           1           1
                                               ---------   ---------  ----------
    00.91     Total capital investment......          54          51          47
    01.03 Interest on FFB borrowings........         153         120          19
    01.04 Premiums paid FFB at redemption of
            certificates of beneficial
            ownership.......................          74
    01.06 Interest credits on loans sold to
            investors.......................           1           1
    01.07 Other costs incident to loans.....           3           3           3
                                               ---------   ---------  ----------
    01.91   Total operating expenses........         231         124          22
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         285         175          69
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         204         150
    22.00 New budget authority (gross)......         427         175          69
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           8
    22.40 Capital transfer to general fund..        -204        -150
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         435         175          69
    23.95 Total new obligations.............        -285        -175         -69
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         150
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...       1,577       1,441       1,316
    69.27   Capital transfer to general fund                    -586      -1,247
    69.47   Portion applied to repay debt...      -1,150        -680
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         427         175          69
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Unpaid fund balance with treasury,
            end of year.....................         150          90         163
    73.10 Total new obligations.............         285         175          69
    73.20 Total outlays (gross).............        -338        -102        -138
    73.45 Recoveries of prior year
            obligations.....................          -8
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          90         163          94
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         232          25          69
    86.98 Outlays from mandatory balances...         106          77          69
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         338         102         138
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -3
    88.40     Repayments of loans and
                advances....................        -864        -776        -713
    88.40     Proceeds from sale of acquired
                property....................         -24         -14         -14
    88.40     Payments on judgments.........         -14         -11          -9
    88.40     Interest payments from
                borrowers...................        -533        -463        -405

    [[Page 144]]

    88.40     Recapture of subsidies........        -114        -157        -157
    88.40     Income from residual
                investment in loan asset
                sale........................         -22         -20         -18
    88.40     Fees and other revenue........          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,577      -1,441      -1,316
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      -1,150      -1,266      -1,247
    90.00 Outlays...........................      -1,240      -1,339      -1,178
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      13,885      12,949      12,131
    1251  Repayments: Repayments and
            prepayments.....................        -864        -776        -713
    1261  Adjustments: Capitalized interest.          13          12          11
          Write-offs for default:

    1263    Direct loans....................         -54         -45         -38
    1264    Other adjustments, net..........         -31          -9          -8
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      12,949      12,131      11,383
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          12           9           7
    2251  Repayments and prepayments........          -3          -2          -1
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........           9           7           6
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..           8           6           6
    ---------------------------------------------------------------------------

        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.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4141-0-3-371

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    353

    240

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

    1601

    Direct loans, gross

    13,885

    12,949

    1602

    Interest receivable

    654

    122

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -6,297

    -5,558

    1604

    Direct loans and interest receivable, net

    8,242

    7,513

    1606

    Foreclosed property

    31

    17

    1699

    Value of assets related to direct loans

    8,273

    7,530

    1901

    Other Federal assets: Other assets

    79

    85

    1999

    Total assets

    8,705

    7,855

        LIABILITIES:
          Federal liabilities:

    2102

    Interest payable

    116

    36

    2103

    Debt

    1,830

    680

    2104

    Resources payable to Treasury

    6,692

    7,055

          Non-Federal liabilities:

    2203

    Debt

    1

    1

    2204

    Liabilities for loan guarantees

    81

    2207

    Other

    66

    2

    2999

    Total liabilities

    8,705

    7,855

    4999

    Total liabilities and net position

    8,705

    7,855

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................           2           2           2
    33.0  Investments and loans.............          55          52          20
    41.0  Grants, subsidies, and
            contributions...................           1           1           1
    43.0  Interest and dividends............         227         120          46
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         285         175          69
    ---------------------------------------------------------------------------

                       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, $12,500,000, 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).] (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0402-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........          12          16
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          12          16
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3           4
    22.00 New budget authority (gross)......          13          12
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          16          16
    23.95 Total new obligations.............         -12         -16
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          13          12
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          28          26          27
    73.10 Total new obligations.............          12          16
    73.20 Total outlays (gross).............         -14         -15         -16
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          26          27          11
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           8           2
    86.93 Outlays from discretionary
            balances........................           6          13          16
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          14          15          16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          13          12
    90.00 Outlays...........................          14          15          16
    ---------------------------------------------------------------------------

        The goal of the Empowerment Zone/Enterprise Community (EZ/EC)
    initiative is to revitalize rural communities in a manner that attracts
    private sector investment and thereby provides self-sustaining community
    and economic development. Appropriated funding in 1999 through 2002 was
    provided for

    [[Page 145]]

    EZ/ECs designated as part of the second round of this initiative.

        No funding is provided in 2006 for EZ/EC grants. For grants like
    these that are for community organizations to stimulate economic
    development, the 2006 Budget proposes to consolidate them into a new
    economic and community development program to be administered by the
    Department of Commerce. The new program would be designed to achieve
    greater results and focus on communities most in need of assistance.

                      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] $500,000 shall
    be for cooperative research 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]; and of which [not to exceed] $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).
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1900-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Rural Cooperative Development
            Grants..........................           6           6           6
    00.10 Value-added Agricultural Product
            Marketing (mandatory)...........          30
    00.11 Value added Agricultural Product
            Marketing (discretionary).......           1          30          15
    00.12 Appropriate Technology Transfer
            for Rural Areas.................           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          39          38          21
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          29          14          80
    22.00 New budget authority (gross)......          24         104         -59
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          54         118          21
    23.95 Total new obligations.............         -39         -38         -21
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          14          80
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          24          24          21
    40.35   Appropriation permanently
              reduced.......................                                 -40
    40.36   Unobligated balance permanently
              reduced.......................                                 -80
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          24          24         -99
          Mandatory:

    62.00   Transferred from other accounts.                      80          40
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          24         104         -59
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          54          57          40
    73.10 Total new obligations.............          39          38          21
    73.20 Total outlays (gross).............         -35         -55         -29
    73.45 Recoveries of prior year
            obligations.....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          57          40          32
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           2
    86.93 Outlays from discretionary
            balances........................          10          11          29
    86.98 Outlays from mandatory balances...          23          42
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          35          55          29
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          24         104         -59
    90.00 Outlays...........................          35          55          29
    ---------------------------------------------------------------------------

        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 2006 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 2006 Budget cancels these funds
    for a savings of $120 million. However, $15.5 million in discretionary
    2006 funds is provided for this purpose.

                        Rural Economic Development Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3105-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........          11          10          10
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          11          10          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          51         110         167
    22.00 New budget authority (gross)......          69          67          67
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         121         177         234
    23.95 Total new obligations.............         -11         -10         -10
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         110         167         224
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...          33          67          67
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          36
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          69          67          67
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         -30         -58        -123
    73.10 Total new obligations.............          11          10          10
    73.20 Total outlays (gross).............          -2         -75         -76
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -36
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         -58        -123        -189
    ----------------------------------------------------------------------------

    [[Page 146]]

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                      67          67
    86.98 Outlays from mandatory balances...           2           8           9
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           2          75          76
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -33         -67         -67
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -36
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................         -31           8           9
    ---------------------------------------------------------------------------

        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      2004 actual   2005 est.   2006 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..........           5           5           5
    22.00 New budget authority (gross)......                       1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           5           6           5
    23.95 Total new obligations.............          -1          -1          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           5           5           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                       1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............           1           1           1
    73.20 Total outlays (gross).............          -1          -1          -1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           1           1           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                       1
    90.00 Outlays...........................                       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 $28 million. No additional funds are requested
    in 2006.

                    Rural Strategic Investment Program Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1955-0-1-452      2004 actual   2005 est.   2006 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
    ----------------------------------------------------------------------------

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

        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 2006, 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.

    [[Page 147]]

    Credit accounts:

           Rural Business and Industry Direct Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4223-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Interest on Treasury borrowings...           4           6           6
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           4           6           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4          47
    22.00 New financing authority (gross)...          59         -21          26
    22.60 Portion applied to repay debt.....         -12         -20         -20
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          51           6           6
    23.95 Total new obligations.............          -4          -6          -6
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          47
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............                     -30          18
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          59           9           8
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          59         -21          26
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           6           5          11
    73.10 Total new obligations.............           4           6           6
    73.20 Total financing disbursements
            (gross).........................          -4
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           5          11          17
    87.00 Total financing disbursements
            (gross).........................           4
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -45
    88.25     Interest on uninvested funds..          -2          -1
    88.40     Repayments of principal.......          -8          -8          -8
    88.40     Interest received on loans....          -4
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -59          -9          -8
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............                     -30          18
    90.00 Financing disbursements...........         -55          -9          -8
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4223-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         105          89          76
    1231  Disbursements: Direct loan
            disbursements...................
    1251  Repayments: Repayments and
            prepayments.....................          -8          -8          -8
    1263  Write-offs for default: Direct
            loans...........................          -8          -5          -6
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          89          76          62
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from direct loans obligated in 1992 and beyond. The amounts in
    this account are a means of financing and are not included in the budget
    totals. The subsidy cost of these programs is funded through the Rural
    Community Advancement Program. Loans made prior to 1992 are recorded in
    the Rural Development Insurance Fund Liquidating Account.

        Direct business and industry loans are made to public, private, or
    cooperative organizations, Indian tribes or tribal groups, corporate
    entities, or individuals for the purpose of improving the economic
    climate in rural areas. Funding for this purpose was discontinued
    beginning in 2002.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4223-0-3-452

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    1

    44

            Investments in US securities:
    1106

    Receivables, net

    1

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    105

    89

    1402

    Interest receivable

    7

    1405

    Allowance for subsidy cost (-)

    -39

    -78

    1499

    Net present value of assets related to direct loans

    66

    18

    1999

    Total assets

    68

    62

        LIABILITIES:
    2104

    Federal liabilities: Resources payable to Treasury

    68

    62

    2999

    Total liabilities

    68

    62

    4999

    Total liabilities and net position

    68

    62

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

         Rural Business and Industry Guaranteed Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4227-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Default claims....................          61          67          74
    00.02 Purchase from Secondary Market....          58          64          70
    00.03 Interest to Treasury..............           7           6           6
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............         126         137         150
    08.02 Subsidy reestimates paid to
            receipt account.................          18
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         144         137         150
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         184         255         209
    22.00 New financing authority (gross)...         216          91         103
    22.60 Portion applied to repay debt.....          -2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         398         346         312
    23.95 Total new obligations.............        -144        -137        -150
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         255         209         162
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............          85          24          10
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...         134          67          93
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -3
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         131          67          93
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         216          91         103
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -3
    73.10 Total new obligations.............         144         137         150
    73.20 Total financing disbursements
            (gross).........................        -144        -137        -150
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..
    87.00 Total financing disbursements
            (gross).........................         144         137         150
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -84         -13         -29
    88.25     Interest on uninvested funds..         -11         -10         -12
    88.40     Interest and principal on
                purchased loans from
                secondary market............         -25         -29         -35
    88.40     Guarantee fees................         -14         -15         -17
                                               ---------   ---------  ----------

    [[Page 148]]

    88.90       Total, offsetting
                  collections (cash)........        -134         -67         -93
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           3
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          85          24          10
    90.00 Financing disbursements...........          10          70          57
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4227-0-3-452      2004 actual   2005 est.   2006 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.................         971         619         899
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................         971         619         899
    2199  Guaranteed amount of guaranteed
            loan commitments................         777         491         719
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       4,032       4,194       3,843
    2231  Disbursements of new guaranteed
            loans...........................         924         244         360
    2251  Repayments and prepayments........        -655        -461        -423
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................        -107        -134        -157
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       4,194       3,843       3,623
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       3,225       3,075       2,898
    ---------------------------------------------------------------------------

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    181

    255

            Investments in US securities:
    1106

    Receivables, net

    203

    204

    1999

    Total assets

    384

    459

        LIABILITIES:
          Federal liabilities:

    2104

    Resources payable to Treasury

    41

    124

    2105

    Other

    18

    1

    2204

    Non-Federal liabilities: Liabilities for loan guarantees

    325

    334

    2999

    Total liabilities

    384

    459

    4999

    Total liabilities and net position

    384

    459

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

                   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)), [$34,213,000] $34,212,000.
        For the cost of direct loans, [$15,868,000] $14,718,000, 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, 2005, for Federally
    Recognized Native American Tribes and of which $3,449,000 shall be
    available through June 30, 2005, for Mississippi Delta Region counties
    (as determined in accordance with Public Law 100-460)]: Provided, [That
    of such amount made available, the Secretary may provide up to
    $1,500,000 for the Delta Regional Authority (7 U.S.C. 1921 et seq.):
    Provided further,] 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] $887,000 shall be available through June 30, [2005] 2006,
    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, [$4,316,000] $6,656,000 shall be transferred to and
    merged with the appropriation for ``Rural Development, Salaries and
    Expenses''. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2069-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    0101  Negative subsidies/subsidy
            reestimates.....................           4
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2069-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............          17          16          15
    00.09 Administrative expense............           4           4           7
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          21          20          22
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          21          20          22
    23.95 Total new obligations.............         -21         -20         -22
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          21          20          22
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          49          51          50
    73.10 Total new obligations.............          21          20          22
    73.20 Total outlays (gross).............         -17         -21         -24
    73.40 Adjustments in expired accounts
            (net)...........................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          51          50          48
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           5           5           8
    86.93 Outlays from discretionary
            balances........................          12          16          16
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          17          21          24
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          21          20          22
    90.00 Outlays...........................          17          21          24
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-2069-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Rural development loan fund
            program.........................          40          34          34
                                               ---------   ---------  ----------
    115901Total direct loan levels..........          40          34          34
        Direct loan subsidy (in percent):
    132001Rural development loan fund
            program.........................       43.27       46.38       43.02
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       43.27       46.38       43.02
        Direct loan subsidy budget authority:
    133001Rural development loan fund
            program.........................          17          16          15
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....          17          16          15

    [[Page 149]]

        Direct loan subsidy outlays:
    134001Rural development loan fund
            program.........................          13          17          17
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............          13          17          17
        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,
    re-lend 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 2006 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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................           4           4           7
    41.0  Grants, subsidies, and
            contributions...................          17          16          15
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          21          20          22
    ---------------------------------------------------------------------------

            Rural Development Loan Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4219-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................          40          34          34
    00.03   Interest on Treasury borrowing..          14          16          16
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal......................          54          50          50
    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          50          50
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       1
    22.00 New financing authority (gross)...          60          66          66
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
    22.60 Portion applied to repay debt.....          -3         -17         -16
    22.70 Balance of authority to borrow
            withdrawn.......................          -2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          59          50          50
    23.95 Total new obligations.............         -58         -50         -50
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............          27          24          24
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          33          42          42
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           2
    68.47   Portion applied to repay debt...          -2
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          33          42          42
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          60          66          66
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          54          60          56
    73.10 Total new obligations.............          58          50          50
    73.20 Total financing disbursements
            (gross).........................         -46         -54         -54
    73.45 Recoveries of prior year
            obligations.....................          -4
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          60          56          52
    87.00 Total financing disbursements
            (gross).........................          46          54          54
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.         -13         -17         -17
    88.25     Interest on uninvested funds..          -2          -5          -5
    88.40     Non-Federal sources--repayment
                of principal................         -15         -15         -15
    88.40     Non-Federal sources--interest
                on loans....................          -3          -5          -5
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -33         -42         -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...............          25          24          24
    90.00 Financing disbursements...........          12          12          12
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4219-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................          40          34          34
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          40          34          34
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         347         359         382
    1231  Disbursements: Direct loan
            disbursements...................          27          38          38
    1251  Repayments: Repayments and
            prepayments.....................         -15         -15         -15
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         359         382         405
    ---------------------------------------------------------------------------

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

        This account finances loans to intermediary borrowers, who in turn
    relend the funds to small rural businesses, community development
    corporations, or other organizations for the purpose of improving
    economic opportunities in rural areas. Through the use of local
    intermediaries, this program serves small-scale enterprises and gives
    preference to those communities with the greatest need.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4219-0-3-452

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    4

    13

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    347

    359

    1402

    Interest receivable

    2

    2

    1405

    Allowance for subsidy cost (-)

    -150

    -150

    1499

    Net present value of assets related to direct loans

    199

    211

    1999

    Total assets

    203

    224

        LIABILITIES:
    2104

    Federal liabilities: Resources payable to Treasury

    203

    224

    2999

    Total liabilities

    203

    224

    [[Page 150]]

    4999

    Total liabilities and net position

    203

    224

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

                 Rural Development Loan Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4233-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1
    22.40 Capital transfer to general fund..                      -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...           4           4           4
    69.27   Capital transfer to general fund          -4          -4          -4
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........
    ----------------------------------------------------------------------------

        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...........................          -4          -4          -4
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4233-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          58          55          52
    1251  Repayments: Repayments and
            prepayments.....................          -3          -3          -3
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          55          52          49
    ---------------------------------------------------------------------------

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    1

    1

    1206

    Non-Federal assets: Receivables, net

    1

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

    1601

    Direct loans, gross

    58

    55

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -29

    -27

    1604

    Direct loans and interest receivable, net

    29

    28

    1699

    Value of assets related to direct loans

    29

    28

    1999

    Total assets

    31

    29

        LIABILITIES:
    2104

    Federal liabilities: Resources payable to Treasury

    31

    29

    2999

    Total liabilities

    31

    29

    4999

    Total liabilities and net position

    31

    29

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

                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,
    $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,
    [$4,698,000] $4,993,000, to remain available until expended.
        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, [$4,698,000] $4,993,000 shall not be
    obligated and [$4,698,000] $4,993,000 are rescinded. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2005.)

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3108-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    0101  Negative subsidies/subsidy
            reestimates.....................           2
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3108-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............           3           5           5
    08.02 Downward Reestimate...............           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           5           5           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           3           5           5
    23.95 Total new obligations.............          -5          -5          -5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           3           5           5
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           4           5           7
    73.10 Total new obligations.............           5           5           5
    73.20 Total outlays (gross).............          -4          -3          -4
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           5           7           8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1           1           1
    86.93 Outlays from discretionary
            balances........................           3           2           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           4           3           4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           3           5           5
    90.00 Outlays...........................           4           3           4
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-3108-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Rural economic development loans
            program.........................          15          25          25
                                               ---------   ---------  ----------
    115901Total direct loan levels..........          15          25          25
        Direct loan subsidy (in percent):
    132001Rural economic development loans
            program.........................       18.76       18.79       19.97
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       18.76       18.79       19.97
        Direct loan subsidy budget authority:
    133001Rural economic development loans
            program.........................           3           5           5
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....           3           5           5
        Direct loan subsidy outlays:
    134001Rural economic development loans
            program.........................           4           3           4
                                               ---------   ---------  ----------

    [[Page 151]]

    134901Total subsidy outlays.............           4           3           4
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Downward reestimates subsidy
            budget authority................          -2
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................          -2
    ---------------------------------------------------------------------------

        Rural economic development loans are made for the purpose of
    promoting rural economic development and job creation projects. Loans
    are made to electric and telecommunication borrowers, who, in turn,
    finance rural development projects in their service areas. Program costs
    are derived from interest earnings on borrowers' ``cushion of credit''
    loan prepayments.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the direct
    loans obligated in 1992 and beyond. The subsidy amounts are estimated on
    a present value basis.

            Rural Economic Development Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4176-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................          15          25          25
    00.03 Interest expense..................           4           6           6
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............          19          31          31
    08.89 Downward subsidy reestimate paid
            to receipt account..............           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          21          31          31
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2
    22.00 New financing authority (gross)...          19          23          23
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1          10          10
    22.70 Balance of authority to borrow
            withdrawn.......................          -1          -2          -2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          21          31          31
    23.95 Total new obligations.............         -21         -31         -31
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          14           7          10
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).          19          19          19
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -1
    68.47     Portion applied to repay debt.         -13          -3          -6
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....           5          16          13
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          19          23          23
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          13          12          11
    73.10 Total new obligations.............          21          31          31
    73.20 Total financing disbursements
            (gross).........................         -22         -22         -19
    73.45 Recoveries of prior year
            obligations.....................          -1         -10         -10
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          12          11          13
    87.00 Total financing disbursements
            (gross).........................          22          22          19
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal Funds: Program Account          -4          -3          -3
    88.25     Interest on uninvested funds..          -1          -2          -2
    88.40     Non-Federal sources: Repayment
                of Principal................         -14         -14         -14
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -19         -19         -19
          Against gross financing authority only:

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

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............           1           4           4
    90.00 Financing disbursements...........           4           3
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4176-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................          15          25          25
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          15          25          25
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          73          75          79
    1231  Disbursements: Direct loan
            disbursements...................          16          18          19
    1251  Repayments: Repayments and
            prepayments.....................         -14         -14         -14
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          75          79          84
    ---------------------------------------------------------------------------

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

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4176-0-3-452

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    4

    4

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    73

    75

    1405

    Allowance for subsidy cost (-)

    -10

    -8

    1499

    Net present value of assets related to direct loans

    63

    67

    1999

    Total assets

    67

    71

        LIABILITIES:
          Federal liabilities:

    2104

    Resources payable to Treasury

    67

    70

    2105

    Other

    1

    2999

    Total liabilities

    67

    71

    4999

    Total liabilities and net position

    67

    71

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

                   Rural Business Investment Programs Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1907-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Debenture subsidy.................                       5
    00.09 Administrative expense............           1           2
    00.10 Grants............................                       3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           1          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         100          99          89
    22.00 New budget authority (gross)......                                 -89
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         100          99
    23.95 Total new obligations.............          -1         -10
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          99          89
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance permanently
              reduced.......................                                 -89
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                                   1
    73.10 Total new obligations.............           1          10
    73.20 Total outlays (gross) (-).........          -1          -9          88
                                               ---------   ---------  ----------

    [[Page 152]]

    74.40   Obligated balance, end of year..                       1          89
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 -89
    86.98 Outlays from mandatory balances...           1           9           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           1           9         -88
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 -89
    90.00 Outlays...........................           1           9         -88
    ---------------------------------------------------------------------------

        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 2005, the program is limited to $10 million. For 2006, the Budget
    cancels unobligated balances, leaving zero 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 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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Loan guarantee levels.............                      60
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......                      60
        Guaranteed loan subsidy (in percent):
    232001Subsidy rate......................        0.00        8.05
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        0.00        8.05
        Guaranteed loan subsidy budget authority:
    233001Subsidy budget authority..........
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....
        Guaranteed loan subsidy outlays:
    234001Subsidy outlays...................                       5
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............                       5
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................
    358001Outlays from balances.............           1           2
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1907-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.2  Administrative Expenses...........           1           2
    41.0  Grants, subsidies, and
            contributions...................                       8
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           1          10
    ---------------------------------------------------------------------------

          Rural Business Investment Program Guarantee Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4033-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

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

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............                       5
    87.00 Total financing disbursements
            (gross).........................
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                      -5
    ----------------------------------------------------------------------------

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

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4033-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........                      60
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                      60
    2199  Guaranteed amount of guaranteed
            loan commitments................                      48
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........                                   2
    2231  Disbursements of new guaranteed
            loans...........................                       2           8
    2251  Repayments and prepayments........                                  -1
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........                       2           9
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                       1           7
    ---------------------------------------------------------------------------

                            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] $10,000,000 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,

    [[Page 153]]

    shall be as defined in section 502 of the Congressional Budget Act of
    1974. (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1908-0-1-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........                      11           5
    00.10 Renewable energy grants...........          23          12           5
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          23          23          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          23          23          10
    23.95 Total new obligations.............         -23         -23         -10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          23          23          10
    40.35   Appropriation permanently
              reduced.......................                                 -23
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          23          23         -13
          Mandatory:

    62.00   Transferred from other accounts.                                  23
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          23          23          10
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          22          43          40
    73.10 Total new obligations.............          23          23          10
    73.20 Total outlays (gross).............          -1         -26         -28
    73.40 Adjustments in expired accounts
            (net)...........................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          43          40          22
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                       6          -8
    86.93 Outlays from discretionary
            balances........................           1          20          19
    86.97 Outlays from new mandatory
            authority.......................                                  10
    86.98 Outlays from mandatory balances...                                   7
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           1          26          28
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          23          23          10
    90.00 Outlays...........................           1          26          28
    ---------------------------------------------------------------------------

        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 2005, the full $23 million is blocked from being spent.
    Similarly, in 2006 the full $23 million in 2006 funds is canceled.
    However, $10 million in discretionary funding is provided for this
    purpose to ensure that any unmet need by other Federal programs can
    potentially be accomodated.

