Appendix - Department of Agriculture

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

THE BUDGET FOR FISCAL YEAR 2007

[[Page 61]]

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, [$5,127,000] $11,540,000: 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.
[For an additional amount for the ``Office of the Secretary'',
related to the detection of and response to highly pathogenic avian
influenza, including research and development, $11,350,000, to remain
available until September 30, 2007: Provided, That the amount provided
under this heading is designated as an emergency requirement pursuant to
section 402 of H. Con. Res. 95 (109th Congress), the concurrent
resolution on the budget for fiscal year 2006.] (Emergency Supplemental
Appropriations Act to Address Hurricanes in the Gulf of Mexico and
Pandemic Influenza, 2006.)

Office of the Assistant Secretary for Administration

For necessary salaries and expenses of the Office of the Assistant
Secretary for Administration, [$676,000] $773,000.

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, [$3,821,000] $3,940,000: 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,
[$598,000] $694,000.

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; [$724,000] $741,000.

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, [$602,000] $696,000.

Office of the Under Secretary for Farm and Foreign Agricultural Services

For necessary salaries and expenses of the Office of the Under
Secretary for Farm and Foreign Agricultural Services to administer the
laws enacted by Congress for the Farm Service Agency, the Foreign
Agricultural Service, the Risk Management Agency, and the Commodity
Credit Corporation, [$635,000] $737,000.

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, [$744,000] $957,000.

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,
[$635,000] $823,000.

Office of the Under Secretary for Food, Nutrition and Consumer Services

For necessary salaries and expenses of the Office of the Under
Secretary for Food, Nutrition and Consumer Services to administer the
laws enacted by the Congress for the Food and Nutrition Service,
[$599,000] $732,000.

Office of the Assistant Secretary for Civil Rights

For necessary salaries and expenses of the Office of the Assistant
Secretary for Civil Rights, [$821,000] $836,000. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Office of the Secretary........... 4 3 10
00.02 Under/Assistant Secretaries....... 7 10 10
00.03 Trade Negotiations and
Biotechnology Resources......... 1 2 2
00.04 Info Share (CCE/HS)............... 5
00.05 Avian Influenza Supplemental...... 11
09.01 Homeland Security Reimbursable.... 5
--------- --------- ----------
10.00 Total new obligations........... 22 26 22
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 3 3 3
22.00 New budget authority (gross)...... 18 26 22
22.10 Resources available from
recoveries of prior year
obligations..................... 5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 26 29 25
23.95 Total new obligations............. -22 -26 -22
23.98 Unobligated balance expiring or
withdrawn....................... -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 3 3 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 15 26 22
41.00 Transferred to other accounts... -2
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 13 26 22
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 8
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -3
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 5
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 18 26 22
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 12 1

[[Page 62]]

73.10 Total new obligations............. 22 26 22
73.20 Total outlays (gross)............. -35 -27 -23
73.40 Adjustments in expired accounts
(net)........................... 2
73.45 Recoveries of prior year
obligations..................... -5
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 3
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 2
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 -1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 15 24 21
86.93 Outlays from discretionary
balances........................ 20 3 2
--------- --------- ----------
87.00 Total outlays (gross)........... 35 27 23
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

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

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

Net budget authority and outlays:
89.00 Budget authority.................. 13 26 22
90.00 Outlays........................... 25 27 23
---------------------------------------------------------------------------

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

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

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 7 8 8
12.1 Civilian personnel benefits..... 2 2 2
25.2 Other services.................. 8 16 12
--------- --------- ----------
99.0 Direct obligations............ 17 26 22
99.0 Reimbursable obligations.......... 5
--------- --------- ----------
99.9 Total new obligations........... 22 26 22
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9913-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
1001 Civilian full-time equivalent
employment...................... 76 87 87
---------------------------------------------------------------------------

Fund for Rural America

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0012-0-1-999 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 7 1
73.20 Total outlays (gross)............. -4 -1
73.40 Adjustments in expired accounts
(net)........................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 4 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 4 1
---------------------------------------------------------------------------

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

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8203-0-7-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............
--------- --------- ----------
01.99 Balance, start of year............
Receipts:
02.60 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)

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

New budget authority (gross), detail:
Mandatory:

60.26 Appropriation (trust fund)...... 1 1 1
----------------------------------------------------------------------------

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

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 1 1 1
----------------------------------------------------------------------------

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

The Secretary is authorized to accept and administer gifts and
bequests of real and personal property to facilitate the

[[Page 63]]

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),
[$10,539,000] $11,226,000.

National Appeals Division

For necessary expenses of the National Appeals Division,
[$14,524,000] $14,795,000.

Office of Budget and Program Analysis

For necessary expenses of the Office of Budget and Program Analysis,
[$8,298,000] $8,479,000.

Homeland Security Staff

For necessary expenses of the Homeland Security Staff, [$934,000]
$1,114,000. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Chief Economist................... 12 11 11
00.03 National Appeals Division......... 14 14 15
00.04 Budget and Program Analysis....... 8 8 8
00.05 Homeland Security Staff........... 1 1 1
09.01 Reimbursable program.............. 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 36 35 36
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 3
22.00 New budget authority (gross)...... 38 37 38
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 38 38 41
23.95 Total new obligations............. -36 -35 -36
23.98 Unobligated balance expiring or
withdrawn....................... -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1 3 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 35 35 36
Mandatory:

62.00 Transferred from other accounts. 2 2 2
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)....................... 38 37 38
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 8 7 5
73.10 Total new obligations............. 36 35 36
73.20 Total outlays (gross)............. -36 -37 -39
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 7 5 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 30 31 32
86.93 Outlays from discretionary
balances........................ 4 4 5
86.97 Outlays from new mandatory
authority....................... 2 2 2
--------- --------- ----------
87.00 Total outlays (gross)........... 36 37 39
----------------------------------------------------------------------------

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.................. 37 37 38
90.00 Outlays........................... 34 37 39
---------------------------------------------------------------------------

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

2005 actual 2006 est. 2007 est.
World Agricultural Supply and
Demand Estimates Reports
issued........................ 12 12 12
Weekly Weather and Crop
Bulletin issued............... 52 52 52

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

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

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

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 21 21 22
12.1 Civilian personnel benefits..... 4 5 5
21.0 Travel and transportation of
persons....................... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
25.2 Other services.................. 7 5 5
31.0 Equipment....................... 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 35 34 35
99.0 Reimbursable obligations.......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 36 35 36
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0705-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 224 239 239
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 4 4 4
---------------------------------------------------------------------------

[[Page 64]]

Office of the Chief Financial Officer

For necessary expenses of the Office of the Chief Financial Officer,
[$5,874,000] $19,931,000, of which $13,940,000 shall be available until
expended: Provided, That hereafter 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, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Appropriation..................... 6 6 20
09.01 Reimbursable...................... 4 4 4
--------- --------- ----------
10.00 Total new obligations........... 10 10 24
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 11 11 25
23.95 Total new obligations............. -10 -10 -24
23.98 Unobligated balance expiring or
withdrawn....................... -1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 6 6 20
Spending authority from offsetting
collections:

Discretionary:
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 25
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -6 -3 -4
73.10 Total new obligations............. 10 10 24
73.20 Total outlays (gross)............. -9 -11 -24
73.40 Adjustments in expired accounts
(net)........................... 2
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -5
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 5
--------- --------- ----------
74.40 Obligated balance, end of year.. -3 -4 -4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 9 11 24
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -5 -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.............. 5
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 6 6 20
90.00 Outlays........................... 4 6 19
---------------------------------------------------------------------------

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

2005 actual 2006 est. 2007 est.
Achieve an unqualified opinion on
the USDA financial statements....... Unqualified Unqualified Unqualified
Anti-deficiency violations.......... No No No

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 3 4 4
12.1 Civilian personnel benefits..... 1 1 1
25.2 Other services.................. 1 1 15
--------- --------- ----------
99.0 Direct obligations............ 5 6 20
99.0 Reimbursable obligations.......... 4 3 3
99.5 Below reporting threshold......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 10 10 24
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0014-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 48 48 48
Reimbursable:
2001 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, [$16,462,000] $16,936,000. (Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act,
2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Office of the Chief Information
Officer......................... 17 16 17
09.01 Reimbursable program.............. 40 40 40
--------- --------- ----------
10.00 Total new obligations........... 57 56 57
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 57 56 57
23.95 Total new obligations............. -57 -56 -57
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

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

Discretionary:
68.00 Offsetting collections (cash). 16 40 40
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 24
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 40 40 40
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 57 56 57
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -7 2
73.10 Total new obligations............. 57 56 57
73.20 Total outlays (gross)............. -52 -58 -57
73.40 Adjustments in expired accounts
(net)........................... 3
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -24
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 25
--------- --------- ----------
74.40 Obligated balance, end of year.. 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 52 56 57

[[Page 65]]

86.93 Outlays from discretionary
balances........................ 2
--------- --------- ----------
87.00 Total outlays (gross)........... 52 58 57
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -44 -40 -40
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.............. 28
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 17 16 17
90.00 Outlays........................... 7 18 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

Office of the Chief Information Officer

FY 2005 FY 2006 FY 2007
Increase Return on Investment
(ROI) for eGovernment and
Lines of Business (LOB) common
solutions by five percent over
the FY 2006 outcome........... n.a. Est. Baseline 5%
Percent of USDA IT systems
that are certified,
accredited, or otherwise
authenticated as being
properly secured.............. 90% 100% 100%
Percent of identified
mitigation actions completed
in the USDA FISMA Plan of
Action and Milestones......... 75% 90% 95%
Reduce the number of
investments in USDA's IT
portfolio, and increase the
percentage of USDA's total
dollars included in the major
IT investment portfolio....... 400 320 300
Through the use of Earned
Value Management (EVM),
increase the percentage of
USDA IT projects that are
within 10% of cost/schedule/
performance objectives........ Est. Baseline 100% 100%

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 7 7 7
12.1 Civilian personnel benefits..... 1 2 2
25.2 Other services.................. 4 3 3
25.3 Other purchases of goods and
services from Government
accounts...................... 3 2 3
26.0 Supplies and materials.......... 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 16 15 16
99.0 Reimbursable obligations.......... 40 40 40
99.5 Below reporting threshold......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 57 56 57
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0013-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 64 72 72
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 11 7 7
---------------------------------------------------------------------------

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, [$110,072,000]
$108,900,000, 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[: Provided further, That of the funds provided under
this section, the Secretary shall acquire one meter natural color
digital ortho-imagery of the entire state of Utah]. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0113-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program activity........... 122 123 109
09.01 Reimbursable program.............. 23 24 24
--------- --------- ----------
10.00 Total new obligations........... 145 147 133
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 13 14
22.00 New budget authority (gross)...... 145 133 133
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 159 147 133
23.95 Total new obligations............. -145 -147 -133
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 14
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 126 110 109
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -1
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 125 109 109
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 49 24 24

[[Page 66]]

68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -29
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 20 24 24
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 145 133 133
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 68 64 14
73.10 Total new obligations............. 145 147 133
73.20 Total outlays (gross)............. -177 -197 -133
73.45 Recoveries of prior year
obligations..................... -1
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 29
--------- --------- ----------
74.40 Obligated balance, end of year.. 64 14 14
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 145 133 133
86.93 Outlays from discretionary
balances........................ 32 64
--------- --------- ----------
87.00 Total outlays (gross)........... 177 197 133
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -43 -24 -24
88.40 Non-Federal sources........... -6
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -49 -24 -24
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 29
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 125 109 109
90.00 Outlays........................... 128 173 109
---------------------------------------------------------------------------

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)

Direct obligations:

23.3 Communications, utilities, and
miscellaneous charges......... 2 2 2
25.2 Other services.................. 74 49 35
25.3 Other purchases of goods and
services from Government
accounts...................... 34 30 30
26.0 Supplies and materials.......... 7 20 20
31.0 Equipment....................... 5 22 22
--------- --------- ----------
99.0 Direct obligations............ 122 123 109
99.0 Reimbursable obligations.......... 23 24 24
--------- --------- ----------
99.9 Total new obligations........... 145 147 133
---------------------------------------------------------------------------

Intragovernmental funds:

Working Capital Fund

[For necessary expenses of ``Working Capital Fund'' related to the
consequences of Hurricane Katrina, $35,0000,000, to remain available
until expended: Provided, That the amount provided under this heading is
designated as an emergency requirement pursuant to section 402 of H.
Con. Res. 95 (109th Congress), the concurrent resolution on the budget
for fiscal year 2006.] (Emergency Supplemental Appropriations Act to
Address Hurricanes in the Gulf of Mexico and Pandemic Influenza, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Administration.................... 23 28 28
09.02 Communications.................... 8 7 7
09.03 Finance and management............ 175 209 180
09.04 Information technology............ 179 269 277
09.05 Executive secretariat............. 3 3 3
09.06 Corporate systems................. 63 70 70
--------- --------- ----------
09.09 Subtotal, operating expenses.... 451 586 565
09.12 Finance and management............ 2 6 4
09.13 Information technology............ 12 6 8
09.15 Corporate systems................. 14 31 3
--------- --------- ----------
09.19 Subtotal, purchase of equipment. 28 43 15
--------- --------- ----------
10.00 Total new obligations........... 479 629 580
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 107 99 88
22.00 New budget authority (gross)...... 470 618 588
22.22 Unobligated balance transferred
from other accounts............. 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 578 717 676
23.95 Total new obligations............. -479 -629 -580
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 99 88 96
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 13
40.00 Appropriation (PL 109-148,
Division B, Title 1).......... 35
42.00 Transferred from other accounts. 1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 14 35
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 392 583 588
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 64
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 456 583 588
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 470 618 588
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2 -43 -26
73.10 Total new obligations............. 479 629 580
73.20 Total outlays (gross)............. -460 -612 -588
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -64
--------- --------- ----------

[[Page 67]]

74.40 Obligated balance, end of year.. -43 -26 -34
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 460 539 509
86.93 Outlays from discretionary
balances........................ 73 79
--------- --------- ----------
87.00 Total outlays (gross)........... 460 612 588
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -386 -579 -584
88.40 Non-Federal sources........... -6 -4 -4
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -392 -583 -588
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -64
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 14 35
90.00 Outlays........................... 68 29
---------------------------------------------------------------------------

This fund finances by advances or reimbursements certain central
services in the Department of Agriculture, including duplicating and
other visual information services, art and graphics, video services,
supply, centralized accounting systems, centralized automated data
processing systems for payroll, personnel, and related services, voucher
payments services, and Information Technology 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 $45 million as of September 30, 2005. 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)

Personnel compensation:

11.1 Full-time permanent............. 153 164 169
11.3 Other than full-time permanent.. 2 2 2
11.5 Other personnel compensation.... 4 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 159 167 172
12.1 Civilian personnel benefits....... 40 44 46
21.0 Travel and transportation of
persons......................... 9 4 4
22.0 Transportation of things.......... 1 1 1
23.1 Rental payments to GSA............ 5 5 5
23.2 Rental payments to others......... 3 2 2
23.3 Communications, utilities, and
miscellaneous charges........... 47 64 66
24.0 Printing and reproduction......... 1 1
25.2 Other services.................... 163 280 249
26.0 Supplies and materials............ 13 12 13
31.0 Equipment......................... 39 49 21
--------- --------- ----------
99.9 Total new obligations........... 479 629 580
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-4609-0-4-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 2,412 2,965 2,965
---------------------------------------------------------------------------

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, [$20,109,000]
$22,650,000. (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Office of Civil Rights............ 20 20 23
09.01 Reimbursable program.............. 3 5 5
--------- --------- ----------
10.00 Total new obligations........... 23 25 28
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 23 25 28
23.95 Total new obligations............. -23 -25 -28
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 20 20 23
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 5 5
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 3
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 3 5 5
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 23 25 28
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -3
73.10 Total new obligations............. 23 25 28
73.20 Total outlays (gross)............. -20 -25 -28
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -3
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 3
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 20 25 28
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -4 -5 -5
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -3
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 4
----------------------------------------------------------------------------

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

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

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 12 15 15
12.1 Civilian personnel benefits..... 3 3 3
25.2 Other services.................. 4 1 4
25.3 Other purchases of goods and
services from Government
accounts...................... 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 20 20 23
99.0 Reimbursable obligations.......... 2 5 5
99.5 Below reporting threshold......... 1
--------- --------- ----------
99.9 Total new obligations........... 23 25 28
---------------------------------------------------------------------------

[[Page 68]]

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3800-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 144 144 144
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 10 10 10
---------------------------------------------------------------------------

DEPARTMENTAL ADMINISTRATION

Federal Funds

General and special funds:

Departmental Administration

(including transfers of funds)

For Departmental Administration, [$23,103,000] $28,302,000, to
provide for necessary expenses for management support services to
offices of the Department and for general administration, security,
repairs and alterations, and other miscellaneous supplies and expenses
not otherwise provided for and necessary for the practical and efficient
work of the Department: Provided, That this appropriation shall be
reimbursed from applicable appropriations in this Act for travel
expenses incident to the holding of hearings as required by 5 U.S.C.
551-558. (Agriculture, Rural Development, Food and Drug Administration,
and Related Agencies Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.08 Direct program.................... 22 23 28
09.01 Reimbursable program.............. 15 17 17
--------- --------- ----------
10.00 Total new obligations........... 37 40 45
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 38 40 45
23.95 Total new obligations............. -37 -40 -45
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 23 23 28
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 7 17 17
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 8
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 15 17 17
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 38 40 45
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -13 -7 -7
73.10 Total new obligations............. 37 40 45
73.20 Total outlays (gross)............. -36 -40 -44
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -8
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 13
--------- --------- ----------
74.40 Obligated balance, end of year.. -7 -7 -6
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 36 38 42
86.93 Outlays from discretionary
balances........................ 2 2
--------- --------- ----------
87.00 Total outlays (gross)........... 36 40 44
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

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

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -8
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 15
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 23 23 28
90.00 Outlays........................... 16 23 27
---------------------------------------------------------------------------

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 capital management, ethics, occupational safety and
health management, real and personal property management, acquisitions
and contracting, motor vehicle and aircraft management, supply
management, participation of small and disadvantaged businesses,
service-disabled veterans programs, 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)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 15 17 18
12.1 Civilian personnel benefits..... 3 4 4
23.3 Communications, utilities, and
miscellaneous charges......... 1
25.2 Other services.................. 1 1 5
25.3 Other purchases of goods and
services from Government
accounts...................... 2 1 1
--------- --------- ----------
99.0 Direct obligations............ 22 23 28
99.0 Reimbursable obligations.......... 15 16 16
99.5 Below reporting threshold......... 1 1
--------- --------- ----------
99.9 Total new obligations........... 37 40 45
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0120-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 172 233 224
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 67 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.), [$12,000,000] $12,020,000, 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, 2006.)

[[Page 69]]

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 12 12 12
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 12 12 12
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 6 6
22.00 New budget authority (gross)...... 16 12 12
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 18 18 18
23.95 Total new obligations............. -12 -12 -12
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 6 6 6
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 16 12 12
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 18 18 15
73.10 Total new obligations............. 12 12 12
73.20 Total outlays (gross)............. -12 -15 -13
--------- --------- ----------
74.40 Obligated balance, end of year.. 18 15 14
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 11 11 11
86.93 Outlays from discretionary
balances........................ 1 4 2
--------- --------- ----------
87.00 Total outlays (gross)........... 12 15 13
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 16 12 12
90.00 Outlays........................... 11 15 13
---------------------------------------------------------------------------

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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 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, [$187,734,000] $209,814,000, to remain available until
expended, [as follows:] of which $155,851,000 shall be available for
payments to the General Services Administration for rent and the
Department of Homeland Security for building security[, $147,734,000,
and for buildings operations and maintenance, $40,000,000]: Provided,
That 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, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Rental payments to GSA: Non-
recurring repairs............... 127 144 156
00.02 Building operations and
maintenance..................... 45 40 54
00.04 Strategic space plan.............. 15
09.02 Reimbursable program.............. 2 3 3
--------- --------- ----------
10.00 Total new obligations........... 189 187 213
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 25 6 6
22.00 New budget authority (gross)...... 166 187 213
22.10 Resources available from
recoveries of prior year
obligations..................... 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 195 193 219
23.95 Total new obligations............. -189 -187 -213
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 6 6 6
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 164 186 210
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -2
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 163 184 210
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 4 3 3
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -1
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 3 3 3
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 166 187 213
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 19 51 1
73.10 Total new obligations............. 189 187 213
73.20 Total outlays (gross)............. -154 -237 -213
73.45 Recoveries of prior year
obligations..................... -4
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 1
--------- --------- ----------
74.40 Obligated balance, end of year.. 51 1 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 154 185 211
86.93 Outlays from discretionary
balances........................ 52 2
--------- --------- ----------
87.00 Total outlays (gross)........... 154 237 213
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -4 -3 -3
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.................. 163 184 210
90.00 Outlays........................... 151 234 210
---------------------------------------------------------------------------

This account finances the General Services Administration's fees for
rental of space and the Department of Homeland Security for security-
related fees. 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 day to
day operations, repair, improvement and maintenance activities of the
four buildings in the Headquarters complex.

[[Page 70]]

Object Classification (in millions of dollars)

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.......... 127 144 156
23.3 Communications, utilities, and
miscellaneous charges......... 8 4 4
25.2 Other services.................. 44 27 41
--------- --------- ----------
99.0 Direct obligations............ 187 184 210
99.0 Reimbursable obligations.......... 2 3 3
--------- --------- ----------
99.9 Total new obligations........... 189 187 213
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0117-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 80 86 86
---------------------------------------------------------------------------

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, [$9,509,000]
$9,695,000: 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, 2006.)

Program and Financing (in millions of dollars)

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

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 9 10 11
23.95 Total new obligations............. -9 -9 -10
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 9 9 10
Discretionary:

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

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 8 9 10
86.93 Outlays from discretionary
balances........................ 1 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 -1
Against gross budget authority only:

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

Net budget authority and outlays:
89.00 Budget authority.................. 9 9 10
90.00 Outlays........................... 9 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 and to provide
accurate, timely information during an emergency.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 6 6 6
12.1 Civilian personnel benefits..... 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 7 7 7
99.0 Reimbursable obligations.......... 1 1 2
99.5 Below reporting threshold......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 9 9 10
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0150-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 70 80 80
---------------------------------------------------------------------------

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,
[$80,336,000] $82,493,000, 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,
2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 78 79 82
09.01 Reimbursable program.............. 4 3 3
--------- --------- ----------
10.00 Total new obligations........... 82 82 85
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 3 3 4
22.00 New budget authority (gross)...... 81 83 86
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 84 86 90
23.95 Total new obligations............. -82 -82 -85
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 3 4 5
----------------------------------------------------------------------------

[[Page 71]]

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 78 80 82
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -1
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 77 79 82
Discretionary:

68.10 Spending authority from
offsetting collections: Change
in uncollected customer
payments from Federal sources
(unexpired)................... 4 4 4
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 81 83 86
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 6 6 4
73.10 Total new obligations............. 82 82 85
73.20 Total outlays (gross)............. -80 -83 -85
73.40 Adjustments in expired accounts
(net)........................... -1
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -4 -4 -4
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 3 3 3
--------- --------- ----------
74.40 Obligated balance, end of year.. 6 4 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 73 76 78
86.93 Outlays from discretionary
balances........................ 7 7 7
--------- --------- ----------
87.00 Total outlays (gross)........... 80 83 85
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

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

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

Net budget authority and outlays:
89.00 Budget authority.................. 77 79 82
90.00 Outlays........................... 76 79 85
---------------------------------------------------------------------------

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

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 49 50 52
12.1 Civilian personnel benefits..... 15 15 16
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....................... 2 1 1
--------- --------- ----------
99.0 Direct obligations............ 79 79 82
99.0 Reimbursable obligations.......... 3 3 3
--------- --------- ----------
99.9 Total new obligations........... 82 82 85
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0900-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 579 639 660
---------------------------------------------------------------------------

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,
[$39,351,000] $40,647,000. (7 U.S.C. 2201; 2202, 2214a; Agriculture,
Rural Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 36 39 41
09.00 Reimbursable program.............. 1 2 2
--------- --------- ----------
10.00 Total new obligations........... 37 41 43
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 37 41 43
23.95 Total new obligations............. -37 -41 -43
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 36 39 41
Discretionary:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1 2 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 37 41 43
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 3 2 1
73.10 Total new obligations............. 37 41 43
73.20 Total outlays (gross)............. -37 -42 -43
--------- --------- ----------
74.40 Obligated balance, end of year.. 2 1 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 35 39 41
86.93 Outlays from discretionary
balances........................ 2 3 2
--------- --------- ----------
87.00 Total outlays (gross)........... 37 42 43
----------------------------------------------------------------------------

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.................. 36 39 41
90.00 Outlays........................... 36 40 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.

[[Page 72]]

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 27 29 31
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 1
--------- --------- ----------
99.0 Direct obligations............ 36 39 41
99.0 Reimbursable obligations.......... 1 2 2
--------- --------- ----------
99.9 Total new obligations........... 37 41 43
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2300-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 312 319 324
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 8 11 11
---------------------------------------------------------------------------

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, [$75,931,000: Provided, That
none of the funds made available by this Act or any other Act may be
used by the Department of Agriculture to publish, disseminate, or
distribute, internally or externally, Agriculture Information Bulletin
Number 787: Provided further, That of the funds provided to the Economic
Research Service, the Secretary of Agriculture shall use $350,000 to
enter into an agreement for a comprehensive report on the economic
development and current status of the sheep industry in the United
States to be prepared by the National Academy of Sciences] $82,544,000.
(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,
2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 74 75 83
09.00 Reimbursable program.............. 2 2 2
--------- --------- ----------
10.00 Total new obligations........... 76 77 85
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 75 77 85
23.95 Total new obligations............. -76 -77 -85
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 75 76 83
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -1
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 74 75 83
Discretionary:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1 2 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 75 77 85
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 29 29 28
73.10 Total new obligations............. 76 77 85
73.20 Total outlays (gross)............. -75 -78 -84
73.40 Adjustments in expired accounts
(net)........................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 29 28 29
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 58 67 74
86.93 Outlays from discretionary
balances........................ 17 11 10
--------- --------- ----------
87.00 Total outlays (gross)........... 75 78 84
----------------------------------------------------------------------------

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.................. 74 75 83
90.00 Outlays........................... 75 76 82
---------------------------------------------------------------------------

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 2007 Budget request includes an increase of $5 million to
implement a comprehensive data collection and research program to
monitor the changing economic health and well-being of farm and non-farm
households in rural areas; and an increase of $1.6 million 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)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 37 39 40
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 42
12.1 Civilian personnel benefits..... 9 8 8
21.0 Travel and transportation of
persons....................... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
25.2 Other services.................. 4 4 9
25.3 Other purchases of goods and
services from Government
accounts...................... 12 12 14
25.5 Research and development
contracts..................... 5 5 5
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 1 1 1
41.0 Grants, subsidies, and
contributions................. 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 74 75 83
99.0 Reimbursable obligations.......... 2 2 2
--------- --------- ----------
99.9 Total new obligations........... 76 77 85
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1701-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 421 433 434
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 6 6 6
---------------------------------------------------------------------------

[[Page 73]]

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,
[$140,700,000] $152,584,000, of which up to [$29,115,000] $36,582,000
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, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Agricultural estimates............ 102 104 109
00.02 Statistical research and service.. 7 7 7
00.03 Census of Agriculture............. 22 29 37
09.01 Reimbursable program.............. 20 21 21
--------- --------- ----------
10.00 Total new obligations........... 151 161 174
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 3 1
22.00 New budget authority (gross)...... 149 160 174
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 152 161 174
23.95 Total new obligations............. -151 -161 -174
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 129 141 153
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -2
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 128 139 153
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 12 21 21
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 9
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 21 21 21
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 149 160 174
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 15 17 18
73.10 Total new obligations............. 151 161 174
73.20 Total outlays (gross)............. -150 -160 -172
73.40 Adjustments in expired accounts
(net)........................... -1
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -9
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 11
--------- --------- ----------
74.40 Obligated balance, end of year.. 17 18 20
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 126 145 157
86.93 Outlays from discretionary
balances........................ 24 15 15
--------- --------- ----------
87.00 Total outlays (gross)........... 150 160 172
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -20 -18 -18
88.40 Non-Federal sources........... -3 -3 -3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -23 -21 -21
Against gross budget authority only:

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

Net budget authority and outlays:
89.00 Budget authority.................. 128 139 153
90.00 Outlays........................... 129 139 151
---------------------------------------------------------------------------

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 over 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 2007
program includes funding to continue restoration and modernization of
the Agricultural Estimates program. This initiative is designed to
strengthen the quality of published data.

Census of Agriculture.--The Census of Agriculture is conducted every
five years. A proposed increase of $7.25 million due to cyclical
activities will be used to collect data to measure coverage of the
census mail list, prepare census mail packages, and prepare for data
collection activities to occur in FY 2008.

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)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 72 71 75
11.3 Other than full-time permanent 1 1 1
11.5 Other personnel compensation.. 1 1 1
--------- --------- ----------
11.9 Total personnel compensation 74 73 77
12.1 Civilian personnel benefits..... 19 18 18
21.0 Travel and transportation of
persons....................... 4 2 2
22.0 Transportation of things........ 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 4 5 5
25.2 Other services.................. 11 22 31
25.3 Other purchases of goods and
services from Government
accounts...................... 7 9 9
25.7 Operation and maintenance of
equipment..................... 3 3 3
26.0 Supplies and materials.......... 2 2 2
31.0 Equipment....................... 5 5 5
--------- --------- ----------
99.0 Direct obligations............ 130 140 153
99.0 Reimbursable obligations.......... 21 21 21
--------- --------- ----------
99.9 Total new obligations........... 151 161 174
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1801-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 1,017 1,017 1,033
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 106 106 106
---------------------------------------------------------------------------

[[Page 74]]

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, [$1,135,004,000] $1,001,385,000, of which $2,350,000 shall
remain available until expended: 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 the foregoing limitations
shall not apply to the purchase of land at Florence, South Carolina:
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 the Secretary, through the Agricultural Research Service,
or successor, is authorized to lease approximately 40 acres of land at
the Central Plains Experiment Station, Nunn, Colorado, to the Board of
Governors of the Colorado State University System, for its Shortgrass
Steppe Biological Field Station, on such terms and conditions as the
Secretary deems in the public interest: Provided further, That the
Secretary understands that it is the intent of the University to
construct research and educational buildings on the subject acreage and
to conduct agricultural research and educational activities in these
buildings: Provided further, That as consideration for a lease, the
Secretary may accept the benefits of mutual cooperative research to be
conducted by the Colorado State University and the Government at the
Shortgrass Steppe Biological Field Station: Provided further, That the
term of any lease shall be for no more than 20 years, but a lease may be
renewed at the option of the Secretary on such terms and conditions as
the Secretary deems in the public interest: Provided further, That the
Agricultural Research Service may convey all rights and title of the
United States, to a parcel of land comprising 19 acres, more or less,
located in Section 2, Township 18 North, Range 14 East in Oktibbeha
County, Mississippi, originally conveyed by the Board of Trustees of the
Institution of Higher Learning of the State of Mississippi, and
described in instruments recorded in Deed Book 306 at pages 553-554,
Deed Book 319 at page 219, and Deed Book 33 at page 115, of the public
land records of Oktibbeha County, Mississippi, including facilities, and
fixed equipment, to the Mississippi State University, Starkville,
Mississippi, in their ``as is'' condition, when vacated by the
Agricultural Research Service: Provided further, That 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,
2006.)
[For an additional amount for ``Salaries and Expenses'', related to
the detection of and response to highly pathogenic avian influenza,
including research and development, $7,000,000, to remain available
until September 30, 2007: Provided, That the amount provided under this
heading is designated as an emergency requirement pursuant to section
402 of H. Con. Res. 95 (109th Congress), the concurrent resolution on
the budget for fiscal year 2006.] (Emergency Supplemental Appropriations
Act to Address Hurricanes in the Gulf of Mexico and Pandemic Influenza,
2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Product Quality/Value Added....... 104 105 94
00.02 Livestock Production.............. 83 85 67
00.03 Crop Production................... 195 201 153
00.04 Food Safety....................... 95 96 85
00.05 Livestock Protection.............. 64 73 66
00.06 Crop Protection................... 186 187 155
00.07 Human nutrition research.......... 84 85 85
00.08 Environmental Stewardship......... 217 223 172
00.09 National Agricultural Library..... 23 22 25
00.10 Repair and maintenance of
facilities...................... 18 18 18
00.11 Collaborative research program.... 6
00.12 Homeland security................. 30 36 81
00.13 Construction/Miscellaneous Fees... 3 2
09.00 Reimbursable program.............. 74 80 80
--------- --------- ----------
10.00 Total new obligations........... 1,182 1,213 1,081
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 4 2
22.00 New budget authority (gross)...... 1,183 1,211 1,081
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,187 1,213 1,081
23.95 Total new obligations............. -1,182 -1,213 -1,081
23.98 Unobligated balance expiring or
withdrawn....................... -3
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,111 1,135 1,001
40.00 Appropriation................... 7
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -11
40.35 Appropriation permanently
reduced....................... -9
42.00 Transferred from other accounts. 6
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,108 1,131 1,001
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 21 80 80
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 54
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 75 80 80
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,183 1,211 1,081
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 314 303 311
73.10 Total new obligations............. 1,182 1,213 1,081
73.20 Total outlays (gross)............. -1,185 -1,205 -1,081
73.40 Adjustments in expired accounts
(net)........................... -5
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -54
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 51
--------- --------- ----------
74.40 Obligated balance, end of year.. 303 311 311
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 913 963 833
86.93 Outlays from discretionary
balances........................ 272 242 248
--------- --------- ----------
87.00 Total outlays (gross)........... 1,185 1,205 1,081
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -54 -56 -56
88.40 Non-Federal sources........... -13 -24 -24
--------- --------- ----------

[[Page 75]]

88.90 Total, offsetting
collections (cash)........ -67 -80 -80
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -54
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 46
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,108 1,131 1,001
90.00 Outlays........................... 1,117 1,125 1,001
---------------------------------------------------------------------------

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 2007, 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) and
chronic wasting disease (CWD); air and water quality; biobased products
and bioenergy; sequencing and bioinformatics; obesity; genetic
resources; controlling invasive species; climate change; soybean and
wheat stem rust; avian influenza; foot and mouth disease; genomics;
agricultural information services and cyber security. Consistent with
the 2006 Budget, the 2007 Budget also proposes to eliminate funding for
unrequested Congressional earmarks added to the Service since 2001. In
2005, the Service submitted 88 new patent applications, participated in
55 new Cooperative research and development agreements (CRADAs),
licensed 33 new products, and developed 65 new plant varieties to
release to industry for further development and marketing.

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

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

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

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

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

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

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

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

Library and Information Services.--Timely, relevant information is
an essential raw material for the research process

[[Page 76]]

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. Also, the permanent preservation of USDAs and the
Nation's agricultural intellectual heritage is a key national
responsibility. The National Agricultural Library (NAL) is mandated to
fulfill these roles and is a national resource for all users of
agricultural information. NAL's work in collecting, preserving and
ensuring access to agricultural information is fundamental to the
continued wellbeing and growth of U.S. agriculture, and the development
of food supplies for the nation and world.

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

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

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

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 476 489 500
11.3 Other than full-time permanent 13 13 13
11.5 Other personnel compensation.. 34 35 36
--------- --------- ----------
11.9 Total personnel compensation 523 537 549
12.1 Civilian personnel benefits..... 139 143 146
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......... 40 40 33
24.0 Printing and reproduction....... 2 2 1
25.1 Advisory and assistance services 1 1 1
25.2 Other services.................. 7 8 4
25.3 Other purchases of goods and
services from Government
accounts...................... 2 2 1
25.4 Operation and maintenance of
facilities.................... 32 32 22
25.5 Research and development
contracts..................... 166 168 97
25.7 Operation and maintenance of
equipment..................... 9 10 7
25.8 Subsistence and support of
persons....................... 1 1 1
26.0 Supplies and materials.......... 94 96 68
31.0 Equipment....................... 44 45 32
32.0 Land and structures............. 6 6 5
41.0 Grants, subsidies, and
contributions................. 20 20 13
--------- --------- ----------
99.0 Direct obligations............ 1,108 1,133 1,001
99.0 Reimbursable obligations.......... 74 80 80
--------- --------- ----------
99.9 Total new obligations........... 1,182 1,213 1,081
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1400-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 8,532 8,538 8,538
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 163 163 163
---------------------------------------------------------------------------

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, [$131,195,000]
$8,415,000, to remain available until expended. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2006.)
[For an additional amount for ``Buildings and Facilities'',
$9,200,000, to remain available until September 30, 2007, for necessary
expenses related to the consequences of Hurricane Katrina: Provided,
That the amount provided under this heading is designated as an
emergency requirement pursuant to section 402 of H. Con. Res. 95 (109th
Congress), the concurrent resolution on the budget for fiscal year
2006.] (Emergency Supplemental Appropriations Act to Address Hurricanes
in the Gulf of Mexico and Pandemic Influenza, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Building and facilities projects.. 119 124 95
--------- --------- ----------
10.00 Total new obligations........... 119 124 95
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 306 373 388
22.00 New budget authority (gross)...... 186 139 8
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 492 512 396
23.95 Total new obligations............. -119 -124 -95
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 373 388 301
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 188 131 8
40.00 Appropriation................... 9
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -1
40.35 Appropriation permanently
reduced....................... -2
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 186 139 8
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 149 137 135
73.10 Total new obligations............. 119 124 95
73.20 Total outlays (gross)............. -131 -126 -118
--------- --------- ----------
74.40 Obligated balance, end of year.. 137 135 112
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 19 24 1
86.93 Outlays from discretionary
balances........................ 112 102 117
--------- --------- ----------
87.00 Total outlays (gross)........... 131 126 118
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 186 139 8
90.00 Outlays........................... 131 126 118
---------------------------------------------------------------------------

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 2007 Budget request provides for additional funding
required for the construction of the Chinese Garden at the U.S. National
Arboretum, Washington, DC.

[[Page 77]]

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1401-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
25.2 Other services.................... 56 60 49
25.4 Operation and maintenance of
facilities...................... 62 63 45
31.0 Equipment......................... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 119 124 95
---------------------------------------------------------------------------

Trust Funds

Miscellaneous Contributed Funds

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8214-0-7-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............
--------- --------- ----------
01.99 Balance, start of year............
Receipts:
02.20 Deposits of miscellaneous
contributed funds, Science and
Education Administration........ 15 18 18
Appropriations:
05.00 Miscellaneous contributed funds... -15 -18 -18
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Miscellaneous contributed funds... 16 20 20
--------- --------- ----------
10.00 Total new obligations........... 16 20 20
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 15 14 12
22.00 New budget authority (gross)...... 15 18 18
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 30 32 30
23.95 Total new obligations............. -16 -20 -20
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 14 12 10
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.26 Appropriation (trust fund)...... 15 18 18
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 8 5 6
73.10 Total new obligations............. 16 20 20
73.20 Total outlays (gross)............. -19 -19 -22
--------- --------- ----------
74.40 Obligated balance, end of year.. 5 6 4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 14 9 13
86.98 Outlays from mandatory balances... 5 10 9
--------- --------- ----------
87.00 Total outlays (gross)........... 19 19 22
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 15 18 18
90.00 Outlays........................... 19 19 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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 6 7 7
12.1 Civilian personnel benefits....... 1 1 1
21.0 Travel and transportation of
persons......................... 1 1 1
25.2 Other services.................... 2 2 2
25.5 Research and development contracts 3 5 5
26.0 Supplies and materials............ 3 4 4
--------- --------- ----------
99.9 Total new obligations........... 16 20 20
---------------------------------------------------------------------------

Personnel Summary

COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION SERVICE

Federal Funds

General and special funds:

Integrated Activities

For the integrated research, education, and extension grants
programs, including necessary administrative expenses, [$55,792,000]
$19,120,000, 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), $45,792,000, including $12,867,000
for the water quality program, $14,847,000 for the food safety program,
$4,167,000 for the regional pest management centers program, $4,464,000
for the Food Quality Protection Act risk mitigation program for major
food crop systems, $1,389,000 for the crops affected by Food Quality
Protection Act implementation, $3,106,000 for the methyl bromide
transition program, and $1,874,000 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] $990,000; for grants programs
authorized under section 2(c)(1)(B) of Public Law 89-106, as amended,
[$744,000] $2,475,000, to remain available until September 30, [2007]
2008 for the critical issues program[,]; and [$1,334,000] $1,378,000 for
the regional rural development centers program; $2,277,000 for asian
soybean rust; and [$10,000,000] $12,000,000 for the 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, [2007] 2008. (7 U.S.C. 450i(c)(1)(B),
3292b, 3351, 7626; Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.10 Organic Research and Extension
Init............................ 3 3 3
00.20 Water quality..................... 13 13
00.30 Food safety....................... 15 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................. 9 10 12
00.80 Asian Soybean Rust................ 2
00.86 International science and
education grants................ 1 1 1
00.87 Rural development centers......... 1 1 1
00.88 Organic transition................ 2 2
00.89 Critical issues--plant and animal
diseases........................ 1 1 3
--------- --------- ----------
10.00 Total new obligations........... 58 58 22
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 2 2
22.00 New budget authority (gross)...... 58 58 22
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 60 60 24
23.95 Total new obligations............. -58 -58 -22
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 2 2 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 58 56 19
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 58 55 19
Mandatory:

60.00 Appropriation................... 3 3
--------- --------- ----------

[[Page 78]]

70.00 Total new budget authority
(gross)....................... 58 58 22
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 118 126 132
73.10 Total new obligations............. 58 58 22
73.20 Total outlays (gross)............. -50 -52 -51
--------- --------- ----------
74.40 Obligated balance, end of year.. 126 132 103
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3 7 6
86.93 Outlays from discretionary
balances........................ 47 43 42
86.98 Outlays from mandatory balances... 2 3
--------- --------- ----------
87.00 Total outlays (gross)........... 50 52 51
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 58 58 22
90.00 Outlays........................... 50 52 51
---------------------------------------------------------------------------

Under the Integrated Activities account, research, education and/or
extension grants are awarded for competitive and non-competitive
programs. In 2007, 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 $42.3
million, but the grants will be administered through the National
Research Initiative (NRI). 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.

Asian Soybean Rust.--Funding supports the development of a pest risk
management tool for Asian soybean rust and other pathogens of legumes.
Development of the risk management system will provide stakeholders with
effective decision support for managing pests and diseases of legumes
crops, particularly soybean rust.

Food and agriculture defense initiative (homeland security).--The
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 2007 Budget includes an
increase to enhance agricultural defense. Additional funding for these
laboratories is included in the Animal and Plant Health Inspection
Service.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1502-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 1 1
41.0 Grants, subsidies, and
contributions................... 57 57 22
--------- --------- ----------
99.9 Total new obligations........... 58 58 22
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1502-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

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

Change in obligated balances:
72.40 Obligated balance, start of year.. 62 18
73.20 Total outlays (gross)............. -42 -18
73.40 Adjustments in expired accounts
(net)........................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 18
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 42 18
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 42 18
---------------------------------------------------------------------------

1998 Research Act.--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,
[$676,849,000] $566,300,000, as follows: to carry out the provisions of
the Hatch Act of 1887 (7 U.S.C. 361a-i), [$178,757,000] $176,920,000, of
which, notwithstanding the provisions of section 3(b) and (c) of the
Hatch Act of 1887 (7 U.S.C. 361c(b) and (c)) and after allocation of the
amount provided under section 3(c)(4) of such act (7 U.S.C. 361c(c)(4)),
$78,560,000 shall be allocated in the same proportions as funds were
allocated under sections 3(b), 3(c)(1) and (2) of such act (7 U.S.C.
361c(b) and (c)(1) and (2)) for fiscal year 2006, and $98,360,000 shall
be available for continued funding of current grants and competitive
award of grants with terms not to exceed five years under the Multistate
Research Fund established under section 3(c)(3) of such act (7 U.S.C.
361c(c)(3)); for grants for cooperative forestry research (16 U.S.C.
582a through a-7), [$22,230,000] $21,983,000, of which $9,011,000 shall
be allocated to eligible institutions on the same basis as such funds
were allocated in FY 2006 and $12,972,000 shall be available for
competitive grants to institutions eligible under 16 U.S.C. 582a-1 under
the terms specified in subsections (c) through (f) of section 1232 of
Public Law 101-624 (16 U.S.C. 582a-8(c) through (f)) subject to a 100
percent match by the recipient; for payments to the 1890 land-grant
colleges, including Tuskegee University and West Virginia State
University (7 U.S.C. 3222), [$37,591,000] $37,868,000, 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)), [$128,223,000]
$3,258,000; for special grants for agricultural research on improved
pest control (7 U.S.C. 450i(c)), [$14,798,000] $14,856,000; for
competitive research grants (7 U.S.C. 450i(b)), [$183,000,000]
$247,500,000; [for the support of animal health and disease programs (7
U.S.C. 3195), $5,057,000; for supplemental and alternative crops and
products (7 U.S.C. 3319d), $1,187,000; for grants for research pursuant
to the Critical Agricultural Materials Act (7 U.S.C. 178 et seq.),
$1,102,000, 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), [$1,039,000] $1,067,000, 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)), [$3,738,000] $4,455,000, to remain available until
expended (7 U.S.C. 2209b); [for a veterinary medicine loan repayment
program pursuant to section 1415A of the National Agricultural Research,
Extension, and Teaching Policy Act of 1977 (7 U.S.C. 3101 et seq.),
$500,000;] for higher education challenge grants (7 U.S.C. 3152(b)(1)),
[$5,478,000] $5,445,000; for a higher education multicultural scholars
program (7 U.S.C. 3152(b)(5)), $988,000, 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), [$6,000,000] $5,588,000;

[[Page 79]]

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, [$3,250,000] $2,967,000; for a secondary agriculture
education program and 2-year post-secondary education (7 U.S.C.
3152(j)), [$1,000,000] $990,000; for aquaculture grants (7 U.S.C. 3322),
[$3,968,000] $3,956,000; for sustainable agriculture research and
education (7 U.S.C. 5811), [$12,400,000] $9,138,000; 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,
[$12,312,000] $12,375,000, 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] $2,227,000; 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] $495,000; and for necessary expenses of
Research and Education Activities, [$50,471,000] $9,224,000, of which
[$2,587,000] $2,723,000 for the Research, Education, and Economics
Information System and [$2,051,000] $2,151,000 for the Electronic Grants
Information System, are to remain available until expended: Provided,
That 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 further, 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,
2006.)
[For an additional amount for ``Research and Education Activities'',
related to the detection of and response to highly pathogenic avian
influenza, $1,500,000, to remain available until September 30, 2007:
Provided, That the amount provided under this heading is designated as
an emergency requirement pursuant to section 402 of H. Con. Res. 95
(109th Congress), the concurrent resolution on the budget for fiscal
year 2006.] (Emergency Supplemental Appropriations Act to Address
Hurricanes in the Gulf of Mexico and Pandemic Influenza, 2006.)

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] $11,880,000, to
remain available until expended. (Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies Appropriations Act, 2006.)

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1500-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............ 55 67 79
--------- --------- ----------
01.99 Balance, start of year............ 55 67 79
Receipts:
02.40 Earnings on investments, Native
American institutions endowment
fund............................ 3 3 3
--------- --------- ----------
04.00 Total: Balances and collections... 58 70 82
Appropriations:
05.00 Research and education activities. -3 -3 -3
05.01 Research and education activities. 12 12 12
--------- --------- ----------
05.99 Total appropriations............ 9 9 9
--------- --------- ----------
07.99 Balance, end of year.............. 67 79 91
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Payments under the Hatch Act...... 179 177 177
00.02 Cooperative forestry research..... 22 22 22
00.03 Payments to 1890 colleges and
Tuskegee Univ. and West Virginia
State College................... 37 37 38
00.04 Special research grants........... 156 164 32
00.05 National research initiative
competitive grants.............. 173 276 248
00.06 Animal health and disease research 5 5
00.07 Federal administration............ 43 50 9
00.08 Higher education.................. 35 41 40
00.09 Native American Institutions
Endowment Fund.................. 14 3 3
09.00 Reimbursable program.............. 14 18 17
--------- --------- ----------
10.00 Total new obligations........... 678 793 586
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 110 105 5
22.00 New budget authority (gross)...... 673 693 586
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 783 798 591
23.95 Total new obligations............. -678 -793 -586
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 105 5 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 673 689 578
40.00 Appropriation................... 2
40.20 Appropriation (special fund).... 3 3 3
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -7
40.35 Appropriation permanently
reduced....................... -5
40.45 Portion precluded from
obligation (-)................ -12 -12 -12
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 659 675 569
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 18 17
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 14
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 14 18 17
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 673 693 586
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 665 758 959
73.10 Total new obligations............. 678 793 586
73.20 Total outlays (gross)............. -593 -592 -536
73.40 Adjustments in expired accounts
(net)........................... 4
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -14
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 18
--------- --------- ----------
74.40 Obligated balance, end of year.. 758 959 1,009
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 217 364 309
86.93 Outlays from discretionary
balances........................ 376 228 227
--------- --------- ----------
87.00 Total outlays (gross)........... 593 592 536
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -16 -18 -17
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -14
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 16
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 659 675 569
90.00 Outlays........................... 578 574 519
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 52 64 76
92.02 Total investments, end of year:
Federal securities: Par value... 64 76 88
---------------------------------------------------------------------------

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

Payments under the Hatch Act.--Funds under the Hatch Act are
allocated on a formula basis to agricultural experiment stations of the
land-grant colleges in the 50 States,

[[Page 80]]

the District of Columbia, Puerto Rico, Guam, the Virgin Islands,
American Samoa, Micronesia, and Northern Mariana Islands. The Budget
proposes that beginning in 2007, an alternative approach be taken to
expand and continuously re-compete the Hatch Act multi-state awards by
redirecting a portion of the formula funds to nationally, competitively
awarded multi-state/multi-institutional projects.

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. The 2007 Budget proposes an alternative
approach under this program to redirect a portion of the formula funds
to nationally, competitively awarded multi-state/multi-institutional
projects.

Animal health and disease research.--Funds, distributed by formula,
support livestock and poultry disease research in approximately sixty-
seven colleges of veterinary medicine and in eligible agricultural
experiment stations. No funding is proposed for this program in FY 2007.

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. The 2007 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.
In 2007, the Budget proposes that Section 406 activities, formerly
supported under the Integrated account, be supported within the Research
and Education account and administered under the NRI.

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, Secondary Agriculture
Education and 2-year Post-secondary and Resident Instruction Grants for
Insular Areas 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 2007 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, 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.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 18 19 19
12.1 Civilian personnel benefits..... 4 5 5
21.0 Travel and transportation of
persons....................... 2 2 1
25.1 Advisory and assistance services 1
25.2 Other services.................. 2 4 2
25.5 Research and development
contracts..................... 3 4 2
26.0 Supplies and materials.......... 1
31.0 Equipment....................... 1
41.0 Grants, subsidies, and
contributions................. 635 738 540
--------- --------- ----------
99.0 Direct obligations............ 664 775 569
99.0 Reimbursable obligations.......... 14 18 17
--------- --------- ----------
99.9 Total new obligations........... 678 793 586
---------------------------------------------------------------------------

[[Page 81]]

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1500-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 229 240 242
Reimbursable:
2001 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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1 1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1 1 1
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 5 5 5
--------- --------- ----------
74.40 Obligated balance, end of year.. 5 5 5
----------------------------------------------------------------------------

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

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 2007.

Extension Activities

For payments to States, the District of Columbia, Puerto Rico, Guam,
the Virgin Islands, Micronesia, Northern Marianas, and American Samoa,
[$455,955,000] $430,727,000, as follows: payments for cooperative
extension work under the Smith-Lever Act, to be distributed under
sections 3(b) and 3(c) of said Act, and under section 208(c) of Public
Law 93-471, for retirement and employees' compensation costs for
extension agents, [$275,730,000] $273,181,000; payments for extension
work at the 1994 Institutions under the Smith-Lever Act (7 U.S.C.
343(b)(3)), [$3,273,000] $3,240,000; payments for the nutrition and
family education program for low-income areas under section 3(d) of the
Act, [$62,634,000] $62,280,000; payments for the pest management program
under section 3(d) of the Act, [$9,960,000] $10,651,000; [payments for
the farm safety program under section 3(d) of the Act, $4,563,000;]
payments for New Technologies for Ag Extension under Section 3(d) of the
Act, [$1,500,000] $2,970,000; 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), [$16,777,000]
$16,609,000, to remain available until expended; payments for youth-at-
risk programs under section 3(d) of the Smith-Lever Act, [$7,728,000]
$8,396,000; for youth farm safety education and certification extension
grants, to be awarded competitively under section 3(d) of the Act,
[$444,000] $494,000; payments for carrying out the provisions of the
Renewable Resources Extension Act of 1978 (16 U.S.C. 1671 et seq.),
[$4,060,000] $4,052,000; payments for [Indian reservation agents]
federally-recognized Tribes Extension Program under section 3(d) of the
Smith-Lever Act, [$1,996,000] $2,970,000; payments for sustainable
agriculture programs under section 3(d) of the Act, [$4,067,000]
$3,754,000; [payments for rural health and safety education as
authorized by section 502(i) of Public Law 92-419 (7 U.S.C. 2662(i)),
$1,965,000;] 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,
[$33,868,000] $34,073,000, 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, $2,000,000;] and for
necessary expenses of Extension Activities, [$25,390,000] $8,057,000.
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Smith-Lever Act, 3(b) and 3(c).... 275 273 273
00.02 Youth at risk..................... 7 8 8
00.04 Expanded food and nutrition
education program (EFNEP)....... 58 62 62
00.05 Pest management................... 10 10 11
00.06 Farm Safety....................... 4 4
00.09 Indian reservation extension
agents.......................... 2 2 3
00.13 Payments to 1890 colleges and
Tuskegee Univ. and West Virginia
State College................... 33 33 34
00.15 Renewable resources extension act. 4 4 4
00.16 Federal administration............ 22 25 8
00.19 1890 facilities (section 1447).... 17 17 17
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 2
00.26 Risk Management Education......... 5 5 5
00.27 New Technologies for Ag. Extension 1 3
09.00 Reimbursable program.............. 17 17 17
--------- --------- ----------
10.00 Total new obligations........... 467 473 453
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 467 473 453
23.95 Total new obligations............. -467 -473 -453
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 449 456 431
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -5
40.35 Appropriation permanently
reduced....................... -3
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 446 451 431
Mandatory:

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

Discretionary:
68.00 Offsetting collections (cash). 17 17
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 16
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 16 17 17
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 467 473 453
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 309 330 334
73.10 Total new obligations............. 467 473 453
73.20 Total outlays (gross)............. -453 -469 -454
73.40 Adjustments in expired accounts
(net)........................... -3
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -16
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 26
--------- --------- ----------
74.40 Obligated balance, end of year.. 330 334 333
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 227 288 276
86.93 Outlays from discretionary
balances........................ 222 177 174
86.98 Outlays from mandatory balances... 4 4 4
--------- --------- ----------
87.00 Total outlays (gross)........... 453 469 454
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -14 -17 -17
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -16
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 14
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 451 456 436

[[Page 82]]

90.00 Outlays........................... 440 452 437
---------------------------------------------------------------------------

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 2007, 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 for Ag Extension, Renewable Resources
Extension Act, 1994 (Native American) institutions, and 1890 colleges
and Tuskegee University and West Virginia State University facilities.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 10 11 12
12.1 Civilian personnel benefits..... 2 2 2
21.0 Travel and transportation of
persons....................... 1 1 1
25.2 Other services.................. 2 3 3
25.5 Research and development
contracts..................... 2 2 1
41.0 Grants, subsidies, and
contributions................. 433 437 417
--------- --------- ----------
99.0 Direct obligations............ 450 456 436
99.0 Reimbursable obligations.......... 17 17 17
--------- --------- ----------
99.9 Total new obligations........... 467 473 453
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0502-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 177 180 182
---------------------------------------------------------------------------

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),
[$6,000,000] $6,930,000, to remain available until expended.
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.10 Direct Program Activity........... 6 6 7
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 6 6 7
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 6 6 7
23.95 Total new obligations............. -6 -6 -7
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 6 6 7
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 10 11 11
73.10 Total new obligations............. 6 6 7
73.20 Total outlays (gross)............. -5 -6 -7
--------- --------- ----------
74.40 Obligated balance, end of year.. 11 11 11
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1 6 7
86.93 Outlays from discretionary
balances........................ 4
--------- --------- ----------
87.00 Total outlays (gross)........... 5 6 7
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 6 6 7
90.00 Outlays........................... 5 6 7
---------------------------------------------------------------------------

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. The 2007 Budget proposes an increase for section 2501 grants.