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

    ----------------------------------------------------------------------------
    Identification code 12-1908-0-1-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Loan guarantee levels.............                     615         286
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......                     615         286
        Guaranteed loan subsidy (in percent):
    232001Subsidy rate......................                    1.87        1.75
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....                    1.87        1.75
        Guaranteed loan subsidy budget authority:
    233001Subsidy budget authority..........                      11           5
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....                      11           5
        Guaranteed loan subsidy outlays:
    234001Subsidy outlays...................                       1           6
                                               ---------   ---------  ----------
    234901Total subsidy outlays.............                       1           6
    ---------------------------------------------------------------------------

               Renewable Energy Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4267-0-3-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                                   1
    22.00 New financing authority (gross)...                       1           6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                       1           7
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                       1           7
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............                       1           6
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                      -1          -6
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........                      -1          -6
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4267-0-3-451      2004 actual   2005 est.   2006 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.................                     615         286
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                     615         286
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........                                 248
    2231  Disbursements of new guaranteed
            loans...........................                     275         360
    2251  Repayments and prepayments........                     -27         -61
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........                     248         547
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                     195         429
    ---------------------------------------------------------------------------

    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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance permanently
              reduced.......................          -1
    ----------------------------------------------------------------------------

    [[Page 154]]

        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 were 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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........          31          51
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          31          51
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          26          23
    22.00 New budget authority (gross)......          28          28
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          54          51
    23.95 Total new obligations.............         -31         -51
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          23
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    42.00   Transferred from other accounts.          28          28
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                      15          41
    73.10 Total new obligations.............          31          51
    73.20 Total outlays (gross).............         -16         -25         -25
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          15          41          16
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          16          14
    86.93 Outlays from discretionary
            balances........................                      11          25
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          16          25          25
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          28          28
    90.00 Outlays...........................          16          25          25
    ---------------------------------------------------------------------------

        Funding was provided in 2001 through 2005 to support grants for
    areas that have high energy costs. These grants can be made to eligible
    entities or the Denali Commission to construct, extend, upgrade, and
    otherwise improve energy generation, transmission, or distribution
    facilities serving communities in which the average residential
    expenditure for home energy is at least 275 percent of the national
    average residential expenditure for home energy (as determined by the
    Energy Information Agency using the most recent data available). Grants
    are also available to establish and support a revolving fund to provide
    a more cost-effective means of purchasing fuel where the fuel cannot be
    shipped by means of surface transportation.

    Credit accounts:

          Rural Water and Waste Disposal Direct Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4226-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................         895       1,042       1,000
    00.02   Interest on Treasury borrowing..         342         532         640
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal......................       1,237       1,574       1,640
    08.02 Subsidy reestimate paid to receipt
            account.........................         102           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,339       1,575       1,641
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         185         181
    22.00 New financing authority (gross)...       1,328       1,354       1,601
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          52          40          40
    22.70 Balance of authority to borrow
            withdrawn.......................         -46
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,519       1,575       1,641
    23.95 Total new obligations.............      -1,339      -1,575      -1,641
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         181
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............         967
          Mandatory:

    67.10   Authority to borrow.............                     916       1,174
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).         622         625         630
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         -48          13          -3
    68.47     Portion applied to repay debt.        -213        -200        -200
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....         361         438         427
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       1,328       1,354       1,601
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,271       2,462       2,546
    73.10 Total new obligations.............       1,339       1,575       1,641
    73.20 Total financing disbursements
            (gross).........................      -1,144      -1,438      -1,568
    73.45 Recoveries of prior year
            obligations.....................         -52         -40         -40
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          48         -13           3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       2,462       2,546       2,582
    87.00 Total financing disbursements
            (gross).........................       1,144       1,438       1,568
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -71         -81         -72
    88.25     Interest on uninvested funds..         -43         -40         -41
    88.40     Repayment of principal........        -272        -246        -252
    88.40     Interest Received on Loans....        -264        -258        -265
    88.40     Non-Federal sources...........          28
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -622        -625        -630
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          48         -13           3
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         754         716         974
    90.00 Financing disbursements...........         522         813         938
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4226-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................         895       1,042       1,000
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         895       1,042       1,000
    ----------------------------------------------------------------------------

    [[Page 155]]

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       5,565       6,009       6,669
    1231  Disbursements: Direct loan
            disbursements...................         700         906         926
    1251  Repayments: Repayments and
            prepayments.....................        -273        -246        -252
    1264  Write-offs for default: Other
            adjustments, net................          17
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       6,009       6,669       7,343
    ---------------------------------------------------------------------------

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    64

            Investments in US securities:
    1106

    Receivables, net

    4

    9

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    5,565

    6,009

    1402

    Interest receivable

    50

    65

    1405

    Allowance for subsidy cost (-)

    -809

    -760

    1499

    Net present value of assets related to direct loans

    4,806

    5,314

    1999

    Total assets

    4,810

    5,387

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    4,787

    5,373

    2105

    Other

    23

    14

    2999

    Total liabilities

    4,810

    5,387

    4999

    Total liabilities and net position

    4,810

    5,387

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

     Rural Water and Waste Water Disposal Guaranteed Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4218-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                       1           1
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............                       1           1
    87.00 Total financing disbursements
            (gross).........................
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

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

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........                      -1          -1
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4218-0-3-452      2004 actual   2005 est.   2006 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.................          41          75          75
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................          41          75          75
    2199  Guaranteed amount of guaranteed
            loan commitments................          33          60          60
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          29          33          34
    2231  Disbursements of new guaranteed
            loans...........................           4           5           5
    2251  Repayments and prepayments........                      -4          -4
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          33          34          35
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          26          27          27
    ---------------------------------------------------------------------------

        As required by the Federal Credit Reform Act of 1990, this non-
    budgetary account records all cash flows to and from the Government
    resulting from guaranteed loans committed in 1992 and beyond. The
    amounts in this account are a means of financing and are not included in
    the budget totals. Loans made prior to 1992 are recorded in the Rural
    Development Insurance Fund Liquidating Account.

        This account finances loan guarantee commitments for water systems,
    and waste disposal facilities in rural areas.

       Rural Electrification and Telecommunications Loans Program Account

                          (including transfer of funds)

        Insured loans pursuant to the authority of section 305 of the Rural
    Electrification Act of 1936 (7 U.S.C. 935) shall be made as follows: 5
    percent rural electrification loans, [$120,000,000] $100,000,000;
    municipal rate rural electric loans, $100,000,000; loans made pursuant
    to section 306 of that Act, rural electric, [$2,100,000,000]
    $1,620,000,000; Treasury rate direct electric loans, [$1,000,000,000;
    guaranteed underwriting loans pursuant to section 313A, $1,000,000,000]
    $700,000,000; 5 percent rural telecommunications loans, $145,000,000;
    cost of money rural telecommunications loans, [$250,000,000]
    $425,000,000; and for loans made pursuant to section 306 of that Act,
    rural telecommunications loans, [$125,000,000] $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, [$5,058,000] $6,040,000, and the cost of
    telecommunications loans, [$100,000] $212,000: 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, [$38,277,000] $39,933,000 which
    shall be transferred to and merged with the appropriation for ``Rural
    Development, Salaries and Expenses''. (Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies Appropriations Act,
    2005.)

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1230-0-1-271      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    0101  Negative subsidies/subsidy
            reestimates.....................          35          37          39
    0102  Negative subsidies/subsidy
            reestimates.....................          29
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1230-0-1-271      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............                       5           6
    00.05 Reestimate of direct loan subsidy.         285

    [[Page 156]]

    00.06 Interest on reestimates of direct
            loan subsidy....................          68
    00.09 Administrative expenses subject to
            limitation......................          38          38          40
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         391          43          46
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         391          43          46
    23.95 Total new obligations.............        -391         -43         -46
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          38          43          46
          Mandatory:

    60.00   Appropriation...................         353
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         391          43          46
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          62          50          33
    73.10 Total new obligations.............         391          43          46
    73.20 Total outlays (gross).............        -401         -60         -50
    73.40 Adjustments in expired accounts
            (net)...........................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          50          33          29
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          38          38          41
    86.93 Outlays from discretionary
            balances........................          10          22           9
    86.97 Outlays from new mandatory
            authority.......................         353
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         401          60          50
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         391          43          46
    90.00 Outlays...........................         401          60          50
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1230-0-1-271      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Hardship electric.................         240         120         100
    115002Municipal electric................         645         100         100
    115003Treasury electric.................       1,181         700         700
    115004FFB electric......................       1,765       2,000       1,620
    115005Hardship telephone................         145         145         145
    115006Treasury telephone................          49         250         424
    115007FFB telephone.....................         320         125         100
                                               ---------   ---------  ----------
    115901Total direct loan levels..........       4,345       3,440       3,189
        Direct loan subsidy (in percent):
    132001Hardship electric.................       -2.33        3.04        0.92
    132002Municipal electric................       -2.42        1.35        5.05
    132003Treasury electric.................       -0.06       -0.05        0.01
    132004FFB electric......................       -1.99       -2.23       -0.48
    132005Hardship telephone................       -4.44       -1.21       -1.80
    132006Treasury telephone................        0.05        0.04        0.05
    132007FFB telephone.....................       -1.85       -1.95       -1.57
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       -1.60       -1.28       -0.18
        Direct loan subsidy budget authority:
    133001Hardship electric.................          -6           4           1
    133002Municipal electric................         -16           1           5
    133003Treasury electric.................
    133004FFB electric......................         -35         -45          -8
    133005Hardship telephone................          -7          -2          -2
    133006Treasury telephone................
    133007FFB telephone.....................          -6          -2          -2
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....         -70         -44          -6
        Direct loan subsidy outlays:
    134001Hardship electric.................           4           4           2
    134002Municipal electric................                      -2          -3
    134003Treasury electric.................
    134004FFB electric......................         -30         -37         -37
    134005Hardship telephone................           2          13           3
    134006Treasury telephone................
    134007FFB telephone.....................          -1          -2          -2
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............         -25         -24         -37
        Direct loan upward reestimate subsidy budget
                    authority:
    135001Hardship electric.................           1
    135002Municipal electric................         223
    135003Treasury electric.................          13
    135004FFB electric......................         106
    135005Hardship telephone................           1
    135006Treasury telephone................           1
    135007FFB telephone.....................           8
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................         353
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Hardship electric.................         -17
    137002Municipal electric................          -3
    137004FFB electric......................          -1
    137005Hardship telephone................          -2
    137006Treasury telephone................          -5
    137007FFB telephone.....................          -1
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................         -29
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Guaranteed electric...............                     100
    215002Guaranteed underwriting loans.....                   1,000
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......                   1,100
        Guaranteed loan subsidy (in percent):
    232001Guaranteed electric...............        0.06        0.06        0.00
    232002Guaranteed underwriting loans.....        0.00        0.00        0.00
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        0.00        0.01        0.00
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................          38          38          40
    359001Outlays from new authority........          38          38          40
    ---------------------------------------------------------------------------

        The Rural Utilities Service (RUS) 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 propose rule changes to require recertification of rural
    status for each electric and telecommunications borrower on the first
    loan request received in or after 2006 and on the first loan request
    received after each subsequent Census.

        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.

        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 telecommuni

    [[Page 157]]

    cations programs, the subsidy costs associated with the direct and
    guaranteed loans obligated in 1992 and beyond (including modifications
    of direct loans or loan guarantees that resulted from obligations or
    commitments in any year), as well as administrative expenses of this
    program. The subsidy amounts are estimated on a present value basis; the
    administrative expenses are estimated on a cash basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1230-0-1-271      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................          38          38          40
    41.0  Grants, subsidies, and
            contributions...................         353           5           6
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         391          43          46
    ---------------------------------------------------------------------------

       Rural Electrification and Telecommunications Direct Loan Financing
                                     Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4208-0-3-271      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................       4,345       3,440       3,189
    00.02 Interest on Treasury borrowing....         854         950         950
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating program.....       5,199       4,390       4,139
    08.01 Negative subsidy paid to receipt
            account.........................          70          47          12
    08.02 Downward subsidy amount paid to
            receipt account.................          20
    08.04 Interest on downward subsidy
            reestimate......................           9
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............          99          47          12
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       5,298       4,437       4,151
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          10         215
    22.00 New financing authority (gross)...       5,500       4,222       4,151
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         125
    22.70 Balance of authority to borrow
            withdrawn.......................        -123
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,512       4,437       4,151
    23.95 Total new obligations.............      -5,298      -4,437      -4,151
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         215
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............       4,444
          Mandatory:

    67.10   Authority to borrow.............                   3,071       2,928
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).       1,621       1,699       1,779
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         -13         -73         -73
    68.47     Portion applied to repay debt.        -552        -475        -483
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....       1,056       1,151       1,223
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       5,500       4,222       4,151
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       9,501      10,849      11,928
    73.10 Total new obligations.............       5,298       4,437       4,151
    73.20 Total financing disbursements
            (gross).........................      -3,837      -3,431      -3,453
    73.45 Recoveries of prior year
            obligations.....................        -125
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          13          73          73
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..      10,849      11,928      12,699
    87.00 Total financing disbursements
            (gross).........................       3,837       3,431       3,453
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payment from program account..        -364         -17          -5
    88.25     Interest on uninvested funds..         -60        -132        -132
    88.40     Repayment of principal........        -469        -417        -497
    88.40     Interest received on loans....        -726      -1,133      -1,145
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -1,619      -1,699      -1,779
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          13          73          73
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          -2
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............       3,892       2,596       2,445
    90.00 Financing disbursements...........       2,216       1,732       1,674
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4208-0-3-271      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................       4,345       3,440       3,189
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       4,345       3,440       3,189
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      14,069      16,519      19,533
    1231  Disbursements: Direct loan
            disbursements...................       2,919       3,431       3,372
    1251  Repayments: Repayments and
            prepayments.....................        -469        -417        -497
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      16,519      19,533      22,408
    ---------------------------------------------------------------------------

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    17

    166

            Investments in US securities:
    1106

    Receivables, net

    497

    89

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    12,413

    14,675

    1402

    Interest receivable

    198

    4

    1405

    Allowance for subsidy cost (-)

    -1,113

    -748

    1499

    Net present value of assets related to direct loans

    11,498

    13,931

    1999

    Total assets

    12,012

    14,186

        LIABILITIES:
    2103

    Federal liabilities: Debt

    12,006

    14,167

    2207

    Non-Federal liabilities: Other

    6

    19

    2999

    Total liabilities

    12,012

    14,186

    4999

    Total liabilities and net position

    12,012

    14,186

    --------------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    28

    114

            Investments in US securities:
    1106

    Receivables, net

    59

    24

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    1,656

    1,844

    1402

    Interest receivable

    1

    1

    1405

    Allowance for subsidy cost (-)

    -46

    -10

    1499

    Net present value of assets related to direct loans

    1,611

    1,835

    1999

    Total assets

    1,698

    1,973

        LIABILITIES:
    2103

    Federal liabilities: Debt

    1,671

    1,953

    2207

    Non-Federal liabilities: Other

    27

    20

    2999

    Total liabilities

    1,698

    1,973

    [[Page 158]]

    4999

    Total liabilities and net position

    1,698

    1,973

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

    Rural Electrification and Telecommunications Guaranteed Loans Financing
                                     Account

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4209-0-3-271      2004 actual   2005 est.   2006 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.................                   1,100
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                   1,100
    2199  Guaranteed amount of guaranteed
            loan commitments................                   1,100
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         223         222       1,292
    2231  Disbursements of new guaranteed
            loans...........................          19       1,100
    2251  Repayments and prepayments........         -20         -30         -40
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         222       1,292       1,252
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         222       1,292       1,252
    ---------------------------------------------------------------------------

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

        This account finances loan guarantee commitments.

        Rural Electrification and Telecommunications Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-271      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Interest expense on certificates
            of beneficial ownership.........         317         317         317
    00.02 Interest expense, FFB direct......         522         495         464
    00.03 Other interest expense............           9          13          13
    00.04 Direct loans......................           3
    00.05 Other.............................          78          72          72
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         929         897         866
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         286       1,657       1,352
    22.00 New budget authority (gross)......       2,561       1,024         894
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          18
    22.40 Capital transfer to general fund..        -280        -432         -28
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,585       2,249       2,218
    23.95 Total new obligations.............        -929        -897        -866
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       1,657       1,352       1,352
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance rescission
              proposal......................                                  -5
          Mandatory:

    60.00   Appropriation...................                     161         161
    60.36   Unobligated balance permanently
              reduced.......................          -3          -5
    62.00   Transferred from other accounts.          20          19          19
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................          17         175         180
    67.10   Authority to borrow.............           2
    69.00 Offsetting collections (cash).....       3,060       1,848       1,622
    69.27 Capital transfer to general fund..         -20
    69.47 Portion applied to repay debt.....        -498        -999        -903
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................       2,542         849         719
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,561       1,024         894
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         321         269         175
    73.10 Total new obligations.............         929         897         866
    73.20 Total outlays (gross).............        -963        -991        -996
    73.45 Recoveries of prior year
            obligations.....................         -18
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         269         175          45
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         842         825         830
    86.98 Outlays from mandatory balances...         121         166         166
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         963         991         996
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.40     Loans repaid..................      -1,740      -1,035        -905
    88.40     Interest from loans...........        -888        -813        -717
    88.40     Undistributed Charges.........        -432
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........      -3,060      -1,848      -1,622
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -499        -824        -728
    90.00 Outlays...........................      -2,096        -857        -626
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-271      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      17,104      14,948      13,403
    1231  Disbursements: Direct loan
            disbursements...................           3           4          11
    1251  Repayments: Repayments and
            prepayments.....................      -2,224      -1,545      -1,324
    1261  Adjustments: Capitalized interest.          64
          Write-offs for default:

    1263    Direct loans....................
    1264    Other adjustments, net..........           1          -4          -3
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      14,948      13,403      12,087
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-271      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         293         255         233
    2231  Disbursements of new guaranteed
            loans...........................
    2251  Repayments and prepayments........         -38         -16         -15
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................                      -6          -6
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         255         233         212
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         255         233         212
    ---------------------------------------------------------------------------

                              STATUS OF AGENCY DEBT

                            [In millions of dollars]

                                         2004 actual  2005 est.   2006 est.
    Agency debt held by FFB:
      Outstanding FFB direct, start of
        year............................       8,397       7,902       7,065
      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..........................           3           3           3
      Repayments, CBO's.................        -498        -840        -840
        ................................           0           0           0
      Outstanding FFB direct, end of
        year............................       7,902       7,065       6,228
      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 telecommuni

    [[Page 159]]

    cations 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 (RUS) 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]

                                         2004 actual  2005 est.   2006 est.
    Cumulative RUS financed direct loans      21,851      21,851      21,851
    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.....      16,728      16,913      17,678
    Cumulative RUS interest paid........      12,363      12,952      13,594
    Cumulative loan guarantee
    commitments\1\......................           0           0           0
    Number of borrowers.................         712         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]

                                         2004 actual  2005 est.   2006 est.
    Cumulative RUS financed direct loans       6,023       6,010       5,990
    Cumulative FFB financed direct loans         562         562         562
    Cumulative RUS funds advanced.......       5,900       5,905       5,913
    Unadvanced RUS funds, end of period.         131         130         122
    Cumulative RUS principal repaid.....       4,207       4,290       4,506
    Cumulative RUS interest paid........       3,098       3,234       3,415
    Cumulative loan guarantee
    commitments \1\.....................           0           0           0
    Number of borrowers.................         600         595         589

        \1\ Other lenders--privately financed direct loans, FFB.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4230-0-3-271

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    405

    1,477

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

    1601

    Direct loans, gross (Electric)

    15,263

    13,283

    1602

    Interest receivable

    6

    28

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -1,935

    -1,780

    1604

    Direct loans and interest receivable, net

    13,334

    11,531

    1699

    Value of assets related to direct loans

    13,334

    11,531

    1999

    Total assets

    13,739

    13,008

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    15,016

    14,446

    2104

    Resources payable to Treasury

    -1,310

    -1,505

    2105

    Other

    33

    67

    2999

    Total liabilities

    13,739

    13,008

    4999

    Total liabilities and net position

    13,739

    13,008

    --------------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    146

    392

    1201

    Non-Federal assets: Investments in non-Federal securities, net

    409

    388

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

    1601

    Direct loans, gross (telephone)

    1,843

    1,665

    1602

    Interest receivable

    1

    9

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -147

    -166

    1604

    Direct loans and interest receivable, net

    1,697

    1,508

    1699

    Value of assets related to direct loans

    1,697

    1,508

    1999

    Total assets

    2,252

    2,289

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    1,373

    1,369

    2104

    Resources payable to Treasury

    865

    905

    2105

    Other

    3

    4

    2999

    Total liabilities

    2,241

    2,278

        NET POSITION:
    3300

    Cumulative results of operations

    11

    11

    3999

    Total net position

    11

    11

    4999

    Total liabilities and net position

    2,252

    2,289

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-271      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................          78          72          72
    33.0  Investments and loans.............          12          13          13
    43.0  Interest and dividends............         839         812         781
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         929         897         866
    ---------------------------------------------------------------------------

                      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 2005 and within the
    resources and authority available, gross obligations for the principal
    amount of direct loans shall be $175,000,000.]
        [In addition, for] For administrative expenses, including audits,
    necessary to [carry out the loan programs, $3,152,000] continue to
    service existing loans, $2,500,000, 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''. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2005.)

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1231-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    0101  Negative subsidies/subsidy
            reestimates.....................          11
    ---------------------------------------------------------------------------

    [[Page 160]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1231-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.09 Administrative expenses subject to
            limitation......................           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................           3           3           3
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           3           3
    42.00   Transferred from other accounts.                                   3
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............           3           3           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          20          18          17
    73.10 Total new obligations.............           3           3           3
    73.20 Total outlays (gross).............          -4          -4          -4
    73.40 Adjustments in expired accounts
            (net)...........................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          18          17          16
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           3           3           3
    86.93 Outlays from discretionary
            balances........................           1           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           4           4           4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           3           3           3
    90.00 Outlays...........................           5           4           4
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1231-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Rural Telephone Bank..............         170         175
                                               ---------   ---------  ----------
    115901Total direct loan levels..........         170         175
        Direct loan subsidy (in percent):
    132001Rural Telephone Bank..............       -4.32       -1.83        0.00
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       -4.32       -1.83        0.00
        Direct loan subsidy budget authority:
    133001Rural Telephone Bank..............          -7          -3
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....          -7          -3
        Direct loan subsidy outlays:
    134001Subsidy outlays...................           1           1
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............           1           1
        Direct loan downward reestimate subsidy budget
                    authority:
    137001Rural Telephone Bank..............         -11
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................         -11
    ----------------------------------------------------------------------------

        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.
    Additional telecommunication loan funds are proposed for the cost of
    money telecommunication loans to maintain the level of funds available
    to rural telecommunication borrowers. Funding for the Rural Telephone
    Bank's (RTB) administrative expenses will be transferred from the
    unobligated balances in the RTB liquidating account. The Budget directs
    dissolution of the RTB by paying out all stock. This will allow the RTB
    to close as the demand for private lenders has been fulfilled through
    other sources. In addition, the stockholders will obtain a cash payout
    for their stock while removing this cumbersome program from the
    government.

        RUS will rescind loans obligated, but not issued, more than ten
    years ago. Current law prohibits the rescission of RTB 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
    RTB loan obligations that are more than ten years old.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for the RTB, 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.

               Rural Telephone Bank Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4210-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Loans......................         170         175
    00.02 Interest on Treasury borrowing....          25          83          83
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal......................         195         258          83
    08.01 Payment to Receipt Account........           7           3
    08.02 Downward reestimates paid to
            receipt accounts................           7
    08.04 Interest on downward reestimate
            paid to receipt account.........           4
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal......................          18           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         213         261          83
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2          30           1
    22.00 New financing authority (gross)...         243         232          83
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          76
    22.70 Balance of authority to borrow
            withdrawn.......................         -78
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         243         262          84
    23.95 Total new obligations.............        -213        -261         -83
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          30           1           1
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............         216
          Mandatory:

    67.10   Authority to borrow.............                     136
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).          61         154         154
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -2          -3          -3
    68.47     Portion applied to repay debt.         -32         -55         -68
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....          27          96          83
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         243         232          83
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,169       1,205       1,297
    73.10 Total new obligations.............         213         261          83
    73.20 Total financing disbursements
            (gross).........................        -103        -172        -167
    73.45 Recoveries of prior year
            obligations.....................         -76
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           2           3           3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       1,205       1,297       1,216
    87.00 Total financing disbursements
            (gross).........................         103         172         167
    ----------------------------------------------------------------------------

    [[Page 161]]

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: Payment from
                program account.............          -1          -1
    88.25     Interest on uninvested funds..          -5         -22         -23
    88.40     Principal received on loans...         -55        -100        -100
    88.40     Interest received on loans....                     -23         -23
    88.40     Sale of RTB Stock.............          -1          -8          -8
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -62        -154        -154
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           2           3           3
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         184          81         -68
    90.00 Financing disbursements...........          41          18          13
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4210-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................         170         175
    1142  Unobligated direct loan limitation
            (-).............................
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         170         175
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         328         374         446
    1231  Disbursements: Direct loan
            disbursements...................         102         172         167
    1251  Repayments: Repayments and
            prepayments.....................         -56        -100        -113
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         374         446         500
    ---------------------------------------------------------------------------

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

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4210-0-3-452

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    11

    11

            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

    328

    374

    1405

    Allowance for subsidy cost (-)

    -2

    -6

    1499

    Net present value of assets related to direct loans

    326

    368

    1999

    Total assets

    342

    380

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    300

    343

    2105

    Other

    42

    37

    2999

    Total liabilities

    342

    380

    4999

    Total liabilities and net position

    342

    380

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

                    Rural Telephone Bank Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4231-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Dividends.........................          49          29          29
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 43.0)...................          49          29          29
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,201       1,291       1,360
    22.00 New budget authority (gross)......         124          98          98
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          15
    22.21 Unobligated balance transferred to
            other accounts..................                                  -3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,340       1,389       1,455
    23.95 Total new obligations.............         -49         -29         -29
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       1,291       1,360       1,426
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    61.00   Transferred to other accounts...         -20         -19         -19
    69.00 Offsetting collections (cash).....         204         125         139
    69.10 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -51
    69.27 Capital transfer to general fund..          -9
    69.47 Portion applied to repay debt.....                      -8         -22
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................         144         117         117
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         124          98          98
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          34          90          92
    73.10 Total new obligations.............          49          29          29
    73.20 Total outlays (gross).............         -29         -27         -41
    73.45 Recoveries of prior year
            obligations.....................         -15
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          51
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          90          92          80
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          12          17          22
    86.98 Outlays from mandatory balances...          17          10          19
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          29          27          41
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..        -119                     -14
    88.40     Loans repaid..................         -53         -77         -77
    88.40     Interest from loans...........         -32         -48         -48
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -204        -125        -139
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          51
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         -29         -27         -41
    90.00 Outlays...........................        -174         -98         -98
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4231-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         476         423         345
    1231  Disbursements: Direct loan
            disbursements...................                       2           2
    1251  Repayments: Repayments and
            prepayments.....................         -53         -77         -60
    1263  Write-offs for default: Direct
            loans...........................                      -3          -3
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         423         345         284
    ---------------------------------------------------------------------------

        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 2006.

        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.

    [[Page 162]]

        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 RTB required by
    law. The President's Budget proposes that the RTB make no more
    Federally-funded loans.

        RUS will rescind loans obligated, but not issued, more than ten
    years ago. Current law prohibits the rescission of Rural Telephone Bank
    loans in most instances. This has resulted in many outstanding
    obligations that are older than ten years. Since loans are issued for
    specific projects, and technology is changing at a very fast pace, it is
    doubtful that the original project will be accomplished ten years after
    a loan is approved. Legislation will be proposed to allow the rescission
    of all RTB loan obligations that are more than ten years old.

        Administrative support is provided for the general operations of the
    Bank by RUS employees and the Office of the General Counsel.

                               PROGRAM STATISTICS

                              [dollars in millions]

                                         2004 actual  2005 est.   2006 est.
    Cumulative net loans................       2,517       2,052       2,487
    Cumulative loan funds, advanced.....       2,470       2,485       2,500
    Unadvanced loan funds, end of year..          47          32          17
    Cumulative principal repaid.........       2,047       2,471       2,895
    Cumulative interest paid............       2,417       2,449       2,481
    Number of borrowers.................         270         255         240
                                        ====================================

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4231-0-3-452

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    1,235

    1,380

            Investments in US securities:
    1106

    Receivables, net

    56

    7

    1402

    Net value of assets related to post-1991 direct loans receivable: Interest
    receivable

    1

    1

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

    1601

    Direct loans, gross

    476

    423

    1603

    Allowance for estimated uncollectible loans and interest (-)

    11

    -5

    1604

    Direct loans and interest receivable, net

    487

    418

    1699

    Value of assets related to direct loans

    487

    418

    1999

    Total assets

    1,779

    1,806

        LIABILITIES:
          Federal liabilities:

    2104

    Resources payable to Treasury

    55

    2105

    Other

    1,315

    1,365

    2999

    Total liabilities

    1,370

    1,365

        NET POSITION:
    3300

    Cumulative results of operations

    409

    441

    3999

    Total net position

    409

    441

    4999

    Total liabilities and net position

    1,779

    1,806

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

             Distance Learning, Telemedicine, and Broadband Program

        For the principal amount of [direct distance learning and
    telemedicine loans, $50,000,000; and for the principal amount of direct]
    broadband telecommunication loans, [$550,000,000] $358,875,000.
        For [the cost of direct loans and] grants for telemedicine and
    distance learning services in rural areas, as authorized by 7 U.S.C.
    950aaa et seq., [$35,710,000] $25,000,000, to remain available until
    expended[, of which $710,000 shall be for direct loans: Provided, That
    the cost of direct loans shall be as defined in section 502 of the
    Congressional Budget Act of 1974: Provided further, That $10,000,000
    shall be made available to convert analog to digital operation 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 and repeaters, regardless of
    the location of their main transmitter, studio-to-transmitter links, and
    equipment to allow local control over digital content and programming
    through the use of high-definition broadcast, multi-casting and
    datacasting technologies].
        For the cost of broadband loans, as authorized by 7 U.S.C. 901 et
    seq., [$11,715,000, to remain available until September 30, 2006]
    $9,973,000: 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,] That the cost of direct 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.] (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1232-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    0102  Negative subsidies/subsidy
            reestimates.....................           1
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1232-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loan subsidy...............          13          48           9
    00.02 Loan guaranteed subsidy...........                       3           1
    00.03 Reestimate........................           1
    00.10 Grants............................          54          55          25
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          68         106          35
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          54          50          40
    22.00 New budget authority (gross)......          62          96          -5
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         118         146          35
    23.95 Total new obligations.............         -68        -106         -35
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          50          40
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          61          56          35
    40.35   Appropriation permanently
              reduced.......................                                 -10
    40.36   Unobligated balance permanently
              reduced.......................                                 -40
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          61          56         -15
          Mandatory:

    60.00   Appropriation...................           1
    62.00   Transferred from other accounts.                      40          10
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................           1          40          10
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          62          96          -5
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         113         137         196
    73.10 Total new obligations.............          68         106          35
    73.20 Total outlays (gross).............         -42         -47         -66
    73.45 Recoveries of prior year
            obligations.....................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         137         196         165
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           3           4         -15
    86.93 Outlays from discretionary
            balances........................          39          43          59
    86.97 Outlays from new mandatory
            authority.......................                                   1
    86.98 Outlays from mandatory balances...                                  21
                                               ---------   ---------  ----------

    [[Page 163]]

    87.00   Total outlays (gross)...........          42          47          66
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          62          96          -5
    90.00 Outlays...........................          42          47          66
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1232-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Distance Learning and Telemedicine          30          50
    115002Direct Broadband 4% loans.........                                  30
    115003Direct Broadband Treasury Rate
            loans...........................         598         546         298
    115004Mandatory Broadband 4% loans......           4
    115005Mandatory Broadband Treasury Rate
            loans...........................           1
                                               ---------   ---------  ----------
    115901Total direct loan levels..........         633         596         328
        Direct loan subsidy (in percent):
    132001Distance Learning and Telemedicine        0.00        1.42        0.00
    132002Direct Broadband 4% loans.........        0.00        0.00        7.95
    132003Direct Broadband Treasury Rate
            loans...........................        2.18        2.13        2.15
    132004Mandatory Broadband 4% loans......        4.94        0.00        0.00
    132005Mandatory Broadband Treasury Rate
            loans...........................        2.18        0.00        0.00
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....        2.09        2.07        2.68
        Direct loan subsidy budget authority:
    133001Distance Learning and Telemedicine                       1
    133002Direct Broadband 4% loans.........                                   2
    133003Direct Broadband Treasury Rate
            loans...........................          13          12           6
    133004Mandatory Broadband 4% loans......
    133005Mandatory Broadband Treasury Rate
            loans...........................
    133006Guaranteed Broadband Loans........
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....          13          13           8
        Direct loan subsidy outlays:
    134001Distance Learning and Telemedicine
    134002Direct Broadband 4% loans.........
    134003Direct Broadband Treasury Rate
            loans...........................           1          12          12
    134004Mandatory Broadband 4% loans......
    134005Mandatory Broadband Treasury Rate
            loans...........................
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............           1          12          12
        Direct loan downward reestimate subsidy budget
                    authority:
    137002Direct Broadband 4% loans.........
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Broadband Guaranteed loans........                                  30
    215002Mandatory Broadband Guaranteed
            loans...........................
                                               ---------   ---------  ----------
    215901Total loan guarantee levels.......                                  30
        Guaranteed loan subsidy (in percent):
    232001Broadband Guaranteed loans........        0.00        0.00        3.82
    232002Mandatory Broadband Guaranteed
            loans...........................        0.00        0.00        0.00
                                               ---------   ---------  ----------
    232901Weighted average subsidy rate.....        0.00        0.00        3.82
        Guaranteed loan subsidy budget authority:
    233001Broadband Guaranteed loans........                                   1
    233002Mandatory Broadband Guaranteed
            loans...........................
                                               ---------   ---------  ----------
    233901Total subsidy budget authority....                                   1
        Guaranteed loan subsidy outlays:
    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 2006 and the carryover balances from
    2004 and 2005. The Budget provides discretionary funding 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 2006.

      Distance Learning, Telemedicine, and Broadband Direct Loan Financing
                                     Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4146-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................         633       2,129         329
    00.02 Interest on Treasury borrowing....           8           4           4
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal......................         641       2,133         333
    08.02 Downward reestimates paid to
            receipt accounts................           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         642       2,133         333
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          14          17      -1,553
    22.00 New financing authority (gross)...         659         634         330
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           9
    22.40 Capital transfer to general fund..          -1
    22.60 Portion applied to repay debt.....                     -71         -54
    22.70 Balance of authority to borrow
            withdrawn.......................         -22
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         659         580      -1,277
    23.95 Total new obligations.............        -642      -2,133        -333
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          17      -1,553      -1,610
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    47.00   Authority to borrow.............         635
          Mandatory:

    67.10   Authority to borrow.............                     576         272
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).          15          70          70
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          12         -12         -12
    68.47     Portion applied to repay debt.          -3
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....          24          58          58
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         659         634         330
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         178         733       2,812
    73.10 Total new obligations.............         642       2,133         333
    73.20 Total financing disbursements
            (gross).........................         -66         -66         -66
    73.45 Recoveries of prior year
            obligations.....................          -9
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -12          12          12
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         733       2,812       3,091
    87.00 Total financing disbursements
            (gross).........................          66          66          66
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -1         -12         -12
    88.25     Interest on uninvested funds..          -2          -5          -5
    88.40     Repayment of principal........         -12         -30         -30
    88.40     Interest received on loans....                     -23         -23
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -15         -70         -70
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............         -12          12          12
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         632         576         272
    90.00 Financing disbursements...........          51          -4          -4
    ---------------------------------------------------------------------------

    [[Page 164]]

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4146-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................         633       2,129         329
    1142  Unobligated direct loan limitation
            (-).............................
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         633       2,129         329
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          81         131         167
    1231  Disbursements: Direct loan
            disbursements...................          58          66          66
    1251  Repayments: Repayments and
            prepayments.....................          -8         -30         -38
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         131         167         195
    ---------------------------------------------------------------------------

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

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4146-0-3-452

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    2

    7

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    81

    131

    1402

    Interest receivable

    2

    3

    1499

    Net present value of assets related to direct loans

    83

    134

    1999

    Total assets

    85

    141

        LIABILITIES:
    2101

    Federal liabilities: Accounts payable

    85

    141

    2999

    Total liabilities

    85

    141

    4999

    Total liabilities and net position

    85

    141

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

      Distance Learning and Telemedicine Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4361-0-3-451      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                                   2
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............                                   2
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

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

        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      2004 actual   2005 est.   2006 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.................                      79          30
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                      79          30
    2199  Guaranteed amount of guaranteed
            loan commitments................                      79          30
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........                                  79
    2231  Disbursements of new guaranteed
            loans...........................                      79          30
    2251  Repayments and prepayments........                                  -2
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........                      79         107
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                      79         107
    ---------------------------------------------------------------------------

                 Local Television Loan Guarantee Program Account

                          (including transfer of funds)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1233-0-1-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          88          88
    22.00 New budget authority (gross)......                     -88
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          88
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          88
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance permanently
              reduced.......................                      -8
          Mandatory:

    60.36   Unobligated balance permanently
              reduced.......................                     -80
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................                     -88
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     -88
    90.00 Outlays...........................
    ---------------------------------------------------------------------------

        The Agriculture, Rural Development, Food and Drug Administration,
    and Related Agencies Appropriations Act, 2005 rescinded the unused
    budget authority for this account and the 2006 President's Budget
    proposes no additional funds for the Local Television Loan Guarantee
    program.

              Rural Development Insurance Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4155-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    01.01 Interest on FFB borrowings........          69          11
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 43.0)...................          69          11
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          77          76
    22.00 New budget authority (gross)......          68          11
    22.40 Capital transfer to general fund..                     -76
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         145          11
    23.95 Total new obligations.............         -69         -11
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          76
    ----------------------------------------------------------------------------

    [[Page 165]]

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................         277
    60.47   Portion applied to repay debt...        -209
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................          68
    69.00 Offsetting collections (cash).....         473         244         229
    69.27 Capital transfer to general fund..                     -33        -229
    69.47 Portion applied to repay debt.....        -473        -200
                                               ---------   ---------  ----------
    69.90   Spending authority from
              offsetting collections (total
              mandatory)....................                      11
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          68          11
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          51          14          14
    73.10 Total new obligations.............          69          11
    73.20 Total outlays (gross).............        -106         -11
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          14          14          14
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          68
    86.98 Outlays from mandatory balances...          38          11
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         106          11
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.40     Non-Federal sources...........        -343        -130        -122
    88.40     Repayments of guaranteed loans
                purchased from investors....                      -1          -1
    88.40     Interest revenue..............        -127        -113        -106
    88.40     Other.........................          -3
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -473        -244        -229
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -405        -233        -229
    90.00 Outlays...........................        -367        -233        -229
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4155-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       2,463       2,125       1,994
    1232  Disbursements: Purchase of loans
            assets from the public..........           5
    1251  Repayments: Repayments and
            prepayments.....................        -343        -130        -122
          Write-offs for default:

    1263    Direct loans....................          -2          -1          -1
    1264    Other adjustments, net..........           2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       2,125       1,994       1,871
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4155-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          51          41          36
    2251  Repayments and prepayments........         -10          -5          -4
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          41          36          32
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          31          27          23
    ---------------------------------------------------------------------------

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    129

    167

    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

    2,463

    2,125

    1602

    Interest receivable

    26

    32

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -392

    -330

    1604

    Direct loans and interest receivable, net

    2,097

    1,827

    1699

    Value of assets related to direct loans

    2,097

    1,827

    1901

    Other Federal assets: Other assets

    5

    1999

    Total assets

    2,260

    2,033

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    805

    200

    2104

    Resources payable to Treasury

    1,402

    1,807

          Non-Federal liabilities:

    2202

    Interest payable

    51

    14

    2204

    Liabilities for loan guarantees

    2

    5

    2207

    Other

    7

    2999

    Total liabilities

    2,260

    2,033

    4999

    Total liabilities and net position

    2,260

    2,033

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

            Rural Communication Development Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4142-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Interest on Treasury borrowing....           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 43.0)...................           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1
    22.00 New budget authority (gross)......           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           2
    23.95 Total new obligations.............          -2
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................          26
    60.47   Portion applied to repay debt...         -25
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................           1
    ----------------------------------------------------------------------------

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

    [[Page 166]]

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           1
    86.98 Outlays from mandatory balances...           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           1
    90.00 Outlays...........................           3
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4142-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........           4           4           4
    1251  Repayments: Repayments and
            prepayments.....................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           4           4           4
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4142-0-3-452      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........           4           4           4
    2251  Repayments and prepayments........
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........           4           4           4
    ----------------------------------------------------------------------------

        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 1992.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-4142-0-3-452

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    2

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

    1601

    Direct loans, gross

    4

    3

    1602

    Interest receivable

    1

    1

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -1

    -1

    1604

    Direct loans and interest receivable, net

    4

    3

    1699

    Value of assets related to direct loans

    4

    3

    1999

    Total assets

    6

    3

        LIABILITIES:
          Federal liabilities:

    2102

    Interest payable

    1

    2104

    Resources payable to Treasury

    3

    2203

    Non-Federal liabilities: Debt

    5

    2999

    Total liabilities

    6

    3

    4999

    Total liabilities and net position

    6

    3

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

                          FOREIGN AGRICULTURAL SERVICE

                                  Federal Funds

    General and special funds:

                              Salaries and Expenses

                         (including transfers of funds)

        For necessary expenses of the Foreign Agricultural Service,
    including carrying out title VI of the Agricultural Act of 1954 (7
    U.S.C. 1761-1768), market development activities abroad, and for
    enabling the Secretary to coordinate and integrate activities of the
    Department in connection with foreign agricultural work, including not
    to exceed $158,000 for representation allowances and for expenses
    pursuant to section 8 of the Act approved August 3, 1956 (7 U.S.C.
    1766), [$137,822,000] $148,792,000: 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. (Agriculture, Rural Development, Food and
    Drug Administration, and Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2900-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Market access...................          32          33          36
    00.02   Market development..............          36          37          39
    00.03   Market intelligence.............          30          32          35
    00.04   Financial marketing assistance..          11          11          12
    00.05   Long-term market and
              infrastructure development....          27          28          30
    09.00 Reimbursable program..............          82          71          71
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         218         212         223
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          15          12           8
    22.00 New budget authority (gross)......         218         208         220
    22.22 Unobligated balance transferred
            from other accounts.............           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         234         220         228
    23.95 Total new obligations.............        -218        -212        -223
    23.98 Unobligated balance expiring or
            withdrawn.......................          -3
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          12           8           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         132         138         149
    40.35   Appropriation permanently
              reduced.......................          -1          -1
    42.00   Transferred from other accounts.          15
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         146         137         149
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          22          71          71
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          50
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          72          71          71
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         218         208         220
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          37          38          42
    73.10 Total new obligations.............         218         212         223
    73.20 Total outlays (gross).............        -200        -208        -220
    73.40 Adjustments in expired accounts
            (net)...........................           3
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -50
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          30
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          38          42          45
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         190         197         209
    86.93 Outlays from discretionary
            balances........................          10          11          11
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         200         208         220
    ----------------------------------------------------------------------------

    [[Page 167]]

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -55         -71         -71
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -50
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          33
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         146         137         149
    90.00 Outlays...........................         146         137         149
    ---------------------------------------------------------------------------

        The mission of the Foreign Agricultural Service (FAS) is to open,
    expand and maintain global market opportunities through international
    trade, cooperation, and sustainable development activities which secure
    the long-term economic vitality and global competitiveness of America's
    rural communities and related food and agricultural enterprises.

        FAS conducts a demand-driven export strategy, deploying five major
    policy objectives to execute the strategy, while integrating commodity
    and country market priorities for allocating scarce export assistance
    resources. These objectives include:

        Market access: FAS initiates, directs and coordinates the
    Department's formulation of trade policies and programs with the goal of
    maintaining and expanding world markets for U.S. agricultural products.
    It monitors international compliance with bilateral and multilateral
    trade agreements. It identifies restrictive tariff and trade practices
    which act as barriers to the import of U.S. agricultural commodities,
    then supports negotiations to remove them. It acts to counter and
    eliminate unfair trade practices of other countries that hinder U.S.
    agricultural exports to those markets. In virtually every foreign
    market, U.S. agricultural exports are subject to import duties and non-
    tariff trade restrictions. Trade information sent to Washington from FAS
    personnel overseas is used to map strategies for improving market
    access, pursuing U.S. rights under trade agreements, and developing
    programs and policies to make U.S. farm products more competitive.

        Market development, promotion and outreach: FAS develops foreign
    markets for U.S. farm products through aggressive market expansion
    activities. It provides services to the U.S. and foreign agricultural
    trade sectors that are necessary to establish, build and maintain
    overseas markets for U.S. agricultural products. Public Law 83-690,
    approved August 28, 1954, includes authority to establish up to 25
    Agricultural Trade Offices. Currently 16 such offices are in operation
    at key foreign trading centers to assist U.S. exporters, trade groups
    and state export marketing officials in trade promotion. Promotional
    activities are carried out chiefly in cooperation with non-profit
    agricultural trade associations and firms on a cost-sharing basis. The
    largest of FAS's promotional programs are the Foreign Market Development
    Cooperator Program and Market Access Program. In addition, FAS sponsors
    U.S. participation in several major trade shows and a number of single-
    industry exhibitions each year. The Quality Samples Program provides
    samples of U.S. agricultural products to foreign importers to help
    overcome marketing trade barriers. These programs are designed to create
    demand for U.S. agricultural products in foreign markets, introduce U.S.
    food and agricultural products to potential foreign customers, and show
    foreign customers how to use U.S. products.

        FAS strategic outreach efforts focus on facilitating export
    readiness and help link both export-ready and new-to-export 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 62 posts
    located throughout the world covering some 130 countries. Reporting
    includes information and/or data on foreign government policies,
    analysis of supply and demand conditions, commercial trade relationships
    and market opportunities. FAS analyzes agricultural information
    essential to the assessment of foreign supply and demand conditions in
    order to provide estimates of the current situation and to forecast the
    export potential for specific U.S. agricultural commodities.

        Financial marketing assistance: FAS administers a number of price/
    credit and risk assistance programs designed to leverage overseas market
    expansion for U.S. agricultural, fish, and forest products. These
    programs include CCC Export Credit Guarantee Programs, the Export
    Enhancement Program, and Dairy Export Incentive Program. These programs
    are designed to help developing nations make the transition from
    concessional financing to cash purchases, give U.S. producers the
    ability to counter export subsidies of foreign competitors and allow
    U.S. exporters to compete with sales terms offered by foreign
    competitors.

        Long-term market and infrastructure development: FAS promotes trade
    capacity building, fosters world food security, and deploys USDA
    resources and expertise to advance market-based policies, trade and
    investment, sustainable agricultural systems, and agricultural research
    and education in developing countries and emerging markets. FAS also
    provides linkages to worldwide agricultural resources and international
    organizations to gain access to emerging technologies that can help
    create new U.S. agricultural products and markets. Direct program
    activities include administering the Cochran Fellowship Program and
    managing USDA's bilateral exchange and cooperative research programs
    with foreign governments and institutions. The Emerging Markets Program,
    which provides technical assistance and related activities, facilitates
    international agribusiness relationships, enhances food systems in
    developing and transitional countries, and helps expand U.S.
    agricultural exports.

        FAS also administers food assistance activities such as Public Law
    480, Title I; Food for Progress; Section 416(b); and the McGovern-Dole
    International Food for Education and Child Nutrition Program. P.L. 480
    Title I food aid is designed to help developing nations make the
    transition from donations and concessional financing to cash purchases
    while not displacing expected commercial sales. Food for Progress
    provides food to developing countries and emerging democracies that have
    made commitments to introduce or expand free enterprise into their
    agricultural economies. Section 416(b) provides overseas donations of
    surplus commodities owned by the CCC to assist developing and friendly
    countries. The International Food for Education Program provides for the
    donation of U.S. agricultural commodities and associated technical and
    financial assistance to carry out preschool and school feeding programs
    in foreign countries.

        At the request of the Agency for International Development,
    international organizations and foreign governments, technical
    assistance and training in agriculture and rural development are
    provided on a reimbursable or advance of funds basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2900-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          55          62          64

    [[Page 168]]

    11.3      Other than full-time permanent           3           4           4
    11.5      Other personnel compensation..           1           1           1
    11.8      Special personal services
                payments....................           2           3           3
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          61          70          72
    12.1    Civilian personnel benefits.....          17          19          19
    21.0    Travel and transportation of
              persons.......................           5           4           4
    22.0    Transportation of things........           1           1           1
    23.2    Rental payments to others.......           7           8           8
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          39          33          42
    25.8    Subsistence and support of
              persons.......................           1           2           2
    26.0    Supplies and materials..........           2           1           1
    31.0    Equipment.......................           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         136         141         152
    99.0  Reimbursable obligations..........          82          71          71
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         218         212         223
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-2900-0-1-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         834         812         792
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         191         190         190
    ---------------------------------------------------------------------------

                     Trade Adjustment Assistance for Farmers

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1406-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Payments..........................          61          90          90
    00.02 Direct Program Activity...........          18
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................          79          90          90
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          90          90          90
    23.95 Total new obligations.............         -79         -90         -90
    23.98 Unobligated balance expiring or
            withdrawn.......................         -11
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................          90          90          90
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                      35          35
    73.10 Total new obligations.............          79          90          90
    73.20 Total outlays (gross).............         -79         -90         -90
    73.40 Adjustments in expired accounts
            (net)...........................          35
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          35          35          35
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          79          90          90
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          90          90          90
    90.00 Outlays...........................          79          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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           1           1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1           1           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    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...........................
    ---------------------------------------------------------------------------

        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. USDA also has
    a commodity reserve in the Bill Emerson Humanitarian Trust for
    unanticipated, emergency food aid needs.

    [[Page 169]]

                     SUMMARY OF FOOD ASSISTANCE PROGRAMMING

                            [In millions of dollars]

                                         2004 actual  2005 est.   2006 est.
    McGovern-Dole International Food for
    Education and Child Nutrition.......          50          91         106
    Public Law 480
      Title I Credit....................          49          50          45
      Title II Grants...................       1,655       1,346       * 964
    Food for Progress
      CCC Funded........................         138         141         137
      P.L. 480 Title I Funded...........         105          95         100
    CCC Surplus Commodity Donations
    (416)...............................         173         147         151
    Bill Emerson Humanitarian Trust.....                     225

        *$300 million of additional emergency food aid funding in International
    Disaster and Famine Assistance.