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0601-0-1-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 3 3 3
---------------------------------------------------------------------------

[[Page 83]]

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, [$815,461,000] $945,153,000, of which
[$4,140,000] $4,126,600 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 [$39,000,000] $16,009,290 shall be used for the [boll weevil
eradication] Cotton Pests program for cost share purposes or for debt
retirement for active eradication zones; of which [$33,340,000]
$33,107,000 shall be available for a National Animal Identification
program; of which $56,730,000 shall be used to conduct a surveillance
and preparedness program for highly pathogenic avian influenza:
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.
In fiscal year [2006] 2007, 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, 2006.)
[For an additional amount for ``Salaries and Expenses'', related to
the detection of and response to highly pathogenic avian influenza,
$71,500,000, to remain available until September 30, 2007: Provided,
That the amount provided under this heading is designated as an
emergency requirement pursuant to section 402 of H. Con. Res. 95 (109th
Congress), the concurent resolution on the budget for fiscal year 2006.]
(Emergency Supplemental Appropriations Act to Address Hurricanes in the
Gulf of Mexico and Pandemic Influenza, 2006.)

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1600-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............ 88 87 102
--------- --------- ----------
01.99 Balance, start of year............ 88 87 102
Receipts:
02.20 Fees, Animal welfare user fee
account--legislative proposal
subject to PAYGO................ 8
02.60 1990 food, agricultural quarantine
inspection fees................. 338 363 368
--------- --------- ----------
02.99 Total receipts and collections.. 338 363 376
--------- --------- ----------
04.00 Total: Balances and collections... 426 450 478
Appropriations:
05.00 Salaries and expenses............. -339 -348 -353
05.01 Salaries and expenses--legislative
proposal not subject to PAYGO... -8
--------- --------- ----------
05.99 Total appropriations............ -339 -348 -361
--------- --------- ----------
07.99 Balance, end of year.............. 87 102 117
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Pest and disease exclusion........ 162 293 321
00.02 Plant and animal health monitoring 185 252 324
00.03 Pest and disease management
programs........................ 351 343 340
00.04 Animal care....................... 17 18 12
00.05 Scientific and technical services. 74 79 94
00.06 Contingencies..................... 6 4 4
00.07 Emergency program funding......... 279 90
00.08 Information Technology
Infrastructure.................. 6 5 5
00.10 Physical/Operational Security..... 1 5
--------- --------- ----------
01.00 Total direct program............ 1,080 1,085 1,105
09.01 Reimbursable program.............. 213 285 88
--------- --------- ----------
10.00 Total new obligations........... 1,293 1,370 1,193
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 307 248 179
22.00 New budget authority (gross)...... 1,210 1,301 1,173
22.10 Resources available from
recoveries of prior year
obligations..................... 34
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,551 1,549 1,352
23.95 Total new obligations............. -1,293 -1,370 -1,193
23.98 Unobligated balance expiring or
withdrawn....................... -10
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 248 179 159
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 815 815 945
40.00 Appropriation................... 72
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -8
40.35 Appropriation permanently
reduced....................... -7
42.00 Transferred from other accounts. 169
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 977 879 945
Mandatory:

60.20 Appropriation (special fund).... 339 348 353
61.00 Transferred to other accounts... -208 -211 -214
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 131 137 139
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 72 285 89
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 32
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 104 285 89
Mandatory:
69.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,210 1,301 1,173
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 436 480 467
73.10 Total new obligations............. 1,293 1,370 1,193
73.20 Total outlays (gross)............. -1,190 -1,383 -1,174
73.40 Adjustments in expired accounts
(net)........................... -8
73.45 Recoveries of prior year
obligations..................... -34
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -30
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 13
--------- --------- ----------
74.40 Obligated balance, end of year.. 480 467 486
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 814 1,021 892
86.93 Outlays from discretionary
balances........................ 255 193 143
86.97 Outlays from new mandatory
authority....................... 105 130 132
86.98 Outlays from mandatory balances... 16 39 7
--------- --------- ----------

[[Page 84]]

87.00 Total outlays (gross)........... 1,190 1,383 1,174
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -17 -230 -30
88.40 Non-Federal sources........... -64 -55 -59
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -81 -285 -89
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -30
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 9
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,108 1,016 1,084
90.00 Outlays........................... 1,110 1,098 1,085
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2005 actual 2006 est. 2007 est.
Enacted/requested:
Budget Authority............ 1,108 1,016 1,084
Outlays..................... 1,109 1,098 1,085
Legislative proposal, not subject to
PAYGO:
Budget Authority............ 8
Outlays..................... 8
------------------------------------
Total:
Budget Authority............ 1,108 1,016 1,092
Outlays..................... 1,109 1,098 1,093
====================================

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 2007 Budget proposes substantial increases to enhance
overseas surveillance and eradication efforts such as the Mediterranean
Fruit Fly, Foot-and-Mouth Disease, and Screwworm 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 2007 Budget includes
significant increases in monitoring programs to enhance agricultural
defense. The request includes $56,730,000 for an early detection system
and preparedness plan for highly pathogenic avian influenza.

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 2007 Budget includes increases
related to diseases such as citrus canker, emerald ash borer, low
pathogenic avian influenza, sudden oak death and tuberculosis.

Animal care.--The Agency conducts regulatory activities that 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. The request includes an
additional $2 million to fund activities related to birds, rats and
mice.

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 to support programs of the Agency and its
cooperators at the State, national, and international levels. The 2007
Budget includes funding to enhance agricultural defense and for biotech
regulatory services.

The 2007 Budget also proposes significant increases to continue
enhanced biosecurity efforts and laboratory network activities initially
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)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 314 305 307
11.3 Other than full-time permanent 5 5 5
11.5 Other personnel compensation.. 5 3 3
--------- --------- ----------
11.9 Total personnel compensation 324 313 315
12.1 Civilian personnel benefits..... 90 88 90
13.0 Benefits for former personnel... 2 1 1
21.0 Travel and transportation of
persons....................... 27 28 28
22.0 Transportation of things........ 11 10 10
23.1 Rental payments to GSA.......... 4 4 5
23.2 Rental payments to others....... 1 1 2
23.3 Communications, utilities, and
miscellaneous charges......... 21 21 22
24.0 Printing and reproduction....... 3 2 2
25.2 Other services.................. 449 492 494
26.0 Supplies and materials.......... 49 47 48
31.0 Equipment....................... 20 21 21

[[Page 85]]

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................. 42 35 45
42.0 Other insurance claims and
indemnities................... 19 4 4
43.0 Interest and dividends.......... 2 2 2
--------- --------- ----------
99.0 Direct obligations............ 1,080 1,085 1,105
99.0 Reimbursable obligations.......... 213 285 88
--------- --------- ----------
99.9 Total new obligations........... 1,293 1,370 1,193
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1600-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 6,095 6,025 6,548
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 833 833 833
---------------------------------------------------------------------------

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)

Obligations by program activity:
00.04 Animal care....................... 8
--------- --------- ----------
01.00 Total direct program............ 8
--------- --------- ----------
10.00 Total new obligations........... 8
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (special fund).... 8
----------------------------------------------------------------------------

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

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 8
----------------------------------------------------------------------------

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

Legislation will be submitted 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)

Personnel compensation:

11.1 Full-time permanent............. 7
11.3 Other than full-time permanent.. 1
--------- --------- ----------
11.9 Total personnel compensation.. 8
--------- --------- ----------
99.9 Total new obligations........... 8
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1600-2-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 85
---------------------------------------------------------------------------

Buildings and Facilities

For plans, construction, repair, preventive maintenance,
environmental support, improvement, extension, alteration, and purchase
of fixed equipment or facilities, as authorized by 7 U.S.C. 2250, and
acquisition of land as authorized by 7 U.S.C. 428a, [$4,996,000]
$6,431,040, to remain available until expended. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program activity........... 4 5 6
--------- --------- ----------
10.00 Total new obligations........... 4 5 6
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 9 10 10
22.00 New budget authority (gross)...... 5 5 6
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 14 15 16
23.95 Total new obligations............. -4 -5 -6
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 10 10 10
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 5 5 6
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 7 5 5
73.10 Total new obligations............. 4 5 6
73.20 Total outlays (gross)............. -5 -5 -5
--------- --------- ----------
74.40 Obligated balance, end of year.. 5 5 6
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2 1 1
86.93 Outlays from discretionary
balances........................ 3 4 4
--------- --------- ----------
87.00 Total outlays (gross)........... 5 5 5
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 5 5 6
90.00 Outlays........................... 5 5 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 2007 Budget proposes $6.4 million for this program, which
consists of repairs, alterations, preventive maintenance, and
renovations for currently owned APHIS facilities.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1601-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
25.2 Other services.................... 3 5 6
26.0 Supplies and materials............ 1
--------- --------- ----------
99.9 Total new obligations........... 4 5 6
---------------------------------------------------------------------------

[[Page 86]]

Trust Funds

Miscellaneous Trust Funds

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9971-0-7-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............
--------- --------- ----------
01.99 Balance, start of year............
Receipts:
02.20 Deposits of miscellaneous
contributed funds, APHIS........ 15 14 14
Appropriations:
05.00 Miscellaneous trust funds......... -15 -14 -14
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program activity........... 27 14 14
--------- --------- ----------
10.00 Total new obligations........... 27 14 14
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 24 12 12
22.00 New budget authority (gross)...... 15 14 14
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 39 26 26
23.95 Total new obligations............. -27 -14 -14
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 12 12 12
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.26 Appropriation (trust fund)...... 15 14 14
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -9 1 1
73.10 Total new obligations............. 27 14 14
73.20 Total outlays (gross)............. -16 -14 -14
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 1 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 12 14 14
86.98 Outlays from mandatory balances... 4
--------- --------- ----------
87.00 Total outlays (gross)........... 16 14 14
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 15 14 14
90.00 Outlays........................... 16 14 14
---------------------------------------------------------------------------

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

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

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 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.................... 4 1 1
26.0 Supplies and materials............ 11 1 1
31.0 Equipment......................... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 27 14 14
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9971-0-7-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 150 150 150
---------------------------------------------------------------------------

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), [$837,756,000]
$757,470,000, of which no less than [$753,252,000] $673,754,000 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 2006 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
$4,000,000, available until September 30, 2007, 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 not to exceed $565,000 is for construction of a
laboratory sample receiving facility at the Russell Research Center in
Athens, Georgia: 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,
2006.)

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3700-0-1-554 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............
--------- --------- ----------
01.99 Balance, start of year............
Receipts:
02.20 Fees, Food safety inspection user
fee account--legislative
proposal subject to PAYGO....... 105
Appropriations:
05.00 Salaries and expenses--legislative
proposal not subject to PAYGO... -105
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 815 831 758
09.01 Reimbursable program.............. 99 120 123
--------- --------- ----------
10.00 Total new obligations........... 914 951 881
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 5 26 24
22.00 New budget authority (gross)...... 938 949 881
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 943 975 905
23.95 Total new obligations............. -914 -951 -881
23.98 Unobligated balance expiring or
withdrawn....................... -3
--------- --------- ----------

[[Page 87]]

24.40 Unobligated balance carried
forward, end of year.......... 26 24 24
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 824 838 758
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -9
40.35 Appropriation permanently
reduced....................... -7
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 817 829 758
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 111 120 123
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 10
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 121 120 123
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 938 949 881
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 101 82 77
73.10 Total new obligations............. 914 951 881
73.20 Total outlays (gross)............. -920 -956 -885
73.40 Adjustments in expired accounts
(net)........................... -8
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -10
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 5
--------- --------- ----------
74.40 Obligated balance, end of year.. 82 77 73
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 843 877 814
86.93 Outlays from discretionary
balances........................ 77 79 71
--------- --------- ----------
87.00 Total outlays (gross)........... 920 956 885
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -2 -2 -2
88.40 Non-Federal sources........... -110 -118 -121
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -112 -120 -123
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.............. 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 817 829 758
90.00 Outlays........................... 808 836 762
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2005 actual 2006 est. 2007 est.
Enacted/requested:
Budget Authority............ 817 829 758
Outlays..................... 808 836 762
Legislative proposal, not subject to
PAYGO:
Budget Authority............ 105
Outlays..................... 105
------------------------------------
Total:
Budget Authority............ 817 829 863
Outlays..................... 808 836 867
====================================

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 2007 Budget proposes a $34 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, risk-based inspection, and
information technology.

FEDERALLY FUNDED INSPECTION ACTIVITIES

2005 actual 2006 est. 2007 est.
Federally inspected establishments:
Slaughter plants............ 113 112 110
Processing plants........... 3,993 3,990 3,995
Combination slaughter and
processing plants......... 908 906 902
Talmadge-Aiken plants....... 361 360 355
Import establishments....... 130 130 130
Egg plants.................. 71 70 69
Other plants................ 674 670 665
Federally inspected and passed
production (millions of pounds):
Meat slaughter.............. 45,633 45,700 45,700
Poultry slaughter........... 55,324 55,400 55,400
Egg products................ 4,300 4,300 4,300
Import/export activity (millions of
pounds):
Meat and poultry imported... 4,302 4,302 4,302
Meat and poultry exported... 9,050 10,380 10,050
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... 24,021 21,620 19,500
Corrective actions completed 2,127 2,340 2,575
Product Testing (samples analyzed):
Food chemistry.............. 2,695 2,700 2,700
Food microbiology........... 79,316 85,500 89,500
Chemical residues........... 35,297 36,000 36,000
Antibiotic residues......... 119,607 120,000 120,000
Pathology samples........... 4,727 5,000 5,000
Egg Products:
Food microbiology........... 1,660 1,700 1,700
Chemical residues........... 1,184 1,200 1,200
Consumer Education and public
outreach:
Meat and poultry hotline
calls received............ 87,747 96,521 101,347
Website visits.............. 7,079,021 8,029,017 8,880,467
Electronic messages received 47,174 49,532 52,009
Publications distributed.... 1,000,790 1,019,304 1,070,270
Personal contacts (meetings,
workshops, etc.).......... 75,364 81,900 85,995
E-mail alert service
subscribers............... 17,174 26,437 34,509
Epidemiological Investigations:
Cooperative efforts with
State and public health
offices................... 72 75 75
Illnesses reported and
treated ^b...... 1,941 2,000 2,000
Field Automation and Information
Management Project:
Number of computers to be
provided to federal field
inspection staff.......... 1,062 1,100 1,400
Number of computers to be
provided to state field
inspection staff.......... 163 175 175
^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.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 449 452 407
11.3 Other than full-time permanent 15 15 13
11.5 Other personnel compensation.. 23 23 21
--------- --------- ----------
11.9 Total personnel compensation 487 490 441
12.1 Civilian personnel benefits..... 155 155 140
13.0 Benefits for former personnel... 2 2 2
21.0 Travel and transportation of
persons....................... 38 39 34
22.0 Transportation of things........ 5 5 4
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......... 14 16 12
24.0 Printing and reproduction....... 1 1 1
25.1 Advisory and assistance services 3 3 3
25.2 Other services.................. 30 35 37
25.3 Other purchases of goods and
services from Government
accounts...................... 16 18 15
25.4 Operation and maintenance of
facilities.................... 1 1 1
25.7 Operation and maintenance of
equipment..................... 1 1 1
26.0 Supplies and materials.......... 11 12 13
31.0 Equipment....................... 5 6 11
41.0 Grants, subsidies, and
contributions................. 43 44 40
42.0 Insurance claims and indemnities 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 815 831 758
99.0 Reimbursable obligations.......... 99 120 123
--------- --------- ----------

[[Page 88]]

99.9 Total new obligations........... 914 951 881
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3700-0-1-554 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 9,373 9,421 7,921
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 68 70 70
---------------------------------------------------------------------------

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)

Obligations by program activity:
00.01 Direct program.................... 105
--------- --------- ----------
10.00 Total new obligations........... 105
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 105
23.95 Total new obligations............. -105
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (12-3700-0-N-0500) 105
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 105
73.20 Total outlays (gross)............. -105
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 105
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 105
90.00 Outlays........................... 105
---------------------------------------------------------------------------

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 60
11.3 Other than full-time permanent.. 2
11.5 Other personnel compensation.... 3
--------- --------- ----------
11.9 Total personnel compensation.. 65
12.1 Civilian personnel benefits....... 20
21.0 Travel and transportation of
persons......................... 5
22.0 Transportation of things.......... 1
23.3 Communications, utilities, and
miscellaneous charges........... 2
25.1 Advisory and assistance services.. 1
25.2 Other services.................... 5
25.3 Other purchases of goods and
services from Government
accounts........................ 2
26.0 Supplies and materials............ 2
31.0 Equipment......................... 2
--------- --------- ----------
99.9 Total new obligations........... 105
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3700-2-1-554 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 1,500
---------------------------------------------------------------------------

Trust Funds

Expenses and Refunds, Inspection and Grading of Farm Products

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8137-0-7-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............
--------- --------- ----------
01.99 Balance, start of year............
Receipts:
02.20 Deposits of fees, Inspection and
grading of farm products, Food
Safety and Quality Service...... 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)

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

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

New budget authority (gross), detail:
Mandatory:

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

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

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

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

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

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 3 1 1
11.5 Other personnel compensation.... 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 4 2 2

[[Page 89]]

12.1 Civilian personnel benefits....... 1 1 1
25.2 Other services.................... -2
--------- --------- ----------
99.9 Total new obligations........... 3 3 3
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-8137-0-7-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 23 23 23
---------------------------------------------------------------------------

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, [$38,443,000] $21,844,000:
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, 2006.)

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2400-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............
--------- --------- ----------
01.99 Balance, start of year............
Receipts:
02.20 Fees, Grain inspection, packers
and stockyards user fee
account--legislative proposal
subject to PAYGO................ 20
Appropriations:
05.00 Salaries and expenses--legislative
proposal not subject to PAYGO... -20
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Standardization................... 4 4 1
00.02 Compliance........................ 6 7 8
00.03 Methods development............... 7 7 8
00.04 Packers and stockyards program.... 19 20 5
--------- --------- ----------
10.00 Total new obligations........... 36 38 22
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 37 38 22
23.95 Total new obligations............. -36 -38 -22
23.98 Unobligated balance expiring or
withdrawn....................... -1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 37 38 22
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 10 9 10
73.10 Total new obligations............. 36 38 22
73.20 Total outlays (gross)............. -37 -37 -25
--------- --------- ----------
74.40 Obligated balance, end of year.. 9 10 7
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 31 31 18
86.93 Outlays from discretionary
balances........................ 6 6 7
--------- --------- ----------
87.00 Total outlays (gross)........... 37 37 25
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 37 38 22
90.00 Outlays........................... 36 37 25
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2005 actual 2006 est. 2007 est.
Enacted/requested:
Budget Authority............ 37 38 22
Outlays..................... 37 37 25
Legislative proposal, not subject to
PAYGO:
Budget Authority............ 20
Outlays..................... 20
------------------------------------
Total:
Budget Authority............ 37 38 42
Outlays..................... 37 37 45
====================================

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

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

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

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

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

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

[[Page 90]]

MAIN WORKLOAD FACTORS

2005 actual 2006 est. 2007 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..................... 49 50 50
On-site investigations........ 3 3 3
Designations renewed.......... 23 19 19
Registration certificates
issued........................ 99 100 100
Investigations................ 1,550 1,600 1,700
Market agencies/dealers
registered.................... 5,569 5,550 5,550
Stockyards posted............. 1,443 1,440 1,435
Slaughtering and processing
packers subject to the Act
(estimated)................... 6,000 6,000 6,000
Distributors, brokers, and
dealers subject to the Act
(estimated)................... 6,800 6,800 6,800
Poultry operations subject to
the Act....................... 202 202 202

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2400-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 22 23 13
12.1 Civilian personnel benefits....... 6 6 3
21.0 Travel and transportation of
persons......................... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 1 1
25.2 Other services.................... 4 5 4
26.0 Supplies and materials............ 1 1
31.0 Equipment......................... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 36 38 22
---------------------------------------------------------------------------

Personnel Summary

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)

Obligations by program activity:
00.01 Standardization................... 4
00.04 Packers and stockyards program.... 16
--------- --------- ----------
10.00 Total new obligations........... 20
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 20
23.95 Total new obligations............. -20
23.98 Unobligated balance expiring or
withdrawn....................... -1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (special fund).... 20
----------------------------------------------------------------------------

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

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 20
----------------------------------------------------------------------------

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

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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 13
12.1 Civilian personnel benefits....... 3
23.3 Communications, utilities, and
miscellaneous charges........... 1
25.2 Other services.................... 3
--------- --------- ----------
99.9 Total new obligations........... 20
---------------------------------------------------------------------------

Personnel Summary

Public enterprise funds:

Limitation on Inspection and Weighing Services Expenses

Not to exceed $42,463,000 (from fees collected) shall be obligated
during the current fiscal year for inspection and weighing services:
Provided, That if grain export activities require additional supervision
and oversight, or other uncontrollable factors occur, this limitation
may be exceeded by up to 10 percent with notification to the Committees
on Appropriations of both Houses of Congress. (7 U.S.C. 71, 74-79, 84-
87, 1621-27; Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

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.......... 3 3 3
22.00 New budget authority (gross)...... 37 42 42
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 40 45 45
23.95 Total new obligations............. -37 -42 -42
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 3 3 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Spending authority from offsetting
collections:

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.. -1 -2 -2
73.10 Total new obligations............. 37 42 42
73.20 Total outlays (gross)............. -37 -42 -42
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. -2 -2 -2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 37 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..................

[[Page 91]]

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 2015.

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 6 delegated States and
51 designated State and private agencies. The Agency provides an appeal
service of original grain inspections and a registration system for
grain exporting firms. Through support from the Association of American
Railroads and user fees, GIPSA conducts a railroad track scale testing
program. In addition, the agency provides grading services, on request,
for rice and grain related products under the authority of the
Agricultural Marketing Act of 1946 (AMA).

2005 actual 2006 est. 2007 est.
Export grain inspected and/or
weighed (million metric tons):
By Federal personnel........ 69.9 73.9 83.2
By delegated States......... 32.7 34.4 37.0
Quantity of grain inspected
(all official inspections)
domestically million metric
tons.......................... 137.0 139.0 136.7
Number of inspections and
reinspections:
By Federal personnel........ 98,593 100,000 100,000
By delegated state/official
agency licenses........... 2,754,257 3,000,000 3,200,000
Number of appeals............. 1,716 1,700 1,700
Number of appeals carried to
the Board of Appeals and
Review........................ 404 400 400
Quantity of rice inspected
(million metric tons)......... 3.0 3.1 3.1
Quantity of rice exports
(million metric tons)......... 3.5 3.8 3.7

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 20 22 22
11.3 Other than full-time permanent.. 1 1 1
11.5 Other personnel compensation.... 5 6 6
--------- --------- ----------
11.9 Total personnel compensation.. 26 29 29
12.1 Civilian personnel benefits....... 5 6 6
21.0 Travel and transportation of
persons......................... 1 1 1
23.1 Rental payments to GSA............ 1 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1
25.2 Other services.................... 2 3 3
26.0 Supplies and materials............ 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 37 42 42
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-4050-0-3-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 353 353 353
---------------------------------------------------------------------------

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, [$75,376,000] $81,497,790, 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,
2006.)

limitation on administrative expenses

Not to exceed [$65,667,000] $62,211,000 (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 and Drug Administration,
and Related Agencies Appropriations Act, 2006.)

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2500-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............
--------- --------- ----------
01.99 Balance, start of year............
Receipts:
02.20 Standards development fees,
Standards development and
promotion board oversight user
fee account--legislative
proposal subject to PAYGO....... 2
02.21 Promotion board oversight fees,
Standards development and
promotion board oversight user
fee account--legislative
proposal subject to PAYGO....... 12
--------- --------- ----------
02.99 Total receipts and collections.. 14
Appropriations:
05.00 Marketing services--legislative
proposal not subject to PAYGO... -2
05.01 Marketing services--legislative
proposal subject to PAYGO....... -12
--------- --------- ----------
05.99 Total appropriations............ -14
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Market news service............... 31 31 32
00.02 Inspection and standardization.... 7 7 8
00.03 Market protection and promotion... 31 30 38
00.04 Wholesale market development...... 3 3 3
00.05 Transportation services........... 3 4 4
09.01 Reimbursable program.............. 55 69 65
--------- --------- ----------
10.00 Total new obligations........... 130 144 150
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 25 27 27
22.00 New budget authority (gross)...... 132 144 147
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 157 171 174
23.95 Total new obligations............. -130 -144 -150
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 27 27 24
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 76 75 82
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 75 75 82
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 58 69 65
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -1
--------- --------- ----------

[[Page 92]]

68.90 Spending authority from
offsetting collections
(total discretionary)..... 57 69 65
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 132 144 147
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 18 21 30
73.10 Total new obligations............. 130 144 150
73.20 Total outlays (gross)............. -126 -135 -147
73.40 Adjustments in expired accounts
(net)........................... -1
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 1
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 21 30 33
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 115 135 138
86.93 Outlays from discretionary
balances........................ 11 9
--------- --------- ----------
87.00 Total outlays (gross)........... 126 135 147
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -1 -3 -3
88.40 Non-Federal sources........... -57 -66 -62
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -58 -69 -65
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.................. 75 75 82
90.00 Outlays........................... 69 66 82
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2005 actual 2006 est. 2007 est.
Enacted/requested:
Budget Authority............ 75 75 82
Outlays..................... 68 66 82
Legislative proposal, not subject to
PAYGO:
Budget Authority............ 2
Outlays..................... 2
Legislative proposal, subject to
PAYGO:
Budget Authority............ 12
Outlays..................... 12
------------------------------------
Total:
Budget Authority............ 75 75 96
Outlays..................... 68 66 96
====================================

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

2005 actual 2006 est. 2007 est.
Percentage of reports released
on time....................... 95% 95% 95%

COTTON AND TOBACCO USER FEE PROGRAM

2005 actual 2006 est. 2007 est.

Cotton classed (samples in
millions)..................... 24 23 22
Tobacco graded (million
pounds)....................... 436 6 6
Imported tobacco inspected
(million kilograms)........... 384 417 450

FEDERALLY FUNDED INSPECTION AND PROCUREMENT ACTIVITIES

2005 actual 2006 est. 2007 est.

States and Commonwealths with
cooperative agreements........ 40 40 40
Percentage of noncomplying
shell egg lots that are
reprocessed or diverted....... 100% 100% 100%

STANDARDIZATION ACTIVITIES

2005 actual 2006 est. 2007 est.
International and U.S.
standards in effect, end of
fiscal year................... 583 590 592
Number of commodities covered. 221 222 230

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, avocados, lamb,
mangos and peanuts; (2) the Federal Seed Act; and (3) the administration
of the Capper-Volstead Act and the Agricultural Fair Practices Act.

The pesticide recordkeeping program monitors compliance of private
certified applicators with Federal regulations requiring them to keep
records of restricted pesticides used in agricultural production.

The pesticide data program develops comprehensive, statistically
defensible information on pesticide residues in food to improve
government dietary risk procedures.

Federal seed inspectors conduct tests on seed samples to help ensure
truthful labeling of agricultural and vegetable seeds sold in interstate
commerce.

The Capper-Volstead Act and the Agricultural Fair Practices Act
protect producers against discriminatory practices by handlers, permit
producers to engage in cooperative efforts, and ensure that such
cooperatives do not engage in practices that monopolize or restrain
trade.

The national organic program certifies that organically produced
food products meet national standards.

MARKET PROTECTION AND PROMOTION ACTIVITIES

2005 actual 2006 est. 2007 est.
Pesticide data program:
Number of analyses performed 148,664 120,000 125,000
Percentage of sampling and
analysis goal............. 165% 100% 100%
Pesticide recordkeeping:
Number of State/Federal
Inspections conducted..... 3,900 4,200 4,500
Percentage of sampling goal
attained.................. 103% 100% 100%
Seed Act:
Interstate investigations:
Completed................. 470 450 450
Pending................... 375 350 350
Seed samples tested......... 2,870 2,610 2,815
Percentage of cases
submitted that are
completed................. 118% 100% 100%
Plant Variety Protection Act:
Percentage of application
processing goal completed. 100% 100% 100%

[[Page 93]]

Number of applications
received.................. 351 300 325
Certificates of protection
issued.................... 279 325 325
Research and promotion
collections (dollars in
millions)..................... 423 479 488
Percentage of board budgets
and marketing plans approved
within time frame goal........ 98% 98% 96%

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

2005 actual 2006 est. 2007 est.
Number of projects completed.. 10 10 10

TRANSPORTATION SERVICES ACTIVITIES

2005 actual 2006 est. 2007 est.
Number of projects completed.. 11 11 12

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 30 35 36
11.3 Other than full-time permanent 3 3 3
--------- --------- ----------
11.9 Total personnel compensation 33 38 39
12.1 Civilian personnel benefits..... 8 10 10
21.0 Travel and transportation of
persons....................... 2 1 2
23.2 Rental payments to others....... 2 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 3 1 1
24.0 Printing and reproduction....... 1
25.2 Other services.................. 2 5 14
25.3 Other purchases of goods and
services from Government
accounts...................... 22 16 14
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 2 2 2
--------- --------- ----------
99.0 Direct obligations............ 75 75 85
99.0 Reimbursable obligations.......... 55 69 65
--------- --------- ----------
99.9 Total new obligations........... 130 144 150
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2500-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 475 492 470
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 628 596 596
---------------------------------------------------------------------------

Marketing Services

(Legislative proposal, not subject to PAYGO)

In addition, such sums as may be deposited to the Standards
Development and Promotion Board Oversight 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)

Obligations by program activity:
Direct program:

00.02 Inspection and standardization.. 2
--------- --------- ----------
10.00 Total new obligations (object
class 11.1)................... 2
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (special fund,
Standards development fees)... 2
----------------------------------------------------------------------------

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

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2
----------------------------------------------------------------------------

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

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

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2500-2-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 24
---------------------------------------------------------------------------

Marketing Services

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.06 Administrative expenses......... 12
--------- --------- ----------
10.00 Total new obligations........... 12
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 12
23.95 Total new obligations............. -12
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.20 Appropriation (special fund,
Promotion board oversight
fees)......................... 12
----------------------------------------------------------------------------

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

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

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

Legislation will be proposed to permit the collection of fees for
federal oversight of industry funded and operated promotion boards.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2500-4-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 8
12.1 Civilian personnel benefits....... 2
25.2 Other services.................... 2
--------- --------- ----------
99.9 Total new obligations........... 12
---------------------------------------------------------------------------

[[Page 94]]

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2500-4-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 74
---------------------------------------------------------------------------

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] $1,333,530. (Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act,
2006.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2501-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program activity........... 10 11 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 10 11 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 10 11 1
23.95 Total new obligations............. -10 -11 -1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 10 11 1
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 5 8 16
73.10 Total new obligations............. 10 11 1
73.20 Total outlays (gross)............. -7 -3 -8
--------- --------- ----------
74.40 Obligated balance, end of year.. 8 16 9
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3 3
86.93 Outlays from discretionary
balances........................ 4 8
--------- --------- ----------
87.00 Total outlays (gross)........... 7 3 8
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 10 11 1
90.00 Outlays........................... 6 3 8
---------------------------------------------------------------------------

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

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5070-0-2-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............
--------- --------- ----------
01.99 Balance, start of year............
Receipts:
02.60 Deposits, Perishable Agricultural
Commodities Act fund............ 7 7 7
Appropriations:
05.00 Perishable Agricultural
Commodities Act fund............ -7 -7 -7
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

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

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 24 21 18
22.00 New budget authority (gross)...... 7 7 7
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 31 28 25
23.95 Total new obligations............. -10 -10 -10
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 21 18 15
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

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

Change in obligated balances:
72.40 Obligated balance, start of year.. 3 2 5
73.10 Total new obligations............. 10 10 10
73.20 Total outlays (gross)............. -11 -7 -7
--------- --------- ----------
74.40 Obligated balance, end of year.. 2 5 8
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 7 7 7
86.98 Outlays from mandatory balances... 4
--------- --------- ----------
87.00 Total outlays (gross)........... 11 7 7
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 7 7 7
90.00 Outlays........................... 11 7 7
---------------------------------------------------------------------------

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

2005 actual 2006 est. 2007 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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 6 6 6
12.1 Civilian personnel benefits....... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1

[[Page 95]]

25.3 Other purchases of goods and
services from Government
accounts........................ 2 2 2
--------- --------- ----------
99.9 Total new obligations........... 10 10 10
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-5070-0-2-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 89 91 91
---------------------------------------------------------------------------

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, [including not
less than $20,000,000 for replacement of a system to support commodity
purchases,] 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 [$16,055,000]
$4,106,250 for formulation and administration of marketing agreements
and orders pursuant to the Agricultural Marketing Agreement Act of 1937
and the Agricultural Act of 1961.

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5209-0-2-605 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............ 10,724 11,618 12,903
--------- --------- ----------
01.99 Balance, start of year............ 10,724 11,618 12,903
Receipts:
02.40 General fund payment, Funds for
strengthening markets, income,
and supply (section 32)......... 1 1
02.60 30 percent of customs duties,
funds for strengthening markets,
income and supply (section 32].. 6,946 7,766 8,680
--------- --------- ----------
02.99 Total receipts and collections.. 6,946 7,767 8,681
--------- --------- ----------
04.00 Total: Balances and collections... 17,670 19,385 21,584
Appropriations:
05.00 Funds for strengthening markets,
income, and supply (section 32). -6,052 -6,482 -6,876
--------- --------- ----------
07.99 Balance, end of year.............. 11,618 12,903 14,708
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

Commodity program payments:
00.01 Child nutrition program
purchases................... 399 465 465
00.02 Emergency surplus removal..... 149 461 436
00.03 Direct Payments............... 5 200
00.04 State option contract......... 5 5
00.05 Removal of defective
commodities................. 1 1
00.06 Disaster Relief............... 41 34
00.07 Direct Payments, Hurricane
Relief...................... 274 250
00.08 Deobligations of Prior Year
Obligations................. -24
--------- --------- ----------
00.91 Subtotal, Commodity program
payments.................... 844 1,416 907
01.01 Administrative expenses........... 26 47 12
--------- --------- ----------
01.92 Total direct program............ 870 1,463 919
09.11 Reimbursable program.............. 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 871 1,464 920
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 408 286
22.00 New budget authority (gross)...... 749 1,178 1,216
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,157 1,464 1,216
23.95 Total new obligations............. -871 -1,464 -920
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 286 296
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.20 Appropriation (special fund).... 6,052 6,482 6,876
60.36 Unobligated balance permanently
reduced....................... -163 -38
61.00 Transferred to other accounts... -5,231 -5,267 -5,661
62.00 Transferred from other accounts. 90
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 748 1,177 1,215
Mandatory:

69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1 1 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 749 1,178 1,216
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 45 63 63
73.10 Total new obligations............. 871 1,464 920
73.20 Total outlays (gross)............. -853 -1,464 -915
--------- --------- ----------
74.40 Obligated balance, end of year.. 63 63 68
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 400 1,114 851
86.98 Outlays from mandatory balances... 453 350 64
--------- --------- ----------
87.00 Total outlays (gross)........... 853 1,464 915
----------------------------------------------------------------------------

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.................. 748 1,177 1,215
90.00 Outlays........................... 852 1,463 914
---------------------------------------------------------------------------

In FY 2007, the Administration is proposing fees to offset the
majority of mandatory Section 32 funding for oversight of Marketing
Agreements and Orders (MA&O). Because of delays associated with
collections and reimbursements, the fees are not anticipated to cover
the full cost of administrative oversight activity in the first year. As
a result, a small portion of mandatory funding is necessary and is
reflected by the modified limitation on administrative funding.
Elsewhere receipts collected will be made available to the Marketing
Service account to fund the balance of this activity.

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. A portion of retained funds are used to
purchase commodities that are distributed to schools as part of the
child nutrition program entitlements. Funds are also 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 develop, remaining unobligated balances may be authorized to
stabilize market conditions through surplus removal. Surplus commodities
diverted from normal channels of commerce are distributed to nutrition
assistance programs.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 14 15 7
12.1 Civilian personnel benefits..... 3 4 2
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......... 2 2 2
25.2 Other services.................. 4 4 2
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...... 841 1,432 900

[[Page 96]]

31.0 Equipment....................... 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 870 1,463 919
99.0 Reimbursable obligations.......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 871 1,464 920
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-5209-0-2-605 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 123 138 64
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 13 11 11
---------------------------------------------------------------------------

Trust Funds

Expenses and Refunds, Inspection and Grading of Farm Products

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8015-0-7-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............ 3 2 2
--------- --------- ----------
01.99 Balance, start of year............ 3 2 2
Receipts:
02.00 Payments from general fund, Wool
research, development, and
promotion trust fund............ 2 2 2
02.20 Deposits of fees, inspection and
grading of farm products, AMS... 120 124 124
--------- --------- ----------
02.99 Total receipts and collections.. 122 126 126
--------- --------- ----------
04.00 Total: Balances and collections... 125 128 128
Appropriations:
05.00 Expenses and refunds, inspection
and grading of farm products.... -123 -126 -124
--------- --------- ----------
07.99 Balance, end of year.............. 2 2 4
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Dairy products.................... 6 6 6
00.02 Fruits and vegetables............. 62 55 55
00.03 Meat grading...................... 25 23 23
00.04 Poultry products.................. 34 28 28
00.05 Miscellaneous agricultural
commodities..................... 14 14 14
--------- --------- ----------
10.00 Total new obligations........... 141 126 126
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 51 35 37
22.00 New budget authority (gross)...... 125 128 126
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 176 163 163
23.95 Total new obligations............. -141 -126 -126
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 35 37 37
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.26 Appropriation (trust fund)...... 123 126 124
62.00 Transferred from other accounts. 2 2 2
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 125 128 126
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 16 26 24
73.10 Total new obligations............. 141 126 126
73.20 Total outlays (gross)............. -131 -128 -126
--------- --------- ----------
74.40 Obligated balance, end of year.. 26 24 24
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 125 123 121
86.98 Outlays from mandatory balances... 6 5 5
--------- --------- ----------
87.00 Total outlays (gross)........... 131 128 126
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 125 128 126
90.00 Outlays........................... 131 128 126
---------------------------------------------------------------------------

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

2005 actual 2006 est. 2007 est.
Weighted average cost per cwt.
(1990 index).................. $0.21 $0.21 $0.21

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 66 65 65
11.3 Other than full-time permanent.. 6 6 6
11.5 Other personnel compensation.... 10 8 8
--------- --------- ----------
11.9 Total personnel compensation.. 82 79 79
12.1 Civilian personnel benefits....... 24 18 18
13.0 Benefits for former personnel..... 1 1 1
21.0 Travel and transportation of
persons......................... 7 7 7
22.0 Transportation of things.......... 1
23.2 Rental payments to others......... 2 2 2
23.3 Communications, utilities, and
miscellaneous charges........... 3 2 2
25.2 Other services.................... 12 9 9
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 2
41.0 Grants, subsidies, and
contributions................... 2 2 2
--------- --------- ----------
99.9 Total new obligations........... 141 126 126
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-8015-0-7-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 1,531 1,583 1,582
---------------------------------------------------------------------------

Milk Market Orders Assessment Fund

Program and Financing (in millions of dollars)

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

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

[[Page 97]]

24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

69.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 49
----------------------------------------------------------------------------

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

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 49
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

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

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

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 10,
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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 30
12.1 Civilian personnel benefits....... 8
21.0 Travel and transportation of
persons......................... 3
23.2 Rental payments to others......... 3
23.3 Communications, utilities, and
miscellaneous charges........... 2
25.2 Other services.................... 1
26.0 Supplies and materials............ 1
31.0 Equipment......................... 1
--------- --------- ----------
99.9 Total new obligations........... 49
---------------------------------------------------------------------------

Personnel Summary

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), [$77,048,000] $80,797,000: 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, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program activity........... 70 76 81
--------- --------- ----------
10.00 Total new obligations........... 70 76 81
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 70 76 81
23.95 Total new obligations............. -70 -76 -81
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 72 77 82
40.35 Appropriation permanently
reduced....................... -1 -1 -1
41.00 Transferred to other accounts... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 70 76 81
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 18 20 22
73.10 Total new obligations............. 70 76 81
73.20 Total outlays (gross)............. -67 -74 -80
73.40 Adjustments in expired accounts
(net)........................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 20 22 23
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 50 53 57
86.93 Outlays from discretionary
balances........................ 17 21 23
--------- --------- ----------
87.00 Total outlays (gross)........... 67 74 80
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 70 76 81
90.00 Outlays........................... 67 74 80
---------------------------------------------------------------------------

This appropriation provides funding for the administrative and
operating expenses of the Risk Management Agency (RMA). From this
appropriations it is expected that RMA will fund data mining. 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.

[[Page 98]]

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 38 38 41
11.3 Other than full-time permanent.. 1 1 1
--------- --------- ----------
11.9 Total personnel compensation.. 39 39 42
12.1 Civilian personnel benefits....... 9 10 10
21.0 Travel and transportation of
persons......................... 2 2 3
23.2 Rental payments to others......... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges........... 1 1 1
25.2 Other services.................... 16 19 21
26.0 Supplies and materials............ 1 2 1
31.0 Equipment......................... 1 2 2
--------- --------- ----------
99.9 Total new obligations........... 70 76 81
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2707-0-1-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
1001 Civilian full-time equivalent
employment...................... 502 553 568
---------------------------------------------------------------------------

Corporations

The following corporations and agencies are hereby authorized to
make expenditures, within the limits of funds and borrowing authority
available to each such corporation or agency and in accord with law, and
to make contracts and commitments without regard to fiscal year
limitations as provided by section 104 of the Government Corporation
Control Act as may be necessary in carrying out the programs set forth
in the budget for the current fiscal year for such corporation or
agency, except as hereinafter provided. (Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act,
2006.)

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, 2006.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4085-0-3-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Indemnities....................... 2,030 3,047 3,147
00.02 A&O Reimbursements................ 869 852 940
00.03 ARPA Obligations.................. 45 75 75
09.01 Reimbursable Program--Indemnities. 1,236 927 1,024
--------- --------- ----------
10.00 Total new obligations........... 4,180 4,901 5,186
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2,057 1,355 671
22.00 New budget authority (gross)...... 3,478 4,217 5,155
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,535 5,572 5,826
23.95 Total new obligations............. -4,180 -4,901 -5,186
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1,355 671 640
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 2,242 3,294 4,136
61.00 Transferred to other accounts... -5 -5 -5
62.00 Transferred from other accounts. 5
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 2,242 3,289 4,131
Mandatory:

69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1,236 928 1,024
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 3,478 4,217 5,155
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 186 247 1,000
73.10 Total new obligations............. 4,180 4,901 5,186
73.20 Total outlays (gross)............. -4,119 -4,148 -4,621
--------- --------- ----------
74.40 Obligated balance, end of year.. 247 1,000 1,565
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 2,062 2,793 3,301
86.98 Outlays from mandatory balances... 2,057 1,355 1,320
--------- --------- ----------
87.00 Total outlays (gross)........... 4,119 4,148 4,621
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -1,236 -928 -1,024
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 2,242 3,289 4,131
90.00 Outlays........................... 2,883 3,220 3,597
---------------------------------------------------------------------------

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. 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
producers 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 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 the 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.

Revenue protection for all products is provided by extending
traditional multi-peril crop insurance protection, based on actual
production history, to include price variability. Revenue insurance
helps to ensure a certain level of annual income. 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. For 2006, AGR-Lite
covers whole farm revenue up to $1 million, 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 15 additional States.

[[Page 99]]

During 2005, RMA continued as one of its highest priorities the
contracted development of new insurance programs for pasture, rangeland
and forage. In addition, RMA awarded contracts to evaluate and pursue
alternatives for addressing situations of declining actual production
history yields due to successive years of yield loss. Also, RMA awarded
20 research and development partnership agreements totaling over $8
million to develop financial and risk management decision support tools,
and for funding technical and scientific innovations for better disease
management and to increase revenues in both crop and livestock programs.
Funding of over $6 million was made to support enhancements to the
national drought monitor to make producers aware of risk management
tools and their role in decision-making at the farm level, and to
develop GIS based tools and applications for producer use via a web-site
interface. Additionally RMA funding of approximately $2.5 million
provided producers with a decision support tool for production practices
to manage soybean rust and to help in the establishment of sentinel
plots to assist in keeping the nation informed on the movement of the
rust disease.

In crop year 2005, 246 million acres were insured, with an estimated
$3,950 million in total premium income, including $2,344 million in
premium subsidy.

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 expired in 2005. The
2007 Budget includes $3.6 million to continue data mining and data
warehousing activities. These funds are requested in the Administrative
and Operating Account.

The 2007 Budget includes a proposal to implement a participation fee
in the Federal crop insurance program. The proposed participation fee
would initially be used to fund modernization of the existing
information technology (IT) system and would supplement the annual
appropriation provided by Congress. Subsequently, the fee would be
shifted to maintenance and would be expected to reduce the annual
appropriation. The participation fee would be charged to insurance
companies participating in the Federal crop insurance program; based on
a rate of about one-half cent per dollar of premium sold, the fee is
expected to generate an amount not to exceed $15 million annually. In
recent years, the Administration has included several proposals in the
Budget to modernize the IT system used by RMA to administer the Federal
crop insurance program. The existing IT system is nearing the end of its
useful life and recent years have seen increases in ``down-time''
resulting from system failures. Over the years, numerous changes have
occurred in the Federal crop insurance program; including, the
development of revenue and livestock insurance which have greatly
expanded the program and taxed the IT system due to new requirements,
such as daily pricing, which were not envisioned when the existing IT
system was designed. These new requirements contribute to increased
maintenance costs and limit RMA's ability to comply with Congressional
mandates pertaining to data reconciliation with the Farm Service Agency.
Additionally, the 2007 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 2008 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 2007. Amounts in the 2005 column are as of September 30,
2005, and pertain to the 2005 crop year.

2005 2006 2007
crop year crop year crop year
estimate estimate estimate
Number of States.............. 50 50 50
Number of counties............ 3,066 3,066 3,066
Insurance in force (millions). 44,288 44,633 49,766
Insured acreage (millions).... 246 251 287
====================================
Producer premium (millions)\1\ $1,606 $1,621 $1,778
Premium subsidy (millions)\1\. $2,344 $2,400 $2,635
------------------------------------
Total premium
(millions)\1\......... $3,950 $4,022 $4,413
====================================
Indemnities (millions)\1\..... $4,247 $4,324 $4,744
Loss ratio.................... .70 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]

2005 2006 2007
fiscal year fiscal year fiscal year
actual estimate estimate
Premiums:
Additional coverage premium
subsidy................... 2,087 1,860 2,499
Catastrophic coverage--
Reinsurance premium
subsidy................... 242 187 243
------------------------------------
Subtotal, premium subsidy. 2,329 2,047 2,742
Producer premium............ 1,236 928 1,024
------------------------------------
Total premiums.......... 3,565 2,975 3,766
====================================
Indemnities:
Additional coverage......... 3,088 3,717 3,907
Catastrophic coverage--
Reinsurance............... 178 257 264
------------------------------------
Total indemnities....... 3,266 3,974 4,171
====================================

The following table summarizes the insurance operations for 2005,
2006, and 2007:

NET INCOME OR LOSS (-) ON INSURANCE OPERATIONS

[In millions of dollars]

2005 2006 2007
fiscal year fiscal year fiscal year
est. est. est.
Producer premium less
indemnities................... -2,030 -3,337 -3,424
Interest expense, net......... 0 0 0
Delivery expenses \1\......... -869 -852 -962
Other income or expense, net.. 63 61 61
ARPA costs.................... -45 -75 -75
Reinsurance underwriting gain
(+) or loss (-)............... -848 -740 -667
------------------------------------
Net income or loss (-)........ -3,729 -4,943 -5,067
====================================

[[Page 100]]

\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

2004 actual

2005 actual

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

Federal assets: Fund balances with Treasury

2,160

1,601

1206

Non-Federal assets: Receivables, net

1,570

1,369

1803

Other Federal assets: Property, plant and equipment, net

1999

Total assets

3,731

2,971

LIABILITIES:
2105

Federal liabilities: Other

Non-Federal liabilities:

2201

Accounts payable

2207

Other

3,851

3,485

2999

Total liabilities

3,936

3,500

NET POSITION:
3100

Appropriated capital

828

465

3300

Cumulative results of operations

-1,033

-994

3999

Total net position

-205

-529

4999

Total liabilities and net position

3,731

2,971

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

Object Classification (in millions of dollars)

Direct obligations:

25.2 Other services-ARPA requirements 45 75 75
25.2 Other services.................. 869 852 940
25.2 Other Services--(Proposed
Legislation)..................
42.0 Insurance claims and indemnities
(reinsured buyup)............. 2,030 3,046 3,147
--------- --------- ----------
99.0 Direct obligations............ 2,944 3,973 4,162
42.0 Reimbursable obligations:
Insurance claims and indemnities 1,236 928 1,024
--------- --------- ----------
99.9 Total new obligations........... 4,180 4,901 5,186
---------------------------------------------------------------------------

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,
[$1,030,000,000] $1,091,359,000: Provided, That the Secretary is
authorized to use the services, facilities, and authorities (but not the
funds) of the Commodity Credit Corporation to make program payments for
all programs administered by the Agency: Provided further, That other
funds made available to the Agency for authorized activities may be
advanced to and merged with this account[: Provided further, That none
of the funds made available by this Act may be used to pay the salaries
or expenses of any officer or employee of the Department of Agriculture
to close any local or county office of the Farm Service Agency unless
the Secretary of Agriculture, not later than 30 days after the date on
which the Secretary proposed the closure, holds a public meeting about
the proposed closure in the county in which the local or county office
is located, and, after the public meeting but not later than 120 days
before the date on which the Secretary approves the closure, notifies
the Committee on Agriculture and the Committee on Appropriations of the
House of Representatives and the Committee on Agriculture, Nutrition,
and Forestry and the Committee on Appropriations of the Senate, and the
members of Congress from the State in which the local or county office
is located of the proposed closure]. (Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act,
2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Conservation...................... 160 143 156
00.02 Income Support.................... 768 816 868
00.05 Commodity Operations.............. 58 61 67
--------- --------- ----------
03.00 Subtotal, direct program........ 986 1,020 1,091
09.01 Farm loans........................ 291 302 312
09.02 Other programs.................... 128 108 115
--------- --------- ----------
09.99 Subtotal, reimbursable program.. 419 410 427
--------- --------- ----------
10.00 Total new obligations........... 1,405 1,430 1,518
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 24 34
22.00 New budget authority (gross)...... 1,426 1,430 1,518
22.30 Expired unobligated balance
transfer to unexpired account... 24 10
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,450 1,464 1,552
23.95 Total new obligations............. -1,405 -1,430 -1,518
23.98 Unobligated balance expiring or
withdrawn....................... -21
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 24 34 34
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,008 1,030 1,091
40.00 Appropriation (Hurricane
supplemental).................
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -10
40.35 Appropriation permanently
reduced....................... -8
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,000 1,020 1,091
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 399 410 427
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 27
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 426 410 427
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,426 1,430 1,518
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 153 104 93
73.10 Total new obligations............. 1,405 1,430 1,518
73.20 Total outlays (gross)............. -1,401 -1,441 -1,521
73.40 Adjustments in expired accounts
(net)........................... -35
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -27
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 9
--------- --------- ----------
74.40 Obligated balance, end of year.. 104 93 90
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,282 1,325 1,406
86.93 Outlays from discretionary
balances........................ 119 116 115
--------- --------- ----------
87.00 Total outlays (gross)........... 1,401 1,441 1,521
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -392 -380 -395
88.40 Non-Federal sources........... -24 -30 -32
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -416 -410 -427
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -27
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 17
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,000 1,020 1,091
90.00 Outlays........................... 985 1,031 1,094
---------------------------------------------------------------------------

[[Page 101]]

Summary of Budget Authority and Outlays

(in millions of dollars)

2005 actual 2006 est. 2007 est.
Enacted/requested:
Budget Authority............ 1,000 1,020 1,091
Outlays..................... 985 1,031 1,094
Legislative proposal, not subject to
PAYGO:
Budget Authority............ -35
Outlays..................... -35
------------------------------------
Total:
Budget Authority............ 1,000 1,020 1,056
Outlays..................... 985 1,031 1,059
====================================

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
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 assistance loans and loan deficiency payments enabling
recipients to continue farming operations without marketing their
product immediately after harvest, 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) processing commodity
loan documents and issuing checks; (i) processing direct and counter-
cyclical payments and issuing checks; (j) certifying payment eligibility
and monitoring payment limitations; and (k) 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

[[Page 102]]

agencies, CCC, industry, and others, including certain administrative
support services for the Risk Management Agency and the Foreign
Agricultural Service, and for county office services provided to Federal
and non-Federal entities, including a variety of services to producers.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 163 158 160
11.3 Other than full-time permanent 3 2 3
11.5 Other personnel compensation.. 3 5 5
--------- --------- ----------
11.9 Total personnel compensation 169 165 168
12.1 Civilian personnel benefits..... 45 45 45
21.0 Travel and transportation of
persons....................... 7 4 4
22.0 Transportation of things........ 3 3 4
23.3 Communications, utilities, and
miscellaneous charges......... 11 13 13
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. 122 130 194
26.0 Supplies and materials.......... 4 4 4
31.0 Equipment....................... 3 3 7
41.0 Grants, subsidies, and
contributions................. 621 652 651
--------- --------- ----------
99.0 Direct obligations............ 986 1,020 1,091
99.0 Reimbursable obligations.......... 419 410 427
--------- --------- ----------
99.9 Total new obligations........... 1,405 1,430 1,518
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0600-0-1-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 2,272 2,050 2,002
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 3,305 3,268 3,251
---------------------------------------------------------------------------

Salaries and Expenses

(Legislative proposal, not subject to PAYGO)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Conservation...................... -25
00.02 Income Support.................... -10
--------- --------- ----------
03.00 Subtotal, direct program........ -35
09.02 Other programs.................... 35
--------- --------- ----------
09.99 Subtotal, reimbursable program.. 35
--------- --------- ----------
10.00 Total new obligations...........
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... -35
Discretionary:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 35
--------- --------- ----------
70.00 Total new budget authority
(gross).......................
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations.............
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.40 Offsetting collections (cash)
from: Non-Federal sources..... -35
----------------------------------------------------------------------------

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

Legislation will be proposed to establish a service fee on loan
deficiency payments and conservation reserve program contracts
(including re-enrollments and extensions) to help defray the Farm
Service Agency's cost associated with administration of these programs.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0600-2-1-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
41.0 Direct obligations: Grants,
subsidies, and contributions.... -35
99.0 Reimbursable obligations:
Reimbursable obligations........ 35
--------- --------- ----------
99.9 Total new obligations...........
---------------------------------------------------------------------------

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), [$4,250,000] $4,207,500.
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0170-0-1-351 2005 actual 2006 est. 2007 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
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

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

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

[[Page 103]]

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

2005 actual 2006 est. 2007 est.
Number of States receiving
grants........................ 32 34 36
Amount of grants (in millions
of dollars)................... 4 4 4

Tree Assistance Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2701-0-1-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

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

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

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

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

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.