       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), [$87,500,000] $100,000,000, 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. (Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2903-0-1-151      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 McGovern-Dole International Food
            for Education & Child Nutrition
            Program.........................          50          87         100
    09.00 Reimbursable program..............                       4           6
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          50          91         106
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       1           1
    22.00 New budget authority (gross)......          50          91         106
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          50          92         107
    23.95 Total new obligations.............         -50         -91        -106
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          50          88         100
    40.35   Appropriation permanently
              reduced.......................                      -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          50          87         100
          Mandatory:

    69.00   Offsetting collections (cash)...                       4           6
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          50          91         106
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         100                       3
    73.10 Total new obligations.............          50          91         106
    73.20 Total outlays (gross).............        -150         -88        -100
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                       3           9
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          50          87         100
    86.98 Outlays from mandatory balances...         100           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         150          88         100
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                      -4          -6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          50          87         100
    90.00 Outlays...........................         149          84          94
    ---------------------------------------------------------------------------

        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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2903-0-1-151      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....          50          87         100
    99.0  Reimbursable obligations:
            Reimbursable obligations........                       4           6
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          50          91         106
    ---------------------------------------------------------------------------

            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, [$22,723,000] $11,940,000, to remain available until
    expended: Provided, That funds made available for the cost of agreements
    under title I of the Agricultural Trade Development and Assistance Act
    of 1954 and for title I ocean freight differential may be used
    interchangeably between the two accounts with prior notice to the
    Committees on Appropriations of both Houses of Congress. (7 U.S.C.
    1701b, 2209b.; Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2271-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 P.L. 480 grant--Title I: Ocean
            freight differential (OFD)......          24          23          12
    09.00 Reimbursable program..............          18
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          42          23          12
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          20          54
    22.00 New budget authority (gross)......          53          48          26
    22.21 Unobligated balance transferred to
            other accounts..................                     -79         -14
    22.22 Unobligated balance transferred
            from other accounts.............          23
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          96          23          12
    23.95 Total new obligations.............         -42         -23         -12
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          54
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          28          23          12
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          12
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          13
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          25
          Mandatory:

    69.00   Offsetting collections (cash)...                      25          14
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          53          48          26
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           5           1          -4
    73.10 Total new obligations.............          42          23          12
    73.20 Total outlays (gross).............         -33         -28         -33
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -13
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           1          -4         -25
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          14          13           7

    [[Page 170]]

    86.93 Outlays from discretionary
            balances........................          19           1           9
    86.97 Outlays from new mandatory
            authority.......................                      14           8
    86.98 Outlays from mandatory balances...                                   9
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          33          28          33
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -12         -25         -14
          Against gross budget authority only:

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

        Net budget authority and outlays:
    89.00 Budget authority..................          28          23          12
    90.00 Outlays...........................          20           3          19
    ---------------------------------------------------------------------------

        This account funds the title I ocean freight differential program.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2271-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....          24          23          12
    99.0  Reimbursable obligations:
            Reimbursable obligations........          18
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          42          23          12
    ---------------------------------------------------------------------------

                         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, [$1,182,501,000] notwithstanding section 204
    of said Act, $885,000,000, to remain available until expended. (7 U.S.C.
    1691, 1721-26a, 1727-27e, 1731-36g-3, 1737, 2209b; Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2278-0-1-151      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Title II..........................       1,476       1,191         885
    09.01 Reimbursable program..............         128         173          79
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,604       1,364         964
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         448         305         105
    22.00 New budget authority (gross)......       1,304       1,174         964
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         180
    22.21 Unobligated balance transferred to
            other accounts..................         -23         -10
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,909       1,469       1,069
    23.95 Total new obligations.............      -1,604      -1,364        -964
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         305         105         105
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,192       1,183         885
    40.35   Appropriation permanently
              reduced.......................          -7          -9
    41.00   Transferred to other accounts...         -10
    42.00   Transferred from other accounts.           1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,176       1,174         885
          Mandatory:

    69.00   Offsetting collections (cash)...         276         173          79
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................        -148        -173
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         128                      79
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,304       1,174         964
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         950         711         934
    73.10 Total new obligations.............       1,604       1,364         964
    73.20 Total outlays (gross).............      -1,811      -1,314      -1,327
    73.45 Recoveries of prior year
            obligations.....................        -180
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         148         173
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         711         934         571
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         676         616         465
    86.93 Outlays from discretionary
            balances........................       1,135         607         768
    86.98 Outlays from mandatory balances...                      91          94
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,811       1,314       1,327
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -276        -173         -79
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         148         173
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,176       1,174         885
    90.00 Outlays...........................       1,535       1,141       1,248
    ---------------------------------------------------------------------------

                                 Performance Metrics

    ----------------------------------------------------------------------------
    Identification code 12-2278-0-1-151      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Public Law 480 Title II Food Aid:
    39001 Emergency Food Aid: Meet Critical
            Food Needs of Targeted Groups...         94%
    39002 Development Food Aid: Increased
            effectiveness of FFP's partners
            in carrying out Title II
            development activities with
            measurable results related to
            food security with a primary
            focu............................         61%
    39003 Emergency Food Aid: % of targeted
            population reached by food aid..
    39004 Emergency Food Aid: % of programs
            reporting improved or maintained
            nutritional status..............         89%
    ---------------------------------------------------------------------------

        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 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 under this
    title for non-emergency assistance for least-developed countries and for
    urgent and extraordinary relief.

    [[Page 171]]

        For 2006, $300 million that was previously requested for P.L. 480
    Title II is being requested under International Disaster and Famine
    Assistance for emergency food aid needs.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2278-0-1-151      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....       1,476       1,191         885
    99.0  Reimbursable obligations:
            Reimbursable obligations........         128         173          79
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,604       1,364         964
    ---------------------------------------------------------------------------

    Credit accounts:

       Public Law 480 Title I Direct Credit and Food for Progress 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, [$94,198,000]
    $65,040,000, to remain available until expended: Provided, That the
    Secretary of Agriculture may implement a commodity monetization program
    under existing provisions of the Food for Progress Act of 1985 to
    provide no less than $5,000,000 in local-currency funding support for
    rural electrification development overseas.
        In addition, for administrative expenses to carry out the credit
    program of title I, Public Law 83-480, and the Food for Progress Act of
    1985, to the extent funds appropriated for Public Law 83-480 are
    utilized, [$4,034,000] $3,385,000, of which [$1,097,000] $168,000 may be
    transferred to and merged with the appropriation for ``Foreign
    Agricultural Service, Salaries and Expenses'', and of which [$2,937,000]
    $3,217,000 may be transferred to and merged with the appropriation for
    ``Farm Service Agency, Salaries and Expenses''. (7 U.S.C. 1691, 1701-04,
    1731-36g-3, 2209b.; Agriculture, Rural Development, Food and Drug
    Administration, and Related Agencies Appropriations Act, 2005.)

            General Fund Credit Receipt Accounts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2277-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    0108  Negative subsidies/subsidy
            reestimates.....................          22          69
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2277-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct credit subsidy.............          23          27          24
    00.05 Re-estimates of subsidy...........          48           4
    00.06 Interest on re-estimates..........          18           4
    00.09 Administrative expenses...........           2           4           3
    00.10 Food for Progress Grants..........         154          90          95
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         245         129         122
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         296         237          91
    22.00 New budget authority (gross)......         186         -86          68
    22.21 Unobligated balance transferred to
            other accounts..................                     -10
    22.22 Unobligated balance transferred
            from other accounts.............                      79          14
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         482         220         173
    23.95 Total new obligations.............        -245        -129        -122
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         237          91          51
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         107          98          68
    40.35   Appropriation permanently
              reduced.......................          -1          -1
    40.36   Unobligated balance permanently
              reduced.......................                    -191
    41.00   Transferred to other accounts...         -11
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          95         -94          68
          Mandatory:

    60.00   Appropriation...................          66           8
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          25
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         186         -86          68
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          75         125         180
    73.10 Total new obligations.............         245         129         122
    73.20 Total outlays (gross).............        -195         -74         -75
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         125         180         227
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          27          57          40
    86.93 Outlays from discretionary
            balances........................         102           9          35
    86.97 Outlays from new mandatory
            authority.......................          66           8
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         195          74          75
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................         161         -86          68
    90.00 Outlays...........................         169          74          75
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-2277-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001P. L. 480 title I loans...........          39          48          43
                                               ---------   ---------  ----------
    115901Total direct loan levels..........          39          48          43
        Direct loan subsidy (in percent):
    132001P. L. 480 title I loans...........       58.08       55.98       55.40
                                               ---------   ---------  ----------
    132901Weighted average subsidy rate.....       58.08       55.98       55.40
        Direct loan subsidy budget authority:
    133001P. L. 480 title I loans...........          23          27          24
                                               ---------   ---------  ----------
    133901Total subsidy budget authority....          23          27          24
        Direct loan subsidy outlays:
    134001P. L. 480 title I loans...........          34          24          25
                                               ---------   ---------  ----------
    134901Total subsidy outlays.............          34          24          25
        Direct loan upward reestimate subsidy budget
                    authority:
    135001P. L. 480 title I loans...........          66           8
                                               ---------   ---------  ----------
    135901Total upward reestimate budget
            authority.......................          66           8
        Direct loan downward reestimate subsidy budget
                    authority:
    137001P. L. 480 title I loans...........        -104         -69
                                               ---------   ---------  ----------
    137901Total downward reestimate budget
            authority.......................        -104         -69
    ----------------------------------------------------------------------------

        Administrative expense data:
    351001Budget authority..................           2           4           3
    359001Outlays from new authority........           2           4           3
    ---------------------------------------------------------------------------

        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 and
    grants are estimated on a cash basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2277-0-1-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.3  Other purchases of goods and
            services from Government
            accounts........................           2           4           3
    41.0  Grants, subsidies, and
            contributions...................         243         125         119
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         245         129         122
    ---------------------------------------------------------------------------

    [[Page 172]]

                    P.L. 480 Direct Credit Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4049-0-3-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct loans......................          39          48          43
    00.02 Interest on Treasury borrowing....         120         203          48
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............         159         251          91
    08.02 Payment of downward reestimate to
            receipt account.................          59          47
    08.04 Payment of interest on downward
            reestimate to receipt account...          45          22
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............         104          69
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         263         320          91
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         674       1,316
    22.00 New financing authority (gross)...         905         648         435
    22.60 Portion applied to repay debt.....                  -1,644        -344
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,579         320          91
    23.95 Total new obligations.............        -263        -320         -91
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       1,316
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............         551         293          67
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).                     355         368
          Mandatory:

    69.00   Offsetting collections (cash)...         373
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -19
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         354
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         905         648         435
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           7           5          21
    73.10 Total new obligations.............         263         320          91
    73.20 Total financing disbursements
            (gross).........................        -284        -304         -90
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          19
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           5          21          22
    87.00 Total financing disbursements
            (gross).........................         284         304          90
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.        -127         -32         -25
    88.25     Interest on uninvested funds..         -57        -100        -100
    88.40     Interest received on loans....         -54         -66         -63
    88.40     Non-Federal sources: other....          -5
    88.40     Principal received on loans...        -130        -157        -180
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -373        -355        -368
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          19
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         551         293          67
    90.00 Financing disbursements...........         -88         -51        -278
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4049-0-3-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........          39          48          43
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          39          48          43
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       2,647       2,483       2,358
    1231  Disbursements: Direct loan
            disbursements...................          60          32          42
    1251  Repayments: Repayments and
            prepayments.....................        -130        -157        -180
    1264  Write-offs for default: Other
            adjustments, net................         -94
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       2,483       2,358       2,220
    ---------------------------------------------------------------------------

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    130

    770

            Investments in US securities:
    1106

    Receivables, net

    128

    50

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    2,647

    2,483

    1402

    Interest receivable

    102

    109

    1405

    Allowance for subsidy cost (-)

    -1,670

    -1,422

    1499

    Net present value of assets related to direct loans

    1,079

    1,170

    1999

    Total assets

    1,337

    1,990

        LIABILITIES:
          Federal liabilities:

    2101

    Accounts payable

    50

    63

    2102

    Interest payable

    2

    79

    2103

    Debt

    204

    46

    2104

    Resources payable to Treasury

    1,061

    1,802

    2105

    Other

    20

    2999

    Total liabilities

    1,337

    1,990

    4999

    Total liabilities and net position

    1,337

    1,990

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

                        Debt Reduction--Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4143-0-3-351      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.02 Interest to Treasury..............           5           5           5
    08.02 Payment of downward reestimate to
            receipt account.................          48         107
    08.03 Payments to financing and
            liquidatiing accounts for debt
            reduction.......................         219          68
    08.04 Payment of interest on downward
            reestimate to receipt account...           6          14
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............         273         189
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         278         194           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         238          21
    22.00 New financing authority (gross)...          62         227          34
    22.60 Portion applied to repay debt.....                     -54         -29
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         300         194           5
    23.95 Total new obligations.............        -278        -194          -5
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          21
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          25         132
          Discretionary:

    68.10   Spending authority from
              offsetting collections: Change
              in uncollected customer
              payments from Federal sources
              (unexpired)...................          -1
          Mandatory:

    69.00   Offsetting collections (cash)...          22          34          34

    [[Page 173]]

    69.00   Offsetting collections (debt
              reduction/upwards reestimate).          16          61
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          38          95          34
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          62         227          34
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          14
    73.10 Total new obligations.............         278         194           5
    73.20 Total financing disbursements
            (gross).........................        -293        -194          -5
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..
    87.00 Total financing disbursements
            (gross).........................         293         194           5
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources--Subsidy from
                Debt account................         -16         -61
    88.25     Interest on uninvested funds..          -9
    88.40     Loan Repayments--Principal....          -8         -21         -21
    88.40     Loan Repayments- Interest.....          -4         -13         -13
    88.40     Non-Federal sources...........          -1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -38         -95         -34
          Against gross financing authority only:

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

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          25         132
    90.00 Financing disbursements...........         255          99         -29
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4143-0-3-351      2004 actual   2005 est.   2006 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........         334         525         561
    1233  Disbursements: Purchase of loans
            assets from a liquidating
            account.........................         351          68
    1251  Repayments: Repayments and
            prepayments.....................          -8         -21         -21
    1261  Adjustments: Capitalized interest.           2
    1263  Write-offs for default: Direct
            loans...........................        -154         -11
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         525         561         540
    ---------------------------------------------------------------------------

        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

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets:

    1101

    Fund balances with Treasury

    231

            Investments in US securities:
    1106

    Receivables, net

    11

    46

          Net value of assets related to
              post-1991 direct loans
              receivable:

    1401

    Direct loans receivable, gross

    334

    525

    1402

    Interest receivable

    18

    1405

    Allowance for subsidy cost (-)

    -215

    -399

    1499

    Net present value of assets related to direct loans

    119

    144

    1999

    Total assets

    361

    190

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    71

    96

    2105

    Other

    290

    94

    2999

    Total liabilities

    361

    190

    4999

    Total liabilities and net position

    361

    190

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

       Expenses, Public Law 480, Foreign Assistance Programs, Agriculture
                               Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2274-0-1-151      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          89          60
    22.00 New budget authority (gross)......          62
    22.40 Capital transfer to general fund..         -89         -60
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          62
    23.95 Total new obligations.............          -2
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          60
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)
              (Principal and interest)......         663         466         451
    69.00   Offsetting collections (Debt
              Reduction)....................                      21
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -1
    69.27   Capital transfer to general fund        -600        -487        -451
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          62
    ----------------------------------------------------------------------------

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

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

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources--debt
                reduction...................        -193         -21
    88.40     Principal and interest
                collections.................          -1
    88.40     Principal Collections.........        -303        -312        -310
    88.40     Interest Collections..........        -166        -154        -141
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -663        -487        -451
          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..................        -600        -487        -451
    90.00 Outlays...........................        -660        -487        -451
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2274-0-1-151      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       7,545       6,244       5,911
    1251  Repayments: Repayments and
            prepayments.....................        -303        -312        -310
    1261  Adjustments: Capitalized interest.         133
          Write-offs for default:

    1263    Direct loans....................        -934
    1264    Payments from USDA debt
              reduction financing account...        -195         -21
    1264    Other adjustments, net..........          -2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       6,244       5,911       5,601
    ---------------------------------------------------------------------------

    [[Page 174]]

        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.

        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.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code   12-2274-0-1-151

    2003 actual

    2004 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    1101

    Federal assets: Fund balances with Treasury

    89

    60

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

    1601

    Direct loans, gross

    7,545

    6,244

    1602

    Interest receivable

    679

    661

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -4,649

    -2,890

    1699

    Value of assets related to direct loans

    3,575

    4,015

    1999

    Total assets

    3,664

    4,075

        LIABILITIES:
    2104

    Federal liabilities: Resources payable to Treasury

    3,639

    3,444

    2207

    Non-Federal liabilities: Other

    25

    631

    2999

    Total liabilities

    3,664

    4,075

        NET POSITION:

    3999

    Total net position

    4999

    Total liabilities and net position

    3,664

    4,075

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

                         Miscellaneous Contributed Funds

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8232-0-7-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Receipts:
    02.20 Deposits of miscellaneous
            contributed funds, International
            coope...........................                       4           4
        Appropriations:
    05.00 Miscellaneous contributed funds...                      -4          -4
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8232-0-7-352      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           2           6
    22.00 New budget authority (gross)......                       4           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           2           6          10
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           2           6          10
    ----------------------------------------------------------------------------

        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).

    [[Page 175]]

                           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, [$139,937,000, 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] $140,761,000.
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3508-0-1-605      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Nutrition programs
              administration................         138         139         141
    00.03   Congressional hunger center
              fellowships...................           3           2
    09.01 Reimbursable administrative
            services provided to Federal
            agencies........................           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         142         142         142
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         141         142         142
    23.95 Total new obligations.............        -142        -142        -142
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         141         142         141
    40.35   Appropriation permanently
              reduced.......................          -1          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         140         141         141
    68.00 Spending authority from offsetting
            collections: Offsetting
            collections (cash)..............           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         141         142         142
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          20          28          23
    73.10 Total new obligations.............         142         142         142
    73.20 Total outlays (gross).............        -133        -147        -142
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          28          23          23
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         120         119         119
    86.93 Outlays from discretionary
            balances........................          13          28          23
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         133         147         142
    ----------------------------------------------------------------------------

        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..................         140         141         141
    90.00 Outlays...........................         131         146         141
    ---------------------------------------------------------------------------

        This account funds the majority of the Federal operating expenses of
    the Food and Nutrition Service and the Center for Nutrition Policy and
    Promotion.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3508-0-1-605      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          90          91          93
    11.3      Other than full-time permanent           1           1           1
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          92          93          95
    12.1    Civilian personnel benefits.....          21          22          22
    21.0    Travel and transportation of
              persons.......................           2           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           2           2
    25.2    Other services..................          20          19          19
    26.0    Supplies and materials..........           1           1           1
    41.0    Grants, subsidies, and
              contributions.................           3           2
                                               ---------   ---------  ----------
    99.0      Direct obligations............         141         141         141
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         142         142         142
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3508-0-1-605      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,287       1,256       1,256
    ---------------------------------------------------------------------------

                               Food Stamp Program

        For necessary expenses to carry out the Food Stamp Act (7 U.S.C.
    2011 et seq.), [$35,154,554,000] $40,711,395,000, of which
    $3,000,000,000 [to remain available through September 30, 2006,] 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.
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3505-0-1-605      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Benefits issued.................      24,610      29,688      33,123
    00.02   State administration............       2,310       2,402       2,481
    00.03   Employment and training program.         267         282         293
    00.04   Other program costs.............          62          63          59
    00.05   Puerto Rico.....................       1,413       1,495       1,516
    00.06   Food distribution program on
              Indian reservations
              (Commodities in lieu of food
              stamps).......................          54          58          52
    00.07   Food distribution program on
              Indian reservations
              (Cooperator administrative
              expense)......................          27          24          25
    00.08   The emergency food assistance
              program (commodities).........         140         140         140
    00.09   Modified food stamp program in
              American Samoa................           6           6           6
    00.10   Community food project..........           5           5           5
    00.11   Commonwealth of the Northern
              Mariana Islands...............          11           8           8
    00.13   Program access..................           5           5           5
    00.14   Disregard special military pays
              for deployed..................                       1           1
    09.01 Reimbursable program..............          17          25          25
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      28,927      34,202      37,739
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          26          41       1,019

    [[Page 176]]

    22.00 New budget authority (gross)......      30,863      35,180      40,736
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          17
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      30,906      35,221      41,755
    23.95 Total new obligations.............     -28,927     -34,202     -37,739
    23.98 Unobligated balance expiring or
            withdrawn.......................      -1,939                  -3,978
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          41       1,019          38
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          17          17          18
          Mandatory:

    60.00   Appropriation...................      30,929      35,138      40,693
    61.00   Transferred to other accounts...        -100
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      30,829      35,138      40,693
    69.00 Offsetting collections (cash).....          17          25          25
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      30,863      35,180      40,736
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,233       1,355       1,321
    73.10 Total new obligations.............      28,927      34,202      37,739
    73.20 Total outlays (gross).............     -28,660     -34,236     -37,681
    73.40 Adjustments in expired accounts
            (net)...........................        -127
    73.45 Recoveries of prior year
            obligations.....................         -17
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       1,355       1,321       1,379
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           8           7           8
    86.93 Outlays from discretionary
            balances........................           9           9          10
    86.97 Outlays from new mandatory
            authority.......................      27,419      32,874      36,324
    86.98 Outlays from mandatory balances...       1,224       1,346       1,339
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      28,660      34,236      37,681
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -3
    88.40     Non-Federal sources...........         -36         -25         -25
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -39         -25         -25
          Against gross budget authority only:

    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          22
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      30,846      35,155      40,711
    90.00 Outlays...........................      28,621      34,211      37,656
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2004 actual  2005 est.   2006 est.
    Enacted/requested:
      Budget Authority..................      30,846      35,155      40,711
      Outlays...........................      28,621      34,211      37,656
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                 -57
      Outlays...........................                                 -57
                                        ------------------------------------
    Total:
      Budget Authority..................      30,846      35,155      40,654
      Outlays...........................      28,621      34,211      37,599
                                        ====================================

        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.

        Food Stamp Program costs are not fully predictable. In the event
    that actual program needs exceed budget estimates, the budget provides a
    $3 billion contingency reserve. The budget also proposes indefinite
    funding authority which would make funds available in the last four
    months of the fiscal year if program needs exceed the anticipated level.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3505-0-1-605      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

    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.......................           2           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           3           3           3
    24.0    Printing and reproduction.......           2           2           2
    25.2    Other services..................          48          49          45
    26.0    Supplies and materials..........         185         190         183
    41.0    Grants, subsidies, and
              contributions.................      28,663      33,924      37,472
                                               ---------   ---------  ----------
    99.0      Direct obligations............      28,910      34,177      37,714
    99.0  Reimbursable obligations..........          17          25          25
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      28,927      34,202      37,739
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3505-0-1-605      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          69          68          68
    ---------------------------------------------------------------------------

                               Food Stamp Program

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3505-4-1-605      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Direct program:

    00.01   Benefits issued.................                                 -57
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                 -57
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 -57
    23.95 Total new obligations.............                                  57
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                                 -57
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                 -57
    73.20 Total outlays (gross).............                                  57
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                 -57
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 -57
    90.00 Outlays...........................                                 -57
    ---------------------------------------------------------------------------

        This schedule shows the net effects of three legislative proposals.
    First, the Budget proposes to limit Food Stamp categorical eligibility
    status to households which receive Supplemental Security Income or
    Temporary Assistance for Needy Families cash assistance. Second, the
    Budget proposes to allow States to use the National Directory of New
    Hires to verify Food Stamp participants' employment and wage
    information. Finally, this schedule includes the Food Stamp effects of
    the child support proposals in the President's welfare reauthorization
    plan.

    [[Page 177]]

                            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;
    [$11,782,000,000] $12,416,027,000, to remain available through September
    30, [2006] 2007, of which [$6,629,038,000] $7,304,207,000 is hereby
    appropriated and [$5,152,962,000] $5,111,820,000 shall be derived by
    transfer from funds available under section 32 of the Act of August 24,
    1935 (7 U.S.C. 612c): Provided, [That none of the funds made available
    under this heading shall be used for studies and evaluations: Provided
    further,] That up to $5,235,000 shall be available for independent
    verification of school food service claims. (Agriculture, Rural
    Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3539-0-1-605      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Above 185 of poverty..............         422         443         461
    00.02 130-185 of poverty................         826         867         903
    00.03 Below 130 of poverty..............       5,381       5,657       5,890
                                               ---------   ---------  ----------
    00.91   Subtotal, school lunch program..       6,629       6,967       7,254
    01.01 Above 185 of poverty..............          60          64          68
    01.02 130-185 of poverty................         147         157         167
    01.03 Below 130 of poverty..............       1,580       1,689       1,795
                                               ---------   ---------  ----------
    01.91   Subtotal, school breakfast
              program.......................       1,787       1,910       2,030
    02.01 Above 185 of poverty..............         195         189         199
    02.02 130-185 of poverty................         116         116         122
    02.03 Below 130 of poverty..............       1,723       1,740       1,832
    02.04 Audits............................          22          21          22
                                               ---------   ---------  ----------
    02.91   Subtotal, child and adult care
              feeding program...............       2,056       2,066       2,175
    03.01 Summer food service program.......         267         283         298
    03.02 Special milk program..............          14          17          15
    03.03 State administrative expenses.....         140         146         156
    03.04 Commodity procurement.............         469         532         518
                                               ---------   ---------  ----------
    03.91   Subtotal, Other mandatory
              activities....................         890         978         987
    04.01 Team Nutrition....................          10          10          10
    04.02 Coordinated review and CN pay
            costs...........................           5           5           5
    04.03 Computer support and processing...           9           9           9
    04.05 Food safety education.............           1           1           1
    04.08 Performance measurement and
            program assessment..............           5                       4
                                               ---------   ---------  ----------
    04.91   Subtotal, discretionary
              activities....................          30          25          29
    05.01 Food service management institute
            and information clearinghouse
            and Reauthorization Activities..           3          21          38
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      11,395      11,967      12,513
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          13         129          65
    22.00 New budget authority (gross)......      11,454      11,803      12,454
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          61         100
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      11,528      12,032      12,519
    23.95 Total new obligations.............     -11,395     -11,967     -12,513
    23.98 Unobligated balance expiring or
            withdrawn.......................          -4
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         129          65           6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          12           7          11
          Mandatory:

    60.00   Appropriation...................       6,706       6,622       7,293
    60.00   Appropriation- Permanent
              Appropriation.................           3          21          38
    62.00   Transferred from other accounts.       4,700       5,153       5,112
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      11,409      11,796      12,443
    69.00 Offsetting collections (cash).....          33
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      11,454      11,803      12,454
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,553       1,662       1,365
    73.10 Total new obligations.............      11,395      11,967      12,513
    73.20 Total outlays (gross).............     -11,246     -12,164     -12,477
    73.40 Adjustments in expired accounts
            (net)...........................          21
    73.45 Recoveries of prior year
            obligations.....................         -61        -100
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       1,662       1,365       1,401
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           6           4           6
    86.93 Outlays from discretionary
            balances........................           5           6           3
    86.97 Outlays from new mandatory
            authority.......................       9,687      10,405      10,890
    86.98 Outlays from mandatory balances...       1,548       1,749       1,578
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      11,246      12,164      12,477
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -28
    88.40     Non-Federal sources...........         -12
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -40
          Against gross budget authority only:

    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      11,421      11,803      12,454
    90.00 Outlays...........................      11,207      12,164      12,477
    ---------------------------------------------------------------------------

        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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           8           9           9
    12.1  Civilian personnel benefits.......           2           3           3
    21.0  Travel and transportation of
            persons.........................           1           1           1
    24.0  Printing and reproduction.........           1           3           3
    25.2  Other services....................          13          13          13
    26.0  Supplies and materials
            (Commodities)...................         659         747         733
    41.0  Grants, subsidies, and
            contributions...................      10,711      11,191      11,751
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      11,395      11,967      12,513
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-3539-0-1-605      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         140         164         164
    ---------------------------------------------------------------------------

    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), [$5,277,250,000] $5,510,000,000, to remain
    available through September 30, [2006] 2007, of which [$125,000,000]
    such sums are necessary to restore the contingency reserve to
    $125,000,000 shall be placed in reserve, to remain available until
    expended, to be allocated as the Secretary deems necessary,
    notwithstanding section 17(i) of such Act, to support participation
    should cost or participation exceed budget estimates: Provided, That of
    the total amount available, the Secretary shall obligate not less than
    $15,000,000 for a breastfeeding support initiative in addition to the
    activities specified in section 17(h)(3)(A): Provided further, That
    [notwithstanding section 17(h)(10)(A) of such Act,] only the provisions
    of section 17(h)(1)(B)(i) shall be effective in 2006; including
    $14,000,000 [shall be available] for the purposes specified in section
    17(h)(10)(B)(i): Provided further, That [none] $3,000,000 of the funds
    made available under this heading shall be used for studies and
    evaluations of program cost containment strategies: 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 of the total amount allocated as
    grants to States, nutrition services and administration funding shall be
    capped at 25 percent of the total amount provided, with

    [[Page 178]]

    individual State agency allocations to be made in accordance with a
    methodology developed by the Secretary: 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 made available under this
    heading may be used to provide WIC benefits to an individual who
    receives medical assistance under title XIX of the Social Security Act,
    or is a member of a family in which a pregnant woman or an infant
    receives assistance unless such individual's family income is below 250
    percent of the applicable nonfarm income poverty guidelines: Provided
    further, That none of the funds provided shall be available for
    activities that are not fully reimbursed by other Federal Government
    departments or agencies unless authorized by section 17 of such Act.
    (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3510-0-1-605      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Base Grants.......................       4,913       5,225       5,576
    00.02 Contingency Fund..................         125          16
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       5,038       5,241       5,576
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         190           5         109
    22.00 New budget authority (gross)......       4,714       5,235       5,510
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         162         110          82
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,066       5,350       5,701
    23.95 Total new obligations.............      -5,038      -5,241      -5,576
    23.98 Unobligated balance expiring or
            withdrawn.......................         -23
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           5         109         125
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       4,639       5,277       5,510
    40.35   Appropriation permanently
              reduced.......................         -27         -42
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       4,612       5,235       5,510
          Mandatory:

    62.00   Transferred from other accounts.         100
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       4,714       5,235       5,510
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         423         434         477
    73.10 Total new obligations.............       5,038       5,241       5,576
    73.20 Total outlays (gross).............      -4,861      -5,088      -5,465
    73.40 Adjustments in expired accounts
            (net)...........................          -2
    73.45 Recoveries of prior year
            obligations.....................        -162        -110         -82
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         434         477         506
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       4,415       4,715       5,055
    86.93 Outlays from discretionary
            balances........................         446         373         410
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       4,861       5,088       5,465
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....          -3
          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..................       4,712       5,235       5,510
    90.00 Outlays...........................       4,860       5,088       5,465
    ---------------------------------------------------------------------------

        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 a breastfeeding
    support initiative and an assessment of program cost containment
    strategies.

                          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(f)(2) of the Compact of
    Free Association Amendments Act of 2003 (Public Law 108-188); and the
    Farmers' Market Nutrition Program, as authorized by section 17(m) of the
    Child Nutrition Act of 1966, [$178,797,000] $177,935,000, to remain
    available through September 30, [2006] 2007: Provided, That none of
    these funds shall be available to reimburse the Commodity Credit
    Corporation for commodities donated to the program: Provided further,
    That notwithstanding any other provision of law, effective with funds
    made available in fiscal year [2005] 2006 to support the Senior Farmers'
    Market Nutrition Program, as authorized by section 4402 of Public Law
    107-171, such funds shall remain available through September 30, [2006]
    2007. (Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3507-0-1-605      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
          Commodity supplemental food program:

    00.01   Commodity procurement...........          80          81          79
    00.02   Administrative costs............          29          29          28
                                               ---------   ---------  ----------
    00.91   Subtotal, commodity supplemental
              food program..................         109         110         107
          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          20
    05.01 Pacific Island and Disaster
            Assistance......................           1           1           1
    09.01 Reimbursable program (NSIP).......                       2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         175         198         195
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          11           3
    22.00 New budget authority (gross)......         165         195         195
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         178         198         195
    23.95 Total new obligations.............        -175        -198        -195
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         150         179         178
    40.35   Appropriation permanently
              reduced.......................          -1          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         149         178         178
          Mandatory:

    62.00   Transferred from other accounts.          15          15          15
          Discretionary:

    68.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1           2           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         165         195         195
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          28          30          40
    73.10 Total new obligations.............         175         198         195
    73.20 Total outlays (gross).............        -171        -188        -196
    73.45 Recoveries of prior year
            obligations.....................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          30          40          39
    ----------------------------------------------------------------------------

    [[Page 179]]

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         126         150         150
    86.93 Outlays from discretionary
            balances........................          30          23          31
    86.97 Outlays from new mandatory
            authority.......................           8           8           8
    86.98 Outlays from mandatory balances...           7           7           7
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         171         188         196
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -1          -2          -2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         164         193         193
    90.00 Outlays...........................         170         186         194
    ---------------------------------------------------------------------------

        This account funds the Commodity Supplemental Food PProgram (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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3507-0-1-605      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    26.0  Supplies and materials
            (commodities)...................          80          81          79
    41.0  Grants, subsidies, and
            contributions...................          95         117         116
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         175         198         195
    ---------------------------------------------------------------------------

                             Food Donations Programs

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3503-0-1-605      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Reimbursable program (NSIP).......           3
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 26.0)...................           3
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Discretionary:

    68.00   Spending authority from
              offsetting collections
              (gross): Offsetting
              collections (cash)............           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2
    73.10 Total new obligations.............           3
    73.20 Total outlays (gross).............          -5
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           3
    86.93 Outlays from discretionary
            balances........................           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           5
    ----------------------------------------------------------------------------

        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..................
    90.00 Outlays...........................           1
    ---------------------------------------------------------------------------

        This account includes prior year amounts for the Nutrition Services
    Incentive Program (NSIP). NSIP was transferred to the Department of
    Health and Human Services in fiscal year 2003. NSIP grantees have the
    option to receive all or a portion of their grant in the form of
    commodities. USDA continues to provide these commodities, the cost of
    which is reimbursed by HHS. Beginning in fiscal year 2005, these
    reimbursements are reflected in the Commodity Assistance Programs
    account.

                                 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, [$1,400,260,000] $1,651,357,000, 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 under this heading available at the start of fiscal year 2005
    shall be displayed by budget line item in the fiscal year 2006 budget
    justification: Provided further, That, through fiscal year 2009,] 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 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 2005, 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] $281,000,000 is available for
    hazardous fuels reduction activities utilizing the authorities available
    to the Secretary under the heading ``Wildland Fire Management,'' of
    which not more than $5,000,000 may be used to make grants to create
    incentives for increased use of biomass from national forest lands, and
    of which 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, 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

    [[Page 180]]

    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, 2005.)
        [For an additional amount for ``National Forest System'',
    $12,153,000, to remain available until expended, to address damages from
    natural disasters: Provided, That such amount is designated as an
    emergency requirement pursuant to section 402 of S. Con. Res. 95 (108th
    Congress), as made applicable to the House of Representatives by H. Res.
    649 (108th Congress) and applicable to the Senate by section 14007 of
    Public Law 108-287.] (Emergency Supplemental Appropriations for
    Hurricane Disasters Assistance Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 National forest system............       1,686       1,506       1,653
    09.01 Reimbursable program..............          82          97          97
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,768       1,603       1,750
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         136         100
    22.00 New budget authority (gross)......       1,699       1,503       1,750
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           9
    22.22 Unobligated balance transferred
            from other accounts.............          24
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,868       1,603       1,750
    23.95 Total new obligations.............      -1,768      -1,603      -1,750
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         100
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,571       1,412       1,651
    40.35   Appropriation permanently
              reduced.......................         -17         -19
    42.00   Transferred from other accounts.          36          13           2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,590       1,406       1,653
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          97          97          97
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          12
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......         109          97          97
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,699       1,503       1,750
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         139         175         326
    73.10 Total new obligations.............       1,768       1,603       1,750
    73.20 Total outlays (gross).............      -1,711      -1,452      -1,713
    73.45 Recoveries of prior year
            obligations.....................          -9
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -12
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         175         326         363
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,483       1,277       1,487
    86.93 Outlays from discretionary
            balances........................         228         175         226
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,711       1,452       1,713
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -63         -97         -97
    88.40     Non-Federal sources...........         -34
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -97         -97         -97
          Against gross budget authority only:

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

        Net budget authority and outlays:
    89.00 Budget authority..................       1,590       1,406       1,653
    90.00 Outlays...........................       1,614       1,355       1,616
    ---------------------------------------------------------------------------

        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, water

    [[Page 181]]

    shed restoration, road and trail rehabilitation, fish and wildlife
    habitat restoration, planting and seeding and preventing invasive
    plants.

        The Budget includes a significant reform of the Forest Service that
    streamlines its organization, improves accountability, and focuses on
    measurable results in the management of our national forests.
    Specifically, the Budget will reduce overhead, business management, and
    other indirect costs by one-third to improve efficiency and program
    delivery. Results will improve in two ways. First, national forest
    operations will be transformed by making additional ``on-the-ground''
    resources available for resource management projects that meet the
    objectives of the President's Healthy Forest Initiative. Secondly, the
    administration and execution of programs will be enhanced through
    improvements in management accountability, reporting relationships, and
    oversight.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         652         663         766
    11.3      Other than full-time permanent          43          44          51
    11.5      Other personnel compensation..          41          41          48
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         736         748         865
    12.1    Civilian personnel benefits.....         202         206         238
    21.0    Travel and transportation of
              persons.......................          35          35          35
    22.0    Transportation of things........          10          10          10
    23.1    Rental payments to GSA..........          17          17          17
    23.2    Rental payments to others.......          19          19          19
    23.3    Communications, utilities, and
              miscellaneous charges.........          44          44          44
    24.0    Printing and reproduction.......           4           4           4
    25.2    Other services..................         262         232         230
    25.3    Other purchases of goods and
              services from Government
              accounts......................          60          60          60
    25.7    Operation and maintenance of
              equipment.....................           4           4           4
    26.0    Supplies and materials..........          69          69          69
    31.0    Equipment.......................          18          42          42
    32.0    Land and structures.............           1           1           1
    41.0    Grants, subsidies, and
              contributions.................          15          15          15
    42.0    Insurance claims and indemnities         190
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,686       1,506       1,653
    99.0  Reimbursable obligations..........          82          97          97
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,768       1,603       1,750
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      13,669      13,419      15,101
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         459         973         973
        Allocation account:
    3001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         973         459         459
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1106-4-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................                                 -26
    25.3  Other purchases of goods and
            services from Government
            accounts........................                                  26
                                               ---------   ---------  ----------
    99.9    Total new obligations...........
    ---------------------------------------------------------------------------

                       Capital Improvement and Maintenance

        For necessary expenses of the Forest Service, not otherwise provided
    for, [$521,952,000] $380,792,000, 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 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 subject to all the authorities available to the
    Forest Service under the State and Private Forestry appropriation, up to
    $1,000,000 may be used on non-Federal lands adjacent to the Chugach
    National Forest for the purpose of expanding recreational
    opportunities]. (Department of the Interior and Related Agencies
    Appropriations Act, 2005.)
        [For an additional amount for ``Capital Improvement and
    Maintenance'', $50,815,000, to remain available until expended, to
    address damages from natural disasters: Provided, That such amount is
    designated as an emergency requirement pursuant to section 402 of S.
    Con. Res. 95 (108th Congress), as made applicable to the House of
    Representatives by H. Res. 649 (108th Congress) and applicable to the
    Senate by section 14007 of Public Law 108-287.] (Emergency Supplemental
    Appropriations for Hurricane Disasters Assistance Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1103-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Capital improvement and
            maintenance.....................         625         684         381
    09.01 Reimbursable program..............          10          10          10
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         635         694         391
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          79         108
    22.00 New budget authority (gross)......         619         586         391
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.22 Unobligated balance transferred
            from other accounts.............          44
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         743         694         391
    23.95 Total new obligations.............        -635        -694        -391
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         108
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         562         573         381
    40.35   Appropriation permanently
              reduced.......................          -7          -7
    42.00   Transferred from other accounts.          51          10
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         606         576         381
          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).......................         619         586         391
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         225         247         235
    73.10 Total new obligations.............         635         694         391
    73.20 Total outlays (gross).............        -609        -706        -508
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         247         235         118
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         414         440         294
    86.93 Outlays from discretionary
            balances........................         195         266         214
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         609         706         508
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -5          -5          -5
    88.40     Non-Federal sources...........          -5          -5          -5
                                               ---------   ---------  ----------

    [[Page 182]]

    88.90       Total, offsetting
                  collections (cash)........         -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..................         606         576         381
    90.00 Outlays...........................         599         696         498
    ---------------------------------------------------------------------------

        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 funds are for repair and
    rehabilitation of existing facilities and roads; funds may not be used
    for new and expanded facilities or roads. The budget reflects Forest
    Service improvements in addressing the deferred maintenance backlog
    based upon agency implementation of PART recommendations.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1103-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         169         169         131
    11.3      Other than full-time permanent          17          17          13
    11.5      Other personnel compensation..          12          12           9
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         198         198         153
    12.1    Civilian personnel benefits.....          53          53          41
    13.0    Benefits for former personnel...           5           5           4
    21.0    Travel and transportation of
              persons.......................           9           9           9
    22.0    Transportation of things........           3           3           3
    23.1    Rental payments to GSA..........           4           4           4
    23.2    Rental payments to others.......           5           6           6
    23.3    Communications, utilities, and
              miscellaneous charges.........          12          13          13
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................         237         242          41
    25.3    Other purchases of goods and
              services from Government
              accounts......................          25          19           8
    25.4    Operation and maintenance of
              facilities....................           6           6           6
    25.7    Operation and maintenance of
              equipment.....................           2           2           2
    26.0    Supplies and materials..........          14          28          28
    31.0    Equipment.......................           5          13          13
    32.0    Land and structures.............          46          78          45
    41.0    Grants, subsidies, and
              contributions.................                       4           4
                                               ---------   ---------  ----------
    99.0      Direct obligations............         625         684         381
    99.0  Reimbursable obligations..........          10          10          10
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         635         694         391
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1103-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       3,862       3,720       2,800
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          59          59          59
        Allocation account:
    3001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          40          40          40
    ---------------------------------------------------------------------------

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1103-4-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................                                  -7
    25.3  Other purchases of goods and
            services from Government
            accounts........................                                   7
                                               ---------   ---------  ----------
    99.9    Total new obligations...........
    ---------------------------------------------------------------------------

                          Forest and Rangeland Research

        For necessary expenses of forest and rangeland research as
    authorized by law, [$280,278,000] $285,400,000, to remain available
    until expended[: Provided, That of the funds provided, $56,714,000 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), [$65,000] $64,000, 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, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1104-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.06 Forest and rangeland research.....         296         327         302
    09.01 Reimbursable program..............          31          28          28
                                               ---------   ---------  ----------

    [[Page 183]]

    10.00   Total new obligations...........         327         355         330
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          43          29
    22.00 New budget authority (gross)......         307         326         330
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.22 Unobligated balance transferred
            from other accounts.............           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         356         355         330
    23.95 Total new obligations.............        -327        -355        -330
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          29
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         270         280         285
    40.35   Appropriation permanently
              reduced.......................          -3          -4
    42.00   Transferred from other accounts.          27          22          17
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         294         298         302
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          28          28          28
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -15
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          13          28          28
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         307         326         330
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          71          86          97
    73.10 Total new obligations.............         327         355         330
    73.20 Total outlays (gross).............        -326        -344        -328
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          15
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          86          97          99
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         260         229         231
    86.93 Outlays from discretionary
            balances........................          66         115          97
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         326         344         328
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -25         -28         -28
    88.40     Non-Federal sources...........          -3
                                               ---------   ---------  ----------
    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)...................          15
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         294         298         302
    90.00 Outlays...........................         298         316         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 2006, 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. The Budget also also
    emphasizes increasing the amount of research conducted on an extramural
    basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1104-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         136         139         139
    11.3      Other than full-time permanent           8           8           9
    11.5      Other personnel compensation..           6           6           6
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         150         153         154
    12.1    Civilian personnel benefits.....          39          40          40
    13.0    Benefits for former personnel...           1           1           1
    21.0    Travel and transportation of
              persons.......................          13          13          13
    22.0    Transportation of things........           2           2           2
    23.1    Rental payments to GSA..........           3           3           3
    23.2    Rental payments to others.......           3           4           4
    23.3    Communications, utilities, and
              miscellaneous charges.........          10          10          10
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          45          38          42
    25.3    Other purchases of goods and
              services from Government
              accounts......................           5           5           5
    25.7    Operation and maintenance of
              equipment.....................           1           1           1
    26.0    Supplies and materials..........           9           9           9
    31.0    Equipment.......................           6           9           9
    41.0    Grants, subsidies, and
              contributions.................           8          38           8
                                               ---------   ---------  ----------
    99.0      Direct obligations............         296         327         302
    99.0  Reimbursable obligations..........          31          28          28
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         327         355         330
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1104-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       2,566       2,533       2,475
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         164         164         164
    ---------------------------------------------------------------------------

                          Forest and Rangeland Research

                    (Legislative proposal, subject to PAYGO)

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1104-4-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................                                  -3
    25.3  Other purchases of goods and
            services from Government
            accounts........................                                   3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........
    ---------------------------------------------------------------------------

                           State and Private Forestry

        For necessary expenses of cooperating with and providing technical
    and financial assistance to States, territories, possessions, and
    others,

    [[Page 184]]

    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, [$296,626,000] $253,387,000, to
    remain available until expended, as authorized by law of which
    [$57,939,000] $144,574,000 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: Provided further, That notwithstanding any other provision of
    law, of the funds provided under this heading, $2,000,000 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), and $1,500,000 shall be made available to Canton,
    North Carolina, as an advance direct lump sum payment for wood products
    wastewater treatment repairs]. (Department of the Interior and Related
    Agencies Appropriations Act, 2005.)
        [For an additional amount for ``State and Private Forestry'',
    $49,100,000, to remain available until expended, to address damages from
    natural disasters: Provided, That such amount is designated as an
    emergency requirement pursuant to section 402 of S. Con. Res. 95 (108th
    Congress), as made applicable to the House of Representatives by H. Res.
    649 (108th Congress) and applicable to the Senate by section 14007 of
    Public Law 108-287.] (Emergency Supplemental Appropriations for
    Hurricane Disasters Assistance Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1105-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 State and private forestry........         461         519         302
    09.01 Reimbursable program..............           1           8           8
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         462         527         310
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          62          80
    22.00 New budget authority (gross)......         435         447         310
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          11
    22.22 Unobligated balance transferred
            from other accounts.............          34
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         542         527         310
    23.95 Total new obligations.............        -462        -527        -310
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          80
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         268         288         108
    40.20   Appropriation (LWCF)............          65          57         145
    40.35   Appropriation permanently
              reduced.......................          -3          -4
    40.37   Appropriation temporarily
              reduced.......................          -1
    42.00   Transferred from other accounts.         107          73          49
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         436         414         302
          Mandatory:

    62.00   Transferred from other accounts.                      25
          Spending authority from offsetting
              collections:

            Discretionary:
    68.00     Offsetting collections (cash).           8           8           8
    68.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -9
                                               ---------   ---------  ----------
    68.90       Spending authority from
                  offsetting collections
                  (total discretionary).....          -1           8           8
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         435         447         310
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         447         524         561
    73.10 Total new obligations.............         462         527         310
    73.20 Total outlays (gross).............        -383        -490        -494
    73.45 Recoveries of prior year
            obligations.....................         -11
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           9
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         524         561         377
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         266         317         233
    86.93 Outlays from discretionary
            balances........................         117         154         255
    86.97 Outlays from new mandatory
            authority.......................                      19
    86.98 Outlays from mandatory balances...                                   6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         383         490         494
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -4          -4          -4
    88.40     Non-Federal sources...........          -4          -4          -4
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........          -8          -8          -8
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           9
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         436         439         302
    90.00 Outlays...........................         375         482         486
    ---------------------------------------------------------------------------

        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 Territory of the Pacific.

        Forest Health Management.--Includes Federal lands and cooperative
    lands.

        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 through the Forest Legacy program, a
    Federal program that partners with States to protect environmentally
    sensitive forest lands and 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
    assist the social, economic, and environmental benefits of these lands.