For 2005 and 2006, no appropriation was provided for TAP. However,
during fiscal year 2005, $742,665 was paid to producers in Southern
California from fiscal year 2004 obligations for losses due to
wildfires.

No funding is requested for 2007.

Agricultural Conservation Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3315-0-1-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

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

Change in obligated balances:
72.40 Obligated balance, start of year.. 1
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

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

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

The primary 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 2005 a transfer of $824,125 in
unobligated funds was made to the USDA Working Capital Fund as
authorized in Section 705 of the Consolidated Appropriations Act, 2005,
P.L. 108-447. Outlays to States in 2005 totaled $115 thousand.

Emergency Conservation Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3316-0-1-453 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 ECP obligations................... 85 176 120
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 85 176 120
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 31 96 120
22.00 New budget authority (gross)...... 150 200
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 181 296 120
23.95 Total new obligations............. -85 -176 -120
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 96 120
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 100
40.00 Appropriation Hurricane
Supplemental.................. 200
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 100 200
Mandatory:

62.00 Transferred from other accounts. 50
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 150 200
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 13 41 101
73.10 Total new obligations............. 85 176 120
73.20 Total outlays (gross)............. -57 -116 -181
--------- --------- ----------
74.40 Obligated balance, end of year.. 41 101 40
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 40
86.93 Outlays from discretionary
balances........................ 23 60 181
86.97 Outlays from new mandatory
authority....................... 34
86.98 Outlays from mandatory balances... 16
--------- --------- ----------
87.00 Total outlays (gross)........... 57 116 181
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 150 200
90.00 Outlays........................... 57 116 181
---------------------------------------------------------------------------

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.

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

Under the 2005 program, cost-sharing and technical assistance were
provided in 45 States to treat farmlands damaged

[[Page 104]]

by hurricanes, drought, floods, ice storms, tornadoes, and other natural
disasters. Outlays to States in FY 2005 totaled $57 million, including
$1.6 million for flood damage in southern California.

For 2006, the Emergency Supplemental Appropriations to Address
Hurricanes in the Gulf of Mexico and Pandemic Influenza, 2006, P.L. 109-
148, provided $199.8 million to repair damage caused by hurricanes
during the 2005 calendar year, including damage to nursery, oyster,
poultry, and nonindustrial forestland operations. In addition, the
program will continue to operate nationwide using unobligated funds
carried forward from 2005 along with recoveries from prior fiscal years.

The 2007 Budget proposes no funding for this program.

Grassroots Source Water Protection Program

[For necessary expenses to carry out wellhead or groundwater
protection activities under section 1240O of the Food Security Act of
1985 (16 U.S.C. 3839bb-2), $3,750,000, to remain available until
expended.] (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3304-0-1-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Grassroots Source Water payments.. 4
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 4
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Discretionary:

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

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

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

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

Credit accounts:

Agricultural Credit Insurance Fund Program Account

(including transfers of funds)

For gross obligations for the principal amount of direct and
guaranteed farm ownership (7 U.S.C. 1922 et seq.) and operating (7
U.S.C. 1941 et seq.) loans, Indian tribe land acquisition loans (25
U.S.C. 488), and boll weevil loans (7 U.S.C. 1989), to be available from
funds in the Agricultural Credit Insurance Fund, as follows: farm
ownership loans, [$1,608,000,000] $1,422,750,000, of which
[$1,400,000,000] $1,200,000,000 shall be for unsubsidized guaranteed
loans and [$208,000,000] $222,750,000 shall be for direct loans;
operating loans, [$2,074,632,000] $1,941,360,000, of which
[$1,150,000,000] $1,025,610,000 shall be for unsubsidized guaranteed
loans, [$274,632,000] $272,250,000 shall be for subsidized guaranteed
loans and [$650,000,000] $643,500,000 shall be for direct loans; Indian
tribe land acquisition loans, [$2,020,000] $3,960,000; and for boll
weevil eradication program loans, [$100,000,000] $59,400,000: 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, [$17,370,000] $9,333,000,
of which [$6,720,000 shall be for guaranteed loans, and $10,650,000]
$9,333,000 shall be for direct loans; operating loans, [$133,849,000]
$102,780,000, of which [$34,845,000] $2,154,000 shall be for
unsubsidized guaranteed loans, [$34,329,000] $25,401,000 shall be for
subsidized guaranteed loans, and [$64,675,000] $75,225,000 shall be for
direct loans; [and] Indian tribe land acquisition loans, [$81,000]
$838,000; and boll weevil eradication program loans, $1,129,000.
In addition, for administrative expenses necessary to carry out the
direct and guaranteed loan programs, [$312,591,000] $311,737,000, of
which [$304,591,000] $319,657,000 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, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 74 85 95
00.02 Guaranteed loan subsidy........... 72 77 27
00.05 Reestimates of direct loan subsidy 84 143
00.06 Interest on reestimates of direct
loan subsidy.................... 72 31
00.07 Reestimates of guaranteed loan
subsidy......................... 6 4
00.08 Interest on reestimate of
guaranteed loan subsidy......... 1 3
00.09 Administrative expenses--salaries
and expenses.................... 291 302 312
00.10 Administrative Expenses--PLCE..... 8 8 8
00.11 Alaska Dairy Grants............... 1 1
--------- --------- ----------
10.00 Total new obligations........... 609 654 442
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 25 22 9
22.00 New budget authority (gross)...... 620 641 434
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 645 663 443
23.95 Total new obligations............. -609 -654 -442
23.98 Unobligated balance expiring or
withdrawn....................... -14
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 22 9 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 460 465 434
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -5
40.35 Appropriation permanently
reduced....................... -3
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 457 460 434
Mandatory:

60.00 Appropriation................... 163 181
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 620 641 434
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 17 14 25
73.10 Total new obligations............. 609 654 442
73.20 Total outlays (gross)............. -609 -643 -440
73.40 Adjustments in expired accounts
(net)........................... -3
--------- --------- ----------
74.40 Obligated balance, end of year.. 14 25 27
----------------------------------------------------------------------------

[[Page 105]]

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 429 438 418
86.93 Outlays from discretionary
balances........................ 17 24 22
86.97 Outlays from new mandatory
authority....................... 163 181
--------- --------- ----------
87.00 Total outlays (gross)........... 609 643 440
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 620 641 434
90.00 Outlays........................... 609 643 440
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1140-0-1-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Farm ownership.................... 272 206 223
115002Farm operating.................... 556 644 644
115003Emergency disaster................ 24 100 78
115004Indian tribe land acquisition..... 2 4
115005Boll weevil eradication........... 83 100 59
--------- --------- ----------
115901Total direct loan levels.......... 935 1,052 1,008
Direct loan subsidy (in percent):
132001Farm ownership.................... 5.35 5.12 4.19
132002Farm operating.................... 10.09 9.95 11.69
132003Emergency disaster................ 12.94 10.94 11.78
132004Indian tribe land acquisition..... 5.27 4.01 21.15
132005Boll weevil eradication........... -5.68 -18.09 1.90
--------- --------- ----------
132901Weighted average subsidy rate..... 7.38 6.42 9.50
Direct loan subsidy budget authority:
133001Farm ownership.................... 15 10 9
133002Farm operating.................... 56 64 75
133003Emergency disaster................ 3 11 9
133004Indian tribe land acquisition..... 1
133005Boll weevil eradication........... -5 -18 1
--------- --------- ----------
133901Total subsidy budget authority.... 69 67 95
Direct loan subsidy outlays:
134001Farm ownership.................... 15 9 8
134002Farm operating.................... 56 63 75
134003Emergency disaster................ 3 10 8
134004Indian tribe land acquisition..... 1
134005Boll weevil eradication........... -4 -17
--------- --------- ----------
134901Total subsidy outlays............. 70 65 92
Direct loan upward reestimate subsidy budget
authority:
135001Farm ownership.................... 37
135002Farm operating.................... 4 16
135003Emergency disaster................ 1
135004Indian Land Acquisition...........
135005Boll weevil eradication........... 44 119
135006Seed cotton.......................
135007Soil and Water.................... 4
135008Farm ownership credit sales....... 105
135009Indian Land, Credit Sales, Seed,
Soil &Water..................... 1
--------- --------- ----------
135901Total upward reestimate budget
authority....................... 157 174
Direct loan downward reestimate subsidy budget
authority:
137001Farm ownership.................... -70
137002Farm operating.................... -143 -89
137003Emergency disaster................ -62 -18
137004Indian tribe land acquisition..... -1
137005Boll weevil eradication........... -68
137006Seed cotton....................... -5
137007Soil and water....................
137008Farm ownership credit sales....... -1
--------- --------- ----------
137901Total downward reestimate budget
authority....................... -278 -179
----------------------------------------------------------------------------

Guaranteed loan levels supportable by subsidy
budget authority:
215001Farm ownership, unsubsidized...... 1,027 1,410 1,200
215002Farm operating, unsubsidized...... 885 1,197 1,026
215003Farm operating, subsidized........ 283 273 272
--------- --------- ----------
215901Total loan guarantee levels....... 2,195 2,880 2,498
Guaranteed loan subsidy (in percent):
232001Farm ownership, unsubsidized...... 0.53 0.48 0.00
232002Farm operating, unsubsidized...... 3.23 3.03 0.21
232003Farm operating, subsidized........ 13.31 12.50 9.33
--------- --------- ----------
232901Weighted average subsidy rate..... 3.27 2.68 1.10
Guaranteed loan subsidy budget authority:
233001Farm ownership, unsubsidized...... 5 7
233002Farm operating, unsubsidized...... 29 34 2
233003Farm operating, subsidized........ 38 36 25
--------- --------- ----------
233901Total subsidy budget authority.... 72 77 27
Guaranteed loan subsidy outlays:
234001Farm ownership, unsubsidized...... 5 7
234002Farm operating, unsubsidized...... 28 34 2
234003Farm operating, subsidized........ 37 34 25
--------- --------- ----------
234901Total subsidy outlays............. 70 75 27
Guaranteed loan upward reestimate subsidy
budget authority:
235001Farm ownership, unsubsidized...... 2 7
235002Farm operating, unsubsidized......
235003Farm operating, subsidized........ 5
--------- --------- ----------
235901Total upward reestimate budget
authority....................... 7 7
Guaranteed loan downward reestimate subsidy
budget authority:
237001Farm ownership, unsubsidized...... -7 -6
237002Farm operating, unsubsidized...... -28 -95
237003Farm operating, subsidized........ -3 -112
237004Soil and Water....................
--------- --------- ----------
237901Total downward reestimate subsidy
budget authority................ -38 -213
----------------------------------------------------------------------------

Administrative expense data:
351001Budget authority.................. 299 310 320
359001Outlays from new authority........ 299 310 320
---------------------------------------------------------------------------

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 2005, $349 thousand was paid to producers who filed claims under
the program.

The 2007 Budget requests $100 thousand for this program.

Object Classification (in millions of dollars)

[[Page 106]]

Agricultural Credit Insurance Fund Direct Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct Loan Obligations........... 935 1,052 1,008
00.02 Payments of Interest to Treasury.. 305 315 315
00.03 Fees, Collateral and Other........ 4 4
00.04 Advances on Behalf of Borrowers... 5 3 3
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 1,245 1,374 1,330
08.01 Negative Subsidy.................. 5 18
08.02 Downward Reestimate............... 231 145
08.04 Interest on downward reestimate... 47 34
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 283 197
--------- --------- ----------
10.00 Total new obligations........... 1,528 1,571 1,330
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,674 1,908 1,634
22.00 New financing authority (gross)... 3,120 2,482 2,448
22.10 Resources available from
recoveries of prior year
obligations..................... 11
22.40 Capital transfer to general fund.. -674
22.60 Portion applied to repay debt..... -695 -1,185 -1,185
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3,436 3,205 2,897
23.95 Total new obligations............. -1,528 -1,571 -1,330
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1,908 1,634 1,567
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 1,713 1,070 1,192
Spending authority from offsetting
collections:

Mandatory:
69.00 Offsetting collections (cash). 1,410 1,412 1,256
69.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -3
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)......... 1,407 1,412 1,256
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 3,120 2,482 2,448
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 85 169 256
73.10 Total new obligations............. 1,528 1,571 1,330
73.20 Total financing disbursements
(gross)......................... -1,436 -1,484 -1,257
73.45 Recoveries of prior year
obligations..................... -11
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 3
--------- --------- ----------
74.40 Obligated balance, end of year.. 169 256 329
87.00 Undistributed/miscellaneous....... 1,436 1,484 1,257
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal Sources: Reestimate
payment from program account -157 -174
88.00 Federal Sources: Subsidy
payment from program account -74 -82 -92
88.25 Federal Sources: Interest on
uninvested funds............ -122 -115 -115
88.40 Repayments of principal....... -889 -868 -876
88.40 Repayments of interest........ -162 -173 -173
88.40 Interest and principal
repayments--judgements...... -3
88.40 Proceeds from sale of acquired
property.................... -3
88.40 Undistributed/miscellaneous...
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,410 -1,412 -1,256
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 3
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 1,713 1,070 1,192
90.00 Financing disbursements........... 25 72 1
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4212-0-3-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 1,112 953 930
1121 Limitation available from carry-
forward......................... 177 78
1143 Unobligated limitation carried
forward (P.L. 106-113) (-)...... -177 -78
--------- --------- ----------
1150 Total direct loan obligations... 935 1,052 1,008
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 4,448 4,342 4,364
1231 Disbursements: Direct loan
disbursements................... 860 965 935
1251 Repayments: Repayments and
prepayments..................... -889 -868 -876
Write-offs for default:

1263 Direct loans.................... -77 -75 -75
1264 Other adjustments, net..........
--------- --------- ----------
1290 Outstanding, end of year........ 4,342 4,364 4,348
---------------------------------------------------------------------------

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

This account finances direct loans for farm ownership, farm
operating, emergency disaster, Indian land, boll weevil eradication, and
credit sales of acquired property.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4212-0-3-351

2004 actual

2005 actual

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

1101

Fund balances with Treasury

1,674

1,909

Investments in US securities:
1106

Receivables, net

156

149

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

1401

Direct loans receivable, gross

4,448

4,342

1402

Interest receivable

197

190

1403

Accounts receivable from foreclosed property

1405

Allowance for subsidy cost (-)

-591

-615

1499

Net present value of assets related to direct loans

4,059

3,920

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

-72

1999

Total assets

5,809

5,906

LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

5,449

5,709

2207

Non-Federal liabilities: Other

360

197

2999

Total liabilities

5,809

5,906

4999

Total liabilities and net position

5,809

5,906

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

Agricultural Credit Insurance Fund Guaranteed Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Default Claims.................... 27 57 57
00.02 Interest Assistance............... 68 110 110
00.03 Guaranteed Debt Offset/Purchases/
Settlement Expense.............. 16
00.04 Interest to Treasury.............. 1 2 2
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 112 169 169
08.02 Downward reestimate of subsidy.... 28 166
08.04 Downward reestimate of subsidy-
interest........................ 10 47
--------- --------- ----------

[[Page 107]]

08.91 Subtotal, reestimates........... 38 213
--------- --------- ----------
10.00 Total new obligations........... 150 382 169
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 193 237 205
22.00 New financing authority (gross)... 136 350 157
22.10 Resources available from
recoveries of prior year
obligations..................... 58
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 387 587 362
23.95 Total new obligations............. -150 -382 -169
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 237 205 193
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 11 213 53
Mandatory:

69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 125 137 104
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 136 350 157
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 351 314 314
73.10 Total new obligations............. 150 382 169
73.20 Total financing disbursements
(gross)......................... -129 -382 -169
73.45 Recoveries of prior year
obligations..................... -58
--------- --------- ----------
74.40 Obligated balance, end of year.. 314 314 314
87.00 Fees and premiums................. 129 382 169
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Payments from program account. -77 -82 -28
88.25 Interest on uninvested funds.. -24 -25 -25
88.40 Fees and premiums............. -23 -30 -51
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -124 -137 -104
Against gross financing authority only:

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

Net financing authority and financing
disbursements:
89.00 Financing authority............... 11 213 53
90.00 Financing disbursements........... 5 245 65
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4213-0-3-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on commitments:
2111 Limitation on guaranteed loans
made by private lenders......... 2,201 2,797 2,498
2121 Limitation available from carry-
forward......................... 77 83
2143 Uncommitted limitation carried
forward......................... -83
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 2,195 2,880 2,498
2199 Guaranteed amount of guaranteed
loan commitments................ 1,976 2,592 2,248
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 10,224 10,208 10,455
2231 Disbursements of new guaranteed
loans........................... 2,191 2,448 2,125
2251 Repayments and prepayments........ -2,149 -2,144 -2,196
Adjustments:

2261 Terminations for default that
result in loans receivable.... -14 -2 -2
2263 Terminations for default that
result in claim payments...... -44 -55 -55
--------- --------- ----------
2290 Outstanding, end of year........ 10,208 10,455 10,327
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 9,170 9,406 9,294
----------------------------------------------------------------------------

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

2310 Outstanding, start of year...... 15 25 25
2331 Disbursements for guaranteed
loan claims................... 15 2 2
2351 Repayments of loans receivable.. -2 -1 -1
2361 Write-offs of loans receivable.. -3 -1 -1
--------- --------- ----------
2390 Outstanding, end of year...... 25 25 25
---------------------------------------------------------------------------

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

2004 actual

2005 actual

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

1101

Fund balances with Treasury

544

550

Investments in US securities:
1106

Receivables, net

1206

Non-Federal assets: Receivables, net

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

1501

Defaulted guaranteed loans receivable, gross

1502

Interest receivable

-2

1505

Allowance for subsidy cost (-)

-12

-18

1599

Net present value of assets related to defaulted guaranteed loans

1999

Total assets

554

565

LIABILITIES:
Federal liabilities:

2104

Resources payable to Treasury

2105

Other

213

Non-Federal liabilities:

2201

Accounts payable

351

313

2204

Liabilities for loan guarantees

162

2999

Total liabilities

554

565

4999

Total liabilities and net position

554

565

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

Agricultural Credit Insurance Fund Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.08 Loan recoverable costs............ 4 6 5
00.09 Minor Capital Improvements........ 1 1 1
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 5 7 6
01.08 Admininstrative expenses--
Department of Justice fees...... 1 1 1
01.09 Costs Incidental to Acquisition of
Real Property................... 2 2 2
01.13 Interest assistance--guaranteed
loans........................... 1 2 1
01.14 Loss settlement expenses
guaranteed loans................ 1 1
01.17 Unclassified costs................ 1
01.18 Civil rights settlements.......... 2 2
--------- --------- ----------
01.91 Total operating expenses........ 4 9 7
--------- --------- ----------
10.00 Total new obligations........... 9 16 13
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 61 51
22.00 New budget authority (gross)...... 50 16 13
22.10 Resources available from
recoveries of prior year
obligations..................... 10
22.40 Capital transfer to general fund.. -61 -51
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 60 16 13
23.95 Total new obligations............. -9 -16 -13
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 51
----------------------------------------------------------------------------

New budget authority (gross), detail:
Spending authority from offsetting
collections:

Mandatory:
69.00 Offsetting collections (cash). 600 566 483
69.27 Capital transfer to general
fund........................ -550 -550 -470
--------- --------- ----------

[[Page 108]]

69.90 Spending authority from
offsetting collections
(total mandatory)......... 50 16 13
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 7 1 1
73.10 Total new obligations............. 9 16 13
73.20 Total outlays (gross)............. -5 -16 -13
73.45 Recoveries of prior year
obligations..................... -10
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 1 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 5 16 13
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -1 -2 -2
88.40 Rent on acquired property..... -1
88.40 Guaranteed loans purchased
from holders--principal..... -1
88.40 Interest on loans............. -168 -175 -145
88.40 Miscellaneous undistributed
receipts.................... 7 -1 -1
88.40 Interest on judgments......... -1 -2 -2
88.40 Repayments on loans--principal -403 -348 -300
88.40 Judgments--principal.......... -7 -8 -7
88.40 Shared appreciation recapture. -12 -12 -10
88.40 Judgments Interest............ -1 -1 -1
88.40 Sale of acquired property/
chattels.................... -14 -14 -14
88.40 Write-offs.................... -1 -1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -600 -566 -483
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -550 -550 -470
90.00 Outlays........................... -595 -550 -470
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4140-0-3-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 2,702 2,254 1,876
1251 Repayments: Repayments and
prepayments..................... -403 -318 -275
1261 Adjustments: Capitalized interest. 10
Write-offs for default:

1263 Direct loans.................... -55 -60 -60
1264 Other adjustments, net\1\.......
--------- --------- ----------
1290 Outstanding, end of year........ 2,254 1,876 1,541
---------------------------------------------------------------------------
\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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 168 130 99
2251 Repayments and prepayments........ -35 -30 -25
2263 Adjustments: Terminations for
default that result in claim
payments........................ -3 -1 -1
--------- --------- ----------
2290 Outstanding, end of year........ 130 99 73
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 124 94 61
----------------------------------------------------------------------------

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

2310 Outstanding, start of year...... 9 8 8
2364 Other adjustments, net.......... -1
--------- --------- ----------
2390 Outstanding, end of year...... 8 8 8
---------------------------------------------------------------------------

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

2004 actual

2005 actual

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

Federal assets: Fund balances with Treasury

1505

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

-335

-254

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

1601

Direct loans, gross

2,702

2,254

1602

Interest receivable

503

419

1603

Allowance for estimated uncollectible loans and interest (-)

-332

-267

1604

Direct loans and interest receivable, net

2,873

2,406

1605

Accounts receivable/judgments receivable

113

1606

Foreclosed property

1699

Value of assets related to direct loans

3,014

2,509

1701

Defaulted guaranteed loans, gross

1999

Total assets

2,747

2,316

LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

2,734

2,313

Non-Federal liabilities:

2201

Accounts payable

2204

Liabilities for loan guarantees

2207

Other

2999

Total liabilities

2,747

2,316

4999

Total liabilities and net position

2,747

2,316

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

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4140-0-3-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
25.2 Other services.................... 8 8 12
33.0 Investments and loans............. 1 4
43.0 Interest and dividends............ 4 1
--------- --------- ----------
99.9 Total new obligations........... 9 16 13
---------------------------------------------------------------------------

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

[[Page 109]]

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, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Commodity purchases and related
inventory transactions.......... 5,024 4,590 3,480
00.02 Storage, transportation and other
obligations..................... 240 371 281
00.03 Export enhancement program........ 28 28
00.04 Market access program............. 140 150 190
00.05 Dairy export incentive program.... 2 1 35
00.07 Foreign market development
cooperative..................... 36 35 35
00.08 Quality Samples Program........... 1 3 3
00.10 Feed grains....................... 8,805 7,285 7,955
00.11 Wheat............................. 1,184 1,217 1,887
00.12 Rice.............................. 441 467 530
00.13 Cotton............................ 3,283 2,282 1,966
00.14 Dairy Program..................... 9 415 330
00.15 Tobacco Program................... 939 960 952
00.16 Peanut Program.................... 269 270 244
00.17 Wool and Mohair Program........... 7 10 10
00.18 Honey............................. 25 30
00.19 Lentils........................... 2 8 9
00.21 Dry Peas Program.................. 30 41 50
00.23 Non-Insured Assistance Program.... 110 380 328
00.24 Oilseeds Payment Program.......... 906 503 1,873
00.25 Marketing Loan Writeoffs.......... 318 508 1,011
00.27 Crop Disaster Program............. 2,395 374
00.32 Livestock Assistance.............. 70 300
00.34 American Indian Livestock
Assistance...................... 25
00.35 Conservation reserve program (CRP) 1,788 1,878 2,175
00.47 Reimbursable Agreement/Transfers
to State and Federal Agencies... 50 56 56
00.48 Treasury.......................... 383 483 470
00.49 Other Interest.................... 7 6 7
00.52 Technical Assistance.............. 43 124 153
00.57 BEHT Non-Commodity Costs.......... 275 140 140
00.58 Section 416b/FFP/ocean
transportation.................. 71 66 63
--------- --------- ----------
01.92 Total support and related
programs...................... 26,828 23,001 24,291
09.01 Commodity loans................... 12,619 11,116 10,331
09.02 Commodities Procured--PL480 Titles
II / III Commodity Costs........ 704 499 477
09.04 P. L. 480 ocean transportation.... 631 663 673
--------- --------- ----------
09.09 Subtotal, reimbursable programs. 13,954 12,278 11,481
--------- --------- ----------
10.00 Total new obligations........... 40,782 35,279 35,772
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 964 683
22.00 New budget authority (gross)...... 38,722 35,278 35,672
22.10 Resources available from
recoveries of prior year
obligations..................... 2,733
22.22 Unobligated balance transferred
from other accounts............. 20 20 20
22.60 Portion applied to repay debt..... 271 -300 -603
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 41,746 35,962 35,772
23.95 Total new obligations............. -40,782 -35,279 -35,772
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 964 683
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 179
40.35 Appropriation permanently
reduced....................... -100
41.00 Transferred to other accounts... -179
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. -100
Mandatory:

60.00 Appropriation................... 12,277 25,431 19,740
60.47 Portion applied to repay debt... -10,295 -23,634 -17,312
61.00 Transferred to other accounts... -1,982 -1,797 -2,428
--------- --------- ----------
62.50 Appropriation (total
mandatory)..................
67.10 Authority to borrow............. 43,511 17,821 20,135
Spending authority from offsetting
collections:

Mandatory:
69.00 Offsetting collections (cash). 14,266 17,445 15,629
69.00 MARAD Cargo Preference
Reimbursements.............. 59 12 8
69.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 102
69.10 MARAD Cargo Preference
Reimbursements.............. -35
69.47 Portion applied to repay debt. -19,181
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)......... -4,789 17,457 15,637
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 38,722 35,278 35,672
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 4,389 7,173 4,810
73.10 Total new obligations............. 40,782 35,279 35,772
73.20 Total outlays (gross)............. -34,982 -37,642 -34,899
73.31 Obligated balance transferred to
other accounts.................. -216
73.45 Recoveries of prior year
obligations..................... -2,733
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -67
--------- --------- ----------
74.40 Obligated balance, end of year.. 7,173 4,810 5,683
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -100
86.97 Outlays from new mandatory
authority....................... 29,085 18,802 17,509
86.98 Outlays from mandatory balances... 5,897 18,840 17,490
--------- --------- ----------
87.00 Total outlays (gross)........... 34,982 37,642 34,899
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Sales to special activities... -704 -499 -477
88.00 Advances from Foreign
Assistance Programs (P.L.
480)........................ -1,438 -1,162 -1,150
88.00 Other Revenue................. -166
88.00 Tobacco Trust Fund............ -899 -1,033 -955
88.00 MARAD Reimbursements.......... -59 -12 -8
88.40 Sales and other proceeds...... -218 -74
88.40 Interest Revenue.............. -76 -94 -99
88.40 Loans Repaid.................. -7,089 -11,049 -10,264
88.40 Commodity Certificates
Redeemed.................... -3,629 -3,384 -2,605
88.40 Export Credit Sales Program
Repayments.................. -242 -4 -3
88.40 Interest Revenue.............. -23 -2 -2
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -14,325 -17,457 -15,637
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -67
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 24,330 17,821 20,035
90.00 Outlays........................... 20,657 20,185 19,262
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2005 actual 2006 est. 2007 est.
Enacted/requested:
Budget Authority............ 24,330 17,821 20,035
Outlays..................... 20,657 20,185 19,262
Legislative proposal, subject to
PAYGO:
Budget Authority............ -1,081
Outlays..................... -1,081
------------------------------------
Total:
Budget Authority............ 24,330 17,821 18,954
Outlays..................... 20,657 20,185 18,181
====================================

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4336-0-3-999 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 270 29 24
1251 Repayments: Repayments and
prepayments..................... -241 -5 -3
1261 Adjustments: Capitalized interest.
--------- --------- ----------
1290 Outstanding, end of year........ 29 24 21
----------------------------------------------------------------------------

Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 12,619 11,119 10,461
--------- --------- ----------
1150 Total direct loan obligations... 12,619 11,119 10,461
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 1,802 1,108 1,080
1231 Disbursements: Direct loan
disbursements................... 12,619 11,119 10,461

[[Page 110]]

1251 Repayments: Repayments and
prepayments..................... -12,293 -11,046 -10,389
Write-offs for default:

1263 Direct loans.................... -24
1264 Other adjustments, net.......... -996 -101 -42
--------- --------- ----------
1290 Outstanding, end of year........ 1,108 1,080 1,110
---------------------------------------------------------------------------

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 2006 and 2007 budget estimates: (a) national
income will rise both in 2006 and 2007 from the present level; (b) 2006
crop production will increase from 2005 crop levels for some
commodities; (c) generally, exports of agricultural commodities in 2007
are expected to be lower than 2006 levels; and (d) yields for the 2006
crops are based on recent averages adjusted for trends.

It is difficult to accurately forecast requirements for the year
ending September 30, 2007, 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. This activity, related to the 28 million acres expiring
between 2007 and 2010, is scheduled to occur in FY 2006 and FY 2007.
During 2005, about 387 thousand acres were signed up for continuous
practices in signup 30. 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.

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.

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.

A marketing assessment on milk would be required.

USDA has incorporated stochastic price and production variability
into its 10-year budget baseline process starting with the FY 2007
President's Budget. For the 2006-2015 crops, Commodity Credit
Corporation outlay projections for counter-cyclical payments, marketing
loan benefits, and milk income loss contract payments are based on price
probability distributions and flexibilities generated by the Economic
Research Service's Food and Agricultural Policy Simulation model. This
approach was used for feed grains (corn, barley, sorghum, oats), wheat,
rice, upland cotton, soybeans, and dairy.

2006 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............. 11.116 4,565 0
Feed grain payments......... 7,285 9,526 7,285
Wheat payments.............. 1,217 1,146 1,217
Rice payments............... 467 518 467
Cotton payments............. 2,272 2,343 2,272
Export enhancement program.. 28 28 28
Other support and related... 8,968 -647 5,796
Other items not distributed by
program:
Interest.................... 489 331 394
All other................... 273 367 273
------------------------------------
Total, farm income,
marketing assistance
loans, and price-
support programs...... 32,115 18,176 17,731
Conservation programs:
Conservation reserve program 2,002 2,006 2,006
Soil and water conservation
program................... 3 3
------------------------------------
Total, conservation
programs................ 2,002 2,009 2,009
Total, Commodity Credit
Corporation............... 34,117 20,185 19,740
------------------------------------

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

[[Page 111]]

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.

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
to make monthly payments when milk prices fall below specified levels.

[[Page 112]]

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.

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 million for FY 2004, $140 million for FY 2005, and $200 million for
FY 2006 and 2007. The 2007 Budget assumes funding of $100 million for FY
2007.

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

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

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.

[[Page 113]]

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 2007 Budget assumes the $14
million authorized for use will not be funded because the assistance
AMAP provides is duplicative of other priority conservation programs,
such as the Environmental Quality Incentives Program.

Emergency Forestry Conservation Reserve Program.--The Emergency
Supplemental Appropriations to Address Hurricanes in the Gulf of Mexico
and Pandemic Influenza, 2006, P.L. 109-148, mandates that during
calendar year 2006, the Secretary shall carry out an emergency pilot
program in States that the Secretary determines have suffered damage to
merchantable timber in counties affected by hurricanes during the 2005
calendar year. The Act provides $404.1 million for this program.

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

[In millions of dollars]

Item 2005 actual 2006 est. 2007 est.
Loans outstanding, gross, start of
year:
Commodity Credit Corporation 1,802 1,108 1,075
Additional loans made....... 12,619 11,116 10,331
Deduct:
Loans repaid................ -12,293 -11,048 -10,264
Acquisition of loan
collateral................ -978 -101 -42
Write-offs.................. -42
------------------------------------
Total loans outstanding,
gross, end of year.... 1,108 1,075 1,100
====================================

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

AGRICULTURAL COMMODITIES

[In millions of dollars]

Item 2005 actual 2006 est. 2007 est.
On hand, start of year, gross. 950 304 129
====================================
Acquisitions:
Forfeiture of loan
collateral................ 978 101 42
Excess of collateral
acquired over loans
canceled.................. 87 5 2
Purchases................... 6,107 4,606 3,475
Transfers and exchanges..... -135 -24 0
Carrying charges:
Charges to inventory........ 19 4 3
Storage and handling (non-
add)...................... 100 124 108
Transportation (non-add).... 7 2 3
------------------------------------
Total acquisitions...... 7,056 4,691 3,523
====================================
Dispositions:
Domestic donations to:
Families.................. 74 19 13
Institutions.............. 197 52 17
School lunch.............. 0 0 0
------------------------------------
Total domestic donations 271 71 30
====================================
Export donations............ 272 78 113
Sales and transfers:
Special programs: Title
II, Public Law 480...... 695 499 477
Title III, Public Law 480. 0 0 0
Other sales............... 4,532 3,559 2,662
Net loss or gain (-) on
sales and transfers..... 1,932 660 248
------------------------------------
Total sales and
transfers............. 7,159 4,719 3,387
====================================
Total dispositions...... 7,702 4,868 3,530
====================================
On hand, end of year, gross... 304 129 122
Allowances for losses......... -275 -117 -111
------------------------------------
On hand, end of year, net..... 29 12 11
====================================

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 2005 actual 2006 est. 2007 est.
Loans made.................... 12,619 11,116 10,331
Loans repaid.................. 12,293 11,048 10,264
Loan collateral forfeited..... 978 101 42
Loans outstanding, end of year 1,108 1,075 1,100
Acquisitions.................. 7,056 4,691 3,523
Cost of commodities sold...... 7,159 4,719 3,387
Cost of commodities donated... 543 148 142
Inventory, end of year........ 304 129 122
Investment in loans and
inventory, end of year........ 1,412 1,204 1,222
Direct producer payments...... 17,790 18,721 17,476
Net expenditures.............. 19,288 20,220 19,276
Realized losses............... 25,431 19,740 21,988

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 trans

[[Page 114]]

fer 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 2006.

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 2005 actual 2006 est. 2007 est.
Statutory borrowing authority. 30,000 30,000 30,000
Deduct: Borrowings from
Treasury...................... 19,169 15,741 17,181
Net statutory borrowing
authority available........... 10,831 14,259 12,819

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]
2005 actual
Realized losses, 1933 to 2005, inclusive.......... 418,443
Reimbursements by the Treasury:

Reimbursements of realized losses:

Appropriations (66 times).................... 389,854
Note cancellations (6 times)................. 2,698
Less dividends paid to Treasury (4 times).... -138
--------------------

Total reimbursements for net realized
losses........................................ 392,414
====================

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

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

Total........................................... 393,012
--------------------

Realized deficit as of September 30, 2005, support
and related programs............................. 25,431
====================

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

2004 actual

2005 actual

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

1101

Fund balances with Treasury

-1,089

-975

Investments in US securities:
1106

Receivables, net

1,153

1,557

1107

Advances and prepayments

Non-Federal assets:

1206

Receivables, net

439

357

1207

Advances and prepayments

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

1601

Direct loans, gross

2,107

1,137

1602

Interest receivable

1603

Allowance for estimated uncollectible loans and interest (-)

-103

-97

1604

Direct loans and interest receivable, net

2,092

1,057

1699

Value of assets related to direct loans

2,092

1,057

Other Federal assets:

1801

Cash and other monetary assets

1802

Inventories and related properties

141

1803

Property, plant and equipment, net

1999

Total assets

2,822

2,165

LIABILITIES:
Federal liabilities:

2101

Accounts payable

1,037

814

2102

Interest payable

323

2103

Debt

8,738

19,491

2105

Other

2,142

759

Non-Federal liabilities:

2201

Accounts payable

314

466

[[Page 115]]

2207

Other

5,456

14,695

2999

Total liabilities

17,759

36,548

NET POSITION:
3300

Cumulative results of operations

-14,937

-34,383

3999

Total net position

-14,937

-34,383

4999

Total liabilities and net position

2,822

2,165

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

Object Classification (in millions of dollars)

Direct obligations:

22.0 Transportation of things........ 352 208 205
25.2 Other services.................. 222 425 380
25.2 Other services: Storage and
handling...................... 100 124 108
26.0 Supplies and materials: Costs of
commodities sold or donated... 5,024 4,590 3,480
41.0 Grants, subsidies, and
contributions................. 20,740 17,164 19,641
43.0 Interest and dividends.......... 390 490 477
--------- --------- ----------
99.0 Direct obligations............ 26,828 23,001 24,291
Reimbursable obligations:

22.0 Transportation of things: P. L.
480 ocean transportation...... 631 663 673
26.0 Supplies and materials--Cost of
Commodities Procured/Donated--
PL 480........................ 704 499 477
33.0 Investments and loans........... 12,619 11,116 10,331
--------- --------- ----------
99.0 Reimbursable obligations...... 13,954 12,278 11,481
--------- --------- ----------
99.9 Total new obligations........... 40,782 35,279 35,772
---------------------------------------------------------------------------

Commodity Credit Corporation Fund

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4336-4-3-999 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program activity........... -1,081
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... -1,081
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -1,081
23.95 Total new obligations............. 1,081
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. -1,081
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. -1,081
73.20 Total outlays (gross)............. 1,081
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... -1,081
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -1,081
90.00 Outlays........................... -1,081
---------------------------------------------------------------------------

The 2007 President's Budget proposes to reduce CCC support to
farmers by $7.7 billion over ten years. In order to do so, the
Administration proposes making the following legislative changes to
reduce agricultural spending:

Reduce all crop payments to farmers by 5 percent. Payment
to farmers from all commodity programs (marketing loans, direct and
counter-cyclical payments, and the Milk Income Loss Compensation
program) would be calculated and payments would be reduced by 5 percent.
(Savings = $4.9 billion over 10 years).

Initiate a sugar marketing assessment to be paid by sugar
processors on all processed sugar. An assessment of 1.2% of the raw
sugar loan rate would be paid by processors for sugar from both cane and
beets. (Savings = $364 million over 10 years).

Require USDA to achieve effective dairy price supports at
the least possible costs to the taxpayer. Change the law to require
dairy product prices set by USDA to minimize costs, and allow purchases
only when reported prices are below the support rate. This would change
milk product price ratios to reduce government purchases and save on
storage costs. (Savings = $618 million over 10 years.)

Reduce the payment limit cap for individuals to $250,000
for all commodity payments, including all types of marketing loan gains
while removing the three-entity-rule and making marketing loans recourse
above the payment limit. (Savings = $1.2 billion over 10 years).

Initiate a dairy assessment to be paid by dairy producers.
An assessment of 3 cents per hundredweight of milk produced to be paid
by all dairy producers on all of their production. (Savings = $578
million over 10 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,
[$5,279,000] $5,331,000; 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
[$3,440,000] $4,985,000 may be transferred to and merged with the
appropriation for ``Foreign Agricultural Service, Salaries and
Expenses'', including $775,000 to be made available for debt recovery,
and of which [$1,839,000] $346,000 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, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Guaranteed loan subsidy........... 152 128 115
00.07 Reestimates of subsidy............ 156 64
00.08 Interest on reestimates........... 53 4
00.09 Administrative expenses........... 4 5 5
--------- --------- ----------
10.00 Total new obligations........... 365 201 120
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 642 104 104
22.00 New budget authority (gross)...... 522 201 120
22.40 Capital transfer to general fund.. -695
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 469 305 224
23.95 Total new obligations............. -365 -201 -120
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 104 104 104
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 4 5 5
Mandatory:

60.00 Appropriation................... 309 128 115
60.00 Appropriation--upward reestimate 209 68
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 518 196 115
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 522 201 120
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 180 166 111
73.10 Total new obligations............. 365 201 120
73.20 Total outlays (gross)............. -379 -256 -124
--------- --------- ----------
74.40 Obligated balance, end of year.. 166 111 107
----------------------------------------------------------------------------

[[Page 116]]

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 4 5 5
86.97 Outlays from new mandatory
authority....................... 375 158 81
86.98 Outlays from mandatory balances... 93 38
--------- --------- ----------
87.00 Total outlays (gross)........... 379 256 124
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 522 201 120
90.00 Outlays........................... 379 256 124
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1336-0-1-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Export guarantee program--GSM 102. 2,325 2,485 2,535
215002Export guarantee program--Supplier
Credit.......................... 676 602 602
215003Export guarantee program--
Facilities...................... 20 30
--------- --------- ----------
215901Total loan guarantee levels....... 3,001 3,107 3,167
Guaranteed loan subsidy (in percent):
232001Export guarantee program--GSM 102. 6.09 5.05 4.48
232002Export guarantee program--Supplier
Credit.......................... 1.55 0.22 -0.03
232003Export guarantee program--
Facilities...................... 0.00 8.16 3.48
--------- --------- ----------
232901Weighted average subsidy rate..... 5.07 4.13 3.61
Guaranteed loan subsidy budget authority:
233001Export guarantee program--GSM 102. 142 125 114
233002Export guarantee program--Supplier
Credit.......................... 10 1
233003Export guarantee program--
Facilities...................... 2 1
--------- --------- ----------
233901Total subsidy budget authority.... 152 128 115
Guaranteed loan subsidy outlays:
234001GSM 102 Subsidy Outlays........... 157 147 95
234002Supplier Credit Subsidy Outlays... 9 1
234003Facility Subsidy Outlays..........
--------- --------- ----------
234901Total subsidy outlays............. 166 148 95
Guaranteed loan upward reestimate subsidy
budget authority:
235001GSM 102 Upward Reestimate......... 209
235002Supplier Credit Upward Reestimate. 63
235003GSM 103 Upward Reestimate......... 5
--------- --------- ----------
235901Total upward reestimate budget
authority....................... 209 68
Guaranteed loan downward reestimate subsidy
budget authority:
237001Export guarantee program--GSM 102. -212 -541
237002Export guarantee program--Supplier
Credit.......................... -69 -6
237003Export guarantee program--GSM 103. -247 -4
--------- --------- ----------
237901Total downward reestimate subsidy
budget authority................ -528 -551
----------------------------------------------------------------------------

Administrative expense data:
351001Budget authority--administrative
expenses........................ 4 5 5
359001Outlays from new authority........ 4 5 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) was discontinued as of July 2005. 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 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 2007 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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
25.3 Other purchases of goods and
services from Government
accounts........................ 4 5 5
41.0 Grants, subsidies, and
contributions................... 361 196 115
--------- --------- ----------
99.9 Total new obligations........... 365 201 120
---------------------------------------------------------------------------

Commodity Credit Corporation Export Guarantee Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Default claims.................... 190 160 160
00.02 Interest on debt to Treasury...... 80 91 91
--------- --------- ----------
00.91 Subtotal, new loans............. 270 251 251
08.02 Reestimates of guaranteed loan
subsidy......................... 361 430
08.04 Interest on reestimates of
guaranteed loan subsidy......... 167 120
--------- --------- ----------
08.91 Subtotal, reestimates........... 528 550
--------- --------- ----------
10.00 Total new obligations........... 798 801 251
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,277 1,159 1,428
22.00 New financing authority (gross)... 680 1,070 399
--------- --------- ----------

[[Page 117]]

23.90 Total budgetary resources
available for obligation...... 1,957 2,229 1,827
23.95 Total new obligations............. -798 -801 -251
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1,159 1,428 1,576
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 326 550
Spending authority from offsetting
collections:

Mandatory:
69.00 Offsetting collections (cash). 942 520 399
69.10 Receivable from Federal
sources..................... -113
69.27 Capital transfer to general
fund........................ -475
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)......... 354 520 399
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 680 1,070 399
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -273 -160 -160
73.10 Total new obligations............. 798 801 251
73.20 Total financing disbursements
(gross)......................... -798 -801 -251
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 113
--------- --------- ----------
74.40 Obligated balance, end of year.. -160 -160 -160
87.00 Total financing disbursements
(gross)......................... 798 801 251
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Payments from program account. -374 -216 -95
88.25 Interest on uninvested funds.. -60 -40 -40
88.40 Loan origination fee.......... -508 -29 -29
88.40 Principal collections......... -120 -120
88.40 Interest collections.......... -115 -115
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -942 -520 -399
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 113
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... -149 550
90.00 Financing disbursements........... -144 281 -148
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4337-0-3-351 2005 actual 2006 est. 2007 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................. 3,000 3,107 3,167
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 3,000 3,107 3,167
2199 Guaranteed amount of guaranteed
loan commitments................ 2,644 2,754 2,807
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 4,191 2,461 3,004
2231 Disbursements of new guaranteed
loans........................... 2,303 3,107 3,167
2251 Repayments and prepayments........ -3,843 -2,401 -2,661
2263 Adjustments: Terminations for
default that result in claim
payments........................ -190 -163 -181
--------- --------- ----------
2290 Outstanding, end of year........ 2,461 3,004 3,329
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 2,249 2,746 3,043
----------------------------------------------------------------------------

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

2310 Outstanding, start of year...... 1,794 1,604 1,644
2331 Disbursements for guaranteed
loan claims................... 190 160 160
2351 Repayments of loans receivable.. -376 -120 -120
2364 Other adjustments, net.......... -4
--------- --------- ----------
2390 Outstanding, end of year...... 1,604 1,644 1,684
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4337-0-3-351

2004 actual

2005 actual

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

1101

Fund balances with Treasury

1,004

997

1101

Accounts Receivable, net

359

233

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

1501

Defaulted guaranteed loans receivable, gross

1,794

1,605

1502

Interest receivable

1505

Allowance for subsidy cost (-)

-873

-691

1599

Net present value of assets related to defaulted guaranteed loans

948

938

1999

Total assets

2,311

2,168

LIABILITIES:
Federal liabilities:

2101

Accounts payable

273

398

2103

Debt

1,491

1,342

2105

Other

305

161

Non-Federal liabilities:

2204

Liabilities for loan guarantees

242

261

2204

Liabilities for loan guarantees--Other

2999

Total liabilities

2,311

2,168

4999

Total liabilities and net position

2,311

2,168

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

Commodity Credit Corporation Guaranteed Loans Liquidating Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4338-0-3-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Operating Expenses................ 6 1 1
--------- --------- ----------
10.00 Total new obligations (object
class 25.3)................... 6 1 1
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 66 6
22.00 New budget authority (gross)...... 7 1 1
22.40 Capital transfer to general fund.. -61 -6
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 12 1 1
23.95 Total new obligations............. -6 -1 -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 6
----------------------------------------------------------------------------

New budget authority (gross), detail:
Spending authority from offsetting
collections:

Mandatory:
69.00 Offsetting collections (cash). 1,768 226 216
69.27 Capital transfer to general
fund........................ -1,761 -225 -215
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)......... 7 1 1
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1 3 3
73.10 Total new obligations............. 6 1 1
73.20 Total outlays (gross)............. -4 -1 -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 3 3 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 4 1 1
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -335
88.40 Repayments of principal....... -1,261 -148 -136
88.40 Interest received on loans.... -166 -78 -80
88.40 Other Interest................ -6
--------- --------- ----------

[[Page 118]]

88.90 Total, offsetting
collections (cash)........ -1,768 -226 -216
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -1,761 -225 -215
90.00 Outlays........................... -1,763 -225 -215
---------------------------------------------------------------------------
Note.--Includes amounts for activities previously funded in the
Commodity Credit Corporation Fund.