        International Programs.--The programs will emphasize habitat
    protection for migratory birds along the length of flyways, preventing
    the introduction of new invasive species, and sustainable forestry
    techniques development for other timber exporting nations.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1105-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          52          54          50
    11.3      Other than full-time permanent           4           4           3
    11.5      Other personnel compensation..           3           3           3
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          59          61          56
    12.1    Civilian personnel benefits.....          14          15          14
    21.0    Travel and transportation of
              persons.......................           7           7           6
    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

    [[Page 185]]

    25.2    Other services..................          24          78           2
    25.3    Other purchases of goods and
              services from Government
              accounts......................           3           2           2
    26.0    Supplies and materials..........           4           5           4
    31.0    Equipment.......................           2           3           3
    41.0    Grants, subsidies, and
              contributions.................         342         342         209
                                               ---------   ---------  ----------
    99.0      Direct obligations............         461         519         302
    99.0  Reimbursable obligations..........           1           8           8
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         462         527         310
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1105-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         957         963         867
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          18          18          18
    ---------------------------------------------------------------------------

                           State and Private Forestry

                    (Legislative proposal, subject to PAYGO)

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1105-4-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................                                  -1
    25.3  Other purchases of goods and
            services from Government
            accounts........................                                   1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........
    ---------------------------------------------------------------------------

            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), [$5,962,000]
    $5,467,000, to remain available until expended, of which not to exceed
    $100,000 may be transferred to and merged with the ``Office of 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, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1119-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Direct Program Activity...........           6           7           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           6           7           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1
    22.00 New budget authority (gross)......           6           6           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           7           7           5
    23.95 Total new obligations.............          -6          -7          -5
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           6           6           5
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           2           3
    73.10 Total new obligations.............           6           7           5
    73.20 Total outlays (gross).............          -6          -6          -5
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           2           3           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           6           6           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           6           6           5
    90.00 Outlays...........................           6           6           5
    ---------------------------------------------------------------------------

        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      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           2           1           1
    12.1  Civilian personnel benefits.......           1           1           1
    25.2  Other services....................           3           5           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           6           7           5
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1119-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          29          26          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, [$1,727,008,000] $1,444,267,000, to remain available until
    expended: Provided, That such funds including unobligated balances under
    this heading, 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 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-wildland
    interface,] support to Federal emergency response, and wildfire
    suppression activities of the Forest Service: Provided further, That of
    the funds provided, [$266,238,000 is for hazardous fuels reduction
    activities,] $2,000,000 is for rehabilitation and restoration,
    [$22,025,000] $16,885,000 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.),
    [$40,745,000] $29,415,000 is for State fire assistance, [$8,000,000]
    $7,889,000 is for volunteer fire assistance, [$15,000,000] $6,974,000 is
    for forest health activities on Federal lands and [$10,000,000]
    $4,598,000 is for forest health activities on State and private 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

    [[Page 186]]

    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 House Report 108-330]: 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] 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: Provided further, That [of the funds provided for
    hazardous fuels reduction, not to exceed $5,000,000, may be used to make
    grants, using any authorities available to the Forest Service under the
    State and Private Forestry appropriation, for the purpose of creating
    incentives for increased use of biomass from national forest lands] the
    Secretary of Agriculture may use the amounts appropriated under this
    heading 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 lands. (Department
    of the Interior and Related Agencies Appropriations Act, 2005.)
        [For an additional amount for ``Wildland Fire Management'',
    $1,028,000, to remain available until expended, to address damages from
    natural disasters: Provided, That such amount is designated as an
    emergency requirement pursuant to section 402 of S. Con. Res. 95 (108th
    Congress), as made applicable to the House of Representatives by H. Res.
    649 (108th Congress) and applicable to the Senate by section 14007 of
    Public Law 108-287.]

                          [Department of the Interior]

                           [Bureau of Land Management]

                           [wildland fire management]

        [For an additional amount for ``Wildland Fire Management'',
    $100,000,000, to remain available until expended, for urgent wildland
    fire suppression activities pursuant to section 312 of S. Con. Res. 95
    (108th Congress) as made applicable to the House of Representatives by
    H. Res. 649 (108th Congress) and applicable to the Senate by section
    14007 of Public Law 108-287: Provided, That such funds shall only become
    available if funds provided for wildland fire suppression in title I of
    this Act will be exhausted imminently and the Secretary of the Interior
    notifies the House and Senate Committees on Appropriations and the House
    and Senate Committees on the Budget in writing of the need for these
    additional funds: Provided further, That such funds are also available
    for repayment to other appropriation accounts from which funds were
    transferred for wildfire suppression: Provided further, That cost
    containment measures shall be implemented within this account for fiscal
    year 2005, and the Secretary of the Interior and the Secretary of
    Agriculture shall submit a joint report to the Committees on
    Appropriations of the Senate and the House of Representatives on such
    cost containment measures by December 31, 2005: Provided further, That
    Public Law 108-287, title X, chapter 3 is amended under the heading
    ``Department of the Interior, Bureau of Land Management, Wildland Fire
    Management'', by striking the phrases ``for fiscal year 2004'' and
    ``related to the fiscal year 2004 fire season'' in the text preceding
    the first proviso.]

                           [Department of Agriculture]

                                [Forest Service]

                           [wildland fire management]

        [For an additional amount for ``Wildland Fire Management'',
    $400,000,000, to remain available until expended, for urgent wildland
    fire suppression activities pursuant to section 312 of S. Con. Res. 95
    (108th Congress) as made applicable to the House of Representatives by
    H. Res. 649 (108th Congress) and applicable to the Senate by section
    14007 of Public Law 108-287: Provided, That such funds shall only become
    available if funds provided for wildland fire suppression in title II of
    this Act will be exhausted imminently and the Secretary of Agriculture
    notifies the House and Senate Committees on Appropriations and the House
    and Senate Committees on the Budget in writing of the need for these
    additional funds: Provided further, That such funds are also available
    for repayment to other appropriation accounts from which funds were
    transferred for wildfire suppression: Provided further, That cost
    containment measures shall be implemented within this account for fiscal
    year 2005, and the Secretary of Agriculture and the Secretary of the
    Interior shall submit a joint report to the Committees on Appropriations
    of the Senate and the House of Representatives on such cost containment
    measures by December 31, 2005: Provided further, That the Secretary of
    Agriculture shall establish an independent cost-control review panel to
    examine and report on fire suppression costs for individual wildfire
    incidents that exceed $10,000,000 in cost: Provided further, That if the
    independent review panel report finds that appropriate actions were not
    taken to control suppression costs for one or more such wildfire
    incidents, then an amount equal to the aggregate estimated excess costs
    of suppressing those wildfire incidents shall be transferred to the
    Treasury from unobligated balances remaining at the end of fiscal year
    2005 in the Wildland Fire Management account: Provided further, That
    Public Law 108-287, title X, chapter 3 is amended under the heading
    ``Department of Agriculture, Forest Service, Wildland Fire Management'',
    by striking the phrases ``for fiscal year 2004'' and ``related to the
    fiscal year 2004 fire season'' in the text preceding the first proviso.]
    (Emergency Supplemental Appropriations for Hurricane Disasters
    Assistance Act, 2005.)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1115-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Wildland fire management..........       1,774       2,334       1,376
    09.01 Reimbursable program..............         102          43          43
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,876       2,377       1,419
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         311         313
    22.00 New budget authority (gross)......       2,069       2,064       1,419
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           8
    22.21 Unobligated balance transferred to
            other accounts..................        -199
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,189       2,377       1,419
    23.95 Total new obligations.............      -1,876      -2,377      -1,419
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         313
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       2,369       2,128       1,444
    40.35   Appropriation permanently
              reduced.......................         -22         -29
    41.00   Transferred to other accounts...        -337        -108         -68
    42.00   Transferred from other accounts.                      30
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       2,010       2,021       1,376
          Spending authority from offsetting
              collections:

    68.00   Offsetting collections (cash)...          43          43          43
    68.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          16
                                               ---------   ---------  ----------
    68.90     Spending authority from
                offsetting collections
                (total discretionary).......          59          43          43
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,069       2,064       1,419
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         457         329         924
    73.10 Total new obligations.............       1,876       2,377       1,419

    [[Page 187]]

    73.20 Total outlays (gross).............      -1,980      -1,782      -1,508
    73.45 Recoveries of prior year
            obligations.....................          -8
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -16
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         329         924         835
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,443       1,503       1,277
    86.93 Outlays from discretionary
            balances........................         537         279         231
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,980       1,782       1,508
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -16         -16         -16
    88.40     Non-Federal sources...........         -27         -27         -27
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........         -43         -43         -43
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       2,010       2,021       1,376
    90.00 Outlays...........................       1,937       1,739       1,465
    ---------------------------------------------------------------------------

        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.

        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 appropriately suppress wildland fires on or
    threatening NFS lands or other lands under fire protection agreement.
    The Budget provides full funding of the ten-year average of suppression
    costs, adjusted for inflation.

        The budget addresses Federal wildfire suppression costs that have
    exceeded $1 billion for four out of the last five years. Specifically,
    the Administration proposes that the Forest Service:

         LImplement cost containment performance measures and
    clearer rules concerning the use of suppression resources, including
    incentives for rapid demobilization.

         LImplement key recommendations of the PART review on the
    fire program to improve accountability for fire costs and improves
    performance measurement.

         LProvide for greater program accountability at national
    headquarters.

         LImplement the agency's stratified supression cost model.

         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 provide an appropriate level of fire
    preparedness when predicted or actual burning conditions exceed normal
    levels and are also used to support the joint fire sciences program.

        Funds are provided to enhance State and private programs that will
    contribute to cooperative fire assistance, increased fire department
    readiness, and forest health programs to reduce fire risk. Funds would
    also be available to facilitate and expedite USDA and Department of the
    Interior jointly funded wildland fire management programs and projects.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1115-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         385         398         318
    11.3      Other than full-time permanent          60          62          49
    11.5      Other personnel compensation..         164         170         136
    11.8      Special personal services
                payments....................          29          30          24
                                               ---------   ---------  ----------
    11.9        Total personnel compensation         638         660         527
    12.1    Civilian personnel benefits.....         163         168         134
    13.0    Benefits for former personnel...          30          31          25
    21.0    Travel and transportation of
              persons.......................          47          47          47
    22.0    Transportation of things........           7           7           7
    23.1    Rental payments to GSA..........           9           9           9
    23.2    Rental payments to others.......          18          18          18
    23.3    Communications, utilities, and
              miscellaneous charges.........          34          34          34
    24.0    Printing and reproduction.......           2           1           1
    25.2    Other services..................         580       1,099         314
    25.3    Other purchases of goods and
              services from Government
              accounts......................          65          65          65
    25.7    Operation and maintenance of
              equipment.....................           5           5           5
    26.0    Supplies and materials..........         119         119         119
    31.0    Equipment.......................          20          34          34
    41.0    Grants, subsidies, and
              contributions.................          30          30          30
    42.0    Insurance claims and indemnities           7           7           7
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,774       2,334       1,376
    99.0  Reimbursable obligations..........         102          43          43
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,876       2,377       1,419
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-1115-0-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................      11,174      11,154       8,680
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          51          51          51
    ---------------------------------------------------------------------------

                            Wildland Fire Management

                    (Legislative proposal, subject to PAYGO)

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1115-4-1-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    25.2  Other services....................                                 -14
    25.3  Other purchases of goods and
            services from Government
            accounts........................                                  14
                                               ---------   ---------  ----------
    99.9    Total new obligations...........
    ---------------------------------------------------------------------------

                              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, 2005.)

    [[Page 188]]

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............           4           4           4
        Receipts:
    02.20 Receipts, Cooperative range
            improvements....................           2           2           2
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           6           6           6
        Appropriations:
    05.00 Range betterment fund.............          -2          -2          -3
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           4           4           3
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Range betterment fund.............           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           3           3           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1
    22.00 New budget authority (gross)......           2           2           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           3           3           3
    23.95 Total new obligations.............          -3          -3          -3
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (special fund)....           2           2           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          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           1           1           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           2           2
    86.93 Outlays from discretionary
            balances........................           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           3           3           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           2           2           3
    90.00 Outlays...........................           3           3           2
    ---------------------------------------------------------------------------

        Fifty percent of grazing fees from National Forests in the 16
    western States, once appropriated, are used to protect and improve
    rangeland productivity primarily through revegetation, construction and
    reconstruction, and maintenance of improvements under authority of the
    Federal Land Policy and Management Act of 1976 (43 U.S.C. 1751), as
    amended.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           1           1           1
    25.2  Other services....................           1
    26.0  Supplies and materials............           1           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           3           3           3
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................          19          19          19
    ---------------------------------------------------------------------------

                                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, [$61,866,000] $40,000,000,
    to be derived from the Land and Water Conservation Fund and to remain
    available until expended.

             acquisition of lands for national forests special acts

        For acquisition of lands within the exterior boundaries of the
    Cache, Uinta, and Wasatch National Forests, Utah; the Toiyabe National
    Forest, Nevada; and the Angeles, San Bernardino, Sequoia, and Cleveland
    National Forests, California, as authorized by law, $1,069,000, to be
    derived from forest receipts.

                 acquisition of lands to complete land exchanges

        For acquisition of lands, such sums, to be derived from funds
    deposited by State, county, or municipal governments, public school
    districts, or other public school authorities, and for authorized
    expenditures 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; and 78-310;
    Department of the Interior and Related Agencies Appropriations Act,
    2005.)

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............           1           4          35
        Receipts:
    02.20 National forest lands under
            special acts....................           3          32          71
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           4          36         106
        Appropriations:
    05.00 Land acquisition..................                      -1          -1
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           4          35         105
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Land acquisition..................         102         156          41
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         102         156          41
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          30          94
    22.00 New budget authority (gross)......         122          62          41
    22.22 Unobligated balance transferred
            from other accounts.............          44
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         196         156          41
    23.95 Total new obligations.............        -102        -156         -41
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          94
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (LWCF)............          71          62          40
    40.20   Appropriation (special act).....                       1           1
    40.37   Appropriation temporarily
              reduced.......................          -1          -1
    42.00   Transferred from other accounts.          52
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         122          62          41
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          18          20          23
    73.10 Total new obligations.............         102         156          41
    73.20 Total outlays (gross).............        -100        -153         -48
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          20          23          16
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          92          41          27
    86.93 Outlays from discretionary
            balances........................           8         112          21
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         100         153          48
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         122          62          41

    [[Page 189]]

    90.00 Outlays...........................         101         153          48
    ---------------------------------------------------------------------------

        This appropriation consolidates land acquisition authorities for
    acquisition of lands, waters, or interest therein, as authorized by law.

        Land and Water Conservation Fund.--Recreation lands and interests
    are acquired within areas of the National Forest System, wilderness,
    wildlife and fisheries habitat management areas, and endangered species
    and other areas for public outdoor recreation purposes.

        Acquisition of Lands of National Forests, Special Acts.--To acquire
    lands within critical watersheds to provide soil stabilization and
    restoration of vegetation. Public Laws 76-589, 76-591 and 78-310 (54
    Stat. 297, 298, 299, and 402; and 58 Stat. 227-228) authorize
    appropriations for the purchase of lands to minimize erosion and flood
    damage to critical watersheds within the following National Forests: the
    Cache, Uinta, and Wasatch, Utah; the Toiyabe, Nevada; and the Angeles,
    Cleveland, San Bernardino, and Sequoia, California. Appropriations are
    made from receipts on these National Forests.

        Acquisition of Lands to Complete Land Exchanges.--Deposits made by
    State, county, or municipal governments, public school districts, or
    other public school authorities for cash equalization of certain land
    exchanges are used to acquire similar lands suitable for National Forest
    System purposes in the same State as the National Forest lands conveyed
    in the land exchange or from non-Federal parties for authorized
    expenditures.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    11.1  Personnel compensation: Full-time
            permanent.......................           8           8           8
    12.1  Civilian personnel benefits.......           2           2           2
    25.2  Other services....................           9           9           3
    31.0  Equipment.........................                       1           1
    32.0  Land and structures...............          83         136          27
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         102         156          41
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         141         138         134
    ---------------------------------------------------------------------------

                     Forest Service Permanent Appropriations

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............         243         232         210
        Receipts:
    02.20 National forests fund.............         -23
    02.21 Charges, user fees, and natural
            resource utilization, Land betwe           7           4           4
    02.22 National forests fund, Payments to
            States..........................          96          92          92
    02.23 Timber roads, Purchaser elections.           7           7           7
    02.24 National forests fund, Roads and
            trails for States...............          13          18          18
    02.25 Timber salvage sales..............          76          75          75
    02.26 Deposits, Brush disposal..........          14          14          15
    02.27 Rents and charges for quarters,
            Forest Service..................           8           8           8
    02.28 Timber sales pipeline restoration
            fund............................           6           6           7
    02.29 Recreational fee demonstration
            program, Forest Service.........          47          47          49
    02.31 Midewin national tallgrass prairie
            rental fees.....................           1           1           1
    02.32 National grasslands...............         -16
    02.33 Miscellaneous special funds,
            Forest Service..................          10           5           5
    02.34 National forest fund..............          12          24          23
    02.35 Fees, operation, and maintenance
            of recreation facilities, Forest
            Service.........................           4           4           4
    02.36 Miscellaneous collections.........                       1           1
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         262         306         309
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         505         538         519
        Appropriations:
    05.00 Forest Service permanent
            appropriations..................        -273        -328        -369
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............         232         210         150
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Brush Disposal....................          12          14          15
    00.02 Restoration of Forest Lands and
            Improvements....................          -2           4           4
    00.03 Recreation Fee Collections........           1
    00.04 Recreation Fee Demonstration /
            Enhancement Programs............          46          36          38
    00.05 Stewardship Contracting...........                       2           2
    00.06 Timber Roads--Purchaser Election
            Program.........................           2           7           7
    00.07 Timber Salvage Sale Program.......          63          65          70
    00.08 Timber Pipeline Restoration Fund..           6           5           5
    00.09 Roads and Trails (10% Fund).......           3          18          18
    00.10 Midewin Tallgrass Prairie Funds...           1           1           1
    00.11 Operation and Maintenance of
            Quarters........................           4           9           9
    00.12 Land Between the Lakes Management
            Fund............................           4           4           4
    00.13 Valles Caldera Fund...............           1           1           1
    00.14 Payment to States--Northern
            Spotted Owl Guarantee...........           5
    00.15 Payment to States--Transfers from
            Treasury........................         316         310         310
    00.16 Payment to States--National Forest
            Fund............................          71          91          91
    00.17 Payments to Minnesota.............           2           2           2
    00.18 Payments to Counties--National
            Grasslands......................           6           6           6
    00.19 Administration of Rights-of-Way
            and Other Land Uses.............                       3
    00.20 Land Acquisition and Enhancement
            Fund............................                      18          25
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         541         596         608
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         230         433         475
    22.00 New budget authority (gross)......         639         638         679
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          61
    22.22 Unobligated balance transferred
            from other accounts.............          44
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         974       1,071       1,154
    23.95 Total new obligations.............        -541        -596        -608
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         433         475         546
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    42.00   Transferred from other accounts.          52
          Mandatory:

    60.00   Appropriation...................         316         310         310
    60.20   Appropriation (special fund)....         273         328         369
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         589         638         679
    69.10 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         639         638         679
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         103          33         -64
    73.10 Total new obligations.............         541         596         608
    73.20 Total outlays (gross).............        -548        -693        -769
    73.40 Adjustments in expired accounts
            (net)...........................          -3
    73.45 Recoveries of prior year
            obligations.....................         -61
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          33         -64        -225
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          34
    86.97 Outlays from new mandatory
            authority.......................         484         593         624
    86.98 Outlays from mandatory balances...          30         100         145
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         548         693         769
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         641         638         679

    [[Page 190]]

    90.00 Outlays...........................         548         693         769
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2004 actual  2005 est.   2006 est.
    Enacted/requested:
      Budget Authority..................         641         638         679
      Outlays...........................         548         693         769
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................                                  47
      Outlays...........................                                  38
                                        ------------------------------------
    Total:
      Budget Authority..................         641         638         726
      Outlays...........................         548         693         807
                                        ====================================

        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 Program.--Pursuant to Sec. 8 of Division J--
    Consolidated Appropriations Act, 2005, Title VII--Federal Lands
    Recreation Enhancement Act, 2005, Public Law 108-447 of December 8,
    2004, the Secretary may establish, modify, charge, and collect
    recreation fees at Federal recreational lands and waters, including
    specific recreation sites or areas, for expanded recreation amenities,
    and special recreation permits. Amounts collected shall be used for
    repair, maintenance, interpretation, visitor information, limited
    habitat restoration, and direct operating or capital costs and other
    identified appropriate expenses.

        Midewin National Tallgrass Prairie Rental Fees.--Monies received
    under a special use authorization (issued under subsection (b) of Public
    Law 104-106, Title XXIX, Subtitle A, Section 2915, after distribution to
    the State of Illinois and affected counties pursuant to the Act of May
    23, 1908) are available to cover the cost to the United States of
    prairie improvement work at the Midewin National Tallgrass Prairie.

        Midewin National Tallgrass Prairie Restoration Fund.--Monies
    received from user fees and the salvage value proceeds from sale of any
    facilities and improvements pursuant to Section 2915(d) and (e) of
    Public Law 104-106, as amended by Public Law 105-83, are available to
    cover the costs of restoration and administrative activities.

        Payment to Minnesota.--At the close of each fiscal year, the State
    of Minnesota is paid 0.75 percent of the appraised value of certain
    Superior National Forest lands in the counties of Cook Lake and St.
    Louis for distribution to these counties (16 U.S.C. 577g).

        Payments to Counties, National Grasslands.--This program provides an
    annual payment to counties in which Title III--Bankhead-Jones Acquired
    Lands are located for funding public schools and roads. Of the net
    revenues for use of Title III--Bankhead-Jones Farm Tenant Act lands, 25
    percent is paid to the counties in which such lands are located for
    public school and road purposes (7 U.S.C. 1012).

        Payments to States.--The Secure Rural Schools and Community Self-
    Determination Act of 2000 (P.L. 106-393 dated October 30, 2000) provides
    stabilized education and road maintenance funding through predictable
    payments to counties, job creation in those counties and other
    opportunities associated with the restoration, maintenance and
    stewardship of Federal lands. Under P.L. 106-393, counties may elect one
    of two methods to calculate Payments to States funding they receive.
    Counties can either choose to continue receiving funds established by
    the 25 percent fund or they can receive their share of the State's
    ``full payment amount.'' Full payment amount is the average of the
    highest three years of payments to the State under the 25 percent fund
    through the years 1986-1999. A county's share of that amount is
    generally determined by the State in cooperation with the affected
    counties.

        Expenses, Brush Disposal.--Funds from payments by purchasers of
    National Forest timber to dispose of or treat slash and other debris
    that result from cutting operations (16 U.S.C. 490).

        Licensee programs, Forest Service.--Funds from fees for the use of
    characters by private enterprises are collected under regulations
    promulgated by the Secretary as follows:
            Smokey Bear.--For furthering the nationwide forest fire
        prevention campaign (16 U.S.C. 580(2)).
            Woodsy Owl.--For promoting wise use of the environment and
        programs which foster maintenance and improvement of environmental
        quality (16 U.S.C. 580(1)).

        Restoration of forestlands and improvements.--Funds from claim
    settlements involving damage to lands or improvements and from
    forfeiture of deposits and bonds by permittees and timber purchasers are
    used for the restoration made necessary by the action which led to the
    settlement of forfeiture (16 U.S.C. 579c).

        Timber Purchaser Roads Constructed by Forest Service.--Funds from
    timber receipts for Government constructed permanent roads for
    purchasers of timber who qualify as small businesses and elect to have
    the Forest Service construct the roads designated under the timber sale
    contract where costs exceed $20,000 (16 U.S.C. 472a(i)).

        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.

    [[Page 191]]

        Administration of Rights-of-Way and Other Land Uses.--Fees collected
    from applicants and holders of special use authorizations are available
    to recover costs for processing applications and monitoring compliance
    with special use authorizations (31 U.S.C. 9701; 43 U.S.C. 1764(g); 30
    U.S.C. 815(1)).

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          58          60          61
    11.3      Other than full-time permanent          13          13          14
    11.5      Other personnel compensation..           7           7           7
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          78          80          82
    12.1    Civilian personnel benefits.....          19          20          20
    13.0    Benefits for former personnel...           1           1           1
    21.0    Travel and transportation of
              persons.......................           3           3           3
    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.........           4           4           4
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          36          50          51
    25.3    Other purchases of goods and
              services from Government
              accounts......................           6           6           6
    25.7    Operation and maintenance of
              equipment.....................           1           1           2
    26.0    Supplies and materials..........           6          15          15
    31.0    Equipment.......................           2           2           4
    32.0    Land and structures.............           3          24          30
    41.0    Grants, subsidies, and
              contributions.................         376         386         386
                                               ---------   ---------  ----------
    99.0      Direct obligations............         539         596         608
    99.0  Reimbursable obligations..........           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         541         596         608
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,747       1,832       1,865
    ---------------------------------------------------------------------------

                     Forest Service Permanent Appropriations

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-4-2-999      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.19 Administration of Rights-of-Way
            and Other Land Uses.............                                   4
    00.20 Land Acquisition and Enhancement
            Fund............................                                  25
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                  29
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........
    22.00 New budget authority (gross)......                                  47
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......                                  47
    23.95 Total new obligations.............                                 -29
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                                  18
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.20   Appropriation (special fund)....                                  47
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..
    73.10 Total new obligations.............                                  29
    73.20 Total outlays (gross).............                                 -38
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                  -9
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................                                  47
    90.00 Outlays...........................                                  38
    ---------------------------------------------------------------------------

        A proposal for a Facilities Acquisition and Enhancement Fund would
    enable the Secretary to sell unneeded administrative sites including
    facilities and appurtenant administrative land, and to use the proceeds
    for acquiring administrative lands, construction, maintenance,
    rehabilitation and improvement of administrative sites. The agency
    currently experiences a $2.8 billion backlog that has accumulated
    because of inadequate and untimely maintenance. Over 60 percent of the
    agency's facilities are over 30 years old and functionally obsolete.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-4-2-999      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............                                   8
    11.3    Other than full-time permanent..                                   3
    11.5    Other personnel compensation....                                   1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..                                  12
    12.1  Civilian personnel benefits.......                                   3
    25.2  Other services....................                                   3
    26.0  Supplies and materials............                                   2
    32.0  Land and structures...............                                   9
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                  29
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9921-4-2-999      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................                                 250
    ---------------------------------------------------------------------------

    Intragovernmental funds:

                              Working Capital Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4605-0-4-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Working Capital fund..............         209         187         187
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         209         187         187
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          68         110         110
    22.00 New budget authority (gross)......         245         187         187
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
    22.22 Unobligated balance transferred
            from other accounts.............           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         320         297         297
    23.95 Total new obligations.............        -209        -187        -187
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         110         110         110
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    42.00   Transferred from other accounts.           5
          Mandatory:

    69.00   Offsetting collections (cash)...         237         187         187
    69.10   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           3
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         240         187         187
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         245         187         187
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          66          29          22

    [[Page 192]]

    73.10 Total new obligations.............         209         187         187
    73.20 Total outlays (gross).............        -241        -194        -187
    73.45 Recoveries of prior year
            obligations.....................          -3
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          29          22          22
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           5
    86.93 Outlays from discretionary
            balances........................                       1
    86.97 Outlays from new mandatory
            authority.......................         210         168         168
    86.98 Outlays from mandatory balances...          26          25          19
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         241         194         187
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -170        -187        -187
    88.40     Non-Federal sources...........         -67
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........        -237        -187        -187
          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..................           5
    90.00 Outlays...........................           4           7
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2004 actual  2005 est.   2006 est.
    Enacted/requested:
      Budget Authority..................           5
      Outlays...........................           4           7
    Legislative proposal, subject to
        PAYGO:
      Budget Authority..................
      Outlays...........................                                  -5
                                        ------------------------------------
    Total:
      Budget Authority..................           5
      Outlays...........................           4           7          -5
                                        ====================================

        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.

        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.

        The Budget includes a proposal for the establishment of a working
    capital fund for facilities. Establishment of this authority will reduce
    the Forest Service's maintenance costs and expand efforts to address its
    deferred maintenance backlog. The authority will support facility and
    space management investment expenses for Forest Service real property,
    including owned and leased space. The working capital fund will be used
    for funding capital repair, renovation, rehabilitation, maintenance,
    disposal, or replacement of buildings and improvements.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4605-0-4-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............          27          28          29
    11.3    Other than full-time permanent..           2           2           2
    11.5    Other personnel compensation....           3           3           3
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          32          33          34
    12.1  Civilian personnel benefits.......           9           9           9
    21.0  Travel and transportation of
            persons.........................           3           3           3
    22.0  Transportation of things..........                       1           1
    23.2  Rental payments to others.........           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           4           4           4
    24.0  Printing and reproduction.........           1           1           1
    25.2  Other services....................           7           7           7
    25.3  Other purchases of goods and
            services from Government
            accounts........................          17          17          16
    25.7  Operation and maintenance of
            equipment.......................          17          18          18
    26.0  Supplies and materials............          32          30          30
    31.0  Equipment.........................          86          64          64
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         209         187         187
    ---------------------------------------------------------------------------
        Note.--Personnel totals are included with personnel totals of all other
    Forest Service programs.

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-4605-0-4-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................         619         619         619
    ---------------------------------------------------------------------------

                              Working Capital Fund

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4605-4-4-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    09.01 Working Capital fund..............                                  50
                                               ---------   ---------  ----------

    [[Page 193]]

    10.00   Total new obligations...........                                  50
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  50
    23.95 Total new obligations.............                                 -50
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    69.00   Offsetting collections (cash)...                                  50
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..
    73.10 Total new obligations.............                                  50
    73.20 Total outlays (gross).............                                 -45
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                   5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                  45
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                                 -50
    ----------------------------------------------------------------------------

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4605-4-4-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Personnel compensation:

    11.1    Full-time permanent.............                                   8
    11.3    Other than full-time permanent..                                   5
    11.5    Other personnel compensation....                                   1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..                                  14
    12.1  Civilian personnel benefits.......                                   3
    25.2  Other services....................                                  24
    25.7  Operation and maintenance of
            equipment.......................                                   3
    26.0  Supplies and materials............                                   5
    31.0  Equipment.........................                                   1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                  50
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-4605-4-4-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................                                 281
    ---------------------------------------------------------------------------

                                   Trust Funds

                           Forest Service Trust Funds

                    Unavailable Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9974-0-7-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............                     154         154
        Receipts:
    02.00 Transfers from general fund of
            amounts equal to certain customs          30          30          30
    02.20 Forest Service cooperative fund...         112         108         108
    02.30 Repayment of wildland fire
            suppression transfer
            (proprietary)...................         154
    02.40 Transfer from TVA for land between
            the lakes trust fund............           1           1           1
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         297         139         139
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         297         293         293
        Appropriations:
    05.00 Forest Service trust funds........        -143        -139        -139
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............         154         154         154
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9974-0-7-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

        Obligations by program activity:
    00.01 Cooperative Work Trust Fund.......         111         130         130
    00.02 Land Between the Lakes Trust Fund.           1           1           1
    00.03 Reforestation Trust Fund..........          18          30          30
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         130         161         161
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         297         306         284
    22.00 New budget authority (gross)......         139         139         139
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         436         445         423
    23.95 Total new obligations.............        -130        -161        -161
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         306         284         262
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......         143         139         139
    69.00 Offsetting collections (cash).....          -4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         139         139         139
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          60          43          74
    73.10 Total new obligations.............         130         161         161
    73.20 Total outlays (gross).............        -147        -130        -139
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          43          74          96
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         116         111         111
    86.98 Outlays from mandatory balances...          31          19          28
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         147         130         139
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............           3
    88.40     Non-Federal sources...........           1
                                               ---------   ---------  ----------
    88.90       Total, offsetting
                  collections (cash)........           4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         143         139         139
    90.00 Outlays...........................         150         130         139
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...           3           4           3
    92.02 Total investments, end of year:
            Federal securities: Par value...           4           3           3
    ---------------------------------------------------------------------------

        Reforestation trust fund.--Amounts from this account are used for
    reforestation as authorized by 16 U.S.C. 1606a (d) and (e).

        Cooperative work trust fund.--Funds, including deposits from
    purchasers of timber, are received and used for specified work in forest
    investigations, protection, and improvement of the National Forest
    System, including protection, reforestation, and administration of
    private lands adjacent to National Forests (7 U.S.C. 2269; 16 U.S.C.
    498, 535, 565a, 572, 572a, 576b, 1643; and 31 U.S.C. 1321).

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9974-0-7-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------

          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          40          42          42
    11.3      Other than full-time permanent           6           7           7
    11.5      Other personnel compensation..           4           4           4
                                               ---------   ---------  ----------
    11.9        Total personnel compensation          50          53          53
    12.1    Civilian personnel benefits.....          14          14          14
    13.0    Benefits for former personnel...           1           1           2
    21.0    Travel and transportation of
              persons.......................           2           2           2

    [[Page 194]]

    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.........           2           2           3
    25.2    Other services..................          28          61          60
    25.3    Other purchases of goods and
              services from Government
              accounts......................           6           6           6
    26.0    Supplies and materials..........          11          11          11
    31.0    Equipment.......................           1           1           1
    32.0    Land and structures.............           5           5           5
    41.0    Grants, subsidies, and
              contributions.................           3           3           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         126         161         161
    99.0  Reimbursable obligations..........           4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         130         161         161
    ---------------------------------------------------------------------------

                                  Personnel Summary

    ----------------------------------------------------------------------------
    Identification code 12-9974-0-7-302      2004 actual   2005 est.   2006 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Total compensable workyears:
            Civilian full-time equivalent
            employment......................       1,101       1,111       1,082
    ---------------------------------------------------------------------------

             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] 119
    passenger motor vehicles of which [21] 14 will be used primarily for law
    enforcement purposes and of which [124] 119 shall be for replacement;
    acquisition of 25 passenger motor vehicles from excess sources, and hire
    of such vehicles; purchase, lease, operation, maintenance, and
    acquisition of aircraft from excess sources to maintain the operable
    fleet at [195] 335 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 upon notification of the House and Senate Committees
    on Appropriations and 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.]
        [Not less than $20,000,000 of funds under section 8002 of the Farm
    Security and Rural Investment Act of 2002 is hereby canceled.]
        [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 House Report 108-330.]
        [Not more than $72,467,000 of the funds available to the Forest
    Service shall be transferred to the Working Capital Fund of the
    Department of Agriculture.]
        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.
        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, [$3,300,000] 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, [$300,000 may be
    used for Forest Service Centennial activities and, of the total
    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.

    [[Page 195]]

        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.
        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].
        [For fiscal years 2005 and 2006, 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.]
        For each fiscal year through 2009, 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, 2005, 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)).
        Funds available to the Forest Service in this Act may be used for
    the purpose of expenses associated with primary and secondary schooling
    for dependents of agency personnel stationed in Puerto Rico prior to the
    date of enactment of this Act, who are subject to transfer and
    reassignment to other locations in the United States, at a cost not in
    excess of those authorized for the Department of Defense for the same
    area, when it is determined by the Chief of the Forest Service that
    public schools available in the locality are unable to provide
    adequately for the education of such dependents.
        [For fiscal years 2005 and 2006, 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, 2005.)

                          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 [388]
    320 passenger motor vehicles, of which [388] 320 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. 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, low pathogen avian
    influenza program, up to [$33,197,000] $33,340,000 in animal health
    monitoring and surveillance for the animal identification system, up to
    [$3,000,000] $8,123,000 in the emergency management systems program for
    the vaccine bank, up to $1,000,000 for wildlife services methods
    development, up to $1,000,000 of the wildlife services operations
    program for aviation safety, and up to 25 percent of the screwworm
    program; 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, 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 $1,565,000 of the Foreign Agricultural
    Service appropriation solely for the purpose of offsetting fluctuations
    in international currency exchange rates, subject to documentation by
    the Foreign Agricultural Service.
        Sec. 705. The Secretary of Agriculture may transfer unobligated
    balances of discretionary funds appropriated by this Act or other
    available unobligated discretionary balances of the Department of
    Agriculture to the Working Capital Fund for the acquisition of plant and
    capital equipment necessary for the delivery of financial,
    administrative, and information technology services of primary benefit
    to the agencies of the Department of Agriculture: Provided, That none of
    the funds made available by this Act or any other Act shall be
    transferred to the Working Capital Fund without the prior approval of
    the agency administrator: Provided further, That none of the funds
    transferred to the Working Capital Fund pursuant to this section shall
    be available for obligation without the prior approval of the Committees
    on Appropriations of both Houses of Congress.
        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 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] 710. Notwithstanding any other provision of this Act, all
    loan levels provided in this Act shall be considered estimates, not
    limitations.
        Sec. [712] 711. 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 Tele

    [[Page 196]]

    communication Loans program account, and the Rural Housing Insurance
    Fund 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] 712. 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] 713. 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 the]
    notification has been transmitted to the Committees on Appropriations of
    both Houses of Congress[: Provided further, That none of the funds
    available to the Department of Agriculture for information technology
    shall be obligated for projects over $25,000 prior to receipt of written
    approval by the Chief Information Officer].
        [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. 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).]
        [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 2006 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, $2,500,000 is appropriated for the purpose of
    providing Bill Emerson and Mickey Leland Hunger Fellowships, through the
    Congressional Hunger Center.]
        Sec. [724] 714. 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. 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
    ``$26,998,000'' and inserting ``$27,998,000''.]
        [Sec. 726. (a) None of the funds appropriated or otherwise made
    available by this Act shall be used to pay the salaries and expenses of
    personnel to collect from the lender at the time of issuance a guarantee
    fee of less than 2 percent of the principal obligation of guaranteed
    single-family housing loans administered by the Rural Housing Service:
    Provided, That this section shall not apply to loans made to refinance
    other single-family housing loans administered by the Rural Housing
    Service.
        (b) Section 502(h)(6)(C) of the Housing Act of 1949 (42 U.S.C.
    1472(h)(6)(C)) is amended by inserting ``, plus the guarantee fee as
    authorized by subsection (h)(7)'' after ``whichever is less'', in each
    of paragraphs (i) and (ii).]
        [Sec. 727. Notwithstanding any other provision of law, and until
    receipt of the decennial Census in the year 2010, the Secretary of
    Agriculture shall consider--
            (1) the City of Salinas, California; the City of Watsonville,
        California; and the City of Hollister, California, eligible for
        programs administered by the Rural Housing Service;
            (2) the Town of Horseshoe Beach, Florida; the City of
        Wewahitchka, Florida; the City of Southport, Florida; the City of
        Resota Beach, Florida; the City of Creedmoor, North Carolina; the
        County of Lake, Florida; the City of St. Cloud, Florida; the City of
        Plantation, Florida; the Cleburne County Water Authority of Alabama;
        and the City of Coburg, Oregon, eligible for loans and grants funded
        through the rural utilities programs in the Rural Community
        Advancement Program account;
            (3) the City of Casa Grande, Arizona, a rural area for purposes
        of eligibility for loans and grants provided through the Rural
        Housing Insurance Fund Program account, the Rural Housing Assistance
        Grants account and the rural utilities programs in the Rural
        Community Advancement Program account;

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            (4) the City of Coachella, California, eligible for loans and
        grants funded through the rural utilities programs and rural
        business and cooperative development programs in the Rural Community
        Advancement Program account and the Rural Housing Insurance Fund
        Program account;
            (5) the City of Springfield, Ohio; the City of Lexington,
        Virginia; the City of Clarksdale, Mississippi; the City of
        Vicksburg, Mississippi; the City of Cache, Oklahoma; and the City of
        Elgin, Oklahoma, eligible for loans and grants funded through the
        rural community programs in the Rural Community Advancement Program
        account;
            (6) the City of Carbondale, Illinois, a rural area for purposes
        of eligibility for loans and grants funded through the Rural Housing
        Insurance Fund Program account and the Rural Housing Assistance
        Grants account;
            (7) the City of St. Joseph, Missouri, eligible for loans and
        grants funded through the rural business and cooperative development
        programs in the Rural Community Advancement Program account relating
        to an application submitted to the Department by a farmer-owned
        cooperative, a majority of whose members reside in a rural area, as
        determined by the Secretary, and for the purchase and operation of a
        facility beneficial to the purpose of the cooperative; and
            (8) the fiber-to-premises broadband facilities in St. Lucie
        County, Florida, and the City of Port St. Lucie, Florida,
        collectively, to meet the eligibility requirements for loans and
        loan guarantees under section 601 of the Rural Electrification Act
        of 1936 (7 U.S.C. 950bb).]
        [Sec. 728. 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. 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 Water Quality
    Enhancement Project, from funds available for the Watershed and Flood
    Prevention Operations program, not to exceed $1,000,000 and Rockhouse
    Creek Watershed, Leslie County, Kentucky, not to exceed $1,000,000.]
        [Sec. 730. 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 project in Arkansas, the Matanuska River erosion
    control project in Alaska, the DuPage County watershed project in
    Illinois, and the Coal Creek project in Utah.]
        [Sec. 731. 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. [732] 715. 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] 30 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).
        [Sec. 733. 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. 734. 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. 735. 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. [736] 716. 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 the Committees on Appropriations of both Houses of Congress.
        [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. 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. 739. 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. 740. 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 154,500 acres in the
    calendar year 2005 wetlands reserve program as authorized by 16 U.S.C.
    3837.]
        [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 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
    $1,017,000,000.]
        [Sec. 742. Hereafter, 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. 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 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. 744. With the exception of funds provided in fiscal year 2003,
    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
    601(j)(1)(A) of the Rural Electrification Act of 1936 (7 U.S.C.
    950bb(j)(1)(A)).]
        [Sec. 745. None of the funds made available in fiscal year 2005 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. 746. 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 $80,000,000 made available by
    section 6401(a) of Public Law 107-171.]
        [Sec. 747. 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

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    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.]
        [Sec. 748. 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. 749. 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 Conservation Security Program
    authorized by 16 U.S.C. 3838 et seq., in excess of $202,411,000.]
        [Sec. 750. 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 in
    excess of $47,000,000.]
        [Sec. 751. 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 in
    excess of $112,000,000.]
        [Sec. 752. The Secretary of Agriculture shall use $30,000,000 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. 753. Not more than $10,000,000 for fiscal year 2005 of the
    funds appropriated or otherwise made available by this or any other Act
    shall be used to carry out section 6029 of Public Law 107-171.]
        [Sec. 754. None of the funds appropriated or otherwise made
    available in this Act shall be expended to violate Public Law 105-264.]
        [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 a ground and surface water
    conservation program authorized by section 2301 of Public Law 107-171 in
    excess of $51,000,000.]
        [Sec. 756. 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. 757. 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. [758] 717. 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. 759. There is hereby appropriated $1,491,000, to remain
    available until September 30, 2006, to carry out section 6028 of Public
    Law 107-171: 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 2005 shall be 100 percent.]
        [Sec. 760. 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 9010 of Public Law 107-171 in
    excess of $100,000,000.]
        [Sec. 761. (a) The matter under the heading ``Rural Community
    Advancement Program'' in division A--Agriculture, Rural Development,
    Food and Drug Administration, and Related Agencies Programs
    Appropriations, 2004, title III--Rural Development Programs, in Public
    Law 108-199 is amended by striking ``$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'' and
    inserting ``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 total amount appropriated
    in this account, $1,750,000 shall be for grants to the Delta Regional
    Authority (7 U.S.C. 1921 et seq.) for any Rural Community Advancement
    Program purpose''.
        (b) Consistent with any legal commitments made by the Delta Regional
    Authority, at the request of the Authority and if the Secretary of
    Agriculture agrees, the Secretary may deobligate any unexpended Rural
    Community Advancement Program grant funds made to the Authority pursuant
    to division A of Public Law 108-7: Provided, That such reobligated funds
    are used by the Authority for projects that are consistent with the
    purposes of the Rural Housing Service Community Facilities Program.]
        [Sec. 762. Of the unobligated balances available in the Rural
    Housing Assistance Grant Program account, $1,000,000 is hereby
    rescinded.]
        Sec. [763] 718. 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. 764. Of the unobligated balances available in the Rural
    Housing Insurance Fund Program account, $3,000,000 is hereby rescinded.]
        [Sec. 765. Notwithstanding any other provision of law, for any
    fiscal year and hereafter, 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. [766] 719. Funds made available under section 1240I and section
    1241(a) of the Food Security Act of 1985 in [fiscal years 2002, 2003,
    2004, and 2005] the current fiscal year shall remain available until
    expended to cover obligations made in [fiscal years 2002, 2003, 2004,
    and 2005, respectively] the current fiscal year, and are not available
    for new obligations.
        [Sec. 767. There is hereby appropriated $1,500,000, 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. 768. Notwithstanding any other provision of law--
            (1)(A) 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
            (B) 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;
            (2) or any percentage of cost limitation in current law or
        regulations, the construction projects known as the Tri-Valley
        Community Center addition in Healy, Alaska; the Cold Climate Housing
        Research Center in Fairbanks, Alaska; and the University of Alaska-
        Fairbanks Allied Health Learning Center skill labs/classrooms shall
        be eligible to receive Community Facilities grants in amounts that
        are equal to not more than 75 percent of the total facility costs:
        Provided, That for the purposes of this paragraph, the Cold Climate
        Housing Research Center is designated an ``essential community
        facility'' for rural Alaska;
            (3) the Secretary shall consider the City of Guymon, Oklahoma;
        the City of Shawnee, Oklahoma; the Village of New Miami, Ohio; the
        City of Vicksburg, Mississippi; and the City of Altus, Oklahoma, to
        be eligible for loans and grants provided through the Rural Housing
        Insurance Fund until receipt of the decennial Census in the year
        2010;
            (4) grants made under section 306(a)(19) of the Consolidated
        Farm and Rural Development Act (7 U.S.C. 1926(a)(19)) using funds
        made available under this Act for the cities of Ellisville

    [[Page 199]]

        and Waynesboro, Mississippi, shall be made without a non-Federal
        cost share requirement;
            (5) 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)) until receipt of the
        decennial Census in the year 2010;
            (6) the Secretary may consider the Piedmont Municipal Power
        Agency of South Carolina eligible to participate in programs
        administered by the Rural Utilities Service until receipt of the
        decennial Census in the year 2010; and
            (7) until receipt of the decennial Census for the year 2010, 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. 769. Section 501 of the Agricultural Trade Development and
    Assistance Act of 1954 (7 U.S.C. 1737) is amended--
            (1) in subsection (b)(1), by inserting ``and Doug Bereuter''
        after ``John Ogonowski''; and
            (2) in the heading, by inserting ``and Doug Bereuter'' after
        ``John Ogonowski''.]
        [Sec. 770. 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. 771. 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 shall
    waive cost sharing requirements for the funding and assistance.]
        [Sec. 772. None of the funds made available in this Act may be used
    to provide credits or credit guarantees for agricultural commodities
    provided for use in Iraq in violation of subsection (e) or (f) of
    section 202 of the Agricultural Trade Act of 1978 (7 U.S.C. 5622).]
        [Sec. 773. 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. 774. None of the funds made available in this Act may be used
    to restrict to prescription use a contraceptive that is determined to be
    safe and effective for use without the supervision of a practitioner
    licensed by law to administer prescription drugs under section 503(b) of
    the Federal Food, Drug, and Cosmetic Act.]
        [Sec. 775. Of the unobligated balances in the Local Television Loan
    Guarantee Program account, $88,000,000 are hereby rescinded.]
        [Sec. 776. Privacy Protection of Certain Sellers of Farm Products.
    Section 1324(c) of the Food Security Act of 1985 (7 U.S.C. 1631(c)) is
    amended--
            (1) in subsection (c)--
                    (A) in paragraph (2)(C)(ii)(II), by inserting ``, or
                other approved unique identifier,'' after both ``social
                security number'' and ``identification number'';
                    (B) in paragraph (4)(C)(iii), by inserting ``, or other
                approved unique identifier,'' after both ``social security
                number'' and ``identification number''; and
                    (C) by adding the following at the end:
            ``(5) The term `approved unique identifier' means a number,
        combination of numbers and letters, or other identifier selected by
        the Secretary of State using a selection system or method approved
        by the Secretary of Agriculture.'';
            (2) in subsection (e)(1)(A)(ii)(III), by inserting ``, or other
        approved unique identifier,'' after both ``social security number''
        and ``identification number''; and
            (3) in subsection (g)(2)(A)(ii)(III), by inserting ``, or other
        approved unique identifier,'' after both ``social security number''
        and ``identification number''.]
        [Sec. 777. Section 532 of the Equity in Educational Land Grant
    Status Act of 1994 (7 U.S.C. 301 note; Public Law 193-382) is amended--
            (1) by redesignating paragraphs (23) through (32) as paragraphs
        (24) through (33), respectively; and
            (2) by inserting after paragraph (22) the following: ``(23)
        Tohono O`odham Community College.''.]
        [Sec. 778. Of the unobligated balances of funds in the Agricultural
    Conservation Program account, $3,500,000 are hereby rescinded.]
        [Sec. 779. Notwithstanding any other provision of law, the amounts
    made available to the Dakota Value Capture Cooperative under section 747
    of the Agriculture, Rural Development, Food and Drug Administration, and
    Related Agencies Appropriations Act, 2002 (Public Law 107-76; 115 Stat.
    738) shall remain available until expended for a project conducted by
    the Dakota Value Capture Cooperative at South Dakota State University.]
        Sec. [780] 720. None of the funds made available under this Act
    shall be available to pay the administrative expenses of a State agency
    that, after the date of enactment of this Act, authorizes any new for-
    profit vendor(s) to transact food instruments under the Special
    Supplemental Nutrition Program for Women, Infants, and Children if it is
    expected that more than 50 percent of the annual revenue of the vendor
    from the sale of food items will be derived from the sale of
    supplemental foods that are obtained with WIC food instruments, except
    that the Secretary may approve the authorization of such a vendor if the
    approval is necessary to assure participant access to program benefits.
        [Sec. 781. Of the unobligated balances under section 32 of the Act
    of August 24, 1935, $163,000,000 are hereby rescinded.]
        [Sec. 782. Of the unobligated balances available to the Foreign
    Agricultural Service for the Public Law 480 Title I Program at the
    beginning of fiscal year 2005, $191,108,000 are hereby rescinded:
    Provided, That for purposes of determining the amount of funds available
    for transfer under section 412(b) of Public Law 83-480, as amended, the
    maximum amount of funds available for transfer shall be calculated based
    upon the total funds available prior to this rescission.]
        [Sec. 783. 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. 784. None of the funds made available by this or any other Act
    may be used to reduce the mission, resources, staffing, facilities, or
    capabilities of the Wildlife Habitat Management Institute in Mississippi
    as in existence on December 17, 2003.]
        [Sec. 785. Livestock Assistance. (a) In General.--In carrying out a
    livestock assistance, compensation, or feed program, the Secretary of
    Agriculture shall include elk, reindeer, and bison within the definition
    of ``livestock'' covered by the program.
        (b) Conforming Amendments.--
            (1) Section 602(2) of the Agricultural Act of 1949 (7 U.S.C.
        1471(2)) is amended by inserting ``elk, reindeer, bison,'' after
        ``cattle,''.
            (2) Section 10104 of the Farm Security and Rural Investment Act
        of 2002 (7 U.S.C. 1472) is amended--
                    (A) by redesignating subsections (a) through (d) as
                subsections (b) through (e), respectively; and
                    (B) by inserting before subsection (b) (as so
                redesignated) the following:
        ``(a) Definition of Livestock.--In this section, the term
    `livestock' includes elk, reindeer, and bison.''.
            (3) Section 203(d) of the Agricultural Assistance Act of 2003
        (Public Law 108-7; 117 Stat. 541) is amended--
                    (A) by redesignating paragraph (2) as paragraph (3); and
                    (B) by inserting after paragraph (1) the following:
            ``(2) Livestock.--The term `livestock' includes elk, reindeer,
        and bison.''. ]
        [Sec. 786. There is hereby appropriated $1,000,000, to remain
    available until expended, to carry out provisions of section 751 of
    division A of Public Law 108-7.]