Status of Guaranteed Loans (in millions of dollars)

2310 Outstanding, start of year...... 4,709 1,401 1,253
2351 Repayments of loans receivable.. -1,261 -148 -136
2364 Other adjustments, net.......... -2,047
--------- --------- ----------
2390 Outstanding, end of year...... 1,401 1,253 1,117
---------------------------------------------------------------------------

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

2004 actual

2005 actual

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

Federal assets: Fund balances with Treasury

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

1701

Defaulted guaranteed loans, gross

4,709

1,401

1702

Interest receivable

1703

Allowance for estimated uncollectible loans and interest (-)

-2,204

-122

1799

Value of assets related to loan guarantees

2,526

1,294

1999

Total assets

2,593

1,302

LIABILITIES:
Federal liabilities:

2101

Accounts payable

2104

Resources payable to Treasury

2,586

1,294

2207

Non-Federal liabilities: Other

2999

Total liabilities

2,593

1,302

4999

Total liabilities and net position

2,593

1,302

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

Farm Storage Facility Loans Program Account

For administrative expenses necessary to carry out the Farm Storage
and Sugar Storage Facility Loan Programs, $4,560,000, to be transferred
to and merged with the appropriation for ``Farm Service Agency, Salaries
and Expenses''.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.05 Upward Reestimate................. 12 3
00.06 Interest on Upward Reestimate..... 2
00.09 Administrative Expenses........... 5
00.10 Non-recoverable costs............. 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 14 4 5
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1
22.00 New budget authority (gross)...... 15 4 5
22.40 Capital transfer to general fund.. -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 15 4 5
23.95 Total new obligations............. -14 -4 -5
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 5
Mandatory:

60.00 Appropriation................... 15 4
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 15 4 5
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1
73.10 Total new obligations............. 14 4 5
73.20 Total outlays (gross)............. -15 -4 -5
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 5
86.97 Outlays from new mandatory
authority....................... 15 4
--------- --------- ----------
87.00 Total outlays (gross)........... 15 4 5
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 15 4 5
90.00 Outlays........................... 15 4 5
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-3301-0-1-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Farm Storage facility loans....... 72 64 71
115002Sugar Storage Facility Loans...... 3 3
--------- --------- ----------
115901Total direct loan levels.......... 72 67 74
Direct loan subsidy (in percent):
132001Farm Storage facility loans....... -1.43 -0.62 0.38
132002Sugar Storage Facility Loans...... -5.25 -5.45 -2.71
--------- --------- ----------
132901Weighted average subsidy rate..... -1.43 -0.84 0.25
Direct loan subsidy budget authority:
133001Farm Storage facility loans....... -1
133002Sugar Storage Facility Loans......
--------- --------- ----------
133901Total subsidy budget authority.... -1
Direct loan subsidy outlays:
134001Farm Storage facility loans....... -1
134002Sugar Storage Facility Loans......
--------- --------- ----------
134901Total subsidy outlays............. -1
Direct loan upward reestimate subsidy budget
authority:
135001Farm Storage facility loans....... 14 3
--------- --------- ----------
135901Total upward reestimate budget
authority....................... 14 3
Direct loan downward reestimate subsidy budget
authority:
137001Farm Storage facility loans....... -5 -4
--------- --------- ----------
137901Total downward reestimate budget
authority....................... -5 -4
----------------------------------------------------------------------------

Administrative expense data:
351001Budget authority.................. 5
359001Outlays from new authority........ 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

[[Page 119]]

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)

Obligations by program activity:
00.01 Direct loans...................... 72 67 74
00.02 Payment of interest to Treasury... 12 12 12
00.03 Recovery of prior years'
obligations..................... -3
--------- --------- ----------
00.91 Obligations associated with
loans......................... 81 79 86
08.01 Negative subsidies paid to receipt
account......................... 1 1
08.02 Downward reestimates paid to
receipt accounts................ 5 4
--------- --------- ----------
08.91 Other obligations by program
activities.................... 6 5
--------- --------- ----------
10.00 Total new obligations........... 87 84 86
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 27 29
22.00 New financing authority (gross)... 168 140 145
22.10 Resources available from
recoveries of prior year
obligations..................... 3
22.60 Portion applied to repay debt..... -57 -85 -59
22.75 Other authority withdrawn......... -25
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 116 84 86
23.95 Total new obligations............. -87 -84 -86
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 29
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 104 79 73
Spending authority from offsetting
collections:

Mandatory:
69.00 Payments from program account. 14 3
69.00 Principal..................... 37 44 56
69.00 Interest collections (cash)... 8 8 10
69.00 Interest on Uninvested Funds.. 5 6 6
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)......... 64 61 72
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 168 140 145
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 39 47 21
73.10 Total new obligations............. 87 84 86
73.20 Total financing disbursements
(gross)......................... -76 -110 -87
73.45 Recoveries of prior year
obligations..................... -3
--------- --------- ----------
74.40 Obligated balance, end of year.. 47 21 20
87.00 Total financing disbursements
(gross)......................... 76 110 87
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Payments from Program Account. -14 -3
88.25 Interest on uninvested funds.. -5 -6 -6
88.40 Principal collections......... -37 -44 -56
88.40 Interest collections.......... -8 -8 -10
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -64 -61 -72
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 104 79 73
90.00 Financing disbursements........... 12 49 15
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4158-0-3-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 72 67 74
--------- --------- ----------
1150 Total direct loan obligations... 72 67 74
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 187 210 259
1231 Disbursements: Direct loan
disbursements................... 60 93 49
1251 Repayments: Repayments and
prepayments..................... -37 -44 -56
--------- --------- ----------
1290 Outstanding, end of year........ 210 259 252
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4158-0-3-351

2004 actual

2005 actual

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

1101

Fund balances with Treasury

Investments in US securities:
1106

Receivables, net

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

1401

Direct loans receivable, gross

187

210

1402

Interest receivable

1405

Allowance for subsidy cost (-)

-1

-21

1499

Net present value of assets related to direct loans

189

211

1999

Total assets

269

290

LIABILITIES:
Federal liabilities:

2103

Debt payable to Treasury

264

286

2105

Other Federal Liabilities

2999

Total liabilities

269

290

4999

Total liabilities and net position

269

290

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

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

[[Page 120]]

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 Loan Program Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.05 Upward Reestimate................. 2
00.06 Interest on Reestimate............ 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 3
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 3
----------------------------------------------------------------------------

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

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

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

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

----------------------------------------------------------------------------
Identification code 12-3303-0-1-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct loan upward reestimate subsidy budget
authority:
135001Emergency boll weevil loans....... 3
--------- --------- ----------
135901Total upward reestimate budget
authority....................... 3
---------------------------------------------------------------------------

Emergency Boll Weevil Direct Loan Financing Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 1
22.00 New financing authority (gross)... 3
22.60 Portion applied to repay debt..... -1 -4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

69.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 3
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

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

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -3
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4221-0-3-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
--------- --------- ----------
1150 Total direct loan obligations...
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 10 10 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

2004 actual

2005 actual

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

1101

Fund balances with Treasury

Investments in US securities:
1106

Receivables, net

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

1401

Direct loans receivable, gross

1405

Allowance for subsidy cost (-)

-7

-10

1499

Net present value of assets related to direct loans

1999

Total assets

LIABILITIES:
2103

Federal liabilities: Debt

2999

Total liabilities

4999

Total liabilities and net position

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

Tobacco Trust Fund

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8161-0-7-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............
--------- --------- ----------
01.99 Balance, start of year............
Receipts:
02.60 Excise taxes for tobacco
assessments, Tobacco trust fund. 899 1,033 955
Appropriations:
05.00 Tobacco trust fund................ -899 -1,033 -955
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Tobacco Buyout Cost Reimbursement
to CCC.......................... 899 1,033 955
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 899 1,033 955
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 899 1,033 955
23.95 Total new obligations............. -899 -1,033 -955
----------------------------------------------------------------------------

[[Page 121]]

New budget authority (gross), detail:
Mandatory:

60.26 Appropriation (trust fund)...... 899 1,033 955
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 899 1,033 955
73.20 Total outlays (gross)............. -899 -1,033 -955
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 899 1,033 955
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 899 1,033 955
90.00 Outlays........................... 899 1,033 955
---------------------------------------------------------------------------

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,
[$839,519,000] $744,877,000, to remain available until May 31, 2007, of
which not less than [$10,650,000] $10,588,000 is for snow survey and
water forecasting, and not less than [$10,547,000] $10,678,000 is for
operation and establishment of the plant materials centers[, and of
which not less than $27,500,000 shall be for the grazing lands
conservation initiative]: Provided, That appropriations hereunder shall
be available pursuant to 7 U.S.C. 2250 for construction and improvement
of buildings and public improvements at plant materials centers, except
that the cost of alterations and improvements to other buildings and
other public improvements shall not exceed $250,000: Provided further,
That when buildings or other structures are erected on non-Federal land,
that the right to use such land is obtained as provided in 7 U.S.C.
2250a: Provided further, That this appropriation shall be available for
technical assistance and related expenses to carry out programs
authorized by section 202(c) of title II of the Colorado River Basin
Salinity Control Act of 1974 (43 U.S.C. 1592(c)): Provided further, That
qualified local engineers may be temporarily employed at per diem rates
to perform the technical planning work of the Service. (7 U.S.C. 2201-
02; 16 U.S.C. 1101-5; 33 U.S.C. 7016-11; Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act,
2006.)

[(rescission)]

[Of the unobligated balances available under this heading,
$10,000,000 are rescinded: Provided, That funds for projects or
activities identified in the Statement of Managers that accompanies
House Report 109-255, pages 84 through 87, shall not be reduced due to
such rescission.] (Emergency Supplemental Appropriations Act to Address
Hurricanes in the Gulf of Mexico and Pandemic Influenza, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Technical assistance.............. 747 742 634
00.02 Soil surveys...................... 89 89 89
00.03 Snow survey and water forecasting. 10 11 11
00.04 Plant materials centers........... 13 12 11
09.00 Reimbursable program.............. 33 53 53
--------- --------- ----------
10.00 Total new obligations........... 892 907 798
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 49 32
22.00 New budget authority (gross)...... 852 875 798
22.10 Resources available from
recoveries of prior year
obligations..................... 22
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 923 907 798
23.95 Total new obligations............. -892 -907 -798
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 32
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 838 840 745
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -8
40.35 Appropriation permanently
reduced....................... -7
40.36 Unobligated balance permanently
reduced....................... -10
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 831 822 745
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 34 53 53
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -13
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 21 53 53
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 852 875 798
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 247 312 245
73.10 Total new obligations............. 892 907 798
73.20 Total outlays (gross)............. -817 -974 -821
73.45 Recoveries of prior year
obligations..................... -22
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 13
--------- --------- ----------
74.40 Obligated balance, end of year.. 312 245 222
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 691 776 709
86.93 Outlays from discretionary
balances........................ 126 198 112
--------- --------- ----------
87.00 Total outlays (gross)........... 817 974 821
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -22 -36 -36
88.40 Non-Federal sources........... -12 -17 -17
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -34 -53 -53
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.................. 831 822 745
90.00 Outlays........................... 783 921 768
---------------------------------------------------------------------------

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

2005 Actual 2006 est. 2007 est.
Customers receiving technical
assistance for planning &
application, number........... 106,400 106,000 110,000
Conservation systems planned
on cropland and grazing land,
acres......................... 42.1 million 35.8 million 45 million
Erosion reduction applied on
cropland...................... 3.9 million 3 million 3 million
Conservation practices applied
on grazing land............... 13.2 million 9 million 8 million

Inventory and monitoring, resource appraisal, and program
development activities are also funded through this account. Resource
inventories are conducted to provide soil, water, and related resource
data for evaluating land-use changes and trends; and for guidance in the
development and implementation of Federal, State, and local resource
conservation pro

[[Page 122]]

grams. Resource appraisal and program development provides periodic
reports to the public and Congress as required by the Soil and Water
Resources Conservation Act of 1977 as amended.

Soil surveys.--Soil surveys and investigations are made on the soil
resources of the Nation's private lands. NRCS provides this information
as electronic and printed publications for use by the American public
and other Federal, State and local agencies in making land-use
decisions. NRCS uses the information for program development, resource
conservation planning, and installation of planned practices. NRCS
provides national leadership for the National Cooperative Soil Survey
and digitizing of soil surveys in cooperation with States, and other
users of soil survey data.

MAIN WORKLOAD FACTORS

2005 actual 2006 est. 2007 est.
Acres mapped annually (millions).... 32 32 34
Soil surveys released for public
use, (million acres)................ 81.2 80 81

Snow survey and water supply forecasting.--Water supply forecasts
prepared from snow surveys in western states are used in making
efficient seasonal use of water for irrigation, flood control, fish and
wildlife, recreation, power generation, municipal and industrial water
supply, emergency management, and water quality management.

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

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 408 398 345
11.3 Other than full-time permanent 8 8 7
11.5 Other personnel compensation.. 7 6 5
--------- --------- ----------
11.9 Total personnel compensation 423 412 357
12.1 Civilian personnel benefits..... 138 131 119
21.0 Travel and transportation of
persons....................... 20 19 17
22.0 Transportation of things........ 5 5 4
23.2 Rental payments to others....... 23 21 19
23.3 Communications, utilities, and
miscellaneous charges......... 22 21 18
24.0 Printing and reproduction....... 3 3 3
25.2 Other services.................. 181 205 176
26.0 Supplies and materials.......... 17 16 14
31.0 Equipment....................... 21 20 17
41.0 Grants, subsidies, and
contributions................. 5
42.0 Insurance claims and indemnities 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 859 854 745
99.0 Reimbursable obligations.......... 33 53 53
--------- --------- ----------
99.9 Total new obligations........... 892 907 798
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1000-0-1-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 7,277 6,638 5,720
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 215 300 300
---------------------------------------------------------------------------

Farm Security and Rural Investment Programs

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Wetlands Reserve Program.......... 267 250 403
00.02 Environmental Quality Incentives
Program......................... 950 1,017 1,000
00.03 Ground and Surface Water
Conservation.................... 65 51 51
00.04 Klamath Basin..................... 10 8 6
00.05 Wildlife Habitat Incentives
Program......................... 46 43 55
00.06 Farm and Ranch Lands Protection
Program......................... 112 74 50
00.07 Conservation Security Program..... 202 259 342
00.08 Grassland Reserve Program......... 71 54
00.10 Agricultural Management Assistance
Program......................... 14 5
09.00 Reimbursable program-CRP.......... 69 77 80
--------- --------- ----------
10.00 Total new obligations........... 1,806 1,838 1,987
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 1,868 1,838 1,987
23.95 Total new obligations............. -1,806 -1,838 -1,987
23.98 Unobligated balance expiring or
withdrawn....................... -63
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.35 Appropriation permanently
reduced....................... -370
Mandatory:

62.00 Transferred from other accounts. 1,799 1,761 2,277
Spending authority from offsetting
collections:

Mandatory:
69.00 Offsetting collections (cash). 42 77 80
69.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 27
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)......... 69 77 80
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,868 1,838 1,987
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 833 2,703 2,892
73.10 Total new obligations............. 1,806 1,838 1,987
73.20 Total outlays (gross)............. -1,608 -1,649 -1,585
73.32 Obligated balance transferred from
other accounts.................. 216
73.40 Adjustments in expired accounts
(net)........................... 1,483
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -27
--------- --------- ----------
74.40 Obligated balance, end of year.. 2,703 2,892 3,294
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -196
86.97 Outlays from new mandatory
authority....................... 636 692 764
86.98 Outlays from mandatory balances... 972 957 1,017
--------- --------- ----------
87.00 Total outlays (gross)........... 1,608 1,649 1,585
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -1,594 -77 -80
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -27
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 1,552
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,799 1,761 1,907
90.00 Outlays........................... 13 1,572 1,505
---------------------------------------------------------------------------

The Farm Security and Rural Investment Act of 2002 (P.L. 107-171)
reauthorizes a number of USDA's conservation programs. NRCS is
responsible for implementing many of these programs. All of the
assistance for programs where NRCS is the lead implementation agency is
transferred from the Commodity Credit Corporation (CCC) to the Farm
Security and Rural Investment Programs account. This account funds the
cost-share, monitoring, easement, and other financial assistance
activities associated with the programs under title II of the 2002 Farm
Bill. In addition, this account funds the technical assistance costs
necessary for delivering the En

[[Page 123]]

vironmental 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 $1.27 billion in 2007. The Budget proposes canceling funds
in excess of $1.0 billion in fiscal year 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. The Budget proposes canceling funds in excess
of $51 million in fiscal year 2007.

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. The Budget proposes
canceling funds in excess of $55 million in fiscal year 2007.

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. This program will reach its
authorized level by the end of FY 2006.

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. The Budget
proposes canceling funds in excess of $6 million in fiscal year 2007.

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

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 171 156 160
11.3 Other than full-time permanent 3 3 3
11.5 Other personnel compensation.. 4 3 3
--------- --------- ----------
11.9 Total personnel compensation 178 162 166
12.1 Civilian personnel benefits..... 52 49 51
21.0 Travel and transportation of
persons....................... 6 7 7
22.0 Transportation of things........ 1 2 2
23.2 Rental payments to others....... 10 10 11
23.3 Communications, utilities, and
miscellaneous charges......... 9 10 10
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. -135 68 113
26.0 Supplies and materials.......... 8 8 8
31.0 Equipment....................... 11 11 11
32.0 Land and structures............. 242 241 369
41.0 Grants, subsidies, and
contributions................. 1,354 1,192 1,158
--------- --------- ----------
99.0 Direct obligations............ 1,737 1,761 1,907
99.0 Reimbursable obligations.......... 69 77 80
--------- --------- ----------
99.9 Total new obligations........... 1,806 1,838 1,987
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1004-0-1-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 3,096 3,541 3,861
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 632 681 800
---------------------------------------------------------------------------

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), $6,083,000.]
(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, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 7 6
--------- --------- ----------
10.00 Total new obligations........... 7 6
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 7 6
23.95 Total new obligations............. -7 -6
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 7 6
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 4 3 1

[[Page 124]]

73.10 Total new obligations............. 7 6
73.20 Total outlays (gross)............. -8 -8 -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 3 1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 5 5
86.93 Outlays from discretionary
balances........................ 3 3 1
--------- --------- ----------
87.00 Total outlays (gross)........... 8 8 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 7 6
90.00 Outlays........................... 8 8 1
---------------------------------------------------------------------------

Under the authorities of Public Law 83-566, watershed planning
assistance is provided to States and communities to address specific
resource problems on a watershed scale. The funds are used to cooperate
with other agencies and the States in providing local decision makers
with resource data, derived from cooperative river basin surveys and
floodplain management studies, for use in decision making. Watershed
plans are used to develop the small watershed projects.

Watershed work plans are prepared by sponsoring local organizations
with the Department's assistance or through State and local resources.
The FY 2007 Budget does not request funding for this program because the
Budget is also not proposing to fund additional watershed operations
projects.

Object Classification (in millions of dollars)

Direct obligations:

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

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1066-0-1-301 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 48 41
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 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, $75,000,000, 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 $30,000,000 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.] (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, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Watershed operations (P.L. 534)... 9 11
00.03 Emergency watershed protection
operations...................... 363 454
00.04 Small watershed operations (P.L.
566)............................ 71 86
09.01 Reimbursable program.............. 35 32
--------- --------- ----------
10.00 Total new obligations........... 478 583
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 161 178
22.00 New budget authority (gross)...... 465 405
22.10 Resources available from
recoveries of prior year
obligations..................... 28
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 654 583
23.95 Total new obligations............. -478 -583
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 178
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 430 375
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -1
40.35 Appropriation permanently
reduced....................... -1
40.36 Unobligated balance permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 428 374
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 7 31
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 30
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 37 31
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 465 405
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 252 461 551
73.10 Total new obligations............. 478 583
73.20 Total outlays (gross)............. -211 -493 -335
73.45 Recoveries of prior year
obligations..................... -28
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -30
--------- --------- ----------
74.40 Obligated balance, end of year.. 461 551 216
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 127 280
86.93 Outlays from discretionary
balances........................ 84 213 335
--------- --------- ----------
87.00 Total outlays (gross)........... 211 493 335
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -5 -31
88.40 Non-Federal sources........... -2
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -7 -31
Against gross budget authority only:

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

Net budget authority and outlays:
89.00 Budget authority.................. 428 374
90.00 Outlays........................... 203 462 335
---------------------------------------------------------------------------

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 dam

[[Page 125]]

age 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.

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.

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 60 percent of the funding provided is
used for financial assistance. The 2007 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 2007.

The 2007 Budget does not request funding for the watershed
operations program.

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

MAIN WORKLOAD FACTORS

2005 actual 2006 est. 2007 est.
Status of operational projects:
Projects receiving land
treatment................. 164 145
Structural projects......... 271 270
Land treatment and
structural................ 99 90
------------------------------------
Subtotal active projects 534 505
Projects continuing post-
installation assistance... 989 999
Inactive projects........... 30 50
Project life completed...... 41 43
Deauthorized projects....... 156 157
------------------------------------
Total operational
projects.............. 1,750 1,754
------------------------------------
New projects approved during
year...................... 1 4
====================================

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 26 43
11.3 Other than full-time permanent 1
11.5 Other personnel compensation.. 2 5
--------- --------- ----------
11.9 Total personnel compensation 28 49
12.1 Civilian personnel benefits..... 8 13
21.0 Travel and transportation of
persons....................... 1 3
23.2 Rental payments to others....... 2 2
23.3 Communications, utilities, and
miscellaneous charges......... 2 3
25.2 Other services.................. 22 55
25.2 Other services.................. 123 140
26.0 Supplies and materials.......... 2 3
31.0 Equipment....................... 3 5
41.0 Grants, subsidies, and
contributions................. 251 278
--------- --------- ----------
99.0 Direct obligations............ 442 551
99.0 Reimbursable obligations.......... 34 32
99.5 Below reporting threshold......... 2
--------- --------- ----------
99.9 Total new obligations........... 478 583
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1072-0-1-301 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 440 704
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 30 32
---------------------------------------------------------------------------

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,
[$31,561,000] $15,300,000, to remain available until expended. (16
U.S.C. 1001 et seq.; Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program activity........... 28 32 15
09.01 Reimbursable program.............. 1
--------- --------- ----------
10.00 Total new obligations........... 29 32 15
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 1
22.00 New budget authority (gross)...... 28 31 15
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 30 32 15
23.95 Total new obligations............. -29 -32 -15
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 28 31 15
40.35 Appropriation permanently
reduced....................... -65
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 28 31 -50
Mandatory:

62.00 Transferred from other accounts. 65
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 28 31 15
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 33 41 47
73.10 Total new obligations............. 29 32 15
73.20 Total outlays (gross)............. -21 -26 -26
--------- --------- ----------
74.40 Obligated balance, end of year.. 41 47 36
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 10 13 -59
86.93 Outlays from discretionary
balances........................ 11 13 20
86.97 Outlays from new mandatory
authority....................... 65
--------- --------- ----------
87.00 Total outlays (gross)........... 21 26 26
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 28 31 15
90.00 Outlays........................... 21 26 26
---------------------------------------------------------------------------

[[Page 126]]

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. The 2007 Budget request will support
rehabilitation of the highest priority dam projects that have reached
the end of their design life. NRCS may provide technical and financial
assistance for the planning, design, and implementation of
rehabilitation projects that may include upgrading or removing the dams.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 6 6 3
12.1 Civilian personnel benefits..... 2 2 1
23.2 Rental payments to others....... 1
25.2 Other services.................. 5 6 2
25.2 Other services.................. 4 4 2
31.0 Equipment....................... 1 1
41.0 Grants, subsidies, and
contributions................. 9 10 5
--------- --------- ----------
99.0 Direct obligations............ 27 30 13
99.0 Reimbursable obligations.......... 1
99.5 Below reporting threshold......... 1 2 2
--------- --------- ----------
99.9 Total new obligations........... 29 32 15
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1002-0-1-301 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 99 96 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), [$51,300,000] $25,933,000, to remain
available until expended[: Provided, That the Secretary shall enter into
a cooperative or contribution agreement, within 45 days of enactment of
this Act, 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
$3,411,000 shall be available for national headquarters activities]. (7
U.S.C. 2225; Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Technical assistance.............. 52 51 26
09.01 Reimbursable program.............. 1 1
--------- --------- ----------
10.00 Total new obligations........... 52 52 27
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1 1
22.00 New budget authority (gross)...... 52 52 27
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 54 53 28
23.95 Total new obligations............. -52 -52 -27
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1 1 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 52 52 26
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 52 51 26
Discretionary:

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.. 10 10 11
73.10 Total new obligations............. 52 52 27
73.20 Total outlays (gross)............. -51 -51 -31
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 10 11 7
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 46 47 24
86.93 Outlays from discretionary
balances........................ 5 4 7
--------- --------- ----------
87.00 Total outlays (gross)........... 51 51 31
----------------------------------------------------------------------------

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 50 30
---------------------------------------------------------------------------

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 2007 Budget proposes new policy for the RC&D Program that
consolidates and streamlines all RC&D areas and operations. Under this
proposal the number of RC&D coordinators would be reduced from the
current 375 to approximately 150. This policy is based on a finding that
the program is duplicative of other USDA and Federal resource
conservation and rural development programs. The new streamlined RC&D
program will be focused on multi-county planning and intergovernmental
relations.

The following tabulation shows the status of RC&D areas authorized
to receive technical and financial assistance.

MAIN WORKLOAD FACTORS

2005 actual 2006 est. 2007 est.
Areas funded at beginning of
year.......................... 375 375 375
Areas funded at end of year... 375 375 375
Project plans adopted......... 5,338 2,500 2,500
Projects completed............ 4,652 4,000 2,500

[[Page 127]]

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 30 29 15
11.3 Other than full-time permanent 1 1 1
--------- --------- ----------
11.9 Total personnel compensation 31 30 16
12.1 Civilian personnel benefits..... 7 8 4
21.0 Travel and transportation of
persons....................... 1 1
23.2 Rental payments to others....... 1 2 1
23.3 Communications, utilities, and
miscellaneous charges......... 2 1 1
25.2 Other services.................. 8 7 3
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 1 1
--------- --------- ----------
99.0 Direct obligations............ 52 51 26
99.0 Reimbursable obligations.......... 1 1
--------- --------- ----------
99.9 Total new obligations........... 52 52 27
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1010-0-1-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 491 467 234
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 1 1 1
---------------------------------------------------------------------------

Biomass Research and Development

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Biomass Research and Development.. 1 12 12
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 1 12 12
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 14 14
22.00 New budget authority (gross)...... 14 12 12
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 15 26 26
23.95 Total new obligations............. -1 -12 -12
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 14 14 14
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.35 Appropriation permanently
reduced....................... -2
Mandatory:

62.00 Transferred from other accounts. 14 12 14
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 14 12 12
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 24 17 5
73.10 Total new obligations............. 1 12 12
73.20 Total outlays (gross)............. -8 -24 -12
--------- --------- ----------
74.40 Obligated balance, end of year.. 17 5 5
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -2
86.97 Outlays from new mandatory
authority....................... 12 14
86.98 Outlays from mandatory balances... 8 12
--------- --------- ----------
87.00 Total outlays (gross)........... 8 24 12
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 14 12 12
90.00 Outlays........................... 8 24 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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 1 2 2
---------------------------------------------------------------------------

Healthy Forests Reserve Program

For necessary expenses to carry out the Healthy Forests Reserve
Program authorized under Title V of Public Law 108-148 (16 U.S.C. 6571-
6578), $2,475,000.

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program activity........... 2 2
--------- --------- ----------
10.00 Total new obligations (object
class 32.0)................... 2 2
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 2 2
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 2 2
73.20 Total outlays (gross)............. -1 -2
----------------------------------------------------------------------------

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

Net budget authority and outlays:
89.00 Budget authority.................. 2 2
90.00 Outlays........................... 1 2
---------------------------------------------------------------------------

Title V of the Healthy Forests Restoration Act of 2003 (Public Law
108-148) authorizes the establishment of the Healthy Forests Reserve
Program (HFRP). The purpose of this program is to assist landowners in
restoring, enhancing and protecting forest ecosystems to 1) promote the
recovery of threatened and endangered species, 2) improve biodiversity,
and 3) enhance carbon sequestration.

NRCS provides national leadership for the implementation of this
voluntary program. At the state level, the NRCS State Conservationist
determines how best to deliver HFRP and implement national policies in
an efficient manner based on the national priorities identified in each
sign-up announcement. Only privately held land is eligible for
enrollment into HFRP. Land enrolled in the HFRP must have a restoration
plan that includes practices necessary to restore and enhance habitat
for species listed as threatened or endangered or candidates for the
threatened or endangered species list. Technical assistance will be
provided by USDA to assist owners in complying with the terms of
restoration plans under the HFRP.

[[Page 128]]

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1090-0-1-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 1 1
---------------------------------------------------------------------------

Great Plains Conservation Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2268-0-1-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2
22.00 New budget authority (gross)...... -2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation......
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance permanently
reduced....................... -2
----------------------------------------------------------------------------

Change in obligated balances:
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

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

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

2005 actual 2006 est.
Program participants:
Number of contracts serviced during
year.................................. 220 31
Number of acres under contracts........ 528,248 113,500

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 2005 actual 2006 est. 2007 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.......... 6 4 4
22.00 New budget authority (gross)...... -5
22.10 Resources available from
recoveries of prior year
obligations..................... 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5 4 4
23.95 Total new obligations............. -1
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 4 4 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance permanently
reduced....................... -5
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 7 2 4
73.10 Total new obligations............. 1
73.20 Total outlays (gross)............. -1 2 1
73.45 Recoveries of prior year
obligations..................... -4
--------- --------- ----------
74.40 Obligated balance, end of year.. 2 4 5
----------------------------------------------------------------------------

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

Net budget authority and outlays:
89.00 Budget authority.................. -5
90.00 Outlays........................... 1 -2 -1
---------------------------------------------------------------------------

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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance permanently
reduced....................... -1
----------------------------------------------------------------------------

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

The objectives of the Water Bank Program are to conserve water;
preserve, maintain, and improve the Nation's wetlands; increase
waterfowl habitat in migratory waterfowl nesting, breeding, and feeding
areas in the United States; and secure recreational and environmental
benefits for the Nation. The program was authorized by the Water Bank
Act of 1970, as amended by Public Law 96-182, approved January 2, 1980.
Funding for the expiring 1985 Water Bank agreements were transferred
from the Wetlands Reserve Program 1995 appropriation to this account as
authorized under the Water Bank Extension Act of 1994. The 2007 Budget
does not request program funding.

[[Page 129]]

Colorado River Basin Salinity Control Program

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3318-0-1-304 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Change in obligated balances:
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

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

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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1 1 1
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 1 1
----------------------------------------------------------------------------

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

The 2002 Farm Bill reauthorized WRP through 2007. Funding for WRP is
now provided through NRCS' Farm Security and Rural Investment Account.

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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2 3 3
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 3 3 3
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 3 3 3
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 16 13 11
73.20 Total outlays (gross)............. -1 -2 -2
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 13 11 9
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 1 2 2
----------------------------------------------------------------------------

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

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

Program and Financing (in millions of dollars)

Obligations by program activity:
00.07 Reestimate of loan guarantee
subsidy......................... 1
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 1
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 1
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 1
73.20 Total outlays (gross)............. -1
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 1
----------------------------------------------------------------------------

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

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

----------------------------------------------------------------------------
Identification code 12-2086-0-1-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Guaranteed loan upward reestimate subsidy
budget authority:
235001Upward reestimate subsidy budget
authority....................... 1
--------- --------- ----------

[[Page 130]]

235901Total upward reestimate budget
authority....................... 1
Guaranteed loan downward reestimate subsidy
budget authority:
237001Downward reestimate subsidy budget
authority....................... -1
--------- --------- ----------
237901Total downward reestimate subsidy
budget authority................ -1
---------------------------------------------------------------------------

Credit accounts:

Agricultural Resource Conservation Demonstration Guaranteed Loan
Financing Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4177-0-3-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
08.02 Downward Reestimate Payment to
receipt account................. 1
--------- --------- ----------
10.00 Total new obligations........... 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 financing disbursements
(gross)......................... -1
87.00 Total financing disbursements
(gross)......................... 1
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

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

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

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements...........
---------------------------------------------------------------------------

This program, also known as ``Farms for the Future,'' provides
guarantees and interest assistance on loans made to State trust funds,
who in turn finance acquisitions to preserve farmland in selected
states. No guarantees have been made since 1993.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4177-0-3-351

2004 actual

2005 actual

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

1101

Fund balances with Treasury

Investments in US securities:
1106

Receivables, net

1999

Total assets

LIABILITIES:
Federal liabilities:

2104

Resources payable to Treasury

2105

Other

2999

Total liabilities

4999

Total liabilities and net position

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

Trust Funds

Miscellaneous Contributed Funds

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-8210-0-7-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............ 5 5 6
--------- --------- ----------
01.99 Balance, start of year............ 5 5 6
Receipts:
02.20 Miscellaneous contributed funds... 1 1
--------- --------- ----------
04.00 Total: Balances and collections... 5 6 7
--------- --------- ----------
07.99 Balance, end of year.............. 5 6 7
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program activity........... 3 2
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 3 2
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 5 5 2
23.95 Total new obligations............. -3 -2
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 5 2
----------------------------------------------------------------------------

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

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 1 3 2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 1 3 2
---------------------------------------------------------------------------

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

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;
[$164,625,000] $170,741,000: Provided, [That of the funds appropriated
under this title for salaries and expenses, $11,147,000, to remain
available until September 30, 2007, shall be used to complete the
consolidation of Rural Development activities in St. Louis, Missouri:
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

[[Page 131]]

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, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program.................... 147 163 171
09.01 Reimbursable program.............. 506 496 500
--------- --------- ----------
10.00 Total new obligations........... 653 659 671
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 655 659 671
23.95 Total new obligations............. -653 -659 -671
23.98 Unobligated balance expiring or
withdrawn....................... -3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 148 165 171
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -2
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 147 163 171
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 506 496 500
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 2
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 508 496 500
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 655 659 671
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 130 132 127
73.10 Total new obligations............. 653 659 671
73.20 Total outlays (gross)............. -647 -664 -668
73.40 Adjustments in expired accounts
(net)........................... -3
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.. 132 127 130
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 566 561 570
86.93 Outlays from discretionary
balances........................ 81 103 98
--------- --------- ----------
87.00 Total outlays (gross)........... 647 664 668
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -507 -496 -500
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.................. 147 163 171
90.00 Outlays........................... 140 168 168
---------------------------------------------------------------------------

Since 2001, Rural Development has had a consolidated Salaries and
Expenses account to administer all Rural Development programs, including
programs administered by the Rural Utilities Service (RUS), the Rural
Housing Service (RHS), and the Rural Business-Cooperative Service (RBS).

RUS provides grants, direct loans and loan guarantees to suppliers
of electric, telecommunications (for general purpose and for distance
learning/telemedicine), and water and wastewater services in rural
areas. Through the water and wastewater program, RUS also provides
technical assistance. The programs are administered in Washington, DC.
The Rural Development field office staff performs the services related
to the water and wastewater grant and loan programs. For the electric
and telecommunication loans, general field representatives visit
borrowers periodically and maintain liaisons between the borrowers and
headquarters.

RHS was formed from the Rural Housing section of the Farmers Home
Administration and the Community Facilities Division of the Rural
Development Administration. RHS delivers rural housing and community
facility programs through a system of State, area, and local offices.

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

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 87 100 106
11.3 Other than full-time permanent 1 1 1
11.5 Other personnel compensation.. 1 1 1
--------- --------- ----------
11.9 Total personnel compensation 89 102 108
12.1 Civilian personnel benefits..... 23 26 28
21.0 Travel and transportation of
persons....................... 4 4 4
23.1 Rental payments to GSA.......... 5 5 5
23.2 Rental payments to others....... 1 2 1
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. 11 13 12
25.4 Operation and maintenance of
facilities.................... 1 1 1
25.5 Research and development
contracts..................... 6 6 6
25.7 Operation and maintenance of
equipment..................... 2 2
26.0 Supplies and materials.......... 2 1 1
31.0 Equipment....................... 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 147 163 171
99.0 Reimbursable obligations.......... 506 496 500
--------- --------- ----------
99.9 Total new obligations........... 653 659 671
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-0403-0-1-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 1,515 1,700 1,748
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 5,065 5,172 5,124
---------------------------------------------------------------------------

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, [$701,941,000] $600,762,000, to remain available until expended, of
which [$82,620,000] $43,477,000 shall be for rural community programs
described in section 381E(d)(1) of such Act; of which [$530,100,000]
$514,121,000 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 [$89,221,000]
$43,164,000 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 $4,464,000 shall be available for community
facilities grants to tribal colleges,

[[Page 132]]

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;
$2,000,000 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] $10,000,000 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; [$25,000,000
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[, unless the
Secretary makes a determination of extreme need, of which $5,600,000
shall be for Rural Community Assistance Programs and not less than
$850,000 shall be for a qualified national Native American organization
to provide technical assistance for rural water systems for tribal
communities]; and not to exceed [$13,750,000] $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
[$21,367,000] $14,775,000 shall be available through June 30, [2006]
2007, for authorized empowerment zones and enterprise communities and
communities designated by the Secretary of Agriculture as Rural Economic
Area Partnership Zones; of which [$1,067,000] $1,100,000 shall be for
the rural community programs described in section 381E(d)(1) of such
Act, of which [$12,000,000] $13,400,000 shall be for the rural utilities
programs described in section 381E(d)(2) of such Act, and of which
[$8,300,000] $275,000 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, $18,000,000 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, $26,000,000 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, 2006.)
[For the cost of grants for the water, waste disposal, and
wastewater facilities programs authorized under section 306(a) and 306A
of the Consolidated Farm and Rural Development Act, $45,000,000:
Provided, That funds made available under this paragraph shall remain
available until expended to respond to damage caused by hurricanes that
occurred during the 2005 calendar year: Provided further, That the
amounts provided under this heading are designated as an emergency
requirement pursuant to section 402 of H. Con. Res. 95 (109th Congress),
the concurrent resolution on the budget for fiscal year 2006.]
(Emergency Supplemental Appropriations Act to Address Hurricanes in the
Gulf of Mexico and Pandemic Influenza, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 112 83 184
00.02 Guaranteed loan subsidy........... 34 49 51
00.05 Reestimate of Direct Loan Subsidy. 19
00.06 Interest on Reestimates of Direct
Loan Subsidy.................... 4
00.07 Reestimates of Guaranteed Loan
Subsidy......................... 38
00.08 Interest on Reestimate of
Guaranteed Loan Subsidy......... 10
00.11 Water and waste disposal systems
grants.......................... 472 465 346
00.12 Water and waste disposal systems
emergency supplemental grants... 39 56
00.13 Emergency and imminent community
water assistance grants......... 11 14
00.14 Solid waste management grants..... 3 4 3
00.15 Community facility grants......... 28 26 17
00.16 Community facility emergency
supplemental grants............. 5
00.18 Economic impact initiative grants. 20 19
00.20 Rural business enterprise grants.. 44 43
00.21 Rural business opportunity grants. 3 3
00.26 Rural Community Development
Initiative Grants............... 5 15
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 849 777 601
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 42 60 1
22.00 New budget authority (gross)...... 824 718 601
22.10 Resources available from
recoveries of prior year
obligations..................... 42
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 908 778 602
23.95 Total new obligations............. -849 -777 -601
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 60 1 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 788 706 601
40.00 Appropriation, Hurricane
Supplemental.................. 45
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -7
40.35 Appropriation permanently
reduced....................... -6
41.00 Transferred to other accounts... -28 -26
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 754 718 601
Mandatory:

60.00 Appropriation................... 70
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 824 718 601
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2,637 2,519 2,497
73.10 Total new obligations............. 849 777 601
73.20 Total outlays (gross)............. -923 -799 -811
73.45 Recoveries of prior year
obligations..................... -42
--------- --------- ----------
74.40 Obligated balance, end of year.. 2,519 2,497 2,287
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 61 54 45
86.93 Outlays from discretionary
balances........................ 720 702 748
86.97 Outlays from new mandatory
authority....................... 70
86.98 Outlays from mandatory balances... 72 43 18
--------- --------- ----------
87.00 Total outlays (gross)........... 923 799 811
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 824 718 601

[[Page 133]]

90.00 Outlays........................... 925 799 811
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-0400-0-1-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Direct water and waste disposal... 921 990 990
115002Direct community facility......... 729 297 297
--------- --------- ----------
115901Total direct loan levels.......... 1,650 1,287 1,287
Direct loan subsidy (in percent):
132001Direct water and waste disposal... 9.00 6.91 16.64
132002Direct community facility......... 4.05 3.35 6.41
--------- --------- ----------
132901Weighted average subsidy rate..... 6.81 6.09 14.28
Direct loan subsidy budget authority:
133001Direct water and waste disposal... 83 68 165
133002Direct community facility......... 30 10 19
--------- --------- ----------
133901Total subsidy budget authority.... 113 78 184
Direct loan subsidy outlays:
134001Direct water and waste disposal... 75 72 82
134002Direct community facility......... 14 15 21
--------- --------- ----------
134901Total subsidy outlays............. 89 87 103
Direct loan upward reestimate subsidy budget
authority:
135001Direct water and waste disposal... 13
135002Direct community facility......... 4
135003Direct business and industry...... 5
--------- --------- ----------
135901Total upward reestimate budget
authority....................... 22
Direct loan downward reestimate subsidy budget
authority:
137001Direct water and waste disposal... -61
137002Direct community facility......... -10
137003Direct business and industry...... -8
--------- --------- ----------
137901Total downward reestimate budget
authority....................... -79
----------------------------------------------------------------------------

Guaranteed loan levels supportable by subsidy
budget authority:
215001Water and waste disposal loan
guarantees...................... 3 75 75
215002Community facility loan guarantees 195 208 208
215003Business and industry loan
guarantees...................... 678 917 990
--------- --------- ----------
215901Total loan guarantee levels....... 876 1,200 1,273
Guaranteed loan subsidy (in percent):
232001Water and waste disposal loan
guarantees...................... -0.90 -0.90 -0.90
232002Community facility loan guarantees 0.09 0.36 3.66
232003Business and industry loan
guarantees...................... 5.03 4.92 4.36
--------- --------- ----------
232901Weighted average subsidy rate..... 3.91 3.77 3.94
Guaranteed loan subsidy budget authority:
233001Water and waste disposal loan
guarantees...................... -1 -1
233002Community facility loan guarantees 1 8
233003Business and industry loan
guarantees...................... 34 44 43
--------- --------- ----------
233901Total subsidy budget authority.... 34 44 50
Guaranteed loan subsidy outlays:
234002Community facility loan guarantees 2
234003Business and industry loan
guarantees...................... 28 19 36
--------- --------- ----------
234901Total subsidy outlays............. 28 19 38
Guaranteed loan upward reestimate subsidy
budget authority:
235002Community facility loan guarantees 13
235003Business and industry loan
guarantees...................... 35
--------- --------- ----------
235901Total upward reestimate budget
authority....................... 48
Guaranteed loan downward reestimate subsidy
budget authority:
237001Downward reestimate subsidy budget
authority....................... -11
--------- --------- ----------
237901Total downward reestimate subsidy
budget authority................ -11
---------------------------------------------------------------------------

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.

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 earmarked to one
of the funding streams.

Water and waste disposal loans are authorized under 7 U.S.C. 1926.
The program provides direct loans to municipalities, counties, special
purpose districts, certain Indian Tribes, and non-profit corporations to
develop water and waste disposal systems in rural areas and towns with
populations of less than 10,000. The program also guarantees water and
waste disposal loans made by banks and other eligible lenders. Total
loan level is projected to be $990 million for these programs in 2007.
The 2007 subsidy rate for this program reflects a reduction in the
borrower's interest rate for these loans, making them more affordable to
qualifying rural communities.

Water and waste disposal grants are authorized under Section
306(a)(2) of the Consolidated Farm and Rural Development Act, as
amended. Grants are authorized to be made to associations, including
nonprofit corporations, municipalities, counties, public and quasi-
public agencies, and certain Indian tribes. The grants can be used to
finance development, storage, treatment, purification, or distribution
of water or the collection, treatment, or disposal of waste in rural
areas and cities or towns with populations of less than 10,000. The
amount of any development grant may not exceed 75 percent of the
eligible development cost of the project. $346 million is projected for
this program in 2007.

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 2007.

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 2007 is projected to be $522 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,

[[Page 134]]

and no funds are requested in 2007. 2007 projections for loan guarantees
are $990 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 2007 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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program activity........... 1
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 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 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,
[$43,976,000] $40,590,000, to remain available until expended: Provided,
[That $2,976,000 shall be made available for loans to private non-profit
organizations, or such non-profit organizations' affiliate loan funds
and State and local 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, [$1,200,000] $1,188,000 shall be available through June
30, [2006] 2007, 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
balances to carry out a housing demonstration program to provide
revolving loans for the preservation of low-income multi-family housing
projects as authorized in Public Law 108-447 and Public Law 109-97 shall
be transferred to and merged with ``Rural Housing Service, Multifamily
Housing Revitalization Program Account''. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2006.)
[For an additional amount for grants for very low-income housing
repairs as authorized by 42 U.S.C. 1474 to respond to damage caused by
hurricanes that occurred during the 2005 calendar year, $20,000,000, to
remain available until expended: Provided, That the amount provided
under this heading is designated as an emergency requirement pursuant to
section 402 of H. Con. Res. 95 (109th Congress), the concurrent
resolution on the budget for fiscal year 2006: Provided further, That
these funds are not subject to any age limitation.] (Emergency
Supplemental Appropriations Act to Address Hurricanes in the Gulf of
Mexico and Pandemic Influenza, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Multi-Family Housing Preservation
Demo Revolving Fund............. 3 3
00.11 Domestic Farm Labor Housing
Natural Disaster Grants......... 4 1
00.12 Very Low-Income Housing Repair
Grants.......................... 32 30 30
00.13 Very Low-Income Housing Repair
Natural Disaster Grants......... 6 2
00.14 Supervisory and Technical
Assistance Grants............... 1 1 1
00.15 Processing Workers Housing Grants. 1 8
00.16 Rural Housing Preservation Grants. 9 11 10
00.17 Domestic Farm Labor Housing Grants
2005 Hurricanes Emer Supp....... 20
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 56 76 41
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 11 13 1
22.00 New budget authority (gross)...... 56 64 41
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 69 77 42
23.95 Total new obligations............. -56 -76 -41
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 13 1 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 56 44 41
40.00 Appropriation Huuricane
Supplemental.................. 20
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 56 64 41
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 29 36 46
73.10 Total new obligations............. 56 76 41
73.20 Total outlays (gross)............. -47 -66 -51
73.45 Recoveries of prior year
obligations..................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 36 46 36
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 35 45 27
86.93 Outlays from discretionary
balances........................ 12 21 24
--------- --------- ----------
87.00 Total outlays (gross)........... 47 66 51
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 56 64 41
90.00 Outlays........................... 48 66 51
---------------------------------------------------------------------------

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

[[Page 135]]

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 $29.7 million for this program in 2007.

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 $990 thousand for this program in 2007.

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. $9.9 million is provided for this
program in 2007.

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

----------------------------------------------------------------------------
Identification code 12-1953-0-1-604 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Direct loan levels................ 6 6
--------- --------- ----------
115901Total direct loan levels.......... 6 6
Direct loan subsidy (in percent):
132001Subsidy rate...................... 46.76 46.76 47.82
--------- --------- ----------
132901Weighted average subsidy rate..... 46.76 46.76 0.00
Direct loan subsidy budget authority:
133001Subsidy budget authority.......... 3 3
--------- --------- ----------
133901Total subsidy budget authority.... 3 3
Direct loan subsidy outlays:
134001Subsidy outlays................... 3 3
--------- --------- ----------
134901Total subsidy outlays............. 3 3
---------------------------------------------------------------------------

Multifamily Housing Revitalization Direct Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan obligations........... 6 6
--------- --------- ----------
10.00 Total new obligations........... 6 6
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New financing authority (gross)... 6 6
23.95 Total new obligations............. -6 -6
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 3 3
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 3 3
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 3 -3
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 3 3
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 6 6
----------------------------------------------------------------------------

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

Offsets:
Against gross financing authority and
financing disbursements:

88.00 Offsetting collections (cash)
from: Federal sources......... -3 -3
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. -3 3
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 3 3
90.00 Financing disbursements........... 3
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4269-0-3-604 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 6 6
--------- --------- ----------
1150 Total direct loan obligations... 6 6
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 6
1231 Disbursements: Direct loan
disbursements................... 6 3
1251 Repayments: Repayments and
prepayments.....................
--------- --------- ----------
1290 Outstanding, end of year........ 6 9
---------------------------------------------------------------------------

Farm Labor Program Account

For the cost of direct loans, grants, and contracts, as authorized
by 42 U.S.C. 1484 and 1486, [$31,168,000] $33,798,000, 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, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 16 17 20
00.11 Farm labor housing grants......... 30 14 14
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 46 31 34
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 10
22.00 New budget authority (gross)...... 34 31 34
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 46 31 34
23.95 Total new obligations............. -46 -31 -34
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 34 31 34
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 103 129 131

[[Page 136]]

73.10 Total new obligations............. 46 31 34
73.20 Total outlays (gross)............. -18 -29 -34
73.45 Recoveries of prior year
obligations..................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 129 131 131
----------------------------------------------------------------------------

Outlays (gross), detail:
86.93 Outlays from discretionary
balances........................ 18 29 34
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 34 31 34
90.00 Outlays........................... 18 29 34
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1954-0-1-604 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Farm Labor Program................ 33 38 42
--------- --------- ----------
115901Total direct loan levels.......... 33 38 42
Direct loan subsidy (in percent):
132001Farm Labor Program................ 47.06 44.59 47.95
--------- --------- ----------
132901Weighted average subsidy rate..... 47.06 44.59 47.95
Direct loan subsidy budget authority:
133001Farm Labor Program................ 16 17 20
--------- --------- ----------
133901Total subsidy budget authority.... 16 17 20
Direct loan subsidy outlays:
134001Farm Labor Program................ 10 20 20
--------- --------- ----------
134901Total subsidy outlays............. 10 20 20
---------------------------------------------------------------------------

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 2007 is $55.4 million ($13.9 million in grants and $41.6
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, [$653,102,000]
$486,320,000; 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 $8,000,000 shall be available for debt forgiveness or payments for
eligible households as authorized by section 502(c)(5)(D) of the Act,
and not to exceed $50,000 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] two-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: Provided
further, That rental assistance that is recovered from projects that are
subject to prepayment shall be deobligated and reallocated for vouchers
and debt forgiveness or payments consistent with the requirements of
this Act for purposes authorized under section 542 and section
502(c)(5)(D) of the Housing Act of 1949, as amended], That the life of
any such agreement may be extended to fully utilize amounts obligated:
Provided further, That up to $4,190,000 may be used for the purpose of
reimbursing funds used for rental assistance agreements entered into or
renewed pursuant to the authority under section 521(a)(2) of the Act for
emergency needs related to Hurricanes Katrina and Rita. (Agriculture,
Rural Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0137-0-1-604 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program activity........... 593 647 486
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 593 647 486
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 593 647 486
23.95 Total new obligations............. -593 -647 -486
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 592 653 486
40.00 Appropriation................... 58 58 56
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -6
40.35 Appropriation permanently
reduced....................... -5
40.47 Portion substituted for
borrowing authority........... -58
40.47 Portion applied to repay debt... -58 -56
42.00 Transferred from other accounts. 6
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 593 647 486
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Unpaid obligations, appropriation,
start of year................... 2,593 2,364 2,188
73.10 Total new obligations............. 593 647 486
73.20 Total outlays (gross)............. -823 -823 -915
--------- --------- ----------
74.40 Obligated balance,
appropriation, end of year.... 2,364 2,188 1,759
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 103 65 122
86.93 Outlays from discretionary
balances........................ 720 758 793
--------- --------- ----------
87.00 Total outlays (gross)........... 823 823 915
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 593 647 486
90.00 Outlays........................... 823 823 915
---------------------------------------------------------------------------

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.

For 2007, the request for rental assistance grants is for two-year
contracts with a total funding level of $486 million. Two years is the
minimal contract term that provides savings but still allows the multi-
family housing direct loan program to operate efficiently.

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.

[[Page 137]]

[Rural Housing Voucher Program] Multifamily Housing Revitalization
Program Account

For the rural housing voucher program as authorized under section
542 of the Housing Act of 1949, [(without regard to section 542(b))] but
notwithstanding subsection (b) of such section, [$16,000,000]
$74,250,000, to remain available until expended: Provided, That such
vouchers shall be available to any low-income household (including those
not receiving rental assistance) residing in a property financed with a
section 515 loan which has been prepaid after September 30, 2005:
Provided further, That the amount of the voucher shall be the difference
between comparable market rent for the section 515 unit and the tenant
paid rent for such unit: Provided further, That funds made available for
such vouchers, shall be subject to the availability of annual
appropriations: Provided further, That the Secretary shall, to the
maximum extent practicable, administer such vouchers with current
regulations and administrative guidance applicable for section 8 housing
vouchers administered by the Secretary of the Department of Housing and
Urban Development (including the ability to pay administrative costs
related to delivery of the voucher funds): Provided further, That funds
made available under this paragraph may also be used for preservation
and revitalization of the section 515 multifamily rental housing
properties including debt restructuring, subject to authorization.
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Choctaw Indians Housing Relending
Loan Program.................... 1
00.02 Vouchers.......................... 14 66
00.03 Administrative Expenses........... 2 8
--------- --------- ----------
10.00 Total new obligations........... 17 74
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 17 74
23.95 Total new obligations............. -17 -74
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 17 74
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 17 74
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1 1 13
73.10 Total new obligations............. 17 74
73.20 Total outlays (gross)............. -5 -36
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 13 51
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 5 24
86.93 Outlays from discretionary
balances........................ 12
--------- --------- ----------
87.00 Total outlays (gross)........... 5 36
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 17 74
90.00 Outlays........................... 5 36
---------------------------------------------------------------------------

USDA's portfolio of multifamily housing projects provides housing
for nearly half a million low-income families, many 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 2007 Budget includes $74 million to
continue the multifamily housing revitalization proposal that was
initially proposed in the 2006 Budget. The funding will be used
primarily for housing vouchers for residents of projects whose sponsors
prepay their outstanding indebtedness on USDA loans and leave the
program. The appropriation language for this funding is consistent with
the 2006 appropriation language that requires such vouchers to be
administered, to the maximum extent possible, under current regulations
and administrative guidance applicable to section 8 vouchers, including
delivery costs; and allows the number of such vouchers to exceed 5,000,
and allows the vouchers to all low-income residents who are affected by
prepayment, regardless of whether they were receiving rental assistance
payments. In addition, the Administration is proposing that 2007
appropriation language provide the flexibility to use the $74 million
for debt restructuring and other revitalization incentives that we
expect to be authorized before or during 2007. The Administration has
already submitted to Congress draft legislation that would authorize
this revitalization effort.

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.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2002-0-1-604 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
25.1 Advisory and assistance services.. 2 8
41.0 Grants, subsidies, and
contributions................... 15 66
--------- --------- ----------
99.9 Total new obligations........... 17 74
---------------------------------------------------------------------------

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] $37,620,000, to
remain available until expended[: Provided, That of the total amount
appropriated, $1,000,000 shall be available through June 30, 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, 2006.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2006-0-1-604 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program activity........... 42 35 38
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 42 35 38
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 8 1
22.00 New budget authority (gross)...... 34 34 38
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 43 35 38
23.95 Total new obligations............. -42 -35 -38
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 34 34 38
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 52 58 56
73.10 Total new obligations............. 42 35 38
73.20 Total outlays (gross)............. -35 -37 -38
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------

[[Page 138]]

74.40 Obligated balance, end of year.. 58 56 56
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 6 6 7
86.93 Outlays from discretionary
balances........................ 29 31 31
--------- --------- ----------
87.00 Total outlays (gross)........... 35 37 38
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 34 34 38
90.00 Outlays........................... 35 37 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

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 provided $10,000,000 for each of fiscal years 2003 through 2007,
to remain available until expended, from the funds of the Commodity
Credit Corporation. Reconciliation canceled the funding and no funds are
provided in the Budget because other programs in Forest Service, Federal
Emergency Management Agency, and the Bureau of Land Management provide
significant funding for this purpose.