    [[Page 200]]

        [Sec. 787. There is hereby appropriated $500,000 for a grant to
    Alaska Village Initiatives for the purpose of administering a private
    lands wildlife management program in Alaska.]
        [Sec. 788. Technical Corrections. (a) Section 104(b)(1) of the Child
    Nutrition and WIC Reauthorization Act of 2004 (Public Law 108-265) is
    amended by striking the closing quotation marks and the following period
    at the end of section 9(b)(5)(A)(iv) of the Richard B. Russell National
    School Lunch Act (as added by that section 104(b)(1) of Public Law 108-
    265).
        (b) Section 13(a)(10) of the Richard B. Russell National School
    Lunch Act (42 U.S.C. 1761(a)(10)) (as added by section 116(d) of Public
    Law 108-265) is amended--
            (1) in subparagraph (C), by striking ``2005'' and inserting
        ``2006''; and
            (2) in subparagraph (D)--
                    (A) in clause (i), by striking ``2007'' and inserting
                ``2008''; and
                    (B) in clause (ii), by striking ``2008'' and inserting
                ``2009''.
        (c) Section 21(e)(2)(A) of the Richard B. Russell National School
    Lunch Act (42 U.S.C. 1769b-1(e)(2)(A)) (as amended by section
    125(c)(2)(B) of Public Law 108-265) is amended by inserting ``and''
    after ``2005''.
        (d) Section 17(f)(1)(C)(i) of the Child Nutrition Act of 1966 (42
    U.S.C. 1786(f)(1)(C)(i) (as amended by section 203(e)(10)(B) of Public
    Law 108-265) is amended by striking the period after ``subsection
    (h)(11)''.
        (e) Section 17(h)(8)(A)(vi) of the Child Nutrition Act of 1966 (42
    U.S.C. 1786(h)(8)(A)(vi) (as added by section 203(e)(5) of Public Law
    108-265) is amended by striking ``Each State'' and inserting ``Effective
    beginning October 1, 2004, each State''.
        (f) Section 502(b) of the Child Nutrition and WIC Reauthorization
    Act of 2004 (Public Law 108-265) is amended--
            (1) in paragraph (2), by striking ``203(e)(5),''; and
            (2) in paragraph (4), by striking ``104'' and inserting ``104
        (other than section 104(a)(1))''.]
        [Sec. 789. Section 104 of chapter 1 of the Emergency Supplemental
    Appropriations for Hurricane Disasters Assistance Act, 2005, Public Law
    108-324, is amended by adding ``and tropical storms'' after
    ``hurricanes''.]
        [Sec. 790. There is hereby appropriated $1,000,000, to remain
    available until expended, for a grant to the Ohio Livestock Expo Center
    in Springfield, Ohio.]
        [Sec. 791. There is hereby appropriated $1,000,000, to remain
    available until expended, for a grant to the Virginia Horse Center in
    Lexington, Virginia.]
        [Sec. 792. Notwithstanding any other provision of law, unobligated
    funding balances in the Great Plains Conservation Program authorized
    under section 16(b) of the Soil Conservation and Domestic Allotment Act
    (16 U.S.C. 590p(b)); the Forestry Incentives Program authorized by
    section 4 and section 6 of the Cooperative Forestry Assistance Act of
    1978 (16 U.S.C. 2103); The Water Bank Program authorized by The Water
    Bank Act of 1970 (Public Law 91-559); and funding for the John's Creek,
    TN Watershed and Flood Prevention Operations project are hereby
    rescinded.]
        [Sec. 793. There is hereby appropriated $2,250,000, to remain
    available until expended, for a grant to the Wisconsin Federation of
    Cooperatives for pilot Wisconsin-Minnesota health care cooperative
    purchasing alliances.]
        [Sec. 794. (a) Section 1240B of the Food Security Act of 1985, 16
    U.S.C. 3839 aa-2, is amended at the end by adding the following:
        ``(h) Funding for Federally Recognized Native American Indian Tribes
    and Alaska Native Corporations.--The Secretary may enter into
    alternative funding arrangements with federally recognized Native
    American Indian Tribes and Alaska Native Corporations (including their
    affiliated membership organizations) if the Secretary determines that
    the goals and objectives of the program will be met by such
    arrangements, and that statutory limitations regarding contracts with
    individual producers as defined under this Subtitle will not be exceeded
    by any Tribal or Native Corporation member.''.
        (b) Section 1240G of the Food Security Act of 1985, 16 U.S.C.
    3839aa-7, is amended by inserting after ``2007,'' the following:
    ``(excluding funding arrangements with federally recognized Native
    American Indian Tribes or Alaska Native Corporations under section
    1240B(h))''.]
        [Sec. 795. There is hereby appropriated $6,000,000, to remain
    available until expended, for a grant to the Florida Department of
    Citrus.]
        [Sec. 796 Notwithstanding any other provision of law, effective with
    funds made available in fiscal year 2004 to States administering the
    Child and Adult Care Food Program, for the purpose of conducting audits
    of participating institutions, funds identified by the Secretary as
    having been unused during the initial fiscal year of availability may be
    recovered and reallocated by the Secretary: Provided, That States may
    use the reallocated funds until expended for the purpose of conducting
    audits of participating institutions.]
        [Sec. 797. Section 1238Q of the Food Security Act of 1985 is
    amended--
            (1) in subsection (a), by striking ``permit'' and inserting
        ``transfer title of ownership to an easement under this subchapter
        to''; and
            (2) by striking subsection (d) and inserting the following new
        subsection:
        ``(d) Transfer of Title of Ownership of Easement.--Reversion--If a
    private organization or State agency holding an easement on land under
    this subchapter dissolves or fails to enforce the terms of the easement,
    the easement shall revert to the Secretary.''.]
        Sec. 721. None of the funds appropriated or otherwise made available
    by this or any other Act shall be used to pay the salaries and expenses
    of personnel to carry out the following:
        (a) an Environmental Quality Incentives Program authorized by 16
    U.S.C. 3839aa, et seq., in excess of $1,000,000,000. Funds exceeding
    this amount for fiscal year 2006 are hereby permanently cancelled;
        (b) a Wildlife Habitat Incentives Program authorized by 16 U.S.C.
    3839bb, et seq., in excess of $60,000,000. Funds exceeding this amount
    for fiscal year 2006 are hereby permanently cancelled;
        (c) a Conservation Security Program authorized by 16 U.S.C. 3838, et
    seq., in excess of $273,900,000. Funds exceeding this amount for fiscal
    year 2006 are hereby permanently cancelled;
        (d) a Rural Strategic Investment Program authorized by section 6030
    of Public Law 107-171. $100,000,000 of the funds available under such
    section are hereby permanently cancelled;
        (e) a Rural Business Investment Investment Program authorized by
    section 6029 of Public Law 107-171. $89,000,000 of the funds available
    under such section are hereby permanently cancelled;
        (f) a small Watershed Rehabilitation Program authorized by 16 U.S.C.
    1012(h)(1). $210,000,000 of the funds available under such section for
    fiscal year 2006 are hereby permanently cancelled;
        (g) a Rural Firefigher Grant Program authorized by section 6405 of
    Public Law 107-171. Funds available under such section for fiscal year
    2006 are hereby permanently cancelled;
        (h) a Broadband program authorized by 7 U.S.C. 950bb. Under this
    section, of the funds available under subsection j(1)(A) and funds for
    fiscal year 2006 under subsection j(1)(B), $50,000,000 are hereby
    permanently cancelled;
        (i) a Value-added Grant Program authorized by 7 U.S.C. 1621 note.
    $120,000,000 of the funds available under such section for fiscal year
    2006 are hereby permanently cancelled;
        (j) a Bioenergy Program authorized by section 9010 of Public Law
    107-171, in excess of $60,000,000. Funds exceeding this amount for
    fiscal year 2006 are hereby permanently cancelled;
        (k) a Market-access Program authorized by 7 U.S.C. 5641(c), in
    excess of $125,000,000. Funds exceeding this amount for fiscal year 2006
    are hereby permanently cancelled;
        (l) a Farmland Protection Program authorized by 16 U.S.C. 3838h, in
    excess of $83,500,000. Funds exceeding this amount for fiscal year 2006
    are hereby permanently cancelled;
        (m) the Initiative for Future Agriculture and Food Systems
    authorized by 7 U.S.C. 7621, except for funds needed to administer and
    conduct oversight of grants awarded and obligations incurred in prior
    fiscal years. $299,925,000 of the funds available under such section for
    fiscal year 2006 are hereby permanently cancelled;
        (n) an Agricultural Management Assistance Program for the Natural
    Resources Conservation Service as authorized by section 524 of the
    Federal Crop Insurance Act (7 U.S.C. 1524). $14,000,000 of the funds
    available for fiscal year 2006 are hereby permanently cancelled;
        (o) a Biomass Research and Development Program authorized by Public
    Law 106-224 (7 U.S.C. 7624 note) in excess of $12,000,000. Funds
    exceeding this amount for fiscal year 2006 are hereby permanently
    cancelled; and
        (p) a Renewable Energy Systems and Energy Efficiency Improvements
    Program authorized by section 9006 of Public Law 107-171. $23,000,000 of
    the funds available under such section for fiscal year 2006 are hereby
    permanently cancelled.
        Sec. 722. There is hereby appropriated $3,600,000 to carry out
    section 515(j)(2) of the Federal Crop Insurance Act (7 U.S.C.
    1515(j)(2)).

    [[Page 201]]

        Sec. 723. 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, as an
    ``emergency'' is an unanticipated event that requires a necessary
    expenditure that is sudden, urgent, and unforeseen''.
        Sec. 724. Section 10417 of Public Law is amended by adding the
    following 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. 725. Notwithstanding 40 U.S.C. 524, 571, and 572, the Secretary
    of Agriculture may sell the US Water Conservation Laboratory, Phoenix,
    Arizona, and the Western Cotton Research Center, Phoenix, Arizona, and
    credit the net proceeds such sales as offsetting collections to its
    Agriculture Buildings and Facilities account. Such funds shall be
    available until September 30, 2007 to be used to replace these
    facilities and to improve other USDA-owned facilities. (Agriculture,
    Rural Development, Food and Drug Administration, and Related Agencies
    Appropriations Act, 2005.)

                       [GENERAL PROVISIONS--THIS CHAPTER]

        [Sec. 101. Agricultural Disaster Assistance.
        (a) Crop Disaster Assistance.--
            (1) Definitions.--In this subsection:
                    (A) Additional coverage.--The term ``additional
                coverage'' has the meaning given the term in section
                502(b)(1) of the Federal Crop Insurance Act (7 U.S.C.
                1502(b)(1)).
                    (B) Insurable commodity.--The term ``insurable
                commodity'' means an agricultural commodity (excluding
                livestock) for which the producers on a farm are eligible to
                obtain a policy or plan of insurance under the Federal Crop
                Insurance Act (7 U.S.C. 1501 et seq.).
                    (C) Noninsurable commodity.--The term ``noninsurable
                commodity'' means an eligible crop for which the producers
                on a farm are eligible to obtain assistance under section
                196 of the Federal Agriculture Improvement and Reform Act of
                1996 (7 U.S.C. 7333).
            (2) Emergency financial assistance.--Notwithstanding section
        508(b)(7) of the Federal Crop Insurance Act (7 U.S.C. 1508(b)(7)),
        the Secretary of Agriculture shall use such sums as are necessary of
        funds of the Commodity Credit Corporation to make emergency
        financial assistance authorized under this subsection available to
        producers on a farm (other than producers of cottonseed or sugar
        cane) that have incurred qualifying crop or quality losses for the
        2003, 2004, or 2005 crop (as elected by a producer), but limited to
        only one of the crop years listed, due to damaging weather or
        related condition, as determined by the Secretary: Provided, That
        qualifying crop losses for the 2005 crop are limited to only those
        losses caused by a hurricane or tropical storm of the 2004 hurricane
        season in counties declared disaster areas by the President of the
        United States: Provided further, That notwithstanding the crop year
        election limitation in this paragraph, $53,000,000 shall be provided
        to the Secretary of Agriculture, of which $50,000,000 shall be for
        crop losses in the Commonwealth of Virginia, and of which $3,000,000
        shall be for fruit and vegetable losses in the State of North
        Carolina: Provided further, That these losses resulted from
        hurricanes, tropical storms, and other weather related disasters
        that occurred during calendar year 2003, to remain available until
        expended.
            (3) Administration.--The Secretary shall make assistance
        available under this subsection in the same manner as provided under
        section 815 of the Agriculture, Rural Development, Food and Drug
        Administration, and Related Agencies Appropriations Act, 2001
        (Public Law 106-387; 114 Stat. 1549A-55), including using the same
        loss thresholds for the quantity and quality losses as were used in
        administering that section.
            (4) Ineligibility for assistance.--Except as provided in
        paragraph (5), the producers on a farm shall not be eligible for
        assistance under this subsection with respect to losses to an
        insurable commodity or noninsurable commodity if the producers on
        the farm--
                    (A) in the case of an insurable commodity, did not
                obtain a policy or plan of insurance for the insurable
                commodity under the Federal Crop Insurance Act (7 U.S.C.
                1501 et seq.) for the crop incurring the losses;
                    (B) in the case of a noninsurable commodity, did not
                file the required paperwork, and pay the administrative fee
                by the applicable State filing deadline, for the
                noninsurable commodity under section 196 of the Federal
                Agriculture Improvement and Reform Act of 1996 (7 U.S.C.
                7333) for the crop incurring the losses;
                    (C) had adjusted gross incomes, as defined by section
                1001D of the Food Security Act of 1985, of greater than
                $2,500,000 in 2003; or
                    (D) were not in compliance with highly erodible land
                conservation and wetland conservation provisions.
            (5) Contract waiver.--The Secretary may waive paragraph (4) with
        respect to the producers on a farm if the producers enter into a
        contract with the Secretary under which the producers agree--
                    (A) in the case of an insurable commodity, to obtain a
                policy or plan of insurance under the Federal Crop Insurance
                Act (7 U.S.C. 1501 et seq.) providing additional coverage
                for the insurable commodity for each of the next 2 crops;
                and
                    (B) in the case of a noninsurable commodity, to file the
                required paperwork and pay the administrative fee by the
                applicable State filing deadline, for the noninsurable
                commodity for each of the next 2 crops under section 196 of
                the Federal Agriculture Improvement and Reform Act of 1996
                (7 U.S.C. 7333).
            (6) Effect of violation.--In the event of the violation of a
        contract under paragraph (5) by a producer, the producer shall
        reimburse the Secretary for the full amount of the assistance
        provided to the producer under this subsection.
            (7) Payment limitations.--
                    (A) Limit on amount of assistance.--Assistance provided
                under this subsection to a producer for losses to a crop,
                together with the amounts specified in subparagraph (B)
                applicable to the same crop, may not exceed 95 percent of
                what the value of the crop would have been in the absence of
                the losses, as estimated by the Secretary.
                    (B) Other payments.--In applying the limitation in
                subparagraph (A), the Secretary shall include the following:
        (i) Any crop insurance payment made under the Federal Crop Insurance
    Act (7 U.S.C. 1501 et seq.) or payment under section 196 of the Federal
    Agricultural Improvement and Reform Act of 1996 (7 U.S.C. 7333) that the
    producer receives for losses to the same crop.
        (ii) The value of the crop that was not lost (if any), as estimated
    by the Secretary.
                    (C) Effect of florida disaster programs.--Persons that
                received payments from section 32 of the Act of August 24,
                1935 with respect to 2004 hurricane crop losses are not
                eligible for payments under this subsection.
        (b) Livestock Assistance Program.--
            (1) Emergency financial assistance.--The Secretary of
        Agriculture shall use such sums as are necessary of funds of the
        Commodity Credit Corporation to make and administer payments for
        livestock losses to producers for 2003 or 2004 losses (as elected by
        a producer), but not both, in a county that has received an
        emergency designation by the President or the Secretary after
        January 1, 2003, of which an amount determined by the Secretary
        shall be made available for the American Indian livestock program
        under section 806 of the Agriculture, Rural Development, Food and
        Drug Administration, and Related Agencies Appropriations Act, 2001
        (Public Law 106-387; 114 Stat. 1549A-51).
            (2) Administration.--The Secretary shall make assistance
        available under this subsection in the same manner as provided under
        section 806 of the Agriculture, Rural Development, Food and Drug
        Administration, and Related Agencies Appropriations Act, 2001
        (Public Law 106-387; 114 Stat. 1549A-51).
            (3) Mitigation.--In determining the eligibility for or amount of
        payments for which a producer is eligible under the livestock
        assistance program, the Secretary shall not penalize a producer that
        takes actions (recognizing disaster conditions) that reduce the
        average number of livestock the producer owned for grazing during
        the production year for which assistance is being provided.
        (c) Tree Assistance Program.--
            (1) Emergency assistance.--The Secretary of Agriculture shall
        use such sums as are necessary of the funds of the Commodity

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        Credit Corporation to provide assistance under the tree assistance
        program established under sections 10201 through 10204 of the Farm
        Security and Rural Investment Act of 2002 (7 U.S.C. 8201 et seq.) to
        producers who suffered tree losses during the period beginning on
        December 1, 2003, and ending on December 31, 2004.
            (2) Additional assistance.--In addition to providing assistance
        to eligible orchardists under the tree assistance program, the
        Secretary shall use an additional $15,000,000 of the funds of the
        Commodity Credit Corporation to provide reimbursement under sections
        10203 and 10204 of the Farm Security and Rural Investment Act of
        2002 (7 U.S.C. 8203, 8204) to eligible forest land owners who
        produce periodic crops of timber from trees for commercial purposes
        and who have suffered tree losses during the period specified in
        paragraph (1).
            (3) Effect of florida disaster programs.--Persons that received
        payments from section 32 of the Act of August 24, 1935 with respect
        to 2004 hurricane crop losses are not eligible for payments under
        this section.
        (d) Emergency Conservation Program.--The Secretary of Agriculture
    shall use an additional $50,000,000 of the funds of the Commodity Credit
    Corporation to provide assistance under the Emergency Conservation
    Program under title IV of the Agriculture Credit Act of 1978 (16 U.S.C.
    2201 et seq.).
        (e) Offset.--Section 1241(a)(3) of the Food Security Act of 1985 (16
    U.S.C. 3841(a)(3)) is amended by inserting before the period at the end
    the following: ``, using not more than $6,037,000,000 for the period of
    fiscal years 2005 through 2014''.
        (f) That for purposes of the budget scoring guidance in effect for
    the Congress and the Executive branch respectively, and notwithstanding
    the Budget Scorekeeping Guidelines set forth in the joint explanatory
    statement of the committee of conference accompanying Conference Report
    105-217, any savings from subsection (e) shall not be scored until
    fiscal year 2008.
        (g) The issuance of regulations shall be made without regard to: (1)
    the notice and comment provisions of section 553 of title 5, United
    States Code; (2) the Statement of Policy of the Secretary of Agriculture
    effective July 24, 1971 (36 Fed. Reg. 13804), relating to notices of
    proposed rulemaking and public participation in rulemaking; and (3)
    chapter 35 of title 44, United States Code (commonly known as the
    ``Paperwork Reduction Act''): Provided, That in carrying out this
    section, the Secretary shall use the authority provided under section
    808 of title 5, United States Code.]
        [Sec. 102. The Secretary of Agriculture shall use $40,000,000, of
    which, $7,200,000 shall be provided to the State of Hawaii for
    assistance to an agricultural transportation cooperative in Hawaii, the
    members of which are eligible to participate in the Farm Service Agency
    administered Commodity Loan Program, and of which $32,800,000 shall be
    to make payments to processors in Florida that are eligible to obtain a
    loan under section 156(a) of the Federal Agriculture Improvement and
    Reform Act of 1996 (7 U.S.C. 7272(a)) to compensate first processors and
    producers for crop and other losses that are related to hurricanes,
    tropical storms, excessive rains, and floods in Florida during calendar
    year 2004, to be calculated and paid on the basis of losses on 40 acre
    harvesting units, in counties declared a disaster by the President of
    the United States in 2004 due to hurricanes, on the same terms and
    conditions, to the extent practicable, as the payments made under
    section 207 of the Agricultural Assistance Act of 2003 (Public Law 108-
    7).]
        [Sec. 103. The Secretary of Agriculture shall use $10,000,000 to
    make payments to dairy producers for dairy production losses, and dairy
    spoilage losses in counties declared a disaster by the President of the
    United States in 2004 due to hurricanes.]
        [Sec. 104. The Secretary of Agriculture shall use $10,000,000 to
    provide assistance to producers and first handlers of the 2004 crop of
    cottonseed located in counties declared a disaster by the President of
    the United States in 2004 due to hurricanes.]
        [Sec. 105. (a) The Secretary shall use the funds, facilities, and
    authorities of the Commodity Credit Corporation to carry out section
    101, 102, 103, 104, 108, 109, 110, and 111 of this chapter, to remain
    available until expended.
        (b) The amounts provided under sections 101, 102, 103, 104, 108,
    109, 110, and 111 in this chapter are designated as an emergency
    requirement pursuant to section 402 of S. Con. Res. 95 (108th Congress),
    as made applicable to the House of Representatives by H. Res. 649 (108th
    Congress) and applicable to the Senate by section 14007 of Public Law
    108-287.]
        [Sec. 106. (a) Rural Community Advancement Program.--The communities
    in Burlington and Camden Counties in New Jersey, affected by the flood
    which occurred on July 12, 2004, are deemed to be rural areas during
    fiscal year 2005 for purposes of subtitle E of the Consolidated Farm and
    Rural Development Act. Any limitations under subtitle E of the
    Consolidated Farm and Rural Development Act that are based on the income
    of families shall not apply during fiscal year 2005 with respect to such
    communities, or to businesses or families residing in such communities.
        (b) Rural Housing Insurance Fund and Rural Housing Assistance
    Grants.--The communities referred to in subsection (a) are deemed to be
    rural areas during fiscal year 2005 for purposes of the direct and
    guaranteed loan programs under title V of the Housing Act of 1949 and
    the grant programs under sections 504, 509(c), 525, and 533 of such
    title V. Any limitations under title V of the Housing Act of 1949 that
    are based on the income of families shall not apply during fiscal year
    2005 with respect to such communities or to families residing in such
    communities.]
        [Sec. 107. The Secretary of Agriculture shall provide financial and
    technical assistance to repair, and if necessary, replace Hope Mills
    Dam, Cumberland County, North Carolina, in accordance with the dam
    safety standards of the state of North Carolina: Provided, That from
    within the funds provided in this chapter for the Emergency Watershed
    Protection program of the Natural Resources Conservation Service
    $1,600,000 is provided for this purpose.]
        [Sec. 108. The Secretary shall provide $90,000,000 to the fund
    established by section 32 of the Act of August 24, 1935 (7 U.S.C. 612c),
    to make payments with respect to 2004 hurricane losses.]
        [Sec. 109. The Secretary, acting through the Farm Service Agency,
    may use not more than $4,000,000 to cover administrative expenses
    associated with the implementation of sections 101 and 102 of this
    chapter.]
        [Sec. 110. In addition to amounts provided in this Act for the tree
    assistance program, $10,000,000 shall be made available to the Secretary
    of Agriculture, to remain available until expended, to provide
    assistance to eligible private forest landowners owning not more than
    5,000 acres of forest crop in counties declared Presidential disaster
    areas as a result of hurricane, tropical storm, or related events for
    the purposes of debris removal, replanting of timber, and other such
    purposes.]
        [Sec. 111. In addition to amounts provided in this Act for the tree
    assistance program, $8,500,000 shall be made available to the Secretary
    of Agriculture, to remain available until expended, to provide
    assistance under the tree assistance program established under subtitle
    C of title X of the Farm Security and Rural Investment Act of 2002 to
    pecan producers in counties declared a disaster by the President of the
    United States who suffered tree loss or damage due to damaging weather
    related to any hurricane or tropical storm of the 2004 hurricane season:
    Provided, That the funds made available under this section shall also be
    made available to cover costs associated with pruning, rehabilitating,
    and other appropriate activities as determined by the Secretary.]
    (Emergency Supplemental Appropriations for Hurricane Disasters
    Assistance Act, 2005.)