Credit accounts:

Rural Community Facility Direct Loans Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loans...................... 729 370 297
00.02 Interest on Treasury borrowing.... 99 128 140
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 828 498 437
08.01 Negative subsidy.................. 1 1 1
08.02 Downward reestimate paid to
receipt account................. 7
08.04 Interest paid on downward
reestimates paid to receipt
account......................... 3
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 11 1 1
--------- --------- ----------
10.00 Total new obligations........... 839 499 438
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 22 4
22.00 New financing authority (gross)... 816 495 438
22.10 Resources available from
recoveries of prior year
obligations..................... 66
22.70 Balance of authority to borrow
withdrawn....................... -62
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 842 499 438
23.95 Total new obligations............. -839 -499 -438
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 4
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 710 248 153
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 189 248 286
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 12 -1 -1
68.47 Portion applied to repay debt. -95
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 106 247 285
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 816 495 438
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 897 1,225 1,063
73.10 Total new obligations............. 839 499 438
73.20 Total financing disbursements
(gross)......................... -433 -662 -633
73.45 Recoveries of prior year
obligations..................... -66
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -12 1 1
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,225 1,063 869
87.00 Total financing disbursements
(gross)......................... 433 662 633
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -18 -15 -21
88.25 Interest on uninvested funds.. -18 -28 -32
88.40 Repayment of principal........ -84 -116 -145
88.40 Interest received on loans.... -69 -88 -88
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -189 -247 -286
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. -12 1 1
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. -1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 615 248 153
90.00 Financing disbursements........... 244 415 347
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4225-0-3-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 729 370 297
--------- --------- ----------
1150 Total direct loan obligations... 729 370 297
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 1,424 1,662 2,095
1231 Disbursements: Direct loan
disbursements................... 323 533 492
1251 Repayments: Repayments and
prepayments..................... -84 -100 -112
Write-offs for default:

1263 Direct loans.................... -1
1264 Other adjustments, net..........
--------- --------- ----------
1290 Outstanding, end of year........ 1,662 2,095 2,475
---------------------------------------------------------------------------

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

[[Page 139]]

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

2004 actual

2005 actual

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

1101

Fund balances with Treasury

Investments in US securities:
1106

Receivables, net

-2

-3

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

1401

Direct loans receivable, gross

1,424

1,663

1402

Interest receivable

1404

Foreclosed property

1405

Allowance for subsidy cost (-)

-87

-74

1499

Net present value of assets related to direct loans

1,359

1,612

1999

Total assets

1,384

1,622

LIABILITIES:
Federal liabilities:

2101

Accounts payable

1,376

1,606

2105

Other

2999

Total liabilities

1,384

1,622

4999

Total liabilities and net position

1,384

1,622

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

Rural Community Facility Guaranteed Loans Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Default Claims.................... 7 6 6
00.02 Interest to Treasury.............. 1 1 1
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 8 7 7
08.01 Negative subsidy paid to receipt
account......................... 1
--------- --------- ----------
10.00 Total new obligations........... 8 7 7
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 4 9
22.00 New financing authority (gross)... 14 12 14
22.60 Portion applied to repay debt..... -14 -7
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 18 7 7
23.95 Total new obligations............. -8 -7 -7
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 9
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 3 2 3
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 15 2 4
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 8 7
68.47 Portion applied to repay debt. -4
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 11 10 11
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 14 12 14
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2 1
73.10 Total new obligations............. 8 7 7
73.20 Total financing disbursements
(gross)......................... -9
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -8 -7
--------- --------- ----------
74.40 Obligated balance, end of year.. 1
87.00 Total financing disbursements
(gross)......................... 9
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -13 -2
88.25 Interest on uninvested funds.. -1 -1 -1
88.40 Non-Federal sources, Guarantee
Fees........................ -1 -1 -1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -15 -2 -4
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. -8 -7
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... -1 2 3
90.00 Financing disbursements........... -6 -2 -4
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4228-0-3-452 2005 actual 2006 est. 2007 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................. 195 208 208
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 195 208 208
2199 Guaranteed amount of guaranteed
loan commitments................ 156 166 166
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 434 488 592
2231 Disbursements of new guaranteed
loans........................... 93 194 248
2251 Repayments and prepayments........ -32 -84 -103
2263 Adjustments: Terminations for
default that result in claim
payments........................ -7 -6 -6
--------- --------- ----------
2290 Outstanding, end of year........ 488 592 731
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 396 484 599
---------------------------------------------------------------------------

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

2004 actual

2005 actual

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

1101

Fund balances with Treasury

Investments in US securities:
1106

Receivables, net

1999

Total assets

LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

2204

Non-Federal liabilities: Liabilities for loan guarantees

2999

Total liabilities

4999

Total liabilities and net position

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

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:
[$4,821,832,000] $4,801,736,000 for loans to section 502 borrowers, as
determined by the Secretary, of which [$1,140,799,000] $1,237,498,000
shall be for direct loans, and of which [$3,681,033,000] $3,564,238,000
shall be for unsubsidized guaranteed

[[Page 140]]

loans; [$35,000,000] $36,382,000 for section 504 housing repair loans;
[$100,000,000 for section 515 rental housing; $100,000,000] $197,997,000
for section 538 guaranteed multi-family housing loans; [$5,000,000]
$5,045,000 for section 524 site loans; [$11,500,000] $11,482,000 for
credit sales of acquired property, of which up to [$1,500,000]
$1,482,000 may be for multi-family credit sales; and [$5,048,000]
$4,980,000 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, [$170,837,000] $131,893,000,
of which [$129,937,000] $124,121,000 shall be for direct loans, and of
which [$40,900,000] $7,772,000, to remain available until expended,
shall be for unsubsidized guaranteed loans; section 504 housing repair
loans, [$10,238,000; repair, rehabilitation, and new construction of
section 515 rental housing, $45,880,000] $10,751,000; section 538 multi-
family housing guaranteed loans, [$5,420,000] $15,325,000; [multi-
family] credit sales of acquired property, [$681,000] $720,000; and
section 523 self-help housing and development loans, [$52,000] $123,000:
Provided, That of the total amount appropriated in this paragraph,
[$2,500,000] $1,500,000 shall be available through June 30, [2006] 2007,
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, 2006, shall
be carried over until September 30, 2007, and made available for such
housing projects only in the State of Alaska] That any obligated
balances for a demonstration program for the preservation and
revitalization of the section 515 multi-family rental housing properties
as authorized in Public Law 109-97 shall be transferred to and merged
with the ``Rural Housing Service, Multifamily Housing Revitalization
Program Account''.
[For additional costs to conduct a demonstration program for the
preservation and revitalization of the section 515 multi-family rental
housing properties, $9,000,000: Provided, That funding made available
under this heading shall be used to restructure existing section 515
loans, as the Secretary deems appropriate, expressly for the purposes of
ensuring the project has sufficient resources to preserve the project
for the purpose of providing safe and affordable housing for low-income
residents including reducing or eliminating interest; deferring loan
payments, subordinating, reducing or reamortizing loan debt; and other
financial assistance including advances and incentives required by the
Secretary.]
In addition, for administrative expenses necessary to carry out the
direct and guaranteed loan programs, [$454,809,000] $455,776,000, which
shall be transferred to and merged with the appropriation for ``Rural
Development, Salaries and Expenses''[, of which not less than $1,000,000
shall be made available for the Secretary to contract with third parties
to acquire the necessary automation and technical services needed to
restructure section 515 mortgages]. (Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act,
2006.)
[For gross obligations for the principal amount of direct and
guaranteed loans as authorized by title V of the Housing Act of 1949 to
respond to damage caused by hurricanes that occurred during the 2005
calendar year to be available from the Rural Housing Insurance Fund, as
follows: $1,468,696,000 for loans to section 502 borrowers, as
determined by the Secretary, of which $175,593,000 shall be for direct
loans and of which $1,293,103,000 shall be for unsubsidized guaranteed
loans; and $34,188,000 for section 504 housing repair 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, to remain available until expended: section 502
loans, $35,000,000, of which $20,000,000 shall be for direct loans, and
of which $15,000,000 shall be for subsidized guaranteed loans; and
section 504 housing repair loans, $10,000,000: Provided, That the
amounts provided under this heading are designated as an emergency
requirement pursuant to section 402 of H. Con. Res. 95 (109th Congress),
the concurrent resolution on the budget for fiscal year 2006.]
(Emergency Supplemental Appropriations Act to Address Hurricanes in the
Gulf of Mexico and Pandemic Influenza, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 191 223 136
00.02 Guaranteed loan subsidy........... 37 62 23
00.03 Modification of direct loan....... 9
00.05 Reestimates of direct loan subsidy 13
00.06 Interest on reestimates of direct
loan subsidy.................... 3
00.07 Reestimates of loan guarantee
subsidy......................... 68
00.08 Interest on reestimates of loan
guarantee subsidy............... 15
00.09 Administrative expenses........... 445 450 456
--------- --------- ----------
10.00 Total new obligations........... 774 744 615
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 11 9
22.00 New budget authority (gross)...... 768 735 615
22.10 Resources available from
recoveries of prior year
obligations..................... 4
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 783 744 615
23.95 Total new obligations............. -774 -744 -615
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 9
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 677 697 615
40.00 Appropriation, hurricane
supplemental.................. 5 45
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -7
40.35 Appropriation permanently
reduced....................... -5
40.36 Unobligated balance permanently
reduced....................... -3
41.00 Transferred to other accounts... -6
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 668 735 615
Mandatory:

60.00 Appropriation................... 100
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 768 735 615
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 176 169 193
73.10 Total new obligations............. 774 744 615
73.20 Total outlays (gross)............. -766 -720 -660
73.40 Adjustments in expired accounts
(net)........................... -11
73.45 Recoveries of prior year
obligations..................... -4
--------- --------- ----------
74.40 Obligated balance, end of year.. 169 193 148
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 590 628 562
86.93 Outlays from discretionary
balances........................ 76 92 98
86.97 Outlays from new mandatory
authority....................... 100
--------- --------- ----------
87.00 Total outlays (gross)........... 766 720 660
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 768 735 615
90.00 Outlays........................... 765 720 660
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-2081-0-1-371 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Direct 502 single family housing.. 1,141 1,129 1,237
115003Direct 502 natural disaster....... 2
115004Direct 515 multi-family housing... 99 99
115007Direct 504 housing repair......... 35 35 36
115008Direct 504 natural disaster....... 3
115009Direct 504, Katrina hurricane
supplemental.................... 2 49
115011Direct Farm Labor Housing Supp.... 1
115012Direct 524 site development....... 5 5 5
115013Direct 523 self-help housing...... 3 5 5
115014Single family credit sales........ 2 10 10
115015Multi-family credit sales......... 1 1 1
115016502 ND Katrina Hurricane
Supplemental.................... 176
--------- --------- ----------
115901Total direct loan levels.......... 1,288 1,515 1,294

[[Page 141]]

Direct loan subsidy (in percent):
132001Direct 502 single family housing.. 11.58 11.39 10.03
132003Direct 502 natural disaster....... 11.58 11.39 10.03
132004Direct 515 multi-family housing... 47.09 45.88 0.00
132006Direct 515 natural disaster....... 47.09 45.88 0.00
132007Direct 504 housing repair......... 29.06 29.25 29.55
132008Direct 504 natural disaster....... 29.06 29.25 0.00
132009Direct 504, Katrina hurricane
supplemental.................... 29.06 29.25 0.00
132010Direct Farm Labor Housing......... 47.06 44.59 47.06
132011Direct Farm Labor Housing Supp.... 47.06 44.59 47.06
132012Direct 524 site development....... -4.94 -3.51 -1.66
132013Direct 523 self-help housing...... -0.47 1.03 2.47
132014Single family credit sales........ -16.23 -14.53 0.48
132015Multi-family credit sales......... 48.44 45.40 45.33
132016502 ND Katrina Hurricane
Supplemental.................... 0.00 11.39 0.00
--------- --------- ----------
132901Weighted average subsidy rate..... 14.70 14.46 10.45
Direct loan subsidy budget authority:
133001Direct 502 single family housing.. 132 129 124
133003Direct 502 natural disaster.......
133004Direct 515 multi-family housing... 47 45
133007Direct 504 housing repair......... 10 10 11
133008Direct 504 natural disaster.......
133009Direct 504 Katrina hurricane
supplemental.................... 1 10
133011Direct Farm Labor Housing Supp....
133012Direct 524 site development.......
133013Direct 523 self-help housing......
133014Single family credit sales........
133015Multi-family credit sales......... 1 1 1
133016502 ND Hurricane Supplemental..... 20
--------- --------- ----------
133901Total subsidy budget authority.... 191 215 136
Direct loan subsidy outlays:
134001Direct 502 single family housing.. 135 127 120
134003Direct 502 natural disaster.......
134004Direct 515 multi-family housing... 38 49 43
134006Direct 515 natural disaster....... 1 1
134007Direct 504 housing repair......... 10 11 6
134008Direct 504 natural disaster....... 1
134009Direct 504, Katrina hurricane
supplemental.................... 8 2
134011Direct Farm Labor Housing Supp....
134012Direct 524 site development.......
134013Direct 523 self-help housing......
134014Single family credit sales........
134015Multi-family credit sales......... 1 1
134016502 ND Katrina Hurricane
Supplemental.................... 14 5
--------- --------- ----------
134901Total subsidy outlays............. 184 212 177
Direct loan upward reestimate subsidy budget
authority:
135001Direct 502 single family housing.. 10
135004Direct 515 multi-family housing... 4
135007Direct 504 housing loans.......... 1
--------- --------- ----------
135901Total upward reestimate budget
authority....................... 15
Direct loan downward reestimate subsidy budget
authority:
137001Direct 502 single family housing.. -243
137004Direct 515 multi-family housing... -25
137007Direct 504 housing loans.......... -3
137010Direct Farm Labor Housing......... -4
--------- --------- ----------
137901Total downward reestimate budget
authority....................... -275
----------------------------------------------------------------------------

Guaranteed loan levels supportable by subsidy
budget authority:
215001Guaranteed 502 single family
housing , purchase.............. 3,022 3,538 601
215002Guaranteed 502, refinancing....... 23 207 99
215003Guaranteed 538 multi-family
housing......................... 97 99 198
215004Guaranteed 502 hurricane
supplemental.................... 1,293
--------- --------- ----------
215901Total loan guarantee levels....... 3,142 5,137 898
Guaranteed loan subsidy (in percent):
232001Guaranteed 502 single family
housing , purchase.............. 1.07 1.16 1.21
232002Guaranteed 502, refinancing....... 0.27 0.29 0.50
232003Guaranteed 538 multi-family
housing......................... 3.49 5.42 7.74
232004Guaranteed 502 hurricane
supplemental.................... 0.00 1.16 1.21
--------- --------- ----------
232901Weighted average subsidy rate..... 1.14 1.21 2.57
Guaranteed loan subsidy budget authority:
233001Guaranteed 502 single family
housing , purchase.............. 33 41 7
233002Guaranteed 502, refinancing....... 1 1
233003Guaranteed 538 multi-family
housing......................... 3 5 15
233004Guaranteed 502 hurricane
supplemental.................... 15
--------- --------- ----------
233901Total subsidy budget authority.... 36 62 23
Guaranteed loan subsidy outlays:
234001Guaranteed 502 single family
housing , purchase.............. 33 34 11
234002Guaranteed 502, refinancing....... 1 1
234003Guaranteed 538 multi-family
housing......................... 2 4 11
234004Guaranteed 502 hurricane
supplemental.................... 10 4
--------- --------- ----------
234901Total subsidy outlays............. 35 49 27
Guaranteed loan upward reestimate subsidy
budget authority:
235001Guaranteed 502 single family
housing , purchase.............. 82
235003Guaranteed 538 multi-family
housing......................... 1
--------- --------- ----------
235901Total upward reestimate budget
authority....................... 83
Guaranteed loan downward reestimate subsidy
budget authority:
237001Guaranteed 502 single family
housing , purchase.............. -2
237003Guaranteed 538 multi-family
housing......................... -1
--------- --------- ----------
237901Total downward reestimate subsidy
budget authority................ -3
----------------------------------------------------------------------------

Administrative expense data:
351001Budget authority.................. 445 450 456
358001Outlays from balances.............
359001Outlays from new authority........ 445 450 456
---------------------------------------------------------------------------

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.

No funds are requested in 2007 for section 515 rural rental housing
loans. However, RHS will continue to revitalize the existing 515
portfolio by providing 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.

For 502 guaranteed single family housing loans in 2007, the Budget
reflects an increase in the guarantee fee on new loans to 3.0 percent
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. The guarantee
fee for the refis will remain at 0.5 percent. This change reflected the
lower risk on refis as compared to an unseasoned borrower receiving a
new loan. It is consistent with the rate HUD and VA charge on their
refis of similar loans.

The budget includes appropriation bill language to ensure that the
Section 502 single family housing loan guarantee program is carried out
in a manner that is not redundant of other Federal housing programs.
This language constrains eligibility to applicants who are not able to
obtain other federally guaranteed home ownership loans from their
lenders. A recent PART analysis found that the program, as currently
operated, is redundant of other Federal programs.

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

[[Page 142]]

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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
25.3 Other purchases of goods and
services from Government
accounts........................ 445 450 456
41.0 Grants, subsidies, and
contributions................... 329 294 159
--------- --------- ----------
99.9 Total new obligations........... 774 744 615
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-2081-2-1-371 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Guaranteed 502 single family
housing , purchase.............. 2,864
--------- --------- ----------
215901Total loan guarantee levels....... 2,864
Guaranteed loan subsidy (in percent):
232001Guaranteed 502 single family
housing , purchase.............. -1.00
--------- --------- ----------
232901Weighted average subsidy rate..... -1.96
Guaranteed loan subsidy budget authority:
233001Subsidy budget authority..........
--------- --------- ----------
233901Total subsidy budget authority....
Guaranteed loan subsidy outlays:
234001Subsidy outlays...................
--------- --------- ----------
234901Total subsidy outlays.............
---------------------------------------------------------------------------

Rural Housing Insurance Fund Direct Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loans including upward
adjustments of prior year
obligations..................... 1,321 1,553 1,337
00.02 Advances on behalf of borrowers... 38 40 45
00.04 Interest on Treasury borrowing.... 703 730 748
00.06 Other expenses.................... 34 35 35
--------- --------- ----------
00.91 Subtotal, Operating program..... 2,096 2,358 2,165
08.02 Downward subsidy reestimates paid
to receipt account.............. 213
08.04 Interest on downward reestimates
paid to receipt account......... 63
--------- --------- ----------
08.91 Subtotal, Reestimates........... 276
--------- --------- ----------
10.00 Total new obligations........... 2,372 2,358 2,165
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 607 572
22.00 New financing authority (gross)... 2,317 2,358 2,165
22.10 Resources available from
recoveries of prior year
obligations..................... 100
22.60 Portion applied to repay debt..... -572
22.70 Balance of authority to borrow
withdrawn....................... -80
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,944 2,358 2,165
23.95 Total new obligations............. -2,372 -2,358 -2,165
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 572
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 1,439 867 1,248
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 1,953 2,037 2,060
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -2 -30 -30
68.47 Portion applied to repay debt. -1,073 -516 -1,113
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 878 1,491 917
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 2,317 2,358 2,165
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Unpaid obligations, fund balance
with Treasury, start of year.... 703 570 876
73.10 Total new obligations............. 2,372 2,358 2,165
73.20 Total financing disbursements
(gross)......................... -2,407 -2,082 -2,191
73.45 Recoveries of prior year
obligations..................... -100
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 2 30 30
--------- --------- ----------
74.40 Obligated balance, end of year.. 570 876 880
87.00 Total financing disbursements
(gross)......................... 2,407 2,082 2,191
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources: payments from
program account............. -207 -233 -193
88.00 Federal sources............... -4
88.25 Interest on uninvested funds.. -101 -85 -85
88.40 Non-Federal sources:
Repayments of principal..... -1,026 -1,046 -1,067
88.40 Interest received on loans.... -549 -591 -620
88.40 Payments on judgments......... -15 -14 -14
88.40 Proceeds on sale of acquired
property.................... -21 -25 -31
88.40 Recaptured income............. -20 -29 -36
88.40 Fees.......................... -9 -7 -7
88.40 Miscellaneous collections..... -7 -7
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,952 -2,037 -2,060
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 2 30 30
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. -1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 366 351 135
90.00 Financing disbursements........... 453 45 131
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4215-0-3-371 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 1,321 1,553 1,337
--------- --------- ----------
1150 Total direct loan obligations... 1,321 1,553 1,337
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 12,451 12,761 13,105
1231 Disbursements: Direct loan
disbursements................... 1,427 1,473 1,464
1251 Repayments: Repayments and
prepayments..................... -1,025 -1,046 -1,078
1261 Adjustments: Capitalized interest. 25 25 25
Write-offs for default:

1263 Direct loans.................... -56 -83 -83
1264 Other adjustments, net.......... -61 -25 -25
--------- --------- ----------
1290 Outstanding, end of year........ 12,761 13,105 13,408
---------------------------------------------------------------------------

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 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

[[Page 143]]

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

2004 actual

2005 actual

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

1101

Fund balances with Treasury

235

224

Investments in US securities:
1106

Receivables, net

-77

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

1401

Direct loans receivable, gross

12,451

12,761

1402

Interest receivable

132

1404

Foreclosed property

1405

Allowance for subsidy cost (-)

-1,979

-1,040

1499

Net present value of assets related to direct loans

10,564

11,871

1999

Total assets

10,813

12,018

LIABILITIES:
Federal liabilities:

2103

Debt

10,547

10,989

2105

Other

267

1,021

2207

Non-Federal liabilities: Other

-1

2999

Total liabilities

10,813

12,018

4999

Total liabilities and net position

10,813

12,018

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

Rural Housing Insurance Fund Guaranteed Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Default claims.................... 100 125 140
00.02 Interest assistance paid to
lenders......................... 5 6 7
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 105 131 147
08.02 Payments of downward estimates to
receipt account................. 2
08.04 Payment of interest on downward
reestimate to receipt account... 1
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 3
--------- --------- ----------
10.00 Total new obligations........... 108 131 147
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 433 527 549
22.00 New financing authority (gross)... 202 153 119
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 635 680 668
23.95 Total new obligations............. -108 -131 -147
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 527 549 521
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 3 8 8
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 199 146 112
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -1 -1
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 199 145 111
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 202 153 119
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 108 131 147
73.20 Total financing disbursements
(gross)......................... -108 -132 -148
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 1 1
87.00 Total financing disbursements
(gross)......................... 108 132 148
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -118 -62 -23
88.25 Interest on uninvested funds.. -21 -22 -24
88.40 Non-Federal sources: guarantee
fees........................ -60 -62 -65
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -199 -146 -112
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............... 3 8 8
90.00 Financing disbursements........... -91 -14 36
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4216-0-3-371 2005 actual 2006 est. 2007 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................. 3,142 5,164 3,762
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 3,142 5,164 3,762
2199 Guaranteed amount of guaranteed
loan commitments................ 2,828 4,648 3,386
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 13,856 14,673 16,484
2231 Disbursements of new guaranteed
loans........................... 3,142 4,161 4,031
2251 Repayments and prepayments........ -1,961 -2,075 -2,197
Adjustments:

2263 Terminations for default that
result in claim payments...... -260 -275 -280
2264 Other adjustments, net.......... -104
--------- --------- ----------
2290 Outstanding, end of year........ 14,673 16,484 18,038
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 13,206 14,834 16,234
---------------------------------------------------------------------------

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

2004 actual

2005 actual

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

1101

Fund balances with Treasury

427

517

Investments in US securities:
1106

Receivables, net

1999

Total assets

461

546

LIABILITIES:
Non-Federal liabilities:

2204

Liabilities for loan guarantees

440

545

2207

Other

2999

Total liabilities

461

546

4999

Total liabilities and net position

461

546

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

[[Page 144]]

Rural Housing Insurance Fund Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
Capital investment:

00.02 Advances on behalf of borrowers. 44 41 38
00.05 Collateral acquired by default.. 1
--------- --------- ----------
00.91 Total capital investment...... 45 41 38
01.03 Interest on FFB borrowings........ 35 19
01.04 Premiums paid FFB at redemption of
certificates of beneficial
ownership....................... 4
01.06 Interest credits on loans sold to
investors....................... 1
01.07 Other costs incident to loans..... 3 3 3
--------- --------- ----------
01.91 Total operating expenses........ 43 22 3
--------- --------- ----------
10.00 Total new obligations........... 88 63 41
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 150 88
22.00 New budget authority (gross)...... 174 54 41
22.10 Resources available from
recoveries of prior year
obligations..................... 2
22.40 Capital transfer to general fund.. -150 -78
22.60 Portion applied to repay debt..... -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 176 63 41
23.95 Total new obligations............. -88 -63 -41
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 88
----------------------------------------------------------------------------

New budget authority (gross), detail:
Spending authority from offsetting
collections:

Mandatory:
69.00 Offsetting collections (cash). 1,404 1,289 1,186
69.27 Capital transfer to general
fund........................ -550 -1,235 -1,145
69.47 Portion applied to repay debt. -680
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)......... 174 54 41
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Unpaid fund balance with treasury,
end of year..................... 90 73 82
73.10 Total new obligations............. 88 63 41
73.20 Total outlays (gross)............. -103 -54 -41
73.45 Recoveries of prior year
obligations..................... -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 73 82 82
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 103 54 41
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -2
88.40 Repayments of loans and
advances.................... -750 -692 -645
88.40 Proceeds from sale of acquired
property.................... -14 -9 -8
88.40 Payments on judgments......... -9 -11 -11
88.40 Interest payments from
borrowers................... -475 -406 -354
88.40 Recapture of subsidies........ -135 -157 -156
88.40 Income from residual
investment in loan asset
sale........................ -17 -14 -12
88.40 Fees and other revenue........ -1
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,403 -1,289 -1,186
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.................. -1,230 -1,235 -1,145
90.00 Outlays........................... -1,300 -1,235 -1,145
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4141-0-3-371 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 12,949 12,149 11,420
1251 Repayments: Repayments and
prepayments..................... -751 -692 -645
1261 Adjustments: Capitalized interest. 8 8 8
Write-offs for default:

1263 Direct loans.................... -34 -30 -25
1264 Other adjustments, net.......... -23 -15 -10
--------- --------- ----------
1290 Outstanding, end of year........ 12,149 11,420 10,748
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4141-0-3-371 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 9 7 6
2251 Repayments and prepayments........ -2 -1 -1
--------- --------- ----------
2290 Outstanding, end of year........ 7 6 5
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 6 5 4
---------------------------------------------------------------------------

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

2004 actual

2005 actual

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

Federal assets: Fund balances with Treasury

240

160

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

1601

Direct loans, gross

12,949

12,149

1602

Interest receivable

122

711

1603

Allowance for estimated uncollectible loans and interest (-)

-5,558

-5,686

1604

Direct loans and interest receivable, net

7,513

7,174

1606

Foreclosed property

1699

Value of assets related to direct loans

7,530

7,187

1901

Other Federal assets: Other assets

1999

Total assets

7,855

7,441

LIABILITIES:
Federal liabilities:

2102

Interest payable

2103

Debt

680

2104

Resources payable to Treasury

7,055

7,347

Non-Federal liabilities:

2203

Debt

2204

Liabilities for loan guarantees

2207

Other

2999

Total liabilities

7,855

7,441

4999

Total liabilities and net position

7,855

7,441

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

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4141-0-3-371 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
25.2 Other services.................... 3 3 3
33.0 Investments and loans............. 45 41 38
43.0 Interest and dividends............ 40 19
--------- --------- ----------
99.9 Total new obligations........... 88 63 41
---------------------------------------------------------------------------

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, $11,200,000, to remain

[[Page 145]]

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, 2006.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-0402-0-1-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program activity........... 12 15
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 12 15
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 4 4
22.00 New budget authority (gross)...... 12 11
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 16 15
23.95 Total new obligations............. -12 -15
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 4
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 12 11
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 26 24 24
73.10 Total new obligations............. 12 15
73.20 Total outlays (gross)............. -14 -15 -11
--------- --------- ----------
74.40 Obligated balance, end of year.. 24 24 13
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2 2
86.93 Outlays from discretionary
balances........................ 12 13 11
--------- --------- ----------
87.00 Total outlays (gross)........... 14 15 11
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 12 11
90.00 Outlays........................... 13 15 11
---------------------------------------------------------------------------

The goal of the Empowerment Zone/Enterprise Community (EZ/EC)
initiative is to revitalize rural communities in a manner that attracts
private sector investment and thereby provides self-sustaining community
and economic development. Appropriated funding in 1999 through 2002 was
provided for EZ/ECs designated as part of the second round of this
initiative.

No funding is provided in 2007 for EZ/EC grants. For grants like
these that are for community organizations to stimulate economic
development, the 2007 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), [$29,488,000] $27,225,000, of which [$500,000] $495,000 shall be
for a cooperative research agreement with a qualified academic
institution to conduct research on the national economic impact of all
types of cooperatives; and of which [$2,500,000 shall be for cooperative
agreements for the appropriate technology transfer for rural areas
program: Provided, That] not to exceed [$1,488,000] $1,485,000 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 [$20,500,000] $20,295,000, 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, 2006.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1900-0-1-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Rural Cooperative Development
Grants.......................... 7 6 7
00.10 Value-added Agricultural Product
Marketing (mandatory)........... 1
00.11 Value added Agricultural Product
Marketing (discretionary)....... 14 34 20
00.12 Appropriate Technology Transfer
for Rural Areas................. 3 3
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 24 44 27
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 14 15
22.00 New budget authority (gross)...... 24 29 27
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 39 44 27
23.95 Total new obligations............. -24 -44 -27
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 15
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 24 29 27
40.35 Appropriation permanently
reduced....................... -40
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 24 29 -13
Mandatory:

62.00 Transferred from other accounts. 40
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 24 29 27
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 57 40 57
73.10 Total new obligations............. 24 44 27
73.20 Total outlays (gross)............. -40 -27 -38
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 40 57 46
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 7 8 -6
86.93 Outlays from discretionary
balances........................ 33 19 32
86.97 Outlays from new mandatory
authority....................... 12
--------- --------- ----------
87.00 Total outlays (gross)........... 40 27 38
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 24 29 27
90.00 Outlays........................... 40 27 38
---------------------------------------------------------------------------

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

[[Page 146]]

production costs. The 2007 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 2007 Budget cancels these funds
for a savings of $40 million. However, $20.3 million in discretionary
2007 funds is provided for this purpose.

Rural Economic Development Grants

(including rescission of funds)

Of the funds derived from interest on the cushion of credit
payments, as authorized by section 313 of the Rural Electrification Act
of 1936, $81,000,000 is rescinded.

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3105-0-1-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program activity........... 8 10 10
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 8 10 10
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 110 187 93
22.00 New budget authority (gross)...... 84 -84 -11
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 194 103 82
23.95 Total new obligations............. -8 -10 -10
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 187 93 72
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance permanently
reduced....................... -81
Mandatory:

60.36 Unobligated balance permanently
reduced....................... -170
Spending authority from offsetting
collections:

Mandatory:
69.00 Offsetting collections (cash). 67 89 82
69.00 Offsetting collections (cash). 4 6
69.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 17 -7 -18
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)......... 84 86 70
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 84 -84 -11
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -59 -79 -157
73.10 Total new obligations............. 8 10 10
73.20 Total outlays (gross)............. -10 -95 -79
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -17 7 18
--------- --------- ----------
74.40 Obligated balance, end of year.. -79 -157 -208
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 10 86 70
86.98 Outlays from mandatory balances... 9 9
--------- --------- ----------
87.00 Total outlays (gross)........... 10 95 79
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -67 -89 -82
88.00 Federal sources............... -4 -6
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -67 -93 -88
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -17 7 18
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -170 -81
90.00 Outlays........................... -57 2 -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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

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

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 5 5 5
22.00 New budget authority (gross)...... 1 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 6 6 5
23.95 Total new obligations............. -1 -1
23.98 Unobligated balance expiring or
withdrawn....................... -5
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 5 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 1 1
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 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 1
90.00 Outlays........................... 1 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 2007. This Program will be privatized in September 2006.

Rural Strategic Investment Program Grants

The Rural Strategic Investment Program is authorized under 7 U.S.C.
2009dd. The Rural Strategic Investment Pro

[[Page 147]]

gram 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.
The Deficit Reduction Act cancels the funding and no funds are provided
in the Budget.

Credit accounts:

Rural Business and Industry Direct Loans Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Interest on Treasury borrowings... 3 6 6
08.02 Downward reestimates paid to
receipt account................. 5
08.04 Interest on downward reestimates
paid to receipt account......... 3
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 8
--------- --------- ----------
10.00 Total new obligations........... 11 6 6
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 47 20 1
22.00 New financing authority (gross)... -17 32 32
22.10 Resources available from
recoveries of prior year
obligations..................... 4
22.60 Portion applied to repay debt..... -45 -26
22.70 Balance of authority to borrow
withdrawn....................... -3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 31 7 7
23.95 Total new obligations............. -11 -6 -6
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 20 1 1
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 8 18 18
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 17 14 14
68.47 Portion applied to repay debt. -42
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... -25 14 14
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... -17 32 32
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 5
73.10 Total new obligations............. 11 6 6
73.20 Total financing disbursements
(gross)......................... -12 -6 -6
73.45 Recoveries of prior year
obligations..................... -4
--------- --------- ----------
74.40 Obligated balance, end of year..
87.00 Interest received on loans........ 12 6 6
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -5
88.25 Interest on uninvested funds.. -3 -3 -3
88.40 Repayments of principal....... -9 -5 -5
88.40 Interest received on loans.... -6 -6
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -17 -14 -14
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... -34 18 18
90.00 Financing disbursements........... -4 -8 -8
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4223-0-3-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 89 81 69
1251 Repayments: Repayments and
prepayments..................... -5 -8 -8
1263 Write-offs for default: Direct
loans........................... -3 -4 -4
--------- --------- ----------
1290 Outstanding, end of year........ 81 69 57
---------------------------------------------------------------------------

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

2004 actual

2005 actual

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

1101

Fund balances with Treasury

Investments in US securities:
1106

Receivables, net

-6

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

1401

Direct loans receivable, gross

1402

Interest receivable

1405

Allowance for subsidy cost (-)

-78

-75

1499

Net present value of assets related to direct loans

1999

Total assets

LIABILITIES:
Federal liabilities:

2104

Resources payable to Treasury

2105

Other

2999

Total liabilities

4999

Total liabilities and net position

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

Rural Business and Industry Guaranteed Loans Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Default claims.................... 40 44 49
00.02 Purchase from Secondary Market.... 37 41 45
00.03 Interest to Treasury.............. 8 6 6
00.06 Direct Program Activity........... 5
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 90 91 100
08.02 Subsidy reestimates paid to
receipt account................. 9
08.04 Interest on downward reestimates.. 2
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 11
--------- --------- ----------
10.00 Total new obligations........... 101 91 100
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 255 300
22.00 New financing authority (gross)... 141 102 127
22.10 Resources available from
recoveries of prior year
obligations..................... 5

[[Page 148]]

22.60 Portion applied to repay debt..... -311 -27
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 401 91 100
23.95 Total new obligations............. -101 -91 -100
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 300
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 23 15 10
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 125 87 117
68.47 Portion applied to repay debt. -7
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 118 87 117
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 141 102 127
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 101 91 100
73.20 Total financing disbursements
(gross)......................... -96 -91 -100
73.45 Recoveries of prior year
obligations..................... -5
87.00 Guarantee fees.................... 96 91 100
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -63 -19 -36
88.25 Interest on uninvested funds.. -10 -12 -15
88.40 Interest and principal on
purchased loans from
secondary market............ -41 -44 -52
88.40 Guarantee fees................ -11 -12 -14
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -125 -87 -117
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 16 15 10
90.00 Financing disbursements........... -29 4 -17
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4227-0-3-452 2005 actual 2006 est. 2007 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................. 678 1,003 990
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 678 1,003 990
2199 Guaranteed amount of guaranteed
loan commitments................ 542 802 792
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 4,194 4,183 4,426
2231 Disbursements of new guaranteed
loans........................... 698 798 914
2251 Repayments and prepayments........ -629 -460 -487
2263 Adjustments: Terminations for
default that result in claim
payments........................ -80 -95 -111
--------- --------- ----------
2290 Outstanding, end of year........ 4,183 4,426 4,742
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 3,349 3,543 3,795
---------------------------------------------------------------------------

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

2004 actual

2005 actual

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

1101

Fund balances with Treasury

255

300

Investments in US securities:
1106

Receivables, net

204

216

1999

Total assets

459

516

LIABILITIES:
Federal liabilities:

2104

Resources payable to Treasury

124

141

2105

Other

2204

Non-Federal liabilities: Liabilities for loan guarantees

334

367

2999

Total liabilities

459

516

4999

Total liabilities and net position

459

516

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

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)), [$34,212,000] $33,925,000.
For the cost of direct loans, [$14,718,000] $14,951,000, 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, 2006, for Federally
Recognized Native American Tribes and of which $3,449,000 shall be
available through June 30, 2006, 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,
[$887,000] $880,000 shall be available through June 30, [2006] 2007, 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, [$4,793,000] $4,950,000 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, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 16 14 15
00.09 Administrative expense............ 4 5 5
--------- --------- ----------
10.00 Total new obligations........... 20 19 20
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 20 19 20
23.95 Total new obligations............. -20 -19 -20
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 20 19 20
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 52 49 45
73.10 Total new obligations............. 20 19 20
73.20 Total outlays (gross)............. -20 -23 -22
73.40 Adjustments in expired accounts
(net)........................... -3
--------- --------- ----------
74.40 Obligated balance, end of year.. 49 45 43
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 5 6 6

[[Page 149]]

86.93 Outlays from discretionary
balances........................ 15 17 16
--------- --------- ----------
87.00 Total outlays (gross)........... 20 23 22
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 20 19 20
90.00 Outlays........................... 20 23 22
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-2069-0-1-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Rural development loan fund
program......................... 34 34 34
--------- --------- ----------
115901Total direct loan levels.......... 34 34 34
Direct loan subsidy (in percent):
132001Rural development loan fund
program......................... 46.38 43.02 44.07
--------- --------- ----------
132901Weighted average subsidy rate..... 46.38 43.02 44.07
Direct loan subsidy budget authority:
133001Rural development loan fund
program......................... 16 15 15
--------- --------- ----------
133901Total subsidy budget authority.... 16 15 15
Direct loan subsidy outlays:
134001Rural development loan fund
program......................... 16 18 17
--------- --------- ----------
134901Total subsidy outlays............. 16 18 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 5 5
359001Outlays from new authority........ 4 5 5
---------------------------------------------------------------------------

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 2007 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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
25.3 Other purchases of goods and
services from Government
accounts........................ 4 5 5
41.0 Grants, subsidies, and
contributions................... 16 14 15
--------- --------- ----------
99.9 Total new obligations........... 20 19 20
---------------------------------------------------------------------------

Rural Development Loan Fund Direct Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
Operating program:

00.01 Direct loans.................... 34 34 34
00.02 Interest on Treasury Borrowing.. 15 16 16
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal...................... 49 50 50
08.02 Downward subsidy reestimate paid
to receipt account.............. 3
08.04 Interest on downward subsidy
reestimate paid to receipt
account......................... 1
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal...................... 4
--------- --------- ----------
10.00 Total new obligations........... 53 50 50
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1
22.00 New financing authority (gross)... 50 66 66
22.10 Resources available from
recoveries of prior year
obligations..................... 7
22.60 Portion applied to repay debt..... -16 -16
22.70 Balance of authority to borrow
withdrawn....................... -5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 53 50 50
23.95 Total new obligations............. -53 -50 -50
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 24 24 24
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 35 42 42
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -3
68.47 Portion applied to repay debt. -6
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 26 42 42
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 50 66 66
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 60 55 36
73.10 Total new obligations............. 53 50 50
73.20 Total financing disbursements
(gross)......................... -54 -69 -79
73.45 Recoveries of prior year
obligations..................... -7
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 3
--------- --------- ----------
74.40 Obligated balance, end of year.. 55 36 7
87.00 Total financing disbursements
(gross)......................... 54 69 79
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Payments from program account. -16 -19 -17
88.25 Interest on uninvested funds.. -2 -5 -3
88.40 Non-Federal sources--repayment
of principal................ -17 -15 -17
88.40 Non-Federal sources--interest
on loans.................... -5 -5
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -35 -44 -42
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 3
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 2
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 18 24 24
90.00 Financing disbursements........... 19 25 37
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4219-0-3-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 34 34 34
--------- --------- ----------
1150 Total direct loan obligations... 34 34 34
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 359 379 398
1231 Disbursements: Direct loan
disbursements................... 35 34 32
1251 Repayments: Repayments and
prepayments..................... -15 -15 -15
--------- --------- ----------
1290 Outstanding, end of year........ 379 398 415
---------------------------------------------------------------------------

This account finances loans to intermediary borrowers, who in turn
relend the funds to small rural businesses, community

[[Page 150]]

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

2004 actual

2005 actual

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

Federal assets: Fund balances with Treasury

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

1401

Direct loans receivable, gross

359

379

1402

Interest receivable

1405

Allowance for subsidy cost (-)

-150

-151

1499

Net present value of assets related to direct loans

211

230

1999

Total assets

224

243

LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

224

243

2999

Total liabilities

224

243

4999

Total liabilities and net position

224

243

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

Rural Development Loan Fund Liquidating Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1
22.40 Capital transfer to general fund.. -1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation......
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Spending authority from offsetting
collections:

Mandatory:
69.00 Offsetting collections (cash). 3 4 4
69.27 Capital transfer to general
fund........................ -3 -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
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -3 -4 -4
----------------------------------------------------------------------------

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

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4233-0-3-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 55 52 49
1251 Repayments: Repayments and
prepayments..................... -3 -3 -3
--------- --------- ----------
1290 Outstanding, end of year........ 52 49 46
---------------------------------------------------------------------------

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

2004 actual

2005 actual

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

Federal assets: Fund balances with Treasury

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

1601

Direct loans, gross

1603

Allowance for estimated uncollectible loans and interest (-)

-27

-25

1604

Direct loans and interest receivable, net

1699

Value of assets related to direct loans

1999

Total assets

LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

2999

Total liabilities

4999

Total liabilities and net position

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

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] $34,652,000.
For the cost of direct loans, including the cost of modifying loans
as defined in section 502 of the Congressional Budget Act of 1974,
[$4,993,000] $7,568,000, 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, [$170,000,000] $7,568,000 shall not be
obligated and [$170,000,000] $7,568,000 are rescinded. (Agriculture,
Rural Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 5 5 8
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 5 5 8
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 6 5 8
23.95 Total new obligations............. -5 -5 -8
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 5 5 8
Mandatory:

60.00 Appropriation................... 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 6 5 8
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 3 5 6
73.10 Total new obligations............. 5 5 8
73.20 Total outlays (gross)............. -3 -4 -7
--------- --------- ----------
74.40 Obligated balance, end of year.. 5 6 7
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1 1 2
86.93 Outlays from discretionary
balances........................ 1 3 5
86.97 Outlays from new mandatory
authority....................... 1
--------- --------- ----------
87.00 Total outlays (gross)........... 3 4 7
----------------------------------------------------------------------------

[[Page 151]]

Net budget authority and outlays:
89.00 Budget authority.................. 6 5 8
90.00 Outlays........................... 3 4 7
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-3108-0-1-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Rural economic development loans
program......................... 25 25 35
--------- --------- ----------
115901Total direct loan levels.......... 25 25 35
Direct loan subsidy (in percent):
132001Rural economic development loans
program......................... 18.79 19.97 21.84
--------- --------- ----------
132901Weighted average subsidy rate..... 18.79 19.97 21.84
Direct loan subsidy budget authority:
133001Rural economic development loans
program......................... 5 5 8
--------- --------- ----------
133901Total subsidy budget authority.... 5 5 8
Direct loan subsidy outlays:
134001Rural economic development loans
program......................... 3 4 5
--------- --------- ----------
134901Total subsidy outlays............. 3 4 5
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)

Obligations by program activity:
00.01 Direct loans...................... 25 25 35
00.02 Interest expense.................. 3 4 4
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 28 29 39
08.02 Downward subsidy reestimate paid
to receipt account.............. 2
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 30 29 39
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New financing authority (gross)... 30 29 39
22.10 Resources available from
recoveries of prior year
obligations..................... 2
22.70 Balance of authority to borrow
withdrawn....................... -2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 30 29 39
23.95 Total new obligations............. -30 -29 -39
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 25 20 26
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 18 21 25
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 2 1 2
68.47 Portion applied to repay debt. -15 -13 -14
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 5 9 13
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 30 29 39
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 12 20 22
73.10 Total new obligations............. 30 29 39
73.20 Total financing disbursements
(gross)......................... -18 -26 -31
73.45 Recoveries of prior year
obligations..................... -2
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -2 -1 -2
--------- --------- ----------
74.40 Obligated balance, end of year.. 20 22 28
87.00 Total financing disbursements
(gross)......................... 18 26 31
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal Funds: Program Account -3 -4 -5
88.25 Interest on uninvested funds.. -1 -2 -2
88.40 Non-Federal sources: Repayment
of Principal................ -14 -16 -18
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -18 -22 -25
Against gross financing authority only:

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

Net financing authority and financing
disbursements:
89.00 Financing authority............... 10 7 12
90.00 Financing disbursements........... 4 6
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4176-0-3-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 25 25 35
--------- --------- ----------
1150 Total direct loan obligations... 25 25 35
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 75 73 78
1231 Disbursements: Direct loan
disbursements................... 12 21 26
1251 Repayments: Repayments and
prepayments..................... -14 -16 -17
--------- --------- ----------
1290 Outstanding, end of year........ 73 78 87
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4176-0-3-452

2004 actual

2005 actual

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

Federal assets: Fund balances with Treasury

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

1401

Direct loans receivable, gross

1405

Allowance for subsidy cost (-)

-8

-5

1499

Net present value of assets related to direct loans

1999

Total assets

LIABILITIES:
Federal liabilities:

2104

Resources payable to Treasury

2105

Other

2999

Total liabilities

4999

Total liabilities and net position

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

[[Page 152]]

Rural Business Investment Programs Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Debenture subsidy................. 5
00.09 Administrative expense............ 2
00.10 Grants............................ 3
--------- --------- ----------
10.00 Total new obligations........... 10
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 99 99 89
23.95 Total new obligations............. -10
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 99 89 89
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1
73.10 Total new obligations............. 10
73.20 Total outlays (gross) (-)......... -9 -90
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 -89
----------------------------------------------------------------------------

Outlays (gross), detail:
86.98 Outlays from mandatory balances... 9 90
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 9 90
---------------------------------------------------------------------------

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 2006, the program is limited to $10 million. The Deficit
Reduction Act cancels the funding and no funds are provided in the
Budget.

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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Loan guarantee levels............. 65
--------- --------- ----------
215901Total loan guarantee levels....... 65
Guaranteed loan subsidy (in percent):
232001Subsidy rate...................... 7.72 0.00
--------- --------- ----------
232901Weighted average subsidy rate..... 7.72 0.00
Guaranteed loan subsidy budget authority:
233001Subsidy budget authority.......... 5
--------- --------- ----------
233901Total subsidy budget authority.... 5
Guaranteed loan subsidy outlays:
234001Subsidy outlays................... 5
--------- --------- ----------
234901Total subsidy outlays............. 5
----------------------------------------------------------------------------

Administrative expense data:
351001Budget authority.................. 2
358001Outlays from balances............. 1 1
---------------------------------------------------------------------------

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1907-0-1-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
25.2 Administrative Expenses........... 2
41.0 Grants, subsidies, and
contributions................... 8
--------- --------- ----------
99.9 Total new obligations........... 10
---------------------------------------------------------------------------

Rural Business Investment Program Guarantee Financing Account

Program and Financing (in millions of dollars)

Offsets:
Against gross financing authority and
financing disbursements:

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

88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 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 2005 actual 2006 est. 2007 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................. 65
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 65
2199 Guaranteed amount of guaranteed
loan commitments................ 65
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 65
2231 Disbursements of new guaranteed
loans........................... 65
2251 Repayments and prepayments........ -1
--------- --------- ----------
2290 Outstanding, end of year........ 65 64
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 65 64
---------------------------------------------------------------------------

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] $10,163,000 for direct and guaranteed renewable
energy loans and grants: Provided, That the cost of direct loans and
loan guarantees, including the cost of modifying such loans, shall be as
defined in section 502 of the Congressional Budget Act of 1974.
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2006.)

[[Page 153]]

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Guaranteed loan subsidy........... 1 11 2
00.10 Renewable energy grants........... 22 12 8
--------- --------- ----------
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....................... -3
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 23 23 7
Mandatory:

62.00 Transferred from other accounts. 3
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 23 23 10
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 43 55 56
73.10 Total new obligations............. 23 23 10
73.20 Total outlays (gross)............. -10 -22 -20
73.40 Adjustments in expired accounts
(net)........................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 55 56 46
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1 1
86.93 Outlays from discretionary
balances........................ 9 21 20
--------- --------- ----------
87.00 Total outlays (gross)........... 10 22 20
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 23 23 10
90.00 Outlays........................... 9 22 20
---------------------------------------------------------------------------

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 and 2006, the full $23 million was blocked from being
spent. Similarly, in 2007 $3 million in 2007 funds is canceled. However,
$10.163 million in discretionary funding is provided for this purpose to
ensure that any unmet need by other Federal programs can potentially be
accomodated. The Deficit Reduction Act cancels $20 million.

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

----------------------------------------------------------------------------
Identification code 12-1908-0-1-451 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Guaranteed loan levels supportable by subsidy
budget authority:
215001Loan guarantee levels............. 10 177 35
--------- --------- ----------
215901Total loan guarantee levels....... 10 177 35
Guaranteed loan subsidy (in percent):
232001Subsidy rate...................... 5.73 6.45 6.49
--------- --------- ----------
232901Weighted average subsidy rate..... 5.73 6.45 6.49
Guaranteed loan subsidy budget authority:
233001Subsidy budget authority.......... 1 11 2
--------- --------- ----------
233901Total subsidy budget authority.... 1 11 2
Guaranteed loan subsidy outlays:
234001Subsidy outlays................... 1 11 2
--------- --------- ----------
234901Total subsidy outlays............. 1 11 2
---------------------------------------------------------------------------

Renewable Energy Guaranteed Loan Financing Account

Program and Financing (in millions of dollars)

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 12
22.00 New financing authority (gross)... 1 11 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1 12 14
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1 12 14
----------------------------------------------------------------------------

New financing authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 1 11 2
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

88.00 Offsetting collections (cash)
from: Federal sources......... -1 -11 -2
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority...............
90.00 Financing disbursements........... -1 -11 -2
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4267-0-3-451 2005 actual 2006 est. 2007 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................. 10 177 35
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 10 177 35
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 12
2231 Disbursements of new guaranteed
loans........................... 14 93
2251 Repayments and prepayments........ -2 -3
--------- --------- ----------
2290 Outstanding, end of year........ 12 102
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 10 82
---------------------------------------------------------------------------

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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Direct program activity........... 20 31
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 20 31
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 23 30 25
22.00 New budget authority (gross)...... 28 26 -25
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 51 56
23.95 Total new obligations............. -20 -31
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 30 25
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance permanently
reduced....................... -25
42.00 Transferred from other accounts. 28 26
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 28 26 -25
----------------------------------------------------------------------------

[[Page 154]]

Change in obligated balances:
72.40 Obligated balance, start of year.. 15 11 3
73.10 Total new obligations............. 20 31
73.20 Total outlays (gross)............. -25 -39 -16
--------- --------- ----------
74.40 Obligated balance, end of year.. 11 3 -13
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 14 13 -12
86.93 Outlays from discretionary
balances........................ 11 26 28
--------- --------- ----------
87.00 Total outlays (gross)........... 25 39 16
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 28 26 -25
90.00 Outlays........................... 25 39 16
---------------------------------------------------------------------------

Funding was provided in 2001 through 2006 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)

Obligations by program activity:
Operating program:

00.01 Direct loans.................... 921 1,063 990
00.02 Interest on Treasury borrowing.. 371 401 431
00.06 Other............................. 5
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal...................... 1,297 1,464 1,421
08.02 Subsidy reestimate paid to receipt
account......................... 41
08.04 Interest on reestimate paid to
receipt account................. 21
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 62
--------- --------- ----------
10.00 Total new obligations........... 1,359 1,464 1,421
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 181 187
22.00 New financing authority (gross)... 1,352 1,464 1,421
22.10 Resources available from
recoveries of prior year
obligations..................... 71
22.60 Portion applied to repay debt..... -187
22.70 Balance of authority to borrow
withdrawn....................... -59
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,545 1,464 1,421
23.95 Total new obligations............. -1,359 -1,464 -1,421
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 187
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 900 853 1,009
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 645 622 633
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 1 2 4
68.47 Portion applied to repay debt. -194 -13 -225
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 452 611 412
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 1,352 1,464 1,421
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2,462 2,462 2,611
73.10 Total new obligations............. 1,359 1,464 1,421
73.20 Total financing disbursements
(gross)......................... -1,287 -1,313 -1,416
73.45 Recoveries of prior year
obligations..................... -71
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -1 -2 -4
--------- --------- ----------
74.40 Obligated balance, end of year.. 2,462 2,611 2,612
87.00 Interest Received on Loans........ 1,287 1,313 1,416
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -88 -72 -82
88.25 Interest on uninvested funds.. -45 -41 -41
88.40 Repayment of principal........ -224 -249 -249
88.40 Interest Received on Loans.... -283 -260 -261
88.40 Non-Federal sources........... -6
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -646 -622 -633
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. -1 -2 -4
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 706 840 784
90.00 Financing disbursements........... 642 691 783
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4226-0-3-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 921 1,063 990
--------- --------- ----------
1150 Total direct loan obligations... 921 1,063 990
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 6,009 6,639 7,302
1231 Disbursements: Direct loan
disbursements................... 855 912 984
1251 Repayments: Repayments and
prepayments..................... -223 -249 -249
1264 Write-offs for default: Other
adjustments, net................ -2
--------- --------- ----------
1290 Outstanding, end of year........ 6,639 7,302 8,037
---------------------------------------------------------------------------

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 systems and waste disposal facilities in rural areas.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4226-0-3-452

2004 actual

2005 actual

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

1101

Fund balances with Treasury

Investments in US securities:
1106

Receivables, net

-1

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

1401

Direct loans receivable, gross

6,009

6,639

1402

Interest receivable

1405

Allowance for subsidy cost (-)

-760

-705

[[Page 155]]

1499

Net present value of assets related to direct loans

5,314

6,001

1999

Total assets

5,387

6,072

LIABILITIES:
Federal liabilities:

2103

Debt

5,373

6,022

2105

Other

2999

Total liabilities

5,387

6,072

4999

Total liabilities and net position

5,387

6,072

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

Rural Water and Waste Water Disposal Guaranteed Loans Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
08.01 Negative Subsidy.................. 1 1
--------- --------- ----------
10.00 Total new obligations........... 1 1
----------------------------------------------------------------------------

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

New financing authority (gross), detail:
Discretionary:

68.00 Spending authority from
offsetting collections
(gross): Offsetting
collections (cash)............ 1 1
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 1 1
----------------------------------------------------------------------------

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 2005 actual 2006 est. 2007 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 75 75
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 3 75 75
2199 Guaranteed amount of guaranteed
loan commitments................ 2 60 60
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 33 33 50
2231 Disbursements of new guaranteed
loans........................... 5 21 33
2251 Repayments and prepayments........ -5 -4 -6
--------- --------- ----------
2290 Outstanding, end of year........ 33 50 77
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 26 40 61
---------------------------------------------------------------------------

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, [$100,000,000] $99,018,000;
municipal rate rural electric loans, [$100,000,000] $39,602,000; loans
made pursuant to section 306 of that Act, rural electric,
[$2,700,000,000] $3,000,000,000; Treasury rate direct electric loans,
[$1,000,000,000] $700,000,000; [guaranteed underwriting loans pursuant
to section 313A, $1,500,000,000;] 5 percent rural telecommunications
loans, [$145,000,000] $143,513,000; cost of money rural
telecommunications loans, [$424,000,000] $246,666,000; and for loans
made pursuant to section 306 of that Act, rural telecommunications
loans, [$125,000,000] $299,000,000.
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, [$6,160,000] $2,717,000, and the cost of
telecommunications loans, [$212,000] $605,000: 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, [$38,784,000] $39,600,000 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,
2006.)
[For gross obligations for the principal amount of direct rural
telecommunication loans as authorized by section 306 of the Rural
Electrification Act of 1936 to respond to damage caused by hurricanes
that occurred during the 2005 calendar year, $50,000,000, as determined
by the Secretary.
For the cost of loan modifications to rural electric loans made or
guaranteed under the Rural Electrification Act of 1936 to respond to
damage caused by hurricanes that occurred during the 2005 calendar year,
$8,000,000, to remain available until expended: Provided, That the
amount provided under this heading is designated as an emergency
requirement pursuant to section 402 of H. Con. Res. 95 (109th Congress),
the concurrent resolution on the budget for fiscal year 2006.]
(Emergency Supplemental Appropriations Act to Address Hurricanes in the
Gulf of Mexico and Pandemic Influenza, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 5 6 4
00.03 Subsidy for modifications of
direct loans.................... 8
00.05 Reestimate of direct loan subsidy. 206
00.06 Interest on reestimates of direct
loan subsidy.................... 31
00.09 Administrative expenses subject to
limitation...................... 38 39 39
--------- --------- ----------
10.00 Total new obligations........... 280 53 43
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 280 53 43
23.95 Total new obligations............. -280 -53 -43
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 43 53 43
Mandatory:

60.00 Appropriation................... 237
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 280 53 43
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 50 42 33
73.10 Total new obligations............. 280 53 43
73.20 Total outlays (gross)............. -285 -62 -52
73.40 Adjustments in expired accounts
(net)........................... -3
--------- --------- ----------
74.40 Obligated balance, end of year.. 42 33 24
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 38 44 39
86.93 Outlays from discretionary
balances........................ 10 18 13

[[Page 156]]

86.97 Outlays from new mandatory
authority....................... 237
--------- --------- ----------
87.00 Total outlays (gross)........... 285 62 52
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 280 53 43
90.00 Outlays........................... 284 62 52
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1230-0-1-271 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Hardship electric................. 119 99 99
115002Municipal electric................ 100 99 40
115003Treasury electric................. 1,000 990 700
115004FFB electric...................... 2,100 2,600 3,000
115005Hardship telephone................ 145 145 143
115006Treasury telephone................ 248 420 247
115007FFB telephone..................... 125 125 299
115008Electric Underwriter.............. 1,000 1,500
115009FFB telecommunications--2005
hurricane emergency suppl....... 50
--------- --------- ----------
115901Total direct loan levels.......... 4,837 6,028 4,528
Direct loan subsidy (in percent):
132001Hardship electric................. 3.04 0.92 2.14
132002Municipal electric................ 1.35 5.05 1.51
132003Treasury electric................. -0.05 0.01 0.00
132004FFB electric...................... -2.23 -0.48 -1.19
132005Hardship telephone................ -1.21 -1.80 0.37
132006Treasury telephone................ 0.04 0.05 0.03
132007FFB telephone..................... -1.95 -1.57 -1.49
132008Electric Underwriter.............. 0.00 -1.26 0.00
132009FFB telecommincations--2005
hurricane emergency sppl........ 0.00 -1.57 0.00
--------- --------- ----------
132901Weighted average subsidy rate..... -0.96 -0.51 -0.81
Direct loan subsidy budget authority:
133001Hardship electric................. 4 1 2
133002Municipal electric................ 1 5 1
133003Treasury electric................. -1
133004FFB electric...................... -47 -12 -36
133005Hardship telephone................ -2 -3 1
133006Treasury telephone................
133007FFB telephone..................... -2 -2 -4
133008Electric Underwriter.............. -19
133009FFB telecommunications--2005
hurricane suppl................. -1
--------- --------- ----------
133901Total subsidy budget authority.... -47 -31 -36
Direct loan subsidy outlays:
134001Hardship electric................. 4 4 3
134002Municipal electric................ -2 -3 1
134003Treasury electric................. -1
134004FFB electric...................... -33 -35 -24
134005Hardship telephone................ -3 10 1
134006Treasury telephone................
134007FFB telephone..................... -2 -2 -3
134008Electric Underwriter.............. -16 -3
134009FFB telecommunications--2005
hurricane suppl.................
--------- --------- ----------
134901Total subsidy outlays............. -36 -43 -25
Direct loan upward reestimate subsidy budget
authority:
135001Hardship electric................. 2
135002Municipal electric................ 35
135003Treasury electric................. 15
135004FFB electric...................... 156
135005Hardship telephone................
135006Treasury telephone................ 5
135007FFB telephone..................... 23
135008Electric Underwriter..............
135009FFB telecommunications--2005
hurricane suppl.................
--------- --------- ----------
135901Total upward reestimate budget
authority....................... 236
Direct loan downward reestimate subsidy budget
authority:
137001Hardship electric................. -67
137002Municipal electric................ -27
137003Treasury Electric................. -2
137004FFB electric...................... -1
137005Hardship telephone................ -4
137006Treasury telephone................ -6
137007FFB telephone.....................
137008Electric Underwriter..............
137009FFB telecommunications--2005
hurricane suppl.................
--------- --------- ----------
137901Total downward reestimate budget
authority....................... -107
----------------------------------------------------------------------------

Guaranteed loan levels supportable by subsidy
budget authority:
215001Guaranteed electric............... 99
215002Guaranteed underwriting loans.....
--------- --------- ----------
215901Total loan guarantee levels....... 99
Guaranteed loan subsidy (in percent):
232001Guaranteed electric............... 0.06 0.09 0.00
232002Guaranteed underwriting loans..... 0.00 0.00 0.00
--------- --------- ----------
232901Weighted average subsidy rate..... 0.00 0.09 0.00
----------------------------------------------------------------------------

Administrative expense data:
351001Budget authority.................. 38 39 40
359001Outlays from new authority........ 38 39 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 has completed 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 cancel loans obligated, but not disbursed, more than ten
years ago. Most electric loans obligated more than ten years ago have
either been disbursed or cancelled. However, current law prohibits the
cancellation 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 cancellation of all electric and
telecommunications loan obligations that are more than ten years old.

As required by the Federal Credit Reform Act of 1990, this account
records, for rural electrification and telecommunications programs, the
subsidy costs associated with the direct and guaranteed loans obligated
in 1992 and beyond (including modifications of direct loans or loan
guarantees that resulted from obligations or commitments in any year),
as well as administrative expenses of this program. The subsidy amounts
are estimated on a present value basis; the administrative expenses are
estimated on a cash basis.

[[Page 157]]

Object Classification (in millions of dollars)

Rural Electrification and Telecommunications Direct Loan Financing
Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loans...................... 4,837 6,028 4,528
00.02 Interest on Treasury borrowing.... 1,039 1,215 1,305
--------- --------- ----------
00.91 Subtotal, Operating program..... 5,876 7,243 5,833
08.01 Negative subsidy paid to receipt
account......................... 52 37 40
08.02 Downward subsidy amount paid to
receipt account................. 63
08.04 Interest on downward subsidy
reestimate...................... 43
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 158 37 40
--------- --------- ----------
10.00 Total new obligations........... 6,034 7,280 5,873
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 215 277 25
22.00 New financing authority (gross)... 6,093 7,305 5,868
22.10 Resources available from
recoveries of prior year
obligations..................... 119
22.60 Portion applied to repay debt..... -277
22.70 Balance of authority to borrow
withdrawn....................... -116
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 6,311 7,305 5,893
23.95 Total new obligations............. -6,034 -7,280 -5,873
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 277 25 20
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 4,991 7,051 4,181
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 1,914 2,084 2,174
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -8 -10 -10
68.47 Portion applied to repay debt. -804 -1,820 -477
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 1,102 254 1,687
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 6,093 7,305 5,868
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 10,849 11,584 13,408
73.10 Total new obligations............. 6,034 7,280 5,873
73.20 Total financing disbursements
(gross)......................... -5,188 -5,466 -5,374
73.45 Recoveries of prior year
obligations..................... -119
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 8 10 10
--------- --------- ----------
74.40 Obligated balance, end of year.. 11,584 13,408 13,917
87.00 Total financing disbursements
(gross)......................... 5,188 5,466 5,374
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Payment from program account.. -246 -14 -4
88.25 Interest on uninvested funds.. -125 -200 -200
88.40 Repayment of principal........ -675 -725 -775
88.40 Interest received on loans.... -858 -1,145 -1,195
88.40 Other......................... -10
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -1,914 -2,084 -2,174
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 8 10 10
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 4,187 5,231 3,704
90.00 Financing disbursements........... 3,274 3,382 3,200
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4208-0-3-271 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 4,837 6,028 4,528
--------- --------- ----------
1150 Total direct loan obligations... 4,837 6,028 4,528
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 16,519 19,845 24,586
1231 Disbursements: Direct loan
disbursements................... 4,001 5,466 4,073
1251 Repayments: Repayments and
prepayments..................... -675 -725 -775
--------- --------- ----------
1290 Outstanding, end of year........ 19,845 24,586 27,884
---------------------------------------------------------------------------

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

2004 actual

2005 actual

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

1101

Fund balances with Treasury

166

245

Investments in US securities:
1106

Receivables, net

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

1401

Direct loans receivable, gross

14,675

17,858

1402

Interest receivable

1405

Allowance for subsidy cost (-)

-748

-600

1499

Net present value of assets related to direct loans

13,931

17,260

1999

Total assets

14,186

17,522

LIABILITIES:
2103

Federal liabilities: Debt

14,167

17,384

2207

Non-Federal liabilities: Other

138

2999

Total liabilities

14,186

17,522

4999

Total liabilities and net position

14,186

17,522

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

1101

Fund balances with Treasury

114

Investments in US securities:
1106

Receivables, net

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

1401

Direct loans receivable, gross

1,844

1,987

1402

Interest receivable

1405

Allowance for subsidy cost (-)

-10

1499

Net present value of assets related to direct loans

1,835

1,998

1999

Total assets

1,973

2,103

LIABILITIES:
2103

Federal liabilities: Debt

1,953

2,075

2207

Non-Federal liabilities: Other

2999

Total liabilities

1,973

2,103

4999

Total liabilities and net position

1,973

2,103

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

[[Page 158]]

Rural Electrification and Telecommunications Guaranteed Loans Financing
Account

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4209-0-3-271 2005 actual 2006 est. 2007 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................. 99
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 99
2199 Guaranteed amount of guaranteed
loan commitments................ 99
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 222 221 318
2231 Disbursements of new guaranteed
loans........................... 2 99
2251 Repayments and prepayments........ -3 -2 -4
--------- --------- ----------
2290 Outstanding, end of year........ 221 318 314
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 221 318 314
---------------------------------------------------------------------------

This account finances loan guarantee commitments.

Rural Electrification and Telecommunications Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Interest expense on certificates
of beneficial ownership......... 223 223 194
00.02 Interest expense, FFB direct...... 490 554 492
00.03 Other interest expense............ 13 13
00.05 Other: cushion of credit.......... 89 89 82
00.06 RTB Dividends..................... 50
00.07 Other RTB......................... 1,359
--------- --------- ----------
10.00 Total new obligations........... 852 2,238 781
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 2,947 3,783 1,500
22.00 New budget authority (gross)...... 1,884 1,250 966
22.10 Resources available from
recoveries of prior year
obligations..................... 109
22.40 Capital transfer to general fund.. -305 -1,295 -251
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 4,635 3,738 2,215
23.95 Total new obligations............. -852 -2,238 -781
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 3,783 1,500 1,434
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance permanently
reduced....................... -8
Mandatory:

60.00 Appropriation................... 100 92
60.36 Unobligated balance permanently
reduced....................... -5 -5
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. -5 95 92
Spending authority from offsetting
collections:

Mandatory:
69.00 Offsetting collections (cash). 2,452 1,875 1,525
69.27 Capital transfer to general
fund........................ -27
69.47 Portion applied to repay debt. -536 -720 -643
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)......... 1,889 1,155 882
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,884 1,250 966
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 358 269 175
73.10 Total new obligations............. 852 2,238 781
73.20 Total outlays (gross)............. -832 -2,332 -856
73.45 Recoveries of prior year
obligations..................... -109
--------- --------- ----------
74.40 Obligated balance, end of year.. 269 175 100
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... -8
86.97 Outlays from new mandatory
authority....................... 1,376 848 712
86.98 Outlays from mandatory balances... -544 1,484 152
--------- --------- ----------
87.00 Total outlays (gross)........... 832 2,332 856
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.25 Interest on uninvested funds.. -67
88.40 Loans repaid.................. -1,359 -1,317 -1,118
88.40 Interest repaid............... -796 -434 -366
88.40 Undistributed charges......... -53
88.40 Loans repaid RTB.............. -151 -80 -21
88.40 Interest repaid RTB........... -26 -40 -14
88.40 Fees--Electric Underwriter.... -4 -6
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -2,452 -1,875 -1,525
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -568 -625 -559
90.00 Outlays........................... -1,620 457 -669
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4230-0-3-999 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 15,373 13,831 12,440
1231 Disbursements: Direct loan
disbursements................... 4 11 11
1251 Repayments: Repayments and
prepayments..................... -1,611 -1,399 -1,137
1261 Adjustments: Capitalized interest. 65
1264 Write-offs for default: Other
adjustments, net................ -3 -3
--------- --------- ----------
1290 Outstanding, end of year........ 13,831 12,440 11,311
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4230-0-3-999 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 255 233 215
2251 Repayments and prepayments........ -22 -15 -15
2263 Adjustments: Terminations for
default that result in claim
payments........................ -3 -3
--------- --------- ----------
2290 Outstanding, end of year........ 233 215 197
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 233 215 197
---------------------------------------------------------------------------

STATUS OF AGENCY DEBT

[In millions of dollars]

2005 actual 2006 est. 2007 est.
Agency debt held by FFB:
Outstanding FFB direct, start of
year............................ 7,902 7,366 6,902
Outstanding Certificate of
Beneficial Ownership (CBO's),
start of year................... 4,270 4,270 3,916
New agency borrowing, FFB direct.. 0 0 0
Repayments and prepayments, FFB
Direct.......................... -536 -464 -435
Repayments, CBO's................. 0 -354 0
Outstanding FFB direct, end of
year............................ 7,366 6,902 6,467
Outstanding CBO's, end of year.... 4,270 3,916 3,916

As required by the Federal Credit Reform Act of 1990, this account
records, for rural electrification and telecommunications programs, all
cash flows to and from the Government resulting from direct loans
obligated and loan guarantees committed prior to 1992. All new activity
in RETRF in 1992 and beyond is recorded in corresponding program and
financing accounts.
The Rural Telephone Bank is in the process of dissolving. To
accomplish this, the Rural Telephone Bank liquidating account loans are
being used to redeem a portion of the Gov

[[Page 159]]

ernment's stock. The Rural Telephone Bank liquidating account loans were
transferred to the Rural Electrification and Telecommunications
liquidating account in 2006.
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 cancel loans obligated, but not disbursed, more than ten
years ago. Most electric loans obligated more than ten years ago have
either been disbursed or cancelled. However, current law prohibits the
cancellation 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 cancellation 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]

2005 actual 2006 est. 2007 est.
Cumulative RUS financed direct
loans......................... 21,851 21,851 21,851
Cumulative FFB financed direct
loans......................... 27,084 27,084 27,084
Cumulative RUS funds advanced. 21,832 21,832 21,832
Unadvanced RUS funds, end of
year.......................... 0 0 0
Cumulative RUS principal
repaid........................ 17,064 18,294 19,430
Cumulative RUS interest paid.. 12,485 12,895 13,261
Cumulative loan guarantee
commitments\1\................ 0 0 0
Number of borrowers........... 705 705 705

\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]

2005 actual 2006 est. 2007 est.
Cumulative RUS financed direct
loans......................... 6,023 6,023 6,023
Cumulative FFB financed direct
loans......................... 562 562 562
Cumulative RUS funds advanced. 5,903 5,908 5,918
Unadvanced RUS funds, end of
period........................ 105 100 90
Cumulative RUS principal
repaid........................ 4,595 4,751 4,882
Cumulative RUS interest paid.. 3,162 3,188 3,210
Cumulative loan guarantee
commitments \1\............... 0 0 0
Number of borrowers........... 487 487 487

\1\ Other lenders--privately financed direct loans, FFB.

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4230-0-3-999

2004 actual

2005 actual

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

Federal assets: Fund balances with Treasury

1,477

1,792

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

1601

Direct loans, gross

13,283

12,308

1602

Interest receivable

1603

Allowance for estimated uncollectible loans and interest (-)

-1,780

-1,599

1604

Direct loans and interest receivable, net

11,531

10,735

1699

Value of assets related to direct loans

11,531

10,735

1999

Total assets

13,008

12,527

LIABILITIES:
Federal liabilities:

2103

Debt

14,446

13,936

2104

Resources payable to Treasury

-1,505

-1,492

2105

Other

2999

Total liabilities

13,008

12,527

4999

Total liabilities and net position

13,008

12,527

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

Federal assets: Fund balances with Treasury

392

2,205

1201

Non-Federal assets: Investments in non-Federal securities, net

388

369

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

1601

Direct loans, gross

1,665

1,523

1602

Interest receivable

1603

Allowance for estimated uncollectible loans and interest (-)

-166

-125

1604

Direct loans and interest receivable, net

1,508

1,407

1699

Value of assets related to direct loans

1,508

1,407

1999

Total assets

2,288

3,981

LIABILITIES:
Federal liabilities:

2103

Debt

1,369

1,343

2104

Resources payable to Treasury

905

802

2105

Other

1,416

2999

Total liabilities

2,278

3,561

NET POSITION:
3300

Cumulative results of operations

420

3999

Total net position

420

4999

Total liabilities and net position

2,288

3,981

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

RURAL TELEPHONE BANK PROGRAM STATISTICS

[dollars in millions]

2005 actual 2006 est. 2007 est.
Cumulative net loans.......... 2,052 2,487 2,515
Cumulative loan funds,
advanced...................... 2,485 2,502 2,502
Unadvanced loan funds, end of
year.......................... 32 15 15
Cumulative principal repaid... 2,471 2,551 2,574
Cumulative interest paid...... 2,449 2,489 2,500
Number of borrowers........... 255 253 251

Object Classification (in millions of dollars)

Rural Telephone Bank Program Account

(including transfer and rescission of funds)

[The Rural Telephone Bank is hereby authorized to make such
expenditures, within the limits of funds available to such corporation
in accord with law, and to make such contracts and commitments without
regard to fiscal year limitations as provided by section 104 of the
Government Corporation Control Act, as may be necessary in carrying out
its authorized programs.
For administrative expenses, including audits, necessary to continue
to service existing loans, $2,500,000, which shall be transferred to and
merged with the appropriation for ``Rural Development, Salaries and
Expenses''.
Of the unobligated balances from the Rural Telephone Bank
Liquidating Account, $2,500,000 shall not be obligated and $2,500,000
are rescinded.] (Agriculture, Rural Development, Food and Drug
Administration, and Related Agencies Appropriations Act, 2006.)

[[Page 160]]

Program and Financing (in millions of dollars)

Obligations by program activity:
00.05 Reestimate of direct loan subsidy. 1
00.06 Interests on reestimates of direct
loan subsidy.................... 1
00.09 Administrative expenses subject to
limitation...................... 3 3
--------- --------- ----------
10.00 Total new obligations........... 5 3
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 5 2
23.95 Total new obligations............. -5 -3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 3 3
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 3 2
Mandatory:

60.00 Appropriation................... 2
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 5 2
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 18 16 15
73.10 Total new obligations............. 5 3
73.20 Total outlays (gross)............. -6 -4 -2
73.40 Adjustments in expired accounts
(net)........................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 16 15 13
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3 2
86.93 Outlays from discretionary
balances........................ 1 2 2
86.97 Outlays from new mandatory
authority....................... 2
--------- --------- ----------
87.00 Total outlays (gross)........... 6 4 2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 5 2
90.00 Outlays........................... 6 4 2
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1231-0-1-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Rural Telephone Bank.............. 175
--------- --------- ----------
115901Total direct loan levels.......... 175
Direct loan subsidy (in percent):
132001Rural Telephone Bank.............. -1.83 0.00
--------- --------- ----------
132901Weighted average subsidy rate..... -1.83 0.00
Direct loan subsidy budget authority:
133001Rural Telephone Bank.............. -3
--------- --------- ----------
133901Total subsidy budget authority.... -3
Direct loan subsidy outlays:
134001Subsidy outlays................... 1
--------- --------- ----------
134901Total subsidy outlays............. 1
Direct loan upward reestimate subsidy budget
authority:
135001Rural Telephone Bank.............. 2
--------- --------- ----------
135901Total upward reestimate budget
authority....................... 2
Direct loan downward reestimate subsidy budget
authority:
137001Rural Telephone Bank.............. -9
--------- --------- ----------
137901Total downward reestimate budget
authority....................... -9
----------------------------------------------------------------------------

Administrative expense data:
351001Budget authority.................. 3 3
359001Outlays from new authority........ 3 3
---------------------------------------------------------------------------

The President's Budget assumes the completion of dissolution of the
Rural Telephone Bank in 2006 so no more federally funded loans are
proposed.

RUS will cancel loans obligated, but not disbursed, more than ten
years ago. Current law prohibits the cancellation 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 cancellation 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.

Object Classification (in millions of dollars)

Rural Telephone Bank Direct Loan Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct Loans...................... 175
00.02 Interest on Treasury borrowing.... 27 24 23
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal...................... 202 24 23
08.01 Payment to Receipt Account........ 3
08.02 Downward reestimates paid to
receipt accounts................ 7
08.04 Interest on downward reestimate
paid to receipt account......... 2
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal...................... 12
--------- --------- ----------
10.00 Total new obligations........... 214 24 23
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 30 81
22.00 New financing authority (gross)... 269 22 29
22.10 Resources available from
recoveries of prior year
obligations..................... 69
22.60 Portion applied to repay debt..... -79 -6
22.70 Balance of authority to borrow
withdrawn....................... -73
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 295 24 23
23.95 Total new obligations............. -214 -24 -23
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 81
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 235
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 141 144 129
68.47 Portion applied to repay debt. -107 -122 -100
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 34 22 29
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 269 22 29
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,205 1,217 1,084
73.10 Total new obligations............. 214 24 23
73.20 Total financing disbursements
(gross)......................... -133 -157 -157
73.45 Recoveries of prior year
obligations..................... -69
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,217 1,084 950

[[Page 161]]

87.00 Total financing disbursements
(gross)......................... 133 157 157
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources: Payment from
program account............. -3
88.25 Interest on uninvested funds.. -8 -8 -6
88.40 Principal received on loans... -104 -114 -105
88.40 Interest received on loans.... -21 -22 -18
88.40 Sale of RTB Stock............. -5
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -141 -144 -129
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 128 -122 -100
90.00 Financing disbursements........... -8 13 28
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4210-0-3-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 175
--------- --------- ----------
1150 Total direct loan obligations... 175
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 374 356 356
1231 Disbursements: Direct loan
disbursements................... 96 114 96
1251 Repayments: Repayments and
prepayments..................... -114 -114 -105
--------- --------- ----------
1290 Outstanding, end of year........ 356 356 347
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4210-0-3-452

2004 actual

2005 actual

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

1101

Fund balances with Treasury

Investments in US securities:
1106

Receivables, net

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

1401

Direct loans receivable, gross

374

356

1405

Allowance for subsidy cost (-)

-6

1499

Net present value of assets related to direct loans

368

366

1999

Total assets

380

LIABILITIES:
Federal liabilities:

2103

Debt

343

336

2105

Other

2999

Total liabilities

380

4999

Total liabilities and net position

380

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

Distance Learning, Telemedicine, and Broadband Program

For the principal amount of [direct distance learning and
telemedicine loans, $25,000,000; and for the principal amount of]
broadband telecommunication loans, [$500,000,000] $356,419,000.
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., [$30,375,000] $24,750,000, to remain available until
expended[, of which $375,000 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 $5,000,000
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., [$10,750,000, to remain available until September 30, 2007:
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] $10,826,000: 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, 2006.)

[(rescission)]

[Of the unobligated balances available under this heading,
$9,900,000 are rescinded.] (Emergency Supplemental Appropriations Acts
to Address Hurricanes in the Gulf of Mexico and Pandemic Influenza,
2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loan subsidy............... 2 29 9
00.02 Loan guarantee subsidy............ 1
00.05 Reestimate of direct loan subsidy. 1
00.06 Interest of reestimate of direct
loan subsidy.................... 1
00.10 Grants............................ 20 68 25
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 24 97 35
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 50 89 32
22.00 New budget authority (gross)...... 58 40 5
22.10 Resources available from
recoveries of prior year
obligations..................... 5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 113 129 37
23.95 Total new obligations............. -24 -97 -35
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 89 32 2
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 56 50 35
40.35 Appropriation permanently
reduced....................... -10
40.36 Unobligated balance permanently
reduced....................... -10
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 56 40 25
Mandatory:

60.00 Appropriation................... 2
60.36 Unobligated balance permanently
reduced....................... -30
62.00 Transferred from other accounts. 10
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 2 -20
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 58 40 5
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 137 108 162
73.10 Total new obligations............. 24 97 35
73.20 Total outlays (gross)............. -47 -43 -32
73.40 Adjustments in expired accounts
(net)........................... -1
73.45 Recoveries of prior year
obligations..................... -5
--------- --------- ----------
74.40 Obligated balance, end of year.. 108 162 165
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 3 -3
86.93 Outlays from discretionary
balances........................ 45 40 42
86.97 Outlays from new mandatory
authority....................... 2 -7
--------- --------- ----------
87.00 Total outlays (gross)........... 47 43 32
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 58 40 5

[[Page 162]]

90.00 Outlays........................... 47 43 32
---------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-1232-0-1-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001Distance Learning and Telemedicine 3 70
115002Direct Broadband 4% loans......... 30
115003Direct Broadband Treasury Rate
loans........................... 111 940 297
115004Mandatory Broadband 4% loans...... 64
115005Mandatory Broadband Treasury Rate
loans........................... 145
--------- --------- ----------
115901Total direct loan levels.......... 114 1,219 327
Direct loan subsidy (in percent):
132001Distance Learning and Telemedicine 1.42 1.50 0.00
132002Direct Broadband 4% loans......... 0.00 0.00 10.32
132003Direct Broadband Treasury Rate
loans........................... 2.13 2.15 2.15
132004Mandatory Broadband 4% loans...... 0.00 7.95 0.00
132005Mandatory Broadband Treasury Rate
loans........................... 0.00 2.15 0.00
--------- --------- ----------
132901Weighted average subsidy rate..... 2.11 2.42 2.90
Direct loan subsidy budget authority:
133001Distance Learning and Telemedicine 1
133002Direct Broadband 4% loans......... 3
133003Direct Broadband Treasury Rate
loans........................... 2 20 6
133004Mandatory Broadband 4% loans...... 5
133005Mandatory Broadband Treasury Rate
loans........................... 3
--------- --------- ----------
133901Total subsidy budget authority.... 2 29 9
Direct loan subsidy outlays:
134001Distance Learning and Telemedicine
134002Direct Broadband 4% loans.........
134003Direct Broadband Treasury Rate
loans........................... 3 6 14
134004Mandatory Broadband 4% loans...... 1 3
134005Mandatory Broadband Treasury Rate
loans........................... 1 2
--------- --------- ----------
134901Total subsidy outlays............. 3 8 19
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 4.63
232002Mandatory Broadband Guaranteed
loans........................... 0.00 0.00 0.00
--------- --------- ----------
232901Weighted average subsidy rate..... 0.00 0.00 4.63
Guaranteed loan subsidy budget authority:
233001Broadband Guaranteed loans........ 1
233002Mandatory Broadband Guaranteed
loans...........................
--------- --------- ----------
233901Total subsidy budget authority.... 1
Guaranteed loan subsidy outlays:
234001Broadband Guaranteed loans........
234002Mandatory Broadband Guaranteed
loans...........................
--------- --------- ----------
234901Total subsidy outlays.............
---------------------------------------------------------------------------

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. The Budget proposes canceling
mandatory funding for 2007. The Budget provides discretionary funding
for loans to finance installation of broadband transmission capacity.

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 2007.

Distance Learning, Telemedicine, and Broadband Direct Loan Financing
Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loans...................... 114 1,219 327
00.02 Interest on Treasury borrowing.... 10 15 20
--------- --------- ----------
10.00 Total new obligations........... 124 1,234 347
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 17 8
22.00 New financing authority (gross)... 115 1,234 347
22.10 Resources available from
recoveries of prior year
obligations..................... 44
22.60 Portion applied to repay debt..... -8
22.70 Balance of authority to borrow
withdrawn....................... -45
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 131 1,234 347
23.95 Total new obligations............. -124 -1,234 -347
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 8
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 114 1,232 290
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 22 37 92
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -14 -14
68.47 Portion applied to repay debt. -21 -21 -21
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 1 2 57
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 115 1,234 347
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 733 730 1,852
73.10 Total new obligations............. 124 1,234 347
73.20 Total financing disbursements
(gross)......................... -83 -126 -400
73.45 Recoveries of prior year
obligations..................... -44
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 14 14
--------- --------- ----------
74.40 Obligated balance, end of year.. 730 1,852 1,813
87.00 Total financing disbursements
(gross)......................... 83 126 400
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources............... -3 -8 -19
88.25 Interest on uninvested funds.. -3 -4 -5
88.40 Repayment of principal........ -12 -18 -50
88.40 Interest received on loans.... -5 -7 -18
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -23 -37 -92
Against gross financing authority only:

88.95 Change in receivables from
program accounts.............. 14 14
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 1
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 93 1,211 269
90.00 Financing disbursements........... 61 89 308
---------------------------------------------------------------------------

[[Page 163]]

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4146-0-3-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........
1131 Direct loan obligations exempt
from limitation................. 114 1,219 327
--------- --------- ----------
1150 Total direct loan obligations... 114 1,219 327
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 131 190 298
1231 Disbursements: Direct loan
disbursements................... 71 126 400
1251 Repayments: Repayments and
prepayments..................... -12 -18 -50
--------- --------- ----------
1290 Outstanding, end of year........ 190 298 648
---------------------------------------------------------------------------

Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code 12-4146-0-3-452

2004 actual

2005 actual

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

Federal assets: Fund balances with Treasury

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

1401

Direct loans receivable, gross

131

190

1402

Interest receivable

1405

Allowance for subsidy cost (-)

1499

Net present value of assets related to direct loans

134

195

1999

Total assets

141

200

LIABILITIES:
2101

Federal liabilities: Accounts payable

141

200

2999

Total liabilities

141

200

4999

Total liabilities and net position

141

200

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

Distance Learning and Telemedicine Guaranteed Loan Financing Account

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4361-0-3-451 2005 actual 2006 est. 2007 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................. 30
--------- --------- ----------
2150 Total guaranteed loan
commitments................... 30
2199 Guaranteed amount of guaranteed
loan commitments................ 30
----------------------------------------------------------------------------

Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........
2231 Disbursements of new guaranteed
loans........................... 3
2251 Repayments and prepayments........
--------- --------- ----------
2290 Outstanding, end of year........ 3
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 3
---------------------------------------------------------------------------

Local Television Loan Guarantee Program Account

(including transfer of funds)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1233-0-1-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 88
22.00 New budget authority (gross)...... -88
--------- --------- ----------
23.90 Total budgetary resources
available for obligation......
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.36 Unobligated balance permanently
reduced....................... -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 2007 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)

Obligations by program activity:
01.01 Interest on FFB borrowings........ 11
--------- --------- ----------
10.00 Total new obligations (object
class 43.0)................... 11
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 76 23
22.00 New budget authority (gross)...... 34
22.40 Capital transfer to general fund.. -76 -23
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 34
23.95 Total new obligations............. -11
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 23
----------------------------------------------------------------------------

New budget authority (gross), detail:
Spending authority from offsetting
collections:

Mandatory:
69.00 Offsetting collections (cash). 304 221 208
69.27 Capital transfer to general
fund........................ -70 -221 -208
69.47 Portion applied to repay debt. -200
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)......... 34
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 14
73.10 Total new obligations............. 11
73.20 Total outlays (gross)............. -25
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 34
86.98 Outlays from mandatory balances... -9
--------- --------- ----------
87.00 Other........................... 25
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.40 Non-Federal sources........... -189 -118 -111
88.40 Repayments of guaranteed loans
purchased from investors.... -1
88.40 Interest revenue.............. -110 -103 -97
88.40 Other......................... -4
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -304 -221 -208
----------------------------------------------------------------------------

[[Page 164]]

Net budget authority and outlays:
89.00 Budget authority.................. -270 -221 -208
90.00 Outlays........................... -279 -221 -208
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4155-0-3-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 2,125 1,931 1,812
1232 Disbursements: Purchase of loans
assets from the public..........
1251 Repayments: Repayments and
prepayments..................... -189 -118 -111
Write-offs for default:

1263 Direct loans.................... -3 -1 -1
1264 Other adjustments, net.......... -2
--------- --------- ----------
1290 Outstanding, end of year........ 1,931 1,812 1,700
---------------------------------------------------------------------------

Status of Guaranteed Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4155-0-3-452 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Cumulative balance of guaranteed loans
outstanding:
2210 Outstanding, start of year........ 41 36 32
2251 Repayments and prepayments........ -5 -4 -4
--------- --------- ----------
2290 Outstanding, end of year........ 36 32 28
----------------------------------------------------------------------------

Memorandum:
2299 Guaranteed amount of guaranteed
loans outstanding, end of year.. 27 27 24
---------------------------------------------------------------------------

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

2004 actual

2005 actual

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

Federal assets: Fund balances with Treasury

167

1201

Non-Federal assets: Investments in non-Federal securities, net

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

1601

Direct loans, gross

2,125

1,931

1602

Interest receivable

1603

Allowance for estimated uncollectible loans and interest (-)

-330

-283

1604

Direct loans and interest receivable, net

1,827

1,677

1699

Value of assets related to direct loans

1,827

1,677

1901

Other Federal assets: Other assets

1999

Total assets

2,033

1,738

LIABILITIES:
Federal liabilities:

2103

Debt

200

2104

Resources payable to Treasury

1,807

1,736

Non-Federal liabilities:

2202

Interest payable

2204

Liabilities for loan guarantees

2207

Other

2999

Total liabilities

2,033

1,738

4999

Total liabilities and net position

2,033

1,738

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

Rural Communication Development Fund Liquidating Account

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4142-0-3-452 2005 actual 2006 est. 2007 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 2005 actual 2006 est. 2007 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.. 3 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

2004 actual

2005 actual

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

1601

Direct loans, gross

1602

Interest receivable

1603

Allowance for estimated uncollectible loans and interest (-)

-1

1604

Direct loans and interest receivable, net

1699

Value of assets related to direct loans

1999

Total assets

LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

2999

Total liabilities

4999

Total liabilities and net position

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

[[Page 165]]

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), [$147,901,000] $157,486,000: 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, 2006.)

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2900-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............
--------- --------- ----------
01.99 Balance, start of year............
Receipts:
02.20 Deposits of miscellaneous
contributed funds, International
cooperation and development..... 4 4
Appropriations:
05.00 Salaries and expenses............. -4 -4
--------- --------- ----------
07.99 Balance, end of year..............
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Market Access, Intelligence &
Analysis...................... 65 72 78
00.02 Trade Development............... 48 50 52
00.03 Agricultural Development for
National Security............. 28 29 32
09.00 Reimbursable program.............. 76 76 76
--------- --------- ----------
10.00 Total new obligations........... 217 227 238
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 14 21 21
22.00 New budget authority (gross)...... 224 227 237
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 238 248 258
23.95 Total new obligations............. -217 -227 -238
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 21 21 20
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 138 148 157
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -1
40.35 Appropriation permanently
reduced....................... -1
42.00 Transferred from other accounts. 12
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 149 147 157
Mandatory:

60.26 Appropriation (trust fund)...... 4 4
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 65 76 76
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 10
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 75 76 76
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 224 227 237
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 39 38 38
73.10 Total new obligations............. 217 227 238
73.20 Total outlays (gross)............. -230 -227 -236
73.40 Adjustments in expired accounts
(net)........................... -11
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -10
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 33
--------- --------- ----------
74.40 Obligated balance, end of year.. 38 38 40
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 216 212 221
86.93 Outlays from discretionary
balances........................ 14 11 11
86.97 Outlays from new mandatory
authority....................... 4 4
--------- --------- ----------
87.00 Total outlays (gross)........... 230 227 236
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -97 -76 -76
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.............. 32
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 149 151 161
90.00 Outlays........................... 133 151 160
---------------------------------------------------------------------------

FAS' mission is to serve U.S. agriculture's interests by expanding
and maintaining international export opportunities for U.S.
agricultural, fish, and forest products and supporting international
economic development and trade capacity building and improving the
Sanitary and Phytosanitary (SPS) system to facilitate agricultural
trade. The outcomes envisioned are a more level playing field for U.S.
agricultural producers and exporters in the global marketplace and an
expanded ability to sustain economics growth and trade capacity in
developing and transitioning countries.

FAS' core objective is to maintain and expand overseas market
opportunities for U.S. agriculture. In addition to a highly specialized
Washington-based staff, the agency maintains a targeted and highly
efficient network of overseas offices that serve as first responders in
cases of market disruption, provide critical market and policy
intelligence to support our strategic goals, and represent U.S.
agriculture in consultations with foreign governments.

Market Access, Intelligence, and Analysis.--As the global economy
changes, expansion and creation of new foreign market opportunities is
our most critical work. Incomes are growing around the world, creating a
large number of potential new customers that previously had little
ability to buy foreign goods. However, tariff and non-tariff barriers
continue to restrict trade. Our primary tool to expand market access in
this environment is the negotiation of new trade agreements that lower
tariffs and address other trade distortions. FAS provides the critical
analysis, policy advice and representation to ensure the U.S. government
can push effectively to open these markets. Critical to this effort is
FAS' detailed knowledge of foreign markets from both a country- and a
commodity-based perspective.

Maintaining existing market access for agricultural products is also
crucial. We analyze trade issues with the assistance of knowledgeable
industry contacts and coordinate with other agencies to develop
effective strategies to prevent or reverse unfair or trade-disruptive
actions by our foreign trading partners. We monitor foreign compliance
with our trade agreements and work with other U.S. government agencies
to ensure those agreements are enforced, using formal dispute mechanisms
when needed. We also use the extensive expertise within USDA and in
other Departments to pursue solutions to difficult technical issues that
restrict trade, such as those related to plant and animal health and
food safety.

[[Page 166]]

As tariffs come down globally, regulatory inconsistencies among
trading partners will become even more apparent. FAS works bilaterally
and with international organizations to encourage the development of
transparent and science-based regulatory systems that minimize trade-
restrictive measures. We ensure that trade interests are represented in
the development of international standards, support developing country
participation in standards-setting bodies, and help build modern
regulatory frameworks and institutions overseas. We also provide
training to help our trading partners comply with their obligations
under the WTO, particularly the Sanitary and Phytosanitary Agreement.

Agricultural Development for National Security

The President's National Security Strategy cites economic
development to be one of the top three priorities of U.S. foreign
policy, on par with ``diplomacy'' and ``defense.'' The Strategy
recognizes that the root of the national security threat to the U.S. is
the lack of economic development, which often results in economic and
political instability. For most developing countries, a productive and
sustainable agricultural sector is the engine for economic growth. Thus,
improving agricultural productivity and markets for economic growth is a
critical part of the President's National Security Strategy. FAS directs
assistance to those select countries identified as strategic priorities
for the U.S. government.

FAS focuses on three (3) main areas:

(1) Increasing the integration of agricultural markets into the
global economy through trade capacity building activities.

(2) Reducing hunger and malnutrition through the adoption of
sustainable, productivity-enhancing technologies and international food
assistance activities.

(3) Targeting immediate relief efforts to post-conflict or post-
disaster states through agricultural reconstruction activities.

Trade Development

The FAS supports U.S. firms' and industry export efforts to build
and maintain overseas markets for U.S. agricultural products through
trade related programs. These include:

Financial Marketing Assistance.--FAS administers price/credit and
risk-mitigation assistance programs designed to leverage overseas market
expansion for U.S. exporters. These programs include the CCC Export
Credit Guarantee Program, the Export Enhancement Program and the Dairy
Export Incentive Program. These programs give U.S. exporters the ability
to counter export subsidies of foreign competitors and allow U.S.
exporters to compete with sales terms offered by foreign competitors.

Market Development Programs.--FAS administers the Foreign Market
Development (Cooperator) Program, Market Access Program, Technical
Assistance for Specialty Crops Program, Quality Samples Program, and
Emerging Markets Program. These are carried out chiefly in cooperation
with non-profit agricultural trade associations and private firms.

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.

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.

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.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 62 64 65
11.3 Other than full-time permanent 4 4 4
11.5 Other personnel compensation.. 1 1 1
11.8 Special personal services
payments.................... 3 3 3
--------- --------- ----------
11.9 Total personnel compensation 70 72 73
12.1 Civilian personnel benefits..... 19 19 20
21.0 Travel and transportation of
persons....................... 4 4 4
22.0 Transportation of things........ 1 1 1
23.2 Rental payments to others....... 8 8 8
23.3 Communications, utilities, and
miscellaneous charges......... 1 1 1
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. 33 41 50
25.8 Subsistence and support of
persons....................... 2 2 2
26.0 Supplies and materials.......... 1 1 1
31.0 Equipment....................... 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 141 151 162
99.0 Reimbursable obligations.......... 76 76 76
--------- --------- ----------
99.9 Total new obligations........... 217 227 238
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-2900-0-1-352 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 777 763 763
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 211 211 211
---------------------------------------------------------------------------

Trade Adjustment Assistance for Farmers

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1406-0-1-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Payment to Liquidating Account.... 7
00.02 Direct Program Activity........... 20 90 90
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 27 90 90
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 90 90 90
23.95 Total new obligations............. -27 -90 -90
23.98 Unobligated balance expiring or
withdrawn....................... -63
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 90 90 90
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 35 38 38
73.10 Total new obligations............. 27 90 90
73.20 Total outlays (gross)............. 37 -90 -90
73.40 Adjustments in expired accounts
(net)........................... -59
--------- --------- ----------
74.40 Obligated balance, end of year.. 38 38 38
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 22 90 90
86.98 Outlays from mandatory balances... -59
--------- --------- ----------
87.00 Total outlays (gross)........... -37 90 90
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 90 90 90
90.00 Outlays........................... -35 90 90
---------------------------------------------------------------------------

[[Page 167]]

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.

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.

SUMMARY OF FOOD ASSISTANCE PROGRAMMING

[In millions of dollars]

2005 actual 2006 est. 2007 est.
McGovern-Dole International
Food for Education and Child
Nutrition (budget authority).. 87 99 99
Public Law 480
Title I Credit (budget
authority)................ 44 32 3
Title II Grants (budget
authority)................ 1,413 1,138 1,218
Food for Progress
CCC Funded.................. 122 158 161
P.L. 480 Title I Funded
(budget authority)........ 76 47 0
CCC Surplus Commodity
Donations (416)............... 76 0 0
Bill Emerson Humanitarian
Trust......................... 377 * *

*Up to 500,000 metric tons are available annually for unanticipated
emergency food assistance.

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).

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), [$100,000,000] $99,000,000, 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, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 McGovern-Dole International Food
for Education & Child Nutrition
Program......................... 87 100 99
09.00 Reimbursable program.............. 6 6
--------- --------- ----------
10.00 Total new obligations........... 87 106 105
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1
22.00 New budget authority (gross)...... 87 105 105
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 88 106 105
23.95 Total new obligations............. -87 -106 -105
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 88 100 99
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -1
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 87 99 99
Mandatory:

69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 6 6
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 87 105 105
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1 2
73.10 Total new obligations............. 87 106 105
73.20 Total outlays (gross)............. -88 -105 -105
--------- --------- ----------
74.40 Obligated balance, end of year.. 1 2 2
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 87 99 99
86.97 Outlays from new mandatory
authority....................... 6 6
86.98 Outlays from mandatory balances... 1
--------- --------- ----------
87.00 Total outlays (gross)........... 88 105 105
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

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

Net budget authority and outlays:
89.00 Budget authority.................. 87 99 99
90.00 Outlays........................... 86 99 99
---------------------------------------------------------------------------

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 also are authorized.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2903-0-1-151 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
41.0 Direct obligations: Grants,
subsidies, and contributions.... 87 100 99
99.0 Reimbursable obligations:
Reimbursable obligations........ 6 6
--------- --------- ----------
99.9 Total new obligations........... 87 106 105
---------------------------------------------------------------------------

[[Page 168]]

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, $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, 2006.)

[(RESCISSION)]

[Of the unobligated balances available under this heading,
$35,000,000 are rescinded.] (Emergency Supplemental Appropriations Act
to Address Hurricanes in the Gulf of Mexico and Pandemic Influenza,
2006.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2271-0-1-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 P.L. 480 grant--Title I: Ocean
freight differential (OFD)...... 4 12
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 4 12
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 54 38
22.00 New budget authority (gross)...... 28 -23 19
22.21 Unobligated balance transferred to
other accounts.................. -40 -3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 42 12 19
23.95 Total new obligations............. -4 -12
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 38 19
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 23 12
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -35
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 23 -23
Spending authority from offsetting
collections:

Mandatory:
69.00 Offsetting collections (cash). 30 32 19
69.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -25
69.61 Transferred to other accounts. -32
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)......... 5 19
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 28 -23 19
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1 13 38
73.10 Total new obligations............. 4 12
73.20 Total outlays (gross)............. -17 13 -2
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 25
--------- --------- ----------
74.40 Obligated balance, end of year.. 13 38 36
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 13 -13
86.93 Outlays from discretionary
balances........................ 1 -9
86.97 Outlays from new mandatory
authority....................... 3 11
--------- --------- ----------
87.00 Total outlays (gross)........... 17 -13 2
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -30 -32 -19
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 25
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 23 -55
90.00 Outlays........................... -14 -45 -17
---------------------------------------------------------------------------

This account funds the title I ocean freight differential program.
No funding is requested for FY 2007.

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, [$1,150,000,000] $1,218,500,000, to remain
available until expended: Provided, That if the Administrator of the
United States Agency for International Development determines it to be
appropriate, up to 25 percent of the funds appropriated under this
heading may be used, notwithstanding any other provision of law, for the
local or regional purchase and distribution of food to assist people
threatened by a food security crisis. (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, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Title II.......................... 1,549 1,138 1,218
09.01 Reimbursable program.............. 173 197 92
--------- --------- ----------
10.00 Total new obligations........... 1,722 1,335 1,310
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 305 52 32
22.00 New budget authority (gross)...... 1,376 1,335 1,310
22.10 Resources available from
recoveries of prior year
obligations..................... 103
22.21 Unobligated balance transferred to
other accounts.................. -10 -20 -20
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,774 1,367 1,322
23.95 Total new obligations............. -1,722 -1,335 -1,310
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 52 32 12
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,423 1,150 1,218
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -12
40.35 Appropriation permanently
reduced....................... -9
42.00 Transferred from other accounts. 12
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,426 1,138 1,218
Spending authority from offsetting
collections:

Mandatory:
69.00 Offsetting collections (cash). 151 197 92
69.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -201
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)......... -50 197 92
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,376 1,335 1,310
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 711 1,041 911
73.10 Total new obligations............. 1,722 1,335 1,310
73.20 Total outlays (gross)............. -1,490 -1,465 -1,223
73.45 Recoveries of prior year
obligations..................... -103
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 201
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,041 911 998
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 669 597 639
86.93 Outlays from discretionary
balances........................ 871 728 464
86.97 Outlays from new mandatory
authority....................... -50 79 79
86.98 Outlays from mandatory balances... 61 41
--------- --------- ----------
87.00 Total outlays (gross)........... 1,490 1,465 1,223
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -151 -197 -92

[[Page 169]]

Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 201
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,426 1,138 1,218
90.00 Outlays........................... 1,339 1,268 1,131
---------------------------------------------------------------------------

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.

The program is administered by the U.S. Agency for International
Development.

In addition, the request includes authority to use up to twenty-five
percent of the P.L. 480 Title II funds for the local or regional
purchase and distribution of food to assist people threatened by a food
security crisis. In particular, the language is intended to authorize
the Administrator of USAID, when deemed appropriate, to procure food
locally or regionally from developing countries (in accordance with the
OECD Development Assistance Committee List of ODA Recipients) and to
distribute such food in response to a food security crisis. This will
permit USAID to provide food assistance in the most timely and efficient
manner to the most critical emergency food crises. This authority will
be used in those instances where the rapid use of cash assistance is
critical to saving lives.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2278-0-1-151 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
41.0 Direct obligations: Grants,
subsidies, and contributions.... 1,549 1,138 1,218
99.0 Reimbursable obligations:
Reimbursable obligations........ 173 197 92
--------- --------- ----------
99.9 Total new obligations........... 1,722 1,335 1,310
---------------------------------------------------------------------------

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, $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, $3,385,000, of which $168,000 may be transferred to and merged
with the appropriation for ``Foreign Agricultural Service, Salaries and
Expenses'', and of which $3,217,000 may] $2,651,000, to 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, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct credit subsidy............. 17 16
00.05 Re-estimates of subsidy........... 4
00.06 Interest on re-estimates.......... 4
00.09 Administrative expenses........... 4 3 3
00.10 Food for Progress Grants.......... 55 158
00.11 Other adjustments to prior years'
obligations..................... 21 10
--------- --------- ----------
10.00 Total new obligations........... 105 177 13
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 237 88 13
22.00 New budget authority (gross)...... -74 99 3
22.21 Unobligated balance transferred to
other accounts.................. -10
22.22 Unobligated balance transferred
from other accounts............. 40 3
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 193 190 16
23.95 Total new obligations............. -105 -177 -13
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 88 13 3
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 94 65
40.00 Appropriation................... 4 3 3
40.35 Appropriation permanently
reduced....................... -1 -1
40.36 Unobligated balance permanently
reduced....................... -191
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. -94 67 3
Mandatory:

60.00 Appropriation................... 8
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 12
Mandatory:
69.62 Transferred from other
accounts.................... 32
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... -74 99 3
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 125 76 147
73.10 Total new obligations............. 105 177 13
73.20 Total outlays (gross)............. -154 -106 -81
--------- --------- ----------
74.40 Obligated balance, end of year.. 76 147 79
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 100 39 3
86.93 Outlays from discretionary
balances........................ 46 35 78
86.97 Outlays from new mandatory
authority....................... 8 32
--------- --------- ----------
87.00 Total outlays (gross)........... 154 106 81
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -12
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -86 99 3
90.00 Outlays........................... 142 106 81
---------------------------------------------------------------------------

[[Page 170]]

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

----------------------------------------------------------------------------
Identification code 12-2277-0-1-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct loan levels supportable by subsidy
budget authority:
115001P. L. 480 title I loans........... 30 30
--------- --------- ----------
115901Total direct loan levels.......... 30 30
Direct loan subsidy (in percent):
132001P. L. 480 title I loans........... 57.55 54.14 0.00
--------- --------- ----------
132901Weighted average subsidy rate..... 57.55 54.14 0.00
Direct loan subsidy budget authority:
133001P. L. 480 title I loans........... 17 16
--------- --------- ----------
133901Total subsidy budget authority.... 17 16
Direct loan subsidy outlays:
134001P. L. 480 title I loans........... 26 26 6
--------- --------- ----------
134901Total subsidy outlays............. 26 26 6
Direct loan upward reestimate subsidy budget
authority:
135001P. L. 480 title I loans........... 8
--------- --------- ----------
135901Total upward reestimate budget
authority....................... 8
Direct loan downward reestimate subsidy budget
authority:
137001P. L. 480 title I loans........... -69
--------- --------- ----------
137901Total downward reestimate budget
authority....................... -69
----------------------------------------------------------------------------

Administrative expense data:
351001Budget authority.................. 4 3 3
359001Outlays from new authority........ 4 3 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. The current balance of Title I
debt owed to USDA is $8.6 billion. No additional funding is requested
for new Title I loans in FY 2007. Food for Progress grants will continue
to be funded from the Commodity Credit Corporation.

Object Classification (in millions of dollars)

P.L. 480 Direct Credit Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct loans...................... 30 30
00.02 Interest on Treasury borrowing.... 106 171 182
00.03 Other adjustments to prior years'
obligations..................... -26
--------- --------- ----------
00.91 Direct Program by Activities--
Subtotal (1 level)............ 110 201 182
08.02 Payment of downward reestimate to
receipt account................. 47 239
08.04 Payment of interest on downward
reestimate to receipt account... 22 176
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 69 415
--------- --------- ----------
10.00 Total new obligations........... 179 616 182
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1,316 1,458
22.00 New financing authority (gross)... 482 870 432
22.60 Portion applied to repay debt..... -161 -1,712 -250
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,637 616 182
23.95 Total new obligations............. -179 -616 -182
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1,458
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 92 600 182
Mandatory:

69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 390 270 250
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 482 870 432
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 5 -41 13
73.10 Total new obligations............. 179 616 182
73.20 Total financing disbursements
(gross)......................... -225 -562 -193
--------- --------- ----------
74.40 Obligated balance, end of year.. -41 13 2
87.00 Total financing disbursements
(gross)......................... 225 562 193
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Payments from program account. -50 -26 -6
88.25 Interest on uninvested funds.. -48 -66 -69
88.40 Interest received on loans.... -92 -45 -40
88.40 Principal received on loans... -200 -133 -135
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -390 -270 -250
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 92 600 182
90.00 Financing disbursements........... -164 292 -57
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4049-0-3-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Position with respect to appropriations act
limitation on obligations:
1111 Limitation on direct loans........ 30 30
--------- --------- ----------
1150 Total direct loan obligations... 30 30
----------------------------------------------------------------------------

Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 2,483 2,273 2,189
1231 Disbursements: Direct loan
disbursements................... 46 49 11
Repayments:

1251 Repayments and prepayments...... -200 -133 -135
1251 Loans transferred to debt
reduction financing fund...... -16
1263 Write-offs for default: Direct
loans........................... -40
--------- --------- ----------
1290 Outstanding, end of year........ 2,273 2,189 2,065
---------------------------------------------------------------------------

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

2004 actual

2005 actual

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

1101

Fund balances with Treasury

770

865

Investments in US securities:
1106

Receivables, net

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

1401

Direct loans receivable, gross

2,483

2,273

[[Page 171]]

1402

Interest receivable

109

1405

Allowance for subsidy cost (-)

-1,422

-1,028

1499

Net present value of assets related to direct loans

1,170

1,323

1999

Total assets

1,990

2,231

LIABILITIES:
Federal liabilities:

2101

Accounts payable

413

2102

Interest payable

2103

Debt

2104

Resources payable to Treasury

1,802

1,733

2999

Total liabilities

1,990

2,231

4999

Total liabilities and net position

1,990

2,231

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

Debt Reduction--Financing Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.02 Interest to Treasury.............. 13 17 18
08.02 Payment of downward reestimate to
receipt account................. 107 16
08.03 Payments to financing and
liquidatiing accounts for debt
reduction....................... 355 189
08.04 Payment of interest on downward
reestimate to receipt account... 14 1
--------- --------- ----------
08.91 Direct Program by Activities--
Subtotal (1 level)............ 476 206
--------- --------- ----------
10.00 Total new obligations........... 489 223 18
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 21 55
22.00 New financing authority (gross)... 537 168 18
22.60 Portion applied to repay debt..... -14
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 544 223 18
23.95 Total new obligations............. -489 -223 -18
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 55
----------------------------------------------------------------------------

New financing authority (gross), detail:
Mandatory:

67.10 Authority to borrow............. 165 200 18
Spending authority from offsetting
collections:

Mandatory:
69.00 Offsetting collections (cash). 372 128 16
69.47 Portion applied to repay debt. -160 -16
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)......... 372 -32
--------- --------- ----------
70.00 Total new financing authority
(gross)....................... 537 168 18
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 489 223 18
73.20 Total financing disbursements
(gross)......................... -489 -223 -18
87.00 Total financing disbursements
(gross)......................... 489 223 18
----------------------------------------------------------------------------

Offsets:
Against gross financing authority and
financing disbursements:

Offsetting collections (cash)
from:
88.00 Federal sources--Subsidy from
Debt account................ -350 -111
88.25 Interest on uninvested funds.. -6 -2 -2
88.40 Loan Repayments--Principal.... -11 -10 -10
88.40 Loan Repayments- Interest..... -5 -5 -4
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -372 -128 -16
----------------------------------------------------------------------------

Net financing authority and financing
disbursements:
89.00 Financing authority............... 165 40 2
90.00 Financing disbursements........... 117 95 2
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4143-0-3-351 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 525 521 700
1233 Disbursements: Purchase of loans
assets from a liquidating
account......................... 10 189
1251 Repayments: Repayments and
prepayments..................... -11 -10 -10
1261 Adjustments: Capitalized interest. 1
1263 Write-offs for default: Direct
loans........................... -4
--------- --------- ----------
1290 Outstanding, end of year........ 521 700 690
---------------------------------------------------------------------------

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

2004 actual

2005 actual

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

1101

Fund balances with Treasury

Investments in US securities:
1106

Receivables, net

134

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

1401

Direct loans receivable, gross

525

521

1402

Interest receivable

1405

Allowance for subsidy cost (-)

-399

-363

1499

Net present value of assets related to direct loans

144

180

1999

Total assets

190

348

LIABILITIES:
Federal liabilities:

2101

Accounts payable

2102

Interest payable

2104

Resources payable to Treasury

246

2105

Other

2999

Total liabilities

190

348

4999

Total liabilities and net position

190

348

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

Expenses, Public Law 480, Foreign Assistance Programs, Agriculture
Liquidating Account

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program activity........... 23
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 23
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 60 43
22.00 New budget authority (gross)...... 65
22.40 Capital transfer to general fund.. -59 -43
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 66
23.95 Total new obligations............. -23
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 43
----------------------------------------------------------------------------

New budget authority (gross), detail:
Spending authority from offsetting
collections:

Mandatory:
69.00 Offsetting collections (cash)
(Principal and interest).... 462 432 396
69.00 Offsetting collections (Debt
Reduction).................. 3 189
69.00 Offsetting collections (cash). 28
69.27 Capital transfer to general
fund........................ -428 -621 -396
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)......... 65
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 23
73.20 Total outlays (gross)............. -23
--------- --------- ----------

[[Page 172]]

74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 23
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources--debt
reduction................... -3 -189
88.40 Principal Collections......... -321 -296 -280
88.40 Interest Collections.......... -141 -136 -116
88.40 Interest Collections.......... -28
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -493 -621 -396
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -428 -621 -396
90.00 Outlays........................... -471 -621 -396
---------------------------------------------------------------------------

Status of Direct Loans (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2274-0-1-151 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Cumulative balance of direct loans
outstanding:
1210 Outstanding, start of year........ 6,244 5,909 5,424
1251 Repayments: Repayments and
prepayments..................... -321 -296 -136
1261 Adjustments: Capitalized interest. 7
1263 Write-offs for default: Direct
loans........................... -21 -189
--------- --------- ----------
1290 Outstanding, end of year........ 5,909 5,424 5,288
---------------------------------------------------------------------------

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. No FY 2007 funding is requested for new direct
credit under Title I; however, funding for administrative expenses
associated with managing the existing loan portfolio is requested. No
funding is requested for Title I ocean freight differential for FY 2007.

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

2004 actual

2005 actual

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

Federal assets: Fund balances with Treasury

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

1601

Direct loans, gross

6,244

5,909

1602

Interest receivable

661

715

1603

Allowance for estimated uncollectible loans and interest (-)

-2,890

-2,588

1699

Value of assets related to direct loans

4,015

4,036

1999

Total assets

4,075

4,079

LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

3,444

3,387

2207

Non-Federal liabilities: Other

631

692

2999

Total liabilities

4,075

4,079

4999

Total liabilities and net position

4,075

4,079

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

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, [$140,761,000] $160,429,000.
(Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2006.)

[[Page 173]]

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Nutrition programs
administration................ 139 140 160
00.03 Congressional hunger center
fellowships................... 2 2
09.01 Reimbursable administrative
services provided to Federal
agencies........................ 1 1 1
--------- --------- ----------
10.00 Total new obligations........... 142 143 161
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 142 143 161
23.95 Total new obligations............. -142 -143 -161
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 142 143 160
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -1
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 141 142 160
Discretionary:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 1 1 1
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 142 143 161
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 28 29 23
73.10 Total new obligations............. 142 143 161
73.20 Total outlays (gross)............. -141 -149 -158
--------- --------- ----------
74.40 Obligated balance, end of year.. 29 23 26
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 120 120 135
86.93 Outlays from discretionary
balances........................ 21 29 23
--------- --------- ----------
87.00 Total outlays (gross)........... 141 149 158
----------------------------------------------------------------------------

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.................. 141 142 160
90.00 Outlays........................... 140 148 157
---------------------------------------------------------------------------

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)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 91 92 97
11.3 Other than full-time permanent 1 1 1
11.5 Other personnel compensation.. 1 1 1
--------- --------- ----------
11.9 Total personnel compensation 93 94 99
12.1 Civilian personnel benefits..... 21 22 23
21.0 Travel and transportation of
persons....................... 2 2 2
23.3 Communications, utilities, and
miscellaneous charges......... 2 2 2
25.2 Other services.................. 19 19 33
26.0 Supplies and materials.......... 2 1 1
41.0 Grants, subsidies, and
contributions................. 2 2
--------- --------- ----------
99.0 Direct obligations............ 141 142 160
99.0 Reimbursable obligations.......... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 142 143 161
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3508-0-1-605 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
1001 Civilian full-time equivalent
employment...................... 1,230 1,198 1,242
---------------------------------------------------------------------------

Food Stamp Program

For necessary expenses to carry out the Food Stamp Act (7 U.S.C.
2011 et seq.), [$40,711,395,000] $37,935,231,000, of which
$3,000,000,000 to remain available through September 30, [2007] 2008,
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 less
than $3,000,000 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: Provided
further, That immediately upon termination of the Commodity Supplemental
Food Program (CSFP), notwithstanding section 5 of the Food Stamp Act,
CSFP participants who are 60 years of age or older and not already
receiving food stamp benefits, shall be eligible to receive food stamp
benefits equaling $20 per month either for six months or until they are
determined eligible under section 5 of the Act and begin to participate
in the Food Stamp Program, whichever occurs first.
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, 2006.)

[(rescission)]

[Of unobligated balances available under this heading of funds
provided pursuant to section 16(h)(1)(A) of the Food Stamp Act of 1977,
$11,200,000 are rescinded.] (Emergency Supplemental Appropriations Act
to Address Hurricanes in the Gulf of Mexico and Pandemic Influenza,
2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
Direct program:

00.01 Benefits issued................. 28,510 30,293 30,108
00.02 State administration............ 2,388 2,510 2,608
00.03 Employment and training program. 307 331 341
00.04 Other program costs............. 53 59 63
00.05 Puerto Rico..................... 1,495 1,518 1,559
00.06 Food distribution program on
Indian reservations
(Commodities in lieu of food
stamps)....................... 54 55 51
00.07 Food distribution program on
Indian reservations
(Cooperator administrative
expense)...................... 24 25 27
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............... 8 8 8
00.13 Program access.................. 5 5 5
00.14 Disregard special military pays
for deployed.................. 1 1 1
00.15 CSFP transitional benefit....... 18

[[Page 174]]

09.01 Reimbursable program.............. 25 35 35
--------- --------- ----------
10.00 Total new obligations........... 33,021 34,991 34,975
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 41 2,042 3,038
22.00 New budget authority (gross)...... 35,060 40,746 37,970
22.10 Resources available from
recoveries of prior year
obligations..................... 9
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 35,110 42,788 41,008
23.95 Total new obligations............. -33,021 -34,991 -34,975
23.98 Unobligated balance expiring or
withdrawn....................... -47 -4,748 -3,000
23.98 Unobligated balance rescinded
pursuant to P.L. 109-148........ -11
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 2,042 3,038 3,033
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 17 17 39
Mandatory:

60.00 Appropriation................... 35,138 40,694 37,896
61.00 Transferred to other accounts... -120
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 35,018 40,694 37,896
Mandatory:

69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 25 35 35
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 35,060 40,746 37,970
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,254 1,629 1,362
73.10 Total new obligations............. 33,021 34,991 34,975
73.20 Total outlays (gross)............. -32,654 -35,258 -34,986
73.40 Adjustments in expired accounts
(net)........................... 17
73.45 Recoveries of prior year
obligations..................... -9
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,629 1,362 1,351
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 7 8 29
86.93 Outlays from discretionary
balances........................ 9 10 9
86.97 Outlays from new mandatory
authority....................... 31,392 33,621 33,559
86.98 Outlays from mandatory balances... 1,246 1,619 1,389
--------- --------- ----------
87.00 Total outlays (gross)........... 32,654 35,258 34,986
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -10
88.40 Non-Federal sources........... -30 -35 -35
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -40 -35 -35
Against gross budget authority only:

88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 15
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 35,035 40,711 37,935
90.00 Outlays........................... 32,613 35,223 34,951
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2005 actual 2006 est. 2007 est.
Enacted/requested:
Budget Authority............ 35,035 40,711 37,935
Outlays..................... 32,614 35,223 34,951
Legislative proposal, subject to
PAYGO:
Budget Authority............ -23
Outlays..................... -23
------------------------------------
Total:
Budget Authority............ 35,035 40,711 37,912
Outlays..................... 32,614 35,223 34,928
====================================

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.

The Budget also provides temporary transitional benefits to help
elderly households transition from the Commodity Supplemental Food
Program to the Food Stamp Program.

Object Classification (in millions of dollars)

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.................. 43 45 46
26.0 Supplies and materials.......... 186 185 181
41.0 Grants, subsidies, and
contributions................. 32,753 34,712 34,699
--------- --------- ----------
99.0 Direct obligations............ 32,996 34,956 34,940
99.0 Reimbursable obligations.......... 25 35 35
--------- --------- ----------
99.9 Total new obligations........... 33,021 34,991 34,975
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-3505-0-1-605 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
1001 Civilian full-time equivalent
employment...................... 65 68 68
---------------------------------------------------------------------------

Food Stamp Program

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3505-4-1-605 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
Direct program:

00.01 Benefits issued................. -23
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... -23
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... -23
23.95 Total new obligations............. 23
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... -23
----------------------------------------------------------------------------

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

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... -23
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. -23

[[Page 175]]

90.00 Outlays........................... -23
---------------------------------------------------------------------------

This schedule shows the net effects of three legislative proposals.
The Budget proposes to exclude all retirement accounts when determining
if a household is eligible for food stamp benefits. It also proposes to
limit Food Stamp categorical eligibility status to households which
receive Supplemental Security Income or Temporary Assistance for Needy
Families cash assistance. Finally, the Budget proposes to allow States
to use the National Directory of New Hires to verify Food Stamp
participants' employment and wage information.

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;
[$12,660,829,000] $13,645,487,000, to remain available through September
30, [2007] 2008, of which [$7,473,208,000] $8,063,200,000 is hereby
appropriated and [$5,187,621,000] $5,582,287,000 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] That of
the funds made available under this heading, $300,000,000 shall be
placed in reserve and used only in such amounts and at such times as may
become necessary to carry out program operations: Provided further, That
up to [$5,235,000] $5,335,000 shall be available for independent
verification of school food service claims. (Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Above 185 of poverty.............. 440 460 483
00.02 130-185 of poverty................ 896 935 983
00.03 Below 130 of poverty.............. 5,591 6,062 6,366
--------- --------- ----------
00.91 Subtotal, school lunch program.. 6,927 7,457 7,832
01.01 Above 185 of poverty.............. 68 72 77
01.02 130-185 of poverty................ 169 178 193
01.03 Below 130 of poverty.............. 1,740 1,833 1,981
--------- --------- ----------
01.91 Subtotal, school breakfast
program....................... 1,977 2,083 2,251
02.01 Above 185 of poverty.............. 199 192 202
02.02 130-185 of poverty................ 122 120 126
02.03 Below 130 of poverty.............. 1,838 1,823 1,921
02.04 Audits............................ 19 22 23
--------- --------- ----------
02.91 Subtotal, child and adult care
feeding program............... 2,178 2,157 2,272
03.01 Summer food service program....... 279 290 306
03.02 Special milk program.............. 17 15 14
03.03 State administrative expenses..... 146 156 166
03.04 Commodity procurement............. 532 513 550
--------- --------- ----------
03.91 Subtotal, Other mandatory
activities.................... 974 974 1,036
04.01 Team Nutrition.................... 10 10 10
04.02 Coordinated review and CN pay
costs........................... 6 6 6
04.03 Computer support and processing... 9 9 9
04.05 Food safety education............. 1 1 1
--------- --------- ----------
04.91 Subtotal, discretionary
activities.................... 26 26 26
05.01 Food service management institute
and information clearinghouse
and Reauthorization Activities.. 21 44 20
06.01 Change in accounting estimate..... 212
--------- --------- ----------
10.00 Total new obligations........... 12,315 12,741 13,437
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 128 52 83
22.00 New budget authority (gross)...... 11,935 12,706 13,666
22.10 Resources available from
recoveries of prior year
obligations..................... 104 66
22.35 Change in accounting estimate..... 212
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 12,379 12,824 13,749
23.95 Total new obligations............. -12,315 -12,741 -13,437
23.98 Unobligated balance expiring or
withdrawn....................... -13
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 52 83 312
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 7 7 7
Mandatory:

60.00 Appropriation................... 6,622 7,467 8,056
60.00 Appropriation- Permanent
Appropriation................. 21 44 21
62.00 Transferred from other accounts. 5,273 5,188 5,582
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 11,916 12,699 13,659
Mandatory:

69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 12
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 11,935 12,706 13,666
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 1,450 1,739 1,523
73.10 Total new obligations............. 12,315 12,741 13,437
73.20 Total outlays (gross)............. -11,925 -12,891 -13,336
73.40 Adjustments in expired accounts
(net)........................... 3
73.45 Recoveries of prior year
obligations..................... -104 -66
--------- --------- ----------
74.40 Obligated balance, end of year.. 1,739 1,523 1,624
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 5 4 4
86.93 Outlays from discretionary
balances........................ 3 3
86.97 Outlays from new mandatory
authority....................... 11,895 10,957 11,552
86.98 Outlays from mandatory balances... 25 1,927 1,777
--------- --------- ----------
87.00 Total outlays (gross)........... 11,925 12,891 13,336
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -10
88.40 Non-Federal sources........... -16
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -26
Against gross budget authority only:

88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 14
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 11,923 12,706 13,666
90.00 Outlays........................... 11,899 12,891 13,336
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2005 actual 2006 est. 2007 est.
Enacted/requested:
Budget Authority............ 11,923 12,706 13,666
Outlays..................... 11,899 12,891 13,336
Legislative proposal, subject to
PAYGO:
Budget Authority............ -6
Outlays..................... -6
------------------------------------
Total:
Budget Authority............ 11,923 12,706 13,660
Outlays..................... 11,899 12,891 13,330
====================================

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. Child Nutrition Program costs are
not fully predictable. In the event that actual program needs exceed
budget estimates, the budget provides a $300 million contingency
reserve.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3539-0-1-605 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 9 9 9
12.1 Civilian personnel benefits....... 3 3 3
21.0 Travel and transportation of
persons......................... 1 1 1
24.0 Printing and reproduction......... 3 3 3
25.2 Other services.................... 13 13 13
26.0 Supplies and materials
(Commodities)................... 747 733 733

[[Page 176]]

41.0 Grants, subsidies, and
contributions................... 11,327 11,979 12,675
92.0 Undistributed..................... 212
--------- --------- ----------
99.9 Total new obligations........... 12,315 12,741 13,437
---------------------------------------------------------------------------

Personnel Summary

Child Nutrition Programs

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3539-4-1-605 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.03 School Lunch...................... -4
01.03 School Breakfast.................. -2
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... -6
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... -6
----------------------------------------------------------------------------

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

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... -6
----------------------------------------------------------------------------

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

This schedule shows the interactive effects of a legislative
proposal to limit Food Stamp Program categorical eligibility to
households which receive Supplemental Security Income or Temporary
Assistance for Needy Families cash assistance.

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), [$5,257,000,000] $5,200,000,000, to remain
available through September 30, [2007] 2008, of which such sums as 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)(10)(B)(i) [and section
17(h)(10)(B)(ii)] shall be effective in [2006] 2007; including
$14,000,000 for the purposes specified in section 17(h)(10)(B)(i) [and
$20,000,000 for the purposes specified in section 17(h)(10)(B)(ii):
Provided further, That funds made available for the purposes specified
in section 17(h)(10)(B)(ii) shall only be made available upon a
determination by the Secretary that funds are available to meet caseload
requirements without the use of the contingency reserve funds: Provided
further, That none of the funds made available under this heading shall
be used for studies and evaluations]: Provided further, That none of the
funds in this Act shall be available to pay administrative expenses of
WIC clinics except those that have an announced policy of prohibiting
smoking within the space used to carry out the program: Provided
further, That none of the funds provided in this account shall be
available for the purchase of infant formula except in accordance with
the cost containment and competitive bidding requirements specified in
section 17 of such Act: Provided further, That 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
individual State agency allocations to be made in accordance with a
methodology developed by the Secretary: 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 limits: 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, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Base grants....................... 5,158 5,399 5,361
00.02 Contingency Fund.................. 43
00.03 Change in accounting estimate..... 142
--------- --------- ----------
10.00 Total new obligations........... 5,343 5,399 5,361
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 5 159 128
22.00 New budget authority (gross)...... 5,239 5,173 5,200
22.10 Resources available from
recoveries of prior year
obligations..................... 118 195 160
22.35 Change in accounting estimate..... 142
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 5,504 5,527 5,488
23.95 Total new obligations............. -5,343 -5,399 -5,361
23.98 Unobligated balance expiring or
withdrawn....................... -2
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 159 128 127
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 5,277 5,257 5,200
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -52
40.35 Appropriation permanently
reduced....................... -42
40.36 Unobligated balance permanently
reduced....................... -32
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 5,235 5,173 5,200
Discretionary:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 4
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 5,239 5,173 5,200
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 291 519 525
73.10 Total new obligations............. 5,343 5,399 5,361
73.20 Total outlays (gross)............. -4,992 -5,198 -5,200
73.40 Adjustments in expired accounts
(net)........................... -6
73.45 Recoveries of prior year
obligations..................... -118 -195 -160
74.10 Change in uncollected customer
payments from Federal sources
(expired)....................... 1
--------- --------- ----------
74.40 Obligated balance, end of year.. 519 525 526
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 4,655 4,789 4,784
86.93 Outlays from discretionary
balances........................ 337 409 416
--------- --------- ----------

[[Page 177]]

87.00 Total outlays (gross)........... 4,992 5,198 5,200
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources--recoveries... -2
88.40 Non-Federal sources........... -5
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -7
Against gross budget authority only:

88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 3
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 5,235 5,173 5,200
90.00 Outlays........................... 4,985 5,198 5,200
---------------------------------------------------------------------------

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 caps funding for nutrition services
and administration funding at 25 percent of total program funding.

Object Classification (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3510-0-1-605 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
41.0 Grants, subsidies, and
contributions................... 5,201 5,399 5,361
92.0 Undistributed..................... 142
--------- --------- ----------
99.9 Total new obligations........... 5,343 5,399 5,361
---------------------------------------------------------------------------

Commodity Assistance Program

For necessary expenses to carry out disaster assistance [and the
commodity supplemental food program], as authorized by section 4(a) of
the Agriculture and Consumer Protection Act of 1973 (7 U.S.C. 612c
note); the Emergency Food Assistance Act of 1983; special assistance
[(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, [$179,366,000] $70,370,000, to remain
available through September 30, [2007] 2008: 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 [2006] 2007 to support the Seniors
Farmers' Market Nutrition Program (SFMNP), as authorized by section 4402
of Public Law 107-171, such funds shall remain available through
September 30, [2007] 2008: Provided further, That no funds available for
SFMNP in fiscal year 2007 shall be used to pay State or local sales
taxes on food purchased with SFMNP coupons or checks: Provided further,
That the value of assistance provided by the SFMNP shall not be
considered income or resources for any purposes under any Federal, State
or local laws related to taxation, welfare and public assistance
programs: Provided further, That 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. (Agriculture, Rural Development, Food and
Drug Administration, and Related Agencies Appropriations Act, 2006.)
[For an additional amount for ``Commodity Assistance Program'' for
necessary expenses related to the consequences of Hurricane Katrina,
$10,000,000, to remain available until expended, of which $6,000,000
shall be for The Emergency Food Assistance Program and $4,000,000 shall
be for the Commodity Supplemental Food Program: Provided, That
notwithstanding any other provisions of the Emergency Food Assistance
Act of 1983 (the ``Act''), the Secretary may allocate additional foods
and funds for administrative expenses from resources specifically
appropriated, transferred, or reprogrammed to restore to states
resources used to assist families and individuals displaced by the
hurricanes of calendar year 2005 among the states without regard to
sections 204 and 214 of the Act: Provided further, That such programs
may operate in any area where emergency feeding organizations develop a
program to provide temporary emergency nonprofit food service to
families and individuals displaced by the hurricanes of calendar year
2005: Provided further, That the amounts provided under this heading are
designated as an emergency requirement pursuant to section 402 of H.
Con. Res. 95 (109th Congress), the concurrent resolution on the budget
for fiscal year 2006.] (Emergency Supplemental Appropriations Act to
Address Hurricanes in the Gulf of Mexico and Pandemic Influenza, 2006.)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3507-0-1-605 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Commodity procurement............. 84 83
00.02 Administrative costs.............. 29 28
--------- --------- ----------
00.91 Subtotal, commodity supplemental
food program.................. 113 111
02.01 Administrative costs.............. 50 56 50
03.01 Senior farmers' market............ 15 15 15
04.01 Farmers' Market Nutrition Program. 20 20 20
05.01 Pacific Island and Disaster
Assistance...................... 1 1
09.01 Reimbursable program (NSIP)....... 2 3 3
--------- --------- ----------
10.00 Total new obligations........... 198 206 89
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 3 1
22.00 New budget authority (gross)...... 198 205 89
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 202 206 89
23.95 Total new obligations............. -198 -206 -89
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 179 189 71
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -2
40.35 Appropriation permanently
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 178 187 71
Mandatory:

62.00 Transferred from other accounts. 15 15 15
Discretionary:

68.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 5 3 3
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 198 205 89
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 32 33 39
73.10 Total new obligations............. 198 206 89
73.20 Total outlays (gross)............. -196 -200 -98
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 33 39 30
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 158 158 51
86.93 Outlays from discretionary
balances........................ 23 27 32
86.97 Outlays from new mandatory
authority....................... 8 8 8
86.98 Outlays from mandatory balances... 7 7 7
--------- --------- ----------
87.00 Total outlays (gross)........... 196 200 98
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

88.00 Offsetting collections (cash)
from: Federal sources......... -6 -3 -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.................. 193 202 86
90.00 Outlays........................... 192 197 95
---------------------------------------------------------------------------

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.

[[Page 178]]

The Budget eliminates funding for CSFP which is duplicative of the
Food Stamp and WIC programs. Resources are provided, within the Food
Stamp and WIC accounts, to help transition CSFP participants to those
programs.

The account also funds two farmers' market programs which provide
low-income participants vouchers for produce at farmers' markets. The
Senior Farmers' Market Nutrition Program (SFMNP) is funded by transfer
from the Commodity Credit Corporation. The WIC Farmers' Market Program
is funded by discretionary appropriation.

The Budget proposes to prohibit farmers from charging sales tax on
food purchased with SFMNP benefits and to ensure that SFMNP benefits are
not considered as income for tax purposes or for determining eligibility
for any public assistance benefit. These proposals are consistent with
the treatment of benefits in other Federal nutrition programs.

Object Classification (in millions of dollars)

Direct obligations:

26.0 Supplies and materials
(commodities)................. 84 83
41.0 Grants, subsidies, and
contributions................. 111 120 86
--------- --------- ----------
99.0 Direct obligations............ 195 203 86
99.0 Reimbursable obligations.......... 3 3 3
--------- --------- ----------
99.9 Total new obligations........... 198 206 89
---------------------------------------------------------------------------

Food Donations Programs

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-3503-0-1-605 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

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

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

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

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. These reimbursements are reflected in the
Commodity Assistance Programs account.

FOREST SERVICE

Federal Funds

General and special funds:

National Forest System

(including transfers of funds)

For necessary expenses of the Forest Service, not otherwise provided
for, for management, protection, improvement, and utilization of the
National Forest System, [$1,424,348,000] $1,398,066,000, 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 2006
shall be displayed by budget line item in the fiscal year 2007 budget
justification: 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 2006, 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].
(Department of the Interior, Environment, and Related Agencies
Appropriations Act, 2006.)
[For an additional amount for ``National Forest System'',
$20,000,000, to remain available until expended, for necessary expenses,
including hazardous fuels reduction, related to the consequences of
hurricanes in the Gulf of Mexico in calendar year 2005: Provided, That
the amount provided under this heading is designated as an emergency
requirement pursuant to section 402 of H. Con. Res. 95 (109th Congress),
the concurrent resolution on the budget for fiscal year 2006.]
(Emergency Supplemental Appropriations Act to Address Hurricanes in The
Gulf of Mexico and Pandemic Influenza, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 National forest system............ 1,448 1,517 1,400
09.01 Reimbursable program.............. 68 86 86
--------- --------- ----------
10.00 Total new obligations........... 1,516 1,603 1,486
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 98 88
22.00 New budget authority (gross)...... 1,528 1,515 1,486
22.10 Resources available from
recoveries of prior year
obligations..................... 58
22.21 Unobligated balance transferred to
other accounts.................. -80
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,604 1,603 1,486
23.95 Total new obligations............. -1,516 -1,603 -1,486
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 88
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 1,412 1,444 1,398
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -14
40.35 Appropriation permanently
reduced....................... -19 -7
42.00 Transferred from other accounts. 13 6 2
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 1,406 1,429 1,400
Mandatory:

60.20 Appropriation (special fund).... 80
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 86 86 86
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -44
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 42 86 86
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 1,528 1,515 1,486
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 175 192 330
73.10 Total new obligations............. 1,516 1,603 1,486
73.20 Total outlays (gross)............. -1,485 -1,465 -1,490
73.45 Recoveries of prior year
obligations..................... -58

[[Page 179]]

74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 44
--------- --------- ----------
74.40 Obligated balance, end of year.. 192 330 326
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,271 1,288 1,263
86.93 Outlays from discretionary
balances........................ 214 177 227
--------- --------- ----------
87.00 Total outlays (gross)........... 1,485 1,465 1,490
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -59 -59 -59
88.40 Non-Federal sources........... -28 -27 -27
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -87 -86 -86
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 44
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 1,486 1,429 1,400
90.00 Outlays........................... 1,398 1,379 1,404
---------------------------------------------------------------------------

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; and law enforcement operations. These programs
maintain the capability to manage natural resources in a manner
consistent with ecological principles and responsibilities.

The Budget provides full funding for the Forest Service component of
the Northwest Forest Plan to ensure scientifically sound, ecologically
credible, and legally responsible strategies and implementation that
produces a predictable and sustainable level of timber sales and non-
timber resources. The Budget also reflects greater use of streamlined
forest planning and authorities included in the President's Healthy
Forests Initiative and the Healthy Forests Restoration Act, particularly
stewardship contracting. Continued priority monitoring related
vegetative treatments as provided for in the Budget will protect the
long-term health of forests, wildlife, and waterways in the Pacific
Northwest.

The Budget reflects a continuing emphasis on Forest Service
performance and accountability by including two new performance measures
for the National Forest System, including the use of volume sold as an
annual output measure for Forest Products and an annual efficiency
measure consisting of the ratio of total receipts for each activity that
generates receipts to the obligations for each such respective activity
necessary to generate those receipts. These reforms will foster a
greater focus on results; lead to improved decisions based on
performance; and enhance accountability through the use of more readily
available and better quality performance information.

In addition to improving the effectiveness of the Forest Service,
the Budget emphasizes efficient management. The Budget continues 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
Forests Initiative by reducing indirect costs to $461 million, improving
procurement practices, and expanding use of competitive sourcing.
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)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 685 700 756
11.3 Other than full-time permanent 44 45 49
11.5 Other personnel compensation.. 42 42 46
--------- --------- ----------
11.9 Total personnel compensation 771 787 851
12.1 Civilian personnel benefits..... 220 225 219
13.0 Benefits for former personnel... 10 10 10
21.0 Travel and transportation of
persons....................... 54 55 54
22.0 Transportation of things........ 11 11 11
23.1 Rental payments to GSA.......... 20 20 20
23.2 Rental payments to others....... 23 23 22
23.3 Communications, utilities, and
miscellaneous charges......... 35 36 35
24.0 Printing and reproduction....... 6 6 6
25.1 Advisory and assistance services 2 2 2
25.2 Other services.................. 148 176 84
25.3 Other purchases of goods and
services from Government
accounts...................... 61 67 33
25.7 Operation and maintenance of
equipment..................... 4 4 4
26.0 Supplies and materials.......... 14 15 7
31.0 Equipment....................... 46 50 25
32.0 Land and structures............. 1 1
41.0 Grants, subsidies, and
contributions................. 20 25 12
42.0 Insurance claims and indemnities 3 3 3
43.0 Interest and dividends.......... 1 1
--------- --------- ----------
99.0 Direct obligations............ 1,448 1,517 1,400
99.0 Reimbursable obligations.......... 68 86 86
--------- --------- ----------
99.9 Total new obligations........... 1,516 1,603 1,486
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1106-0-1-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 13,183 13,162 13,183
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 490 490 490
Allocation account:
3001 Civilian full-time equivalent
employment...................... 824 824 824
---------------------------------------------------------------------------

Capital Improvement and Maintenance

For necessary expenses of the Forest Service, not otherwise provided
for, [$441,178,000] $382,601,000, to remain available until expended for
construction, reconstruction, and maintenance; and decommissioning of
recreation developed sites, capital improvement and acquisition of
recreation developed sites, 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

[[Page 180]]

to decommission any system road until notice and an opportunity for
public comment has been provided on each decommissioning project:
Provided further, That of funds provided, $3,000,000 is provided for
needed rehabilitation and restoration work at Jarbidge Canyon, Nevada:
Provided further, That the Secretary of Agriculture may authorize the
transfer of up to $1,350,000 as necessary to the Department of the
Interior, Bureau of Land Management and Fish and Wildlife Service when
such transfers would facilitate and expedite needed rehabilitation work
on Bureau of Land Management lands, and for the Fish and Wildlife
Service to implement terms and conditions identified in the Biological
Opinion]. (Department of the Interior, Environment, and Related Agencies
Appropriations Act, 2006.)
[For an additional amount for ``Capital Improvement and
Maintenance'', $7,000,000, to remain available until expended, for
necessary expenses related to the consequences of hurricanes in the Gulf
of Mexico in calendar year 2005: Provided, That the amount provided
under this heading is designated as an emergency requirement pursuant to
section 402 of H. Con. Res. 95 (109th Congress), the concurrent
resolution on the budget for fiscal year 2006.] (Emergency Supplemental
Appropriations Act to Address Hurricanes in the Gulf of Mexico and
Pandemic Influenza, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Capital improvement and
maintenance..................... 602 541 400
09.01 Reimbursable program.............. 16 8 8
--------- --------- ----------
10.00 Total new obligations........... 618 549 408
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 108 99
22.00 New budget authority (gross)...... 596 450 408
22.10 Resources available from
recoveries of prior year
obligations..................... 13
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 717 549 408
23.95 Total new obligations............. -618 -549 -408
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 99
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 597 448 383
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -4
40.35 Appropriation permanently
reduced....................... -7 -2
41.00 Transferred to other accounts... -2
42.00 Transferred from other accounts. 10
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 598 442 383
Mandatory:

62.00 Transferred from other accounts. 17
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 8
68.00 Offsetting collections (cash). 8 8
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -10
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... -2 8 8
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 596 450 408
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 247 289 283
73.10 Total new obligations............. 618 549 408
73.20 Total outlays (gross)............. -573 -555 -419
73.45 Recoveries of prior year
obligations..................... -13
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 10
--------- --------- ----------
74.40 Obligated balance, end of year.. 289 283 272
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 378 337 293
86.93 Outlays from discretionary
balances........................ 195 218 113
86.97 Outlays from new mandatory
authority....................... 13
--------- --------- ----------
87.00 Total outlays (gross)........... 573 555 419
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -3 -3 -3
88.40 Non-Federal sources........... -6 -5 -5
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -9 -8 -8
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.............. 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 598 442 400
90.00 Outlays........................... 564 547 411
---------------------------------------------------------------------------

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
Serv

[[Page 181]]

ice improvements in addressing the deferred maintenance backlog based
upon agency implementation of PART recommendations.

The Budget reflects Forest Service utilization of new authorities
that permit the use of proceeds from the sales of excess facilities to
replace other deficient facilities or perform needed rehabilitation work
on existing facilities. The Forest Service will continue with a facility
assessment for the purpose of performing facility maintenance and
reducing the deferred maintenance backlog, and to use assessments that
include incentives to optimize utilization, reduce costs, and improve
facility conditions by reducing facility deferred maintenance at least
25% by 2010. The Budget reflects a base rate for buildings plus a
graduated rate that recognizes different facility types, which together
are limited to 4% of the facility replacement value and not to exceed $7
per square foot.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 168 147 134
11.3 Other than full-time permanent 15 13 12
11.5 Other personnel compensation.. 9 8 8
--------- --------- ----------
11.9 Total personnel compensation 192 168 154
12.1 Civilian personnel benefits..... 55 48 44
13.0 Benefits for former personnel... 4 4 4
21.0 Travel and transportation of
persons....................... 12 11 10
22.0 Transportation of things........ 3 3 2
23.1 Rental payments to GSA.......... 5 4 4
23.2 Rental payments to others....... 6 5 5
23.3 Communications, utilities, and
miscellaneous charges......... 8 7 6
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. 187 172 90
25.3 Other purchases of goods and
services from Government
accounts...................... 32 29 15
25.4 Operation and maintenance of
facilities.................... 3 3 2
25.7 Operation and maintenance of
equipment..................... 2 2 2
26.0 Supplies and materials.......... 29 28 15
31.0 Equipment....................... 9 9 5
32.0 Land and structures............. 48 42 38
41.0 Grants, subsidies, and
contributions................. 5 4 2
42.0 Insurance claims and indemnities 1 1 1
--------- --------- ----------
99.0 Direct obligations............ 602 541 400
99.0 Reimbursable obligations.......... 16 8 8
--------- --------- ----------
99.9 Total new obligations........... 618 549 408
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1103-0-1-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 3,589 3,069 2,733
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 81 81 81
Allocation account:
3001 Civilian full-time equivalent
employment...................... 41 41 41
---------------------------------------------------------------------------

Forest and Rangeland Research

For necessary expenses of forest and rangeland research as
authorized by law, [$283,094,000] $267,791,000, to remain available
until expended[: Provided, That of the funds provided, $60,267,000 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), [$64,000] $63,000, to
remain available until expended, to be derived from the fund established
pursuant to the above Act. (Department of the Interior, Environment, and
Related Agencies Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.06 Forest and rangeland research..... 305 344 288
09.01 Reimbursable program.............. 32 24 24
--------- --------- ----------
10.00 Total new obligations........... 337 368 312
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 29 42
22.00 New budget authority (gross)...... 339 326 312
22.10 Resources available from
recoveries of prior year
obligations..................... 11
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 379 368 312
23.95 Total new obligations............. -337 -368 -312
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 42
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 280 283 268
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -3
40.35 Appropriation permanently
reduced....................... -4 -1
42.00 Transferred from other accounts. 22 23 20
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 298 302 288
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 24 24 24
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 17
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 41 24 24
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 339 326 312
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 86 70 129
73.10 Total new obligations............. 337 368 312
73.20 Total outlays (gross)............. -325 -309 -317
73.45 Recoveries of prior year
obligations..................... -11
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -17
--------- --------- ----------
74.40 Obligated balance, end of year.. 70 129 124
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 258 228 219
86.93 Outlays from discretionary
balances........................ 67 81 98
--------- --------- ----------
87.00 Total outlays (gross)........... 325 309 317
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -21 -21 -21
88.40 Non-Federal sources........... -3 -3 -3
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -24 -24 -24
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -17
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 298 302 288
90.00 Outlays........................... 302 285 293
---------------------------------------------------------------------------

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 2007, the body of knowledge and technologies will be expanded to
improve forest and rangeland managers' abilities to reintroduce fire to
its natural role and keep losses from

[[Page 182]]

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 Forests Initiative. The Budget
continues efforts that 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 emphasizes
increasing the amount of research conducted on an extramural basis from
13 percent of the R&D budget currently to 20 percent over the next five
years.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 141 136 140
11.3 Other than full-time permanent 8 8 8
11.5 Other personnel compensation.. 4 4 4
11.8 Special personal services
payments.................... 1
--------- --------- ----------
11.9 Total personnel compensation 153 148 153
12.1 Civilian personnel benefits..... 41 40 41
13.0 Benefits for former personnel... 1 1 1
21.0 Travel and transportation of
persons....................... 12 12 10
22.0 Transportation of things........ 2 2 2
23.1 Rental payments to GSA.......... 4 4 4
23.2 Rental payments to others....... 3 3 3
23.3 Communications, utilities, and
miscellaneous charges......... 6 6 5
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. 16 18 11
25.3 Other purchases of goods and
services from Government
accounts...................... 11 15 9
25.4 Operation and maintenance of
facilities.................... 28 57 23
25.7 Operation and maintenance of
equipment..................... 1 1 1
26.0 Supplies and materials.......... 10 14 9
31.0 Equipment....................... 5 7 5
41.0 Grants, subsidies, and
contributions................. 11 15 10
--------- --------- ----------
99.0 Direct obligations............ 305 344 288
99.0 Reimbursable obligations.......... 32 24 24
--------- --------- ----------
99.9 Total new obligations........... 337 368 312
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1104-0-1-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 2,539 2,386 2,411
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 160 160 160
---------------------------------------------------------------------------

State and Private Forestry

For necessary expenses of cooperating with and providing technical
and financial assistance to States, territories, possessions, and
others, and for forest health management, including treatments of pests,
pathogens, and invasive or noxious plants and for restoring and
rehabilitating forests damaged by pests or invasive plants, cooperative
forestry, and education and land conservation activities and conducting
an international program as authorized, [$283,577,000] $244,410,000, to
remain available until expended, as authorized by law of which
[$57,380,000] $61,515,000 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 of the funds provided herein, $1,000,000
shall be provided to Custer County, Idaho, for economic development in
accordance with the Central Idaho Economic Development and Recreation
Act, subject to authorization: Provided further, That notwithstanding
any other provision of law, of the funds provided under this heading, an
advance lump sum payment of $1,000,000 shall be made available to
Madison County, North Carolina, for a forest recreation center, and a
similar $500,000 payment shall be made available to Folkmoot USA in
Haywood County, North Carolina, for Appalachian folk programs including
forest crafts]. (Department of the Interior, Environment, and Related
Agencies Appropriations Act, 2006.)
[For an additional amount for ``State and Private Forestry'',
$30,000,000, to remain available until expended, for necessary expenses
related to the consequences of hurricanes in the Gulf of Mexico in
calendar year 2005: Provided, That the amount provided under this
heading is designated as an emergency requirement pursuant to section
402 of H. Con. Res. 95 (109th Congress), the concurrent resolution on
the budget for fiscal year 2006.] (Emergency Supplemental Appropriations
Act to Address Hurricanes in the Gulf of Mexico and Pandemic Influenza,
2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 State and private forestry........ 469 450 292
09.01 Reimbursable program.............. 29 16 16
--------- --------- ----------
10.00 Total new obligations........... 498 466 308
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 80 57
22.00 New budget authority (gross)...... 438 409 308
22.10 Resources available from
recoveries of prior year
obligations..................... 32
22.22 Unobligated balance transferred
from other accounts............. 5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 555 466 308
23.95 Total new obligations............. -498 -466 -308
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 57
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 288 256 182
40.20 Appropriation (LWCF)............ 58 57 62
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -3
40.35 Appropriation permanently
reduced....................... -4 -1
42.00 Transferred from other accounts. 84 79 48
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 426 388 292
Mandatory:

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

Discretionary:
68.00 Offsetting collections (cash). 14 16 16
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -7
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 7 16 16
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 438 409 308
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 524 587 584
73.10 Total new obligations............. 498 466 308
73.20 Total outlays (gross)............. -410 -469 -435
73.45 Recoveries of prior year
obligations..................... -32
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 7
--------- --------- ----------

[[Page 183]]

74.40 Obligated balance, end of year.. 587 584 457
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 153 304 232
86.93 Outlays from discretionary
balances........................ 250 156 202
86.97 Outlays from new mandatory
authority....................... 4
86.98 Outlays from mandatory balances... 7 5 1
--------- --------- ----------
87.00 Total outlays (gross)........... 410 469 435
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

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

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 7
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. -1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 431 393 292
90.00 Outlays........................... 396 453 419
---------------------------------------------------------------------------

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)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 56 57 55
11.3 Other than full-time permanent 4 4 4
11.5 Other personnel compensation.. 2 2 2
--------- --------- ----------
11.9 Total personnel compensation 62 63 61
12.1 Civilian personnel benefits..... 16 16 15
21.0 Travel and transportation of
persons....................... 8 8 8
22.0 Transportation of things........ 1 1 1
23.1 Rental payments to GSA.......... 2 2 2
23.2 Rental payments to others....... 1 1 1
23.3 Communications, utilities, and
miscellaneous charges......... 2 2 2
24.0 Printing and reproduction....... 1 1 1
25.3 Other purchases of goods and
services from Government
accounts...................... 2 1 1
25.4 Operation and maintenance of
facilities.................... 3 2 1
26.0 Supplies and materials.......... 4 4 2
31.0 Equipment....................... 2 2 1
41.0 Grants, subsidies, and
contributions................. 365 347 196
--------- --------- ----------
99.0 Direct obligations............ 469 450 292
99.0 Reimbursable obligations.......... 29 16 16
--------- --------- ----------
99.9 Total new obligations........... 498 466 308
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1105-0-1-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 922 914 860
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 46 46 46
---------------------------------------------------------------------------

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), [$5,067,000]
$5,311,000, to remain available until expended. (Department of the
Interior, Environment, and Related Agencies Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Direct program activity........... 6 6 5
--------- --------- ----------
10.00 Total new obligations........... 6 6 5
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 1 1
22.00 New budget authority (gross)...... 6 5 5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 7 6 5
23.95 Total new obligations............. -6 -6 -5
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 1
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 6 5 5
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 2 2 3
73.10 Total new obligations............. 6 6 5
73.20 Total outlays (gross)............. -6 -5 -5
--------- --------- ----------
74.40 Obligated balance, end of year.. 2 3 3
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 6 5 5
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 6 5 5
90.00 Outlays........................... 5 5 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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 1 1 1
12.1 Civilian personnel benefits....... 1 1 1
25.2 Other services.................... 4 4 3
--------- --------- ----------
99.9 Total new obligations........... 6 6 5
---------------------------------------------------------------------------

[[Page 184]]

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1119-0-1-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 26 24 26
---------------------------------------------------------------------------

Wildland Fire Management

(including transfers of funds)

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, [$1,779,395,000] $1,768,195,000, 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 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 2005 shall be transferred to the fund established
pursuant to section 3 of Public Law 71-319 (16 U.S.C. 576 et seq.) if
necessary to reimburse the fund for unpaid past advances: 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, $286,000,000 is for hazardous fuels reduction
activities, $6,281,000 is for rehabilitation and restoration,
$23,219,000 is for research activities and to make competitive research
grants pursuant to the Forest and Rangeland Renewable Resources Research
Act, as amended (16 U.S.C. 1641 et seq.), $46,500,000 is for State fire
assistance, $7,889,000 is for volunteer fire assistance, $15,000,000 is
for forest health activities on Federal lands and $10,000,000 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 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 the
House and Senate Committees on Appropriations in compliance with
reprogramming procedures contained in the report accompanying this Act:
Provided further, That] funds provided under this heading for hazardous
fuels treatments may be transferred to and made a part of the ``National
Forest System'' account [at the sole discretion of the Chief of the
Forest Service] thirty days after notifying the House and the Senate
Committees on Appropriations: Provided further, That the costs of
implementing any cooperative agreement between the Federal Government
and any non-Federal entity may be shared, as mutually agreed on by the
affected parties: Provided further, That [in addition to funds provided
for State Fire Assistance programs, and subject to all authorities
available to the Forest Service under the State and Private Forestry
Appropriation, 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 $9,000,000, 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: Provided further, That funds designated for
wildfire suppression shall be assessed for indirect costs on the same
basis as such assessments are calculated against other agency programs]
Provided further, That the Secretary of Agriculture may use the amounts
appropriated under this heading for rehabilitation and restoration and
other activities authorized under this heading on lands administered by
the Forest Service or on adjacent non-Federal land for activities that
benefit resources on lands administered by the Forest Service.
(Department of the Interior, Environment, and Related Agencies
Appropriations Act, 2006.)

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Wildland fire management.......... 1,705 1,661 1,698
09.01 Reimbursable program.............. 152 108 108
--------- --------- ----------
10.00 Total new obligations........... 1,857 1,769 1,806
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 313 768 753
22.00 New budget authority (gross)...... 2,246 1,754 1,806
22.10 Resources available from
recoveries of prior year
obligations..................... 71
22.21 Unobligated balance transferred to
other accounts.................. -5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 2,625 2,522 2,559
23.95 Total new obligations............. -1,857 -1,769 -1,806
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 768 753 753
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.00 Appropriation................... 2,128 1,779 1,768
40.33 Appropriation permanently
reduced (P.L. 109-148)........ -17
40.35 Appropriation permanently
reduced....................... -30 -8
41.00 Transferred to other accounts... -107 -108 -70
42.00 Transferred from other accounts. 30
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 2,021 1,646 1,698
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 108 108 108
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 117
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 225 108 108
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 2,246 1,754 1,806
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 330 302 138
73.10 Total new obligations............. 1,857 1,769 1,806
73.20 Total outlays (gross)............. -1,697 -1,933 -1,801
73.45 Recoveries of prior year
obligations..................... -71
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -117
--------- --------- ----------
74.40 Obligated balance, end of year.. 302 138 143
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 1,431 1,578 1,625
86.93 Outlays from discretionary
balances........................ 266 355 176
--------- --------- ----------
87.00 Total outlays (gross)........... 1,697 1,933 1,801
----------------------------------------------------------------------------

[[Page 185]]

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -24 -23 -23
88.40 Non-Federal sources........... -85 -85 -85
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -109 -108 -108
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -117
88.96 Portion of offsetting
collections (cash) credited to
expired accounts.............. 1
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 2,021 1,646 1,698
90.00 Outlays........................... 1,588 1,825 1,693
---------------------------------------------------------------------------

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.

Within Preparedness, the Budget includes funding for 10,480
firefighters and also includes indirect costs. Readiness levels reflect
improvements in efficiencies, including those gained through a
centralized aviation services office similar to that of the Department
of the Interior (DOI). The Budget improves the transparency,
accountability, and alignment of Forest Service budget execution with
priorities. It also reflects deployment of a system that allocates fire
preparedness resources (e.g., firefighters and equipment) effectively
across geographic areas.

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 re-establishes a long standing
policy that provides for suppression funding in a manner that does not
include the compulsory assessment of indirect costs. This requirement,
enacted over the Administration's objections, would effectively result
in under-funding fire suppression and in turn increase the need to
borrow from other programs.

Specifically, the Administration continues its direction 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, particularly in the area of clear guidance to the field
regarding the use of appropriate suppression management strategies.

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.

Funding for hazardous fuels supports the President's Healthy Forests
Initiative (HFI) and reflects anticipated increases in fuels treatments
through increased efficiencies resulting from the use of the stewardship
contract authority and other productivity improvements associated with
the HFI. The Budget reflects as greater use of receipts from the sale of
treatment by-products to fund additional treatments, and implements PART
recommendations, improved performance measures, and, in conjunction with
the Department of the Interior (DOI), utilization of statistically
significant and scientifically valid monitoring of hazardous fuels
treatments. Performance will improve through improved performance
measures of risk reduction and strengthened project criteria to ensure
that hazardous fuels reduction funds are targeted as effectively as
possible to reduce risks to communities in the wildland-urban interface.

Funds are provided to enhance State and private programs that will
contribute to cooperative fire assistance, increased fire department
readiness, and forest health programs to reduce fire risk. Funds would
also be available to facilitate and expedite USDA and Department of the
Interior jointly funded wildland fire management programs and projects.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 413 426 451
11.3 Other than full-time permanent 58 70 63
11.5 Other personnel compensation.. 170 173 185
11.8 Special personal services
payments.................... 25 43 27
--------- --------- ----------
11.9 Total personnel compensation 666 712 726
12.1 Civilian personnel benefits..... 176 190 192
13.0 Benefits for former personnel... 19 19 19
21.0 Travel and transportation of
persons....................... 55 67 60
22.0 Transportation of things........ 6 6 7
23.1 Rental payments to GSA.......... 11 10 11
23.2 Rental payments to others....... 20 18 21
23.3 Communications, utilities, and
miscellaneous charges......... 23 21 25
24.0 Printing and reproduction....... 1 1 1
25.1 Advisory and assistance services 1 1 1
25.2 Other services.................. 430 370 386
25.3 Other purchases of goods and
services from Government
accounts...................... 70 72 72
25.4 Operation and maintenance of
facilities.................... 3 2 3
25.7 Operation and maintenance of
equipment..................... 3 3 3
26.0 Supplies and materials.......... 51 34 40
31.0 Equipment....................... 22 23 25
41.0 Grants, subsidies, and
contributions................. 142 106 100
42.0 Insurance claims and indemnities 6 6 6
--------- --------- ----------
99.0 Direct obligations............ 1,705 1,661 1,698
99.0 Reimbursable obligations.......... 152 108 108
--------- --------- ----------
99.9 Total new obligations........... 1,857 1,769 1,806
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-1115-0-1-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 11,102 11,412 11,567
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 33 33 33
---------------------------------------------------------------------------

[[Page 186]]

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, Environment, and Related
Agencies Appropriations Act, 2006.)

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5207-0-2-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............ 4 5 5
--------- --------- ----------
01.99 Balance, start of year............ 4 5 5
Receipts:
02.20 Receipts, Cooperative range
improvements.................... 3 3 3
--------- --------- ----------
04.00 Total: Balances and collections... 7 8 8
Appropriations:
05.00 Range betterment fund............. -2 -3 -4
--------- --------- ----------
07.99 Balance, end of year.............. 5 5 4
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Range betterment fund............. 2 4 4
--------- --------- ----------
10.00 Total new obligations........... 2 4 4
----------------------------------------------------------------------------

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

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (special fund).... 2 3 4
----------------------------------------------------------------------------

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

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 2 2 3
86.93 Outlays from discretionary
balances........................ 1 1
--------- --------- ----------
87.00 Total outlays (gross)........... 3 2 4
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 2 3 4
90.00 Outlays........................... 2 2 4
---------------------------------------------------------------------------

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 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
11.1 Personnel compensation: Full-time
permanent....................... 1 1 1
26.0 Supplies and materials............ 1 3 3
--------- --------- ----------
99.9 Total new obligations........... 2 4 4
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-5207-0-2-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 16 19 19
---------------------------------------------------------------------------

Stewardship Contracting Product Sales

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-5540-0-2-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.01 Stewardship Contracting........... 2 4
--------- --------- ----------
10.00 Total new obligations (object
class 25.2)................... 2 4
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 4
22.00 New budget authority (gross)...... 6 5
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 6 9
23.95 Total new obligations............. -2 -4
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 4 5
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.20 Appropriation (special fund).... 6 5
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. -3
73.10 Total new obligations............. 2 4
73.20 Total outlays (gross)............. -5 -5
--------- --------- ----------
74.40 Obligated balance, end of year.. -3 -4
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 5 4
86.98 Outlays from mandatory balances... 1
--------- --------- ----------
87.00 Total outlays (gross)........... 5 5
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 6 5
90.00 Outlays........................... 5 5
---------------------------------------------------------------------------

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, [$42,500,000] $25,075,000,
to be derived from the Land and Water Conservation Fund and to remain
available until expended[: Provided further, That, subject to valid
existing rights, all land and interests in land acquired in the Thunder
Mountain area of the Payette National Forest (including patented claims
and land that are encumbered by unpatented claims or previously
appropriated funds under this section, or otherwise relinquished by a
private party) are withdrawn from mineral entry or appropriation under
Federal mining laws, and from leasing claims under Federal mineral and
geothermal leasing laws].

acquisition of lands for national forests special acts

For acquisition of lands within the exterior boundaries of the
Cache, Uinta, and Wasatch National Forests, Utah; the Toiyabe National
Forest, Nevada; and the Angeles, San Bernardino, Sequoia, and Cleveland
National Forests, California, as authorized by law, [$1,069,000]
$1,053,000, 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

[[Page 187]]

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, Environment, and Related Agencies
Appropriations Act, 2006.)

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9923-0-2-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............ 4 11 11
--------- --------- ----------
01.99 Balance, start of year............ 4 11 11
Receipts:
02.20 Deposits, Acquisitions of lands
for national forests, special
acts............................ 1 1 1
02.21 Deposits, Acquisition of lands to
complete land exchanges......... 6 37 48
--------- --------- ----------
02.99 Total receipts and collections.. 7 38 49
--------- --------- ----------
04.00 Total: Balances and collections... 11 49 60
Appropriations:
05.00 Land acquisition.................. -1 -1
05.01 Land acquisition.................. -37 -48
--------- --------- ----------
05.99 Total appropriations............ -38 -49
--------- --------- ----------
07.99 Balance, end of year.............. 11 11 11
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Land acquisition.................. 76 126 26
00.02 Conveyance Authority.............. 22 38
09.01 Reimbursable program.............. 20
--------- --------- ----------
10.00 Total new obligations........... 96 148 64
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 93 82 15
22.00 New budget authority (gross)...... 85 81 74
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 178 163 89
23.95 Total new obligations............. -96 -148 -64
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 82 15 25
----------------------------------------------------------------------------

New budget authority (gross), detail:
Discretionary:

40.20 Appropriation (LWCF)............ 64 43 25
40.20 Appropriation (special act)..... 1 1
40.37 Appropriation temporarily
reduced....................... -1
--------- --------- ----------
43.00 Appropriation (total
discretionary).............. 63 44 26
Mandatory:

60.20 Appropriation (Site Conveyances) 37 48
Spending authority from offsetting
collections:

Discretionary:
68.00 Offsetting collections (cash). 22
68.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... 22 -22
--------- --------- ----------
68.90 Spending authority from
offsetting collections
(total discretionary)..... 22
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 85 81 74
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 19 -7 87
73.10 Total new obligations............. 96 148 64
73.20 Total outlays (gross)............. -100 -76 -77
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... -22 22
--------- --------- ----------
74.40 Obligated balance, end of year.. -7 87 74
----------------------------------------------------------------------------

Outlays (gross), detail:
86.90 Outlays from new discretionary
authority....................... 62 29 17
86.93 Outlays from discretionary
balances........................ 38 23 15
86.97 Outlays from new mandatory
authority....................... 24 32
86.98 Outlays from mandatory balances... 13
--------- --------- ----------
87.00 Total outlays (gross)........... 100 76 77
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

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

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... -22 22
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 63 81 74
90.00 Outlays........................... 100 54 77
---------------------------------------------------------------------------

This appropriation consolidates land acquisition authorities for
acquisition of lands, waters, or interest therein, as authorized by law.

Land and Water Conservation Fund.--Recreation lands and interests
are acquired within areas of the National Forest System, wilderness,
wildlife and fisheries habitat management areas, and endangered species
and other areas for public outdoor recreation purposes.

Acquisition of Lands of National Forests, Special Acts.--To acquire
lands within critical watersheds to provide soil stabilization and
restoration of vegetation. Public Laws 76-589, 76-591 and 78-310 (54
Stat. 297, 298, 299, and 402; and 58 Stat. 227-228) authorize
appropriations for the purchase of lands to minimize erosion and flood
damage to critical watersheds within the following National Forests: the
Cache, Uinta, and Wasatch, Utah; the Toiyabe, Nevada; and the Angeles,
Cleveland, San Bernardino, and Sequoia, California. Appropriations are
made from receipts on these National Forests.

Acquisition of Lands to Complete Land Exchanges.--Deposits made by
State, county, or municipal governments, public school districts, or
other public school authorities for cash equalization of certain land
exchanges are used to acquire similar lands suitable for National Forest
System purposes in the same State as the National Forest lands conveyed
in the land exchange or from non-Federal parties for authorized
expenditures.

Object Classification (in millions of dollars)

Direct obligations:

11.1 Personnel compensation: Full-
time permanent................ 7 12 8
12.1 Civilian personnel benefits..... 2 2 1
21.0 Travel and transportation of
persons....................... 1 1 1
25.2 Other services.................. 2 3 2
25.3 Other purchases of goods and
services from Government
accounts...................... 1 1 1
32.0 Land and structures............. 63 129 51
--------- --------- ----------
99.0 Direct obligations............ 76 148 64
99.0 Reimbursable obligations.......... 20
--------- --------- ----------
99.9 Total new obligations........... 96 148 64
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9923-0-2-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 122 167 183
---------------------------------------------------------------------------

Forest Service Permanent Appropriations

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9921-0-2-999 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............ 232 294 358
--------- --------- ----------
01.99 Balance, start of year............ 232 294 358
Receipts:
02.20 National forests fund............. 1 1 1
02.21 National forests fund, Payments to
States.......................... 119 118 163
02.22 Timber roads, Purchaser elections. 7 7 4
02.23 National forests fund, Roads and
trails for States............... 16 19 19

[[Page 188]]

02.24 Timber salvage sales.............. 71 60 58
02.25 Deposits, Brush disposal.......... 13 13 13
02.26 Rents and charges for quarters,
Forest Service.................. 7 8 8
02.27 Timber sales pipeline restoration
fund............................ 5 6 6
02.28 Recreational fee demonstration
program, Forest Service......... 50 53 55
02.29 Midewin national tallgrass prairie
rental fees..................... 1 1
02.30 Charges, user fees, and natural
resource utilization, Land
between the lakes, Forest
Service......................... 4 4 4
02.31 Administration of rights-of-way
and other land uses............. 1 4
02.32 Miscellaneous collections, Valles
Caldera fund.................... 1
02.33 Funds retained, stewardship
contracting product sales....... 6 5
02.34 National grasslands............... 49 49 49
02.36 Miscellaneous special funds,
Forest Service.................. 8 3 3
02.37 National forest fund.............. 24 24 22
02.38 Proceeds from sales, forest county
safety net payments--legislative
proposal subject to PAYGO....... 78
--------- --------- ----------
02.99 Total receipts and collections.. 374 373 494
--------- --------- ----------
04.00 Total: Balances and collections... 606 667 852
Appropriations:
05.00 Stewardship contracting product
sales........................... -6 -5
05.01 Forest Service permanent
appropriations.................. -312 -303 -349
05.02 Forest Service permanent
appropriations--legislative
proposal subject to PAYGO....... -78
--------- --------- ----------
05.99 Total appropriations............ -312 -309 -432
--------- --------- ----------
07.99 Balance, end of year.............. 294 358 420
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Brush Disposal.................... 12 17 13
00.02 Restoration of Forest Lands and
Improvements.................... 2 2
00.04 Recreation Fee Demonstration /
Enhancement Programs............ 46 61 50
00.06 Timber Roads--Purchaser Election
Program......................... 1 7 4
00.07 Timber Salvage Sale Program....... 69 78 70
00.08 Timber Pipeline Restoration Fund
(includes Forest Botanical
Products)....................... 2 6 6
00.09 Roads and Trails (10% Fund)....... 14 14 15
00.10 Midewin Tallgrass Prairie Funds... 1 1
00.11 Operation and Maintenance of
Quarters........................ 8 9 8
00.12 Land Between the Lakes Management
Fund............................ 3 4 4
00.13 Valles Caldera Fund............... 1 1
00.15 Payment to States--Transfers from
Treasury........................ 309 296 242
00.16 Payment to States--National Forest
Fund............................ 89 116 161
00.17 Payments to Minnesota............. 2 2 2
00.18 Payments to Counties--National
Grasslands...................... 7 7 8
00.19 Administration of Rights-of-Way
and Other Land Uses............. 1 3
09.01 Reimbursable program--Restoration
of Forest Lands and Improvements 1
--------- --------- ----------
10.00 Total new obligations........... 563 622 590
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 433 567 544
22.00 New budget authority (gross)...... 616 599 591
22.10 Resources available from
recoveries of prior year
obligations..................... 1
22.22 Unobligated balance transferred
from other accounts............. 80
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 1,130 1,166 1,135
23.95 Total new obligations............. -563 -622 -590
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 567 544 545
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.00 Appropriation................... 310 296 242
60.20 Appropriation (special fund).... 312 303 349
--------- --------- ----------
62.50 Appropriation (total
mandatory).................. 622 599 591
Mandatory:

69.10 Spending authority from
offsetting collections: Change
in uncollected customer
payments from Federal sources
(unexpired)................... -6
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 616 599 591
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 36 49 12
73.10 Total new obligations............. 563 622 590
73.20 Total outlays (gross)............. -555 -659 -591
73.45 Recoveries of prior year
obligations..................... -1
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 6
--------- --------- ----------
74.40 Obligated balance, end of year.. 49 12 11
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 520 563 555
86.98 Outlays from mandatory balances... 35 96 36
--------- --------- ----------
87.00 Total outlays (gross)........... 555 659 591
----------------------------------------------------------------------------

Offsets:
Against gross budget authority only:

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

Net budget authority and outlays:
89.00 Budget authority.................. 622 599 591
90.00 Outlays........................... 556 659 591
---------------------------------------------------------------------------

Summary of Budget Authority and Outlays

(in millions of dollars)

2005 actual 2006 est. 2007 est.
Enacted/requested:
Budget Authority............ 622 599 591
Outlays..................... 555 659 591
Legislative proposal, subject to
PAYGO:
Budget Authority............ 78
Outlays..................... 78
------------------------------------
Total:
Budget Authority............ 622 599 669
Outlays..................... 555 659 669
====================================

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 Sec

[[Page 189]]

tion 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.

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)).

Since 1908, 25 percent of Forest Service revenues, such as those
from timber sales, mineral resources and grazing fees, have been
returned to states in which national forest lands are located. The
Budget ensures Knutsen-Vandenberg (KV) or Salvage Sales Fund (SSF)
collections reflect plans that are funded with due regard for these
shared receipts. Reestablishment of this policy will increase receipts
into the National Forest fund and in turn reduce the outlays required
from the Treasury.

Object Classification (in millions of dollars)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 60 67 68
11.3 Other than full-time permanent 13 14 15
11.5 Other personnel compensation.. 5 5 6
--------- --------- ----------
11.9 Total personnel compensation 78 86 89
12.1 Civilian personnel benefits..... 21 23 23
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 2
23.3 Communications, utilities, and
miscellaneous charges......... 4 6 4
24.0 Printing and reproduction....... 1 1 1
25.2 Other services.................. 43 73 52
25.3 Other purchases of goods and
services from Government
accounts...................... 6 15 14
26.0 Supplies and materials.......... 8 14 13
31.0 Equipment....................... 2 11 10
32.0 Land and structures............. 2 5 5
41.0 Grants, subsidies, and
contributions................. 390 381 371
--------- --------- ----------
99.0 Direct obligations............ 562 622 590
99.0 Reimbursable obligations.......... 1
--------- --------- ----------
99.9 Total new obligations........... 563 622 590
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9921-0-2-999 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 1,735 1,836 1,834
---------------------------------------------------------------------------

[[Page 190]]

Forest Service Permanent Appropriations

(Legislative proposal, subject to PAYGO)

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9921-4-2-999 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------

Obligations by program activity:
00.20 Forest county safety net payments. 78
--------- --------- ----------
10.00 Total new obligations (object
class 41.0)................... 78
----------------------------------------------------------------------------

Budgetary resources available for obligation:
22.00 New budget authority (gross)...... 78
23.95 Total new obligations............. -78
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year..........
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.20 Appropriation (special fund).... 78
----------------------------------------------------------------------------

Change in obligated balances:
73.10 Total new obligations............. 78
73.20 Total outlays (gross)............. -78
--------- --------- ----------
74.40 Obligated balance, end of year..
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 78
----------------------------------------------------------------------------

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

The Budget includes a legislative proposal that provides $800
million above the current baseline for a five-year extension of forest
county safety net payments. These payments will be targeted to the most
affected areas, capped, adjusted downward each year, and eventually
phased out. To provide a funding basis to offset these payments, the
Secretary of Agriculture would be authorized to dispose of certain lands
identified in National Forest plans as suitable for exchange since they
are isolated or inefficient to manage. The Budget's legislative proposal
applies to both USDA and Department of the Interior lands. For
administrative convenience, however, the payments will be made by USDA
on behalf of both agencies.

Intragovernmental funds:

Working Capital Fund

Program and Financing (in millions of dollars)

Obligations by program activity:
09.01 Working Capital fund.............. 188 181 171
--------- --------- ----------
10.00 Total new obligations........... 188 181 171
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 110 103 103
22.00 New budget authority (gross)...... 179 181 171
22.10 Resources available from
recoveries of prior year
obligations..................... 2
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 291 284 274
23.95 Total new obligations............. -188 -181 -171
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 103 103 103
----------------------------------------------------------------------------

New budget authority (gross), detail:
Spending authority from offsetting
collections:

Mandatory:
69.00 Offsetting collections (cash). 181 181 171
69.10 Change in uncollected customer
payments from Federal
sources (unexpired)......... -2
--------- --------- ----------
69.90 Spending authority from
offsetting collections
(total mandatory)......... 179 181 171
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 29 25 24
73.10 Total new obligations............. 188 181 171
73.20 Total outlays (gross)............. -192 -182 -172
73.45 Recoveries of prior year
obligations..................... -2
74.00 Change in uncollected customer
payments from Federal sources
(unexpired)..................... 2
--------- --------- ----------
74.40 Obligated balance, end of year.. 25 24 23
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 160 163 154
86.98 Outlays from mandatory balances... 32 19 18
--------- --------- ----------
87.00 Total outlays (gross)........... 192 182 172
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... -163 -163 -153
88.40 Non-Federal sources........... -18 -18 -18
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -181 -181 -171
Against gross budget authority only:

88.95 Change in uncollected customer
payments from Federal sources
(unexpired)................... 2
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority..................
90.00 Outlays........................... 11 1 1
---------------------------------------------------------------------------

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

[[Page 191]]

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 Forest Service Establishment, in conjunction
with the General Services Administration of a vehicle allocation
methodology that analyzes fleet vehicle effectiveness, cost-to-serve,
life cycle costs, vehicle pooling, procurement practices and reduction
of operating costs.

Object Classification (in millions of dollars)

Personnel compensation:

11.1 Full-time permanent............. 29 30 31
11.3 Other than full-time permanent.. 2 2 2
11.5 Other personnel compensation.... 3 3 3
--------- --------- ----------
11.9 Total personnel compensation.. 34 35 36
12.1 Civilian personnel benefits....... 9 10 10
13.0 Benefits for former personnel..... 1 1 1
21.0 Travel and transportation of
persons......................... 3 4 4
22.0 Transportation of things.......... 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.................... 9 7 7
25.3 Other purchases of goods and
services from Government
accounts........................ 9 8 8
25.7 Operation and maintenance of
equipment....................... 21 21 18
26.0 Supplies and materials............ 37 34 31
31.0 Equipment......................... 58 54 48
41.0 Grants, subsidies, and
contributions................... 1 1 1
--------- --------- ----------
99.9 Total new obligations........... 188 181 171
---------------------------------------------------------------------------
Note.--Personnel totals are included with personnel totals of all other
Forest Service programs.

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-4605-0-4-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Reimbursable:
2001 Civilian full-time equivalent
employment...................... 627 627 627
---------------------------------------------------------------------------

Trust Funds

Forest Service Trust Funds

Special and Trust Fund Receipts (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-9974-0-7-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
01.00 Balance, start of year............ 154 156 168
--------- --------- ----------
01.99 Balance, start of year............ 154 156 168
Receipts:
02.00 General fund payment from Wildland
fire management, Forest Service
cooperative fund................ 167
02.20 Forest Service cooperative fund... 69 80 80
02.60 Transfers from general fund of
amounts equal to certain customs
duties, Reforestation trust fund 30 30 30
--------- --------- ----------
02.99 Total receipts and collections.. 266 110 110
--------- --------- ----------
04.00 Total: Balances and collections... 420 266 278
Appropriations:
05.00 Forest Service trust funds........ -264 -98 -98
--------- --------- ----------
07.99 Balance, end of year.............. 156 168 180
---------------------------------------------------------------------------

Program and Financing (in millions of dollars)

Obligations by program activity:
00.01 Cooperative Work Trust Fund....... 85 205 143
00.02 Land Between the Lakes Trust Fund. 1
00.03 Reforestation Trust Fund.......... 31 30 30
09.01 Reimbursable program-Coop Work
Other........................... 29 30 30
--------- --------- ----------
10.00 Total new obligations........... 145 265 204
----------------------------------------------------------------------------

Budgetary resources available for obligation:
21.40 Unobligated balance carried
forward, start of year.......... 460 609 472
22.00 New budget authority (gross)...... 293 128 128
22.10 Resources available from
recoveries of prior year
obligations..................... 1
--------- --------- ----------
23.90 Total budgetary resources
available for obligation...... 754 737 600
23.95 Total new obligations............. -145 -265 -204
--------- --------- ----------
24.40 Unobligated balance carried
forward, end of year.......... 609 472 396
----------------------------------------------------------------------------

New budget authority (gross), detail:
Mandatory:

60.26 Appropriation (trust fund)...... 264 98 98
Mandatory:

69.00 Spending authority from
offsetting collections:
Offsetting collections (cash). 29 30 30
--------- --------- ----------
70.00 Total new budget authority
(gross)....................... 293 128 128
----------------------------------------------------------------------------

Change in obligated balances:
72.40 Obligated balance, start of year.. 43 42 107
73.10 Total new obligations............. 145 265 204
73.20 Total outlays (gross)............. -145 -200 -172
73.45 Recoveries of prior year
obligations..................... -1
--------- --------- ----------
74.40 Obligated balance, end of year.. 42 107 139
----------------------------------------------------------------------------

Outlays (gross), detail:
86.97 Outlays from new mandatory
authority....................... 111 102 102
86.98 Outlays from mandatory balances... 34 98 70
--------- --------- ----------
87.00 Total outlays (gross)........... 145 200 172
----------------------------------------------------------------------------

Offsets:
Against gross budget authority and outlays:

Offsetting collections (cash)
from:
88.00 Federal sources............... 1
88.40 Non-Federal sources........... -30 -30 -30
--------- --------- ----------
88.90 Total, offsetting
collections (cash)........ -29 -30 -30
----------------------------------------------------------------------------

Net budget authority and outlays:
89.00 Budget authority.................. 264 98 98
90.00 Outlays........................... 115 170 142
----------------------------------------------------------------------------

Memorandum (non-add) entries:
92.01 Total investments, start of year:
Federal securities: Par value... 4 5 6
92.02 Total investments, end of year:
Federal securities: Par value... 5 6 7
---------------------------------------------------------------------------

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)

Direct obligations:

Personnel compensation:
11.1 Full-time permanent........... 44 78 63
11.3 Other than full-time permanent 6 11 9
11.5 Other personnel compensation.. 3 6 5
--------- --------- ----------
11.9 Total personnel compensation 53 95 77
12.1 Civilian personnel benefits..... 14 26 21
13.0 Benefits for former personnel... 1 1 1
21.0 Travel and transportation of
persons....................... 2 4 3
22.0 Transportation of things........ 1 1
23.1 Rental payments to GSA.......... 1 2 1
23.2 Rental payments to others....... 1 2 2
23.3 Communications, utilities, and
miscellaneous charges......... 2 3 3

[[Page 192]]

25.2 Other services.................. 18 56 30
25.3 Other purchases of goods and
services from Government
accounts...................... 6 10 8
26.0 Supplies and materials.......... 11 16 13
31.0 Equipment....................... 2 12 8
32.0 Land and structures............. 2 4 3
41.0 Grants, subsidies, and
contributions................. 3 3 3
--------- --------- ----------
99.0 Direct obligations............ 116 235 174
99.0 Reimbursable obligations.......... 29 30 30
--------- --------- ----------
99.9 Total new obligations........... 145 265 204
---------------------------------------------------------------------------

Personnel Summary

----------------------------------------------------------------------------
Identification code 12-9974-0-7-302 2005 actual 2006 est. 2007 est.
----------------------------------------------------------------------------
Direct:
1001 Civilian full-time equivalent
employment...................... 1,095 1,194 1,293
---------------------------------------------------------------------------

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 passenger motor vehicles;
acquisition of 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 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, except that in fiscal year 2006 the Forest Service may
transfer funds to the ``National Forest System'' account from other
agency accounts to enable the agency's law enforcement program to pay
full operating costs including overhead.]
[None of the funds available to the Forest Service may be
reprogrammed without the advance approval of the House and Senate
Committees on Appropriations in accordance with the reprogramming
procedures contained in the report accompanying this Act.]
[Not more than $72,646,000 of funds available to the Forest Service
shall be transferred to the Working Capital Fund of the Department of
Agriculture. Nothing in this paragraph shall prohibit or limit the use
of reimbursable agreements requested by the Forest Service in order to
obtain services from the Department of Agriculture's National
Information Technology Center.]
Funds available to the Forest Service shall be available to conduct
a program of [not less than] up to $2,500,000 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, $4,000 is available to
the Chief of the Forest Service for official reception and
representation expenses.
Pursuant to sections 405(b) and 410(b) of Public Law 101-593, of the
funds available to the Forest Service, [$3,000,000] up to $2,500,000 may
be advanced in a lump sum to the National Forest Foundation to aid
conservation partnership projects in support of the Forest Service
mission, without regard to when the Foundation incurs expenses, for
administrative expenses or projects on or benefitting National Forest
System lands or related to Forest Service programs: Provided, That of
the Federal funds made available to the Foundation, no more than
$300,000 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 advanced to the
National Fish and Wildlife Foundation in a lump sum to aid cost-share
conservation projects, without regard to when expenses are incurred, on
or benefitting National Forest System lands or related to Forest Service
programs: Provided, That such funds shall be matched on at least a one-
for-one basis by the Foundation or its subrecipients.
Funds appropriated to the Forest Service shall be available for
interactions with and providing technical assistance to rural
communities and natural resource based businesses for sustainable rural
development purposes: Provided, That no more than 2 percent of any
unit's budget may be used for such purposes: Provided further, That no
more than 5 percent of the funds in any budget line item may be used for
such purposes.
Funds appropriated to the Forest Service shall be available for
payments to counties within the Columbia River Gorge National Scenic
Area, pursuant to sections 14(c)(1) and (2), and section 16(a)(2) of
Public Law 99-663.
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), De

[[Page 193]]

partment 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 $500,000.
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)).
[For each fiscal year through 2009, 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.]
Funds available to the Forest Service[, not to exceed $35,000,000,]
shall be assessed for the purpose of performing facilities maintenance.
Such assessments shall occur using a square foot rate charged on the
same basis the agency uses to assess programs for payment of rent,
utilities, and other support services.
[In support of management of the National Wildlife Refuge System,
Lot 6C of United States Survey 2538-A, containing 2.39 acres and the
residential triplex situated thereon, located in Kodiak, Alaska, is
hereby transferred from the USDA Forest Service to the U.S. Fish and
Wildlife Service.] (Department of the Interior, Environment, and Related
Agencies Appropriations Act, 2006.)

TITLE VII--GENERAL PROVISIONS

(including rescissions and transfers of funds)

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 [320]
292 passenger motor vehicles, of which [320] 290 shall be for
replacement only, and for the hire of such vehicles.
[Sec. 702. Hereafter, funds appropriated by this or any other
Appropriations Act to the Department of Agriculture (excluding the
Forest Service) shall be available for uniforms or allowances as
authorized by law (5 U.S.C. 5901-5902).]
[Sec. 703. Hereafter, funds appropriated by this or any other
Appropriations Act to the Department of Agriculture (excluding the
Forest Service) 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] 702. 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, high pathogen avian
influenza program, up to [$33,340,000] $33,107,000 in animal health
monitoring and surveillance for the animal identification system, up to
$1,500,000 in the scrapie program for indemnities, up to [$3,000,000]
$8,139,000 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 $2,000,000 of
the Foreign Agricultural Service appropriation solely for the purpose of
offsetting fluctuations in international currency exchange rates,
subject to documentation by the Foreign Agricultural Service.
Sec. [705] 703. The Secretary of Agriculture may transfer
unobligated balances of discretionary funds appropriated by this Act or
other available unobligated discretionary balances of the Department of
Agriculture to the Working Capital Fund for the acquisition of plant and
capital equipment necessary for the delivery of financial,
administrative, and information technology services of primary benefit
to the agencies of the Department of Agriculture: Provided, That none of
the funds made available by this Act or any other Act shall be
transferred to the Working Capital Fund without the prior [approval]
notification 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]
notification of the Committees on Appropriations of both Houses of
Congress.
Sec. [706] 704. 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. Hereafter, not to exceed $50,000 in each fiscal year of
the funds appropriated by this or any other Appropriations Act to the
Department of Agriculture (excluding the Forest Service) 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] 705. 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 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. 710. Hereafter, loan levels provided in this or any other
Appropriations Act to the Department of Agriculture shall be considered
estimates, not limitations.]
Sec. [711] 706. 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] disburse
obligations made in the current fiscal year for the following accounts:
the Rural Development Loan Fund program account, the Rural
Electrification and Telecommunication Loans program account, and the
Rural Housing Insurance Fund program account.
[Sec. 712. 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. [713] 707. None of the funds appropriated by this Act may be
used to carry out section 410 of the Federal Meat Inspection Act (21
U.S.C. 679a) or section 30 of the Poultry Products Inspection Act (21
U.S.C. 471).
[Sec. 714. 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.]

[[Page 194]]

[Sec. 715. None of the funds appropriated or otherwise made
available to the Department of Agriculture or the Food and Drug
Administration shall be used to transmit or otherwise make available to
any non-Department of Agriculture or non-Department of Health and Human
Services employee questions or responses to questions that are a result
of information requested for the appropriations hearing process.]
Sec. [716] 708. 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] notification 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. 717. (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. 718. 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. 719. 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 2007 Appropriations Act.]
[Sec. 720. 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. 721. 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. 722. Hereafter, 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. 723. There is hereby appropriated $1,250,000 for a grant to
the National Sheep Industry Improvement Center, to remain available
until expended.]
[Sec. 724. The Secretary of Agriculture shall--
(1) as soon as practicable after the date of enactment of this
Act, conduct an evaluation of any impacts of the court decision in
Harvey v. Veneman, 396 F.3d 28 (1st Cir. Me. 2005); and
(2) not later than 90 days after the date of enactment of this
Act, submit to Congress a report that--
(A) describes the results of the evaluation conducted
under paragraph (1);
(B) includes a determination by the Secretary on whether
restoring the National Organic Program, as in effect on the
day before the date of the court decision described in
paragraph (1), would adversely affect organic farmers,
organic food processors, and consumers;
(C) analyzes issues regarding the use of synthetic
ingredients in processing and handling;
(D) analyzes the utility of expedited petitions for
commercially unavailable agricultural commodities and
products; and
(E) considers the use of crops and forage from land
included in the organic system plan of dairy farms that are
in the third year of organic management.]
[Sec. 725. Hereafter, of any shipments of commodities made pursuant
to section 416(b) of the Agricultural Act of 1949 (7 U.S.C. 1431(b)),
the Secretary of Agriculture shall, to the extent practicable, direct
that tonnage equal in value to not more than $25,000,000 shall be made
available to foreign countries to assist in mitigating the effects of
the Human Immunodeficiency Virus and Acquired Immune Deficiency Syndrome
on communities, including the provision of--
(1) agricultural commodities to--
(A) individuals with Human Immunodeficiency Virus or
Acquired Immune Deficiency Syndrome in the communities; and
(B) households in the communities, particularly
individuals caring for orphaned children; and
(2) agricultural commodities monetized to provide other
assistance (including assistance under microcredit and
microenterprise programs) to create or restore sustainable
livelihoods among individuals in the communities, particularly
individuals caring for orphaned children.]
[Sec. 726. Notwithstanding any other provision of law, the Natural
Resources Conservation Service shall provide financial and technical
assistance--
(1) from funds available for the Watershed and Flood Prevention
Operations program--
(A) to the Kane County, Illinois, Indian Creek Watershed
Flood Prevention Project, in an amount not to exceed
$1,000,000;
(B) for the Muskingam River Watershed, Mohican River,
Jerome and Muddy Fork, Ohio, obstruction removal projects,
in an amount not to exceed $1,800,000;
(C) to the Hickory Creek Special Drainage District,
Bureau County, Illinois, in an amount not to exceed $50,000;
and
(D) to the Little Red River Irrigation project,
Arkansas, in an amount not to exceed $210,000;
(2) through the Watershed and Flood Prevention Operations
program for--
(A) the Matanuska River erosion control project in
Alaska;
(B) the Little Otter Creek project in Missouri;

[[Page 195]]

(C) the Manoa Watershed project in Hawaii;
(D) the West Tarkio project in Iowa;
(E) the Steeple Run and West Branch DuPage River
Watershed projects in DuPage County, Illinois; and
(F) the Coal Creek project in Utah;
(3) through the Watershed and Flood Prevention Operations
program to carry out the East Locust Creek Watershed Plan Revision
in Missouri, including up to 100 percent of the engineering
assistance and 75 percent cost share for construction cost of site
RW1; and
(4) through funds of the Conservation Operations program
provided for the Utah Conservation Initiative for completion of the
American Fork water quality and habitat restoration project in
Utah.]
[Sec. 727. Hereafter, 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. [728] 709. 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 [22] 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. 729. 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. 730. 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. 731. 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. 732. Hereafter, 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. 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 6405 of Public Law 107-171 (7 U.S.C.
2655).]
[Sec. 734. 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 150,000 acres in the
calendar year 2006 wetlands reserve program as authorized by 16 U.S.C.
3837.]
[Sec. 735. 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. 736. 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. 737. None of the funds appropriated or otherwise made
available under 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 601(j)(1) of the Rural Electrification Act of 1936 (7 U.S.C.
950bb(j)(1)).]
[Sec. 738. None of the funds made available in fiscal year 2006 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. 739. 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 $120,000,000 made available by
section 6401(a) of Public Law 107-171.]
[Sec. 740. Notwithstanding subsections (c) and (e)(2) of section
313A of the Rural Electrification Act (7 U.S.C. 940c(c) and (e)(2)) in
implementing section 313A of that Act, the Secretary shall, with the
consent of the lender, structure the schedule for payment of the annual
fee, not to exceed an average of 30 basis points per year for the term
of the loan, to ensure that sufficient funds are available to pay the
subsidy costs for note guarantees under that section.]
[Sec. 741. None of the funds appropriated or otherwise made
available by this or any other Act shall be used to pay the salaries and
expenses of personnel to carry out a Conservation Security Program
authorized by 16 U.S.C. 3838 et seq., in excess of $259,000,000.]
[Sec. 742. 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 $43,000,000.]
[Sec. 743. Of the unobligated balances available in the Special
Supplemental Nutrition Program for Women, Infants, and Children reserve
account, $32,000,000 is hereby rescinded.]
[Sec. 744. 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 $73,500,000.]
[Sec. 745. With the exception of funds provided in fiscal year 2005,
none 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. 746. Hereafter, none of the funds appropriated or otherwise
made available in this Act shall be expended to violate Public Law 105-
264.]
[Sec. 747. 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. 748. 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. 749. Hereafter, 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. 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 9010 of Public Law 107-171 in
excess of $60,000,000.]
[Sec. 751. Hereafter, 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. [752] 710. Funds made available under section 1240I and section
1241(a) of the Food Security Act of 1985 in the current fiscal year
shall remain available until expended to [cover] disburse obligations
made in the current fiscal year, and are not available for new

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obligations. Funds made available under section 524(b) of the Federal
Crop Insurance Act, 7 U.S.C. 1524(b), in fiscal years 2004, 2005, and
2006 shall remain available until expended to disburse obligations made
in fiscal years 2004, 2005, and 2006, respectively, and are not
available for new obligations.
[Sec. 753. There is hereby appropriated $750,000, 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. 754. Notwithstanding any other provision of law--
(1) the City of Palmer, Alaska 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;
(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) 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 median household income level in the
nonmetropolitan areas of the State and 115 percent of all other
eligible areas of the State; and
(4) any former RUS borrower that has repaid or prepaid an
insured, direct or guaranteed loan under the Rural Electrification
Act, or any not-for-profit utility that is eligible to receive an
insured or direct loan under such Act, shall be eligible for
assistance under Section 313(b)(2)(B) of such Act in the same manner
as a borrower under such Act.]
[Sec. 755. 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. 756. Hereafter, 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. 757. 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 an Agricultural Management Assistance
Program as authorized by section 524 of the Federal Crop Insurance Act
in excess of $6,000,000 (7 U.S.C. 1524).]
[Sec. 758. 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. 759. 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 Biomass Research and Development
Program in excess of $12,000,000, as authorized by Public Law 106-224 (7
U.S.C. 7624 note).]
[Sec. 760. 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. 761. Notwithstanding 40 U.S.C. 524, 571, and 572, the
Secretary of Agriculture may sell the US Water Conservation Laboratory,
Phoenix, Arizona, and credit the net proceeds of such sale as offsetting
collections to its Agricultural Research Service 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.]
[Sec. 762. None of the funds provided in this Act may be used for
salaries and expenses to draft or implement any regulation or rule
insofar as it would require recertification of rural status for each
electric and telecommunications borrower for the Rural Electrification
and Telecommunication Loans program.]
[Sec. 763. 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. 764. There is hereby appropriated $650,000, to remain
available until expended, to carry out provisions of section 751 of
division A of Public Law 108-7.]
[Sec. 765. (a) Notwithstanding any other provision of law, and until
the receipt of the decennial Census in the year 2010, the Secretary of
Agriculture shall consider--
(1) the City of Bridgeton, New Jersey, the City of Kinston,
North Carolina, and the City of Portsmouth, Ohio as rural areas for
the purposes of Rural Housing Service Community Facilities Program
loans and grants;
(2) the Township of Bloomington, Illinois (including individuals
and entities with projects within Township) shall be eligible for
Rural Housing Service Community Facilities Programs loans and
grants;
(3) the City of Lone Grove, Oklahoma (including individuals and
entities with projects within the city) shall be eligible for Rural
Housing Service Community Facilities Program loans and grants;
(4) the City of Butte/Silverbow, Montana, rural areas for
purposes of eligibility for Rural Utilities Service water and waste
water loans and grants and Rural Housing Service Community
Facilities Program loans and grants;
(5) Cleburne County, Arkansas, rural areas for purposes of
eligibility of Rural Utilities Service water and waste water loans
and grants;
(6) the designated Census track areas for the Upper Kanawha
Valley Enterprise Community, West Virginia, rural areas for purposes
of eligibility for rural empowerment zones and enterprise community
programs in the rural development mission area;
(7) the Municipality of Carolina, Puerto Rico, as meeting the
eligibility requirements for Rural Utilities Service water and waste
water loans and grants;
(8) the Municipalities of Vega Baja, Manati, Guayama, Fajardo,
Humacao, and Naguabo, Puerto Rico, (including individuals and
entities with projects within the Municipalities) shall be eligible
for Rural Community Advancement Program loans and grants and
intermediate relending programs;
(9) the City of Hidalgo, Texas as a rural area for the purpose
of the Rural Business-Cooperative Service Rural Business Enterprise
Grant Program;
(10) the City of Elgin, Oklahoma (including individuals and
entities with projects within the city) shall be eligible for Rural
Utilities Service water and waste water loans and grants; and
(11) the City of Lodi, California, the City of Atchison, Kansas,
and the City of Belle Glade, Florida as rural areas for the purposes
of the Rural Utilities Service water and waste water loans and
grants.]
[Sec. 766. There is hereby appropriated $200,000 for a grant to
Alaska Village Initiatives for the purpose of administering a private
lands wildlife management program in Alaska.]
[Sec. 767. 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. 768. The counties of Burlington and Camden, New Jersey
(including individuals and entities with projects within these counties)
shall be eligible for loans and grants under the Rural Community
Advancement Program for fiscal year 2006 to the same extent they were
eligible for such assistance during the fiscal year 2005 under section
106 of Chapter 1 of Division B of Public Law 108-324 (188 Stat. 1236).]
[Sec. 769. Hereafter, notwithstanding any other provision of law,
funds made available to States administering the Child and Adult

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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. 770. The Secretary of Agriculture is authorized and directed
to quitclaim to the City of Elkhart, Kansas, all rights, title and
interests of the United States in that tract of land comprising 151.7
acres, more or less, located in Morton County, Kansas, and more
specifically described in a deed dated March 11, 1958, from the United
States of America to the City of Elkhart, State of Kansas, and filed of
record April 4, 1958 at Book 34 at Page 520 in the office of the
Register of Deeds of Morton County, Kansas.]
[Sec. 771. There is hereby appropriated $2,500,000 to carry out the
Healthy Forests Reserve Program authorized under Title V of Public Law
108-148 (16 U.S.C. 6571-6578).]
[Sec. 772. Unless otherwise authorized by existing law, none of the
funds provided in this Act, may be used by an executive branch agency to
produce any prepackaged news story intended for broadcast or
distribution in the United States unless the story includes a clear
notification within the text or audio of the prepackaged news story that
the prepackaged news story was prepared or funded by that executive
branch agency.]
[Sec. 773. In addition to other amounts appropriated or otherwise
made available by this Act, there is hereby appropriated to the
Secretary of Agriculture $7,000,000, of which not to exceed 5 percent
may be available for administrative expenses, to remain available until
expended, to make specialty crop block grants under section 101 of the
Specialty Crops Competitiveness Act of 2004 (Public Law 108-465; 7
U.S.C. 1621 note).]
[Sec. 774. The Rural Electrification Act of 1936 is amended by
inserting after section 315 (7 U.S.C. 940e) the following:
``Sec. 316. Extension of Period of Existing Guarantee. (a) In
General.--Subject to the limitations in this section and the provisions
of the Federal Credit Reform Act of 1990, as amended, a borrower of a
loan made by the Federal Financing Bank and guaranteed under this Act
may request an extension of the final maturity of the outstanding
principal balance of such loan or any loan advance thereunder. If the
Secretary and the Federal Financing Bank approve such an extension, then
the period of the existing guarantee shall also be considered extended.
``(b) Limitations.--
``(1) Feasibility and security.--Extensions under this section
shall not be made unless the Secretary first finds and certifies
that, after giving effect to the extension, in his judgment the
security for all loans to the borrower made or guaranteed under this
Act is reasonably adequate and that all such loans will be repaid
within the time agreed.
``(2) Extension of useful life or collateral.--Extensions under
this section shall not be granted unless the borrower first submits
with its request either--
``(A) evidence satisfactory to the Secretary that a
Federal or State agency with jurisdiction and expertise has
made an official determination, such as through a licensing
proceeding, extending the useful life of a generating plant
or transmission line pledged as collateral to or beyond the
new final maturity date being requested by the borrower, or
``(B) a certificate from an independent licensed
engineer concluding, on the basis of a thorough engineering
analysis satisfactory to the Secretary, that the useful life
of the generating plant or transmission line pledged as
collateral extends to or beyond the new final maturity date
being requested by the borrower.
``(3) Amount eligible for extension.--Extensions under this
section shall not be granted if the principal balance extended
exceeds the appraised value of the generating plant or transmission
line referred to in subsection paragraph (2).
``(4) Period of extension.--Extensions under this section shall
in no case result in a final maturity greater than 55 years from the
time of original disbursement and shall in no case result in a final
maturity greater than the useful life of the plant.
``(5) Number of extensions.--Extensions under this section shall
not be granted more than once per loan advance.
``(c) Fees.--
``(1) In general.--A borrower that receives an extension under
this section shall pay a fee to the Secretary which shall be
credited to the Rural Electrification and Telecommunications Loans
Program account. Such fees shall remain available without fiscal
year limitation to pay the modification costs for extensions.
``(2) Amount.--The amount of the fee paid shall be equal to the
modification cost, calculated in accordance with section 502 of the
Federal Credit Reform Act of 1990, as amended, of such extension.
``(3) Payment.--The borrower shall pay the fee required under
this section at the time the existing guarantee is extended by
making a payment in the amount of the required fee.''.]
[Sec. 775. (a) In General.--The Secretary of Health and Human
Services, on behalf of the United States may, whenever the Secretary
deems desirable, relinquish to the State of Arkansas all or part of the
jurisdiction of the United States over the lands and properties
encompassing the Jefferson Labs campus in the State of Arkansas that are
under the supervision or control of the Secretary.
(b) Terms.--Relinquishment of jurisdiction under this section may be
accomplished, under terms and conditions that the Secretary deems
advisable,
(1) by filing with the Governor of the State of Arkansas a
notice of relinquishment to take effect upon acceptance thereof; or
(2) as the laws of such State may otherwise provide.
(c) Definition.--In this section, the term ``Jefferson Labs campus''
means the lands and properties of the National Center for Toxicological
Research and the Arkansas Regional Laboratory.]
[Sec. 776. Section 204(b)(3)(A) of the Child Nutrition and WIC
Reauthorization Act of 2004 (118 Stat. 781; 42 U.S.C. 1751 note) is
amended by striking ``July 1, 2006'' and inserting ``October 1, 2005''.]
[Sec. 777. (a) Section 18(f)(1)(B) of the Richard B. Russell
National School Lunch Act (42 U.S.C. 1769(f)(1)(B)) is amended--
(1) by striking ``April 2004'' and inserting ``June 2005''; and
(2) in clause (ii), by striking ``66.67'' and inserting ``75''.
(b) The amendments made by subsection (a) take effect on January 1,
2006.]
[Sec. 778. 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, except
in the event of liquidation or dissolution of the telephone bank during
fiscal year 2006, pursuant to section 411 of the Rural Electrification
Act of 1936, as amended, 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. 779. There is hereby appropriated $6,000,000 to carry out
Section 120 of Public Law 108-265 in Utah, Wisconsin, New Mexico, Texas,
Connecticut, and Idaho.]
{Sec. 780. Section 508(a)(4)(B) of the Federal Crop Insurance Act (7
U.S.C. 1508(a)(4)(B)) is amended by inserting ``or similar commodities''
after ``the commodity''.]
[Sec. 781. (a) Notwithstanding subtitles B and C of the Dairy
Production Stabilization Act of 1983 (7 U.S.C. 4501 et seq.), during
fiscal year 2006, the National Dairy Promotion and Research Board may
obligate and expend funds for any activity to improve the environment
and public health.
(b) The Secretary of Agriculture shall review the impact of any
expenditures under subsection (a) and include the review in the 2007
report of the Secretary to Congress on the dairy promotion program
established under subtitle B of the Dairy Production Stabilization Act
of 1983 (7 U.S.C. 4501 et seq.).]
[Sec. 782. The Federal facility located at the South Mississippi
Branch Experiment Station in Poplarville, Mississippi, and known as the
``Southern Horticultural Laboratory'', shall be known and designated as
the ``Thad Cochran Southern Horticultural Laboratory'': Provided, That
any reference in law, map, regulation, document, paper, or other record
of the United States to such Federal facility shall be deemed to be a
reference to the ``Thad Cochran Southern Horticultural Laboratory''.]
[Sec. 783. As soon as practicable after the Agricultural Research
Service operations at the Western Cotton Research Laboratory located at
4135 East Broadway Road in Phoenix, Arizona, have ceased, the Secretary
of Agriculture shall convey, without consideration, to the Arizona
Cotton Growers Association and Supima all right, title, and

[[Page 198]]

interest of the United States in and to the real property at that
location, including improvements.]
[Sec. 784. (a) In General.--In carrying out a livestock assistance,
compensation, or feed program, the Secretary of Agriculture shall
include horses and deer 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--
(A) by inserting ``horses, deer,'' after ``bison,''; and
(B) by striking ``equine animals used for food or in the
production of food,''.
(2) 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) is amended by inserting
``(including losses to elk, reindeer, bison, horses, and deer)''
after ``livestock losses''.
(3) Section 10104(a) of the Farm Security and Rural Investment
Act of 2002 (7 U.S.C. 1472(a)) is amended by striking ``and bison''
and inserting ``bison, horses, and deer''.
(4) Section 203(d)(2) of the Agricultural Assistance Act of 2003
(Public Law 108-7; 117 Stat. 541) is amended by striking ``and
bison'' and inserting ``bison, horses, and deer''.
(c) Applicability.--
(1) In general.--This section and the amendments made by this
section apply to losses resulting from a disaster that occurs on or
after July 28, 2005.
(2) Prior losses.--This section and the amendments made by this
section do not apply to losses resulting from a disaster that
occurred before July 28, 2005.]
[Sec. 785. Amounts made available for the Plant Materials Center in
Fallon, Nevada, under the heading ``Conservation Operations'' under the
heading ``Natural Resources Conservation Service'' of title II of the
Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2005 (Public Law 108-447; 118 Stat.
2823) shall remain available until expended.]
[Sec. 786. 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. [787] 711. 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 and prior to receiving
certification in accordance with the provisions set forth in section
17(h)(11)(E) of the Child Nutrition Act of 1966, authorizes any new for-
profit vendor(s) to transact food instruments under the Special
Supplemental Nutrition Program for Women, Infants, and Children (WIC) 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. 788. Of the unobligated balances under section 32 of the Act
of August 24, 1935, $37,601,000 are hereby rescinded.]
[Sec. 789. None of the funds provided in this Act may be obligated
or expended for any activity the purpose of which is to require a
recipient of any grant that was funded in Public Law 102-368 and Public
Law 103-50 for ``Rural Housing for Domestic Farm Labor'' in response to
Hurricane Andrew to pay the United States any portion of any interest
earned with respect to such grants: Provided, That such funds are
expended by the grantee within 18 months of the date of enactment of
this section for the purposes of providing farm labor housing consistent
with the purpose authorized in title V of the Housing Act of 1949, as
determined by the Secretary.]
[Sec. 790. There is hereby appropriated $140,000 to remain available
until expended, for a grant to the University of Nevada at Reno;
$400,000 to remain available until expended for a grant to the Ohio
Center for Farmland Policy Innovation at Ohio State University,
Columbus, Ohio; $200,000 to remain available until expended, for a grant
to Utah State University for a farming and dairy training initiative;
$500,000, to remain available until expended, for a grant to the Nueces
County, Texas Regional Fairground; and $350,000 to provide
administrative support for a world hunger organization: Provided, That
none of the funds may be used for a monetary award to an individual.]
[Sec. 791. There is hereby appropriated $1,000,000 to establish a
demonstration intermediate relending program for the construction and
rehabilitation of housing for the Mississippi Band of Choctaw Indians:
Provided, That the interest rate for direct loans shall be 1 percent:
Provided further, That no later than 1 year after the establishment of
this program the Secretary shall provide the Committees on
Appropriations with a report providing information on the program
structure, management, and general demographic information on the loan
recipients.]
[Sec. 792. Section 285 of the Agricultural Marketing Act of 1946 (7
U.S.C. 1638d) is amended by striking ``2006'' and inserting ``2008''.]
[Sec. 793. None of the funds appropriated or otherwise made
available by this Act shall be used to pay salaries and expenses of
personnel who implement or administer section 508(e)(3) of the Federal
Crop Insurance Act (7 U.S.C. 1508(e)(3)) or any regulation, bulletin,
policy or agency guidance issued pursuant to section 508(e)(3) of such
Act for the 2007 reinsurance year.]
[Sec. 794. Effective 120 days after the date of enactment of this
Act, none of the funds made available in this Act may be used to pay the
salaries or expenses of personnel to inspect horses under section 3 of
the Federal Meat Inspection Act (21 U.S.C. 603) or under the guidelines
issued under section 903 the Federal Agriculture Improvement and Reform
Act of 1996 (7 U.S.C. 1901 note; Public Law 104-127).]
[Sec. 795. (a) Subject to subsection (b), none of the funds made
available in this Act may be used to--
(1) grant a waiver of a financial conflict of interest
requirement pursuant to section 505(n)(4) of the Federal Food, Drug,
and Cosmetic Act (21 U.S.C. 355(n)(4)) for any voting member of an
advisory committee or panel of the Food and Drug Administration; or
(2) make a certification under section 208(b)(3) of title 18,
United States Code, for any such voting member.
(b) Subsection (a) shall not apply to a waiver or certification if--
(1) not later than 15 days prior to a meeting of an advisory
committee or panel to which such waiver or certification applies,
the Secretary of Health and Human Services discloses on the Internet
website of the Food and Drug Administration--
(A) the nature of the conflict of interest at issue; and
(B) the nature and basis of such waiver or certification
(other than information exempted from disclosure under
section 552 of title 5, United States Code (popularly known
as the Freedom of Information Act)); or
(2) in the case of a conflict of interest that becomes known to
the Secretary less than 15 days prior to a meeting to which such
waiver or certification applies, the Secretary shall make such
public disclosure as soon as possible thereafter, but in no event
later than the date of such meeting.
(c) None of the funds made available in this Act may be used to make
a new appointment to an advisory committee or panel of the Food and Drug
Administration unless the Commissioner of Food and Drugs submits a
quarterly report to the Inspector General of the Department of Health
and Human Services and the Committees on Appropriations of the House and
Senate on the efforts made to identify qualified persons for such
appointment with minimal or no potential conflicts of interest.]
[Sec. 796. Section 274(a)(1) of the Immigration and Nationality Act
(8 U.S.C. 1324(a)(1)) is amended by adding at the end the following:
``(C) It is not a violation of clauses (ii) or (iii) of
subparagraph (A), or of clause (iv) of subparagraph (A)
except where a person encourages or induces an alien to come
to or enter the United States, for a religious denomination
having a bona fide nonprofit, religious organization in the
United States, or the agents or officers of such
denomination or organization, to encourage, invite, call,
allow, or enable an alien who is present in the United
States to perform the vocation of a minister or missionary
for the denomination or organization in the United States as
a volunteer who is not compensated as an employee,
notwithstanding the provision of room, board, travel,
medical assistance, and other basic living expenses,
provided the minister or missionary has been a member of the
denomination for at least one year.''.]
[Sec. 797. (a) Section 2111(a)(1) of the Organic Foods Production
Act of 1990 (7 U.S.C. 6510(a)(1)) is amended by inserting ``not
appearing on the National List'' after ``ingredient''.
(b) Section 2118 of the Organic Foods Production Act of 1990 (7
U.S.C. 6517) is amended--

[[Page 199]]

(1) in subsection (c)(1)--
(A) in the paragraph heading, by inserting ``in organic
production and handling operations'' after ``substances'';
(B) in subparagraph (B)--
(i) in clause (i), by inserting ``or'' at the end; and
(ii) in clause (ii), by striking ``or'' at the end and
inserting ``and''; and
(C) by striking clause (iii); and
(2) in subsection (d), by adding at the end the following:
``(6) Expedited petitions for commercially unavailable organic
agricultural products constituting less than 5 percent of an organic
processed product.--The Secretary may develop emergency procedures
for designating agricultural products that are commercially
unavailable in organic form for placement on the National List for a
period of time not to exceed 12 months.''.
(c) Section 2110(e)(2) of the Organic Foods Production Act of 1990
(7 U.S.C. 6509(e)(2)) is amended--
(1) by striking ``A dairy'' and inserting the following:
``(A) In general.--Except as provided in subparagraph
(B), a dairy''; and
(2) by adding at the end the following:
``(B) Transition guideline.--Crops and forage from land
included in the organic system plan of a dairy farm that is
in the third year of organic management may be consumed by
the dairy animals of the farm during the 12-month period
immediately prior to the sale of organic milk and milk
products.''.]
[Sec. 798. Amenable Species.--The Federal Meat Inspection Act (21
U.S.C. 601 et seq.) is amended--
(1) by striking ``cattle, sheep, swine, goats, horses, mules,
and other equines'' each place it appears and inserting ``amenable
species'';
(2) in section 1, by adding at the end the following new
subsection:
``(w) The term `amenable species' means--
``(1) those species subject to the provisions of this Act on the
day before the date of the enactment of the Agriculture, Rural
Development, Food and Drug Administration, and Related Agencies
Appropriations Act, 2006; and
``(2) any additional species of livestock that the Secretary
considers appropriate.''; and
(3) in section 19--
(A) by striking ``horses, mules, or other equines'' and
inserting ``species designated by regulations in effect on
the day before the date of the enactment of the Agriculture,
Rural Development, Food and Drug Administration, and Related
Agencies Appropriations Act, 2006''; and
(B) by striking ``cattle, sheep, swine, or goats'' and
inserting ``other amenable species''.
(b) Effective Date.--The amendments made by subsection (a) shall
take effect on the day after the effective date of section 794 of the
Agriculture, Rural Development, Food and Drug Administration, and
Related Agencies Appropriations Act, 2006.]
[Sec. 799. Public Law 109-54, the Department of the Interior,
Environment, and Related Agencies Appropriations Act, 2006, is amended
as follows:
(1) Under the heading ``National Park Service, Construction''--
(A) by striking ``of which'' after ``$301,291,000, to
remain available until expended,'' and inserting ``and'';
(B) in the sixth proviso, by striking ``hereinafter''
and inserting ``hereafter'' and, after ``Annex'', inserting
the following: ``and the Blue Ridge Parkway Regional
Destination Visitor Center''; and
(C) in the seventh proviso, by striking ``solicitation
and contract'' and inserting ``solicitations and
contracts''.
(2) Under the heading ``National Park Service, Land Acquisition
and State Assistance'' by striking ``$74,824,000'' and inserting
``$64,909,000''.
(3) Under the heading ``Departmental Management, Salaries and
Expenses'' by striking ``$127,183,000'' and inserting
``$117,183,000''.
(4) In title II, under the heading ``Environmental Protection
Agency, State and Tribal Assistance Grants''--
(A) before the period at the end of the first paragraph,
insert ``: Provided further, That of the funds made
available under this heading in division I of Public Law
108-447, $300,000 is for the Haleyville, Alabama, North
Industrial Area Water Storage Tank project: Provided
further, That the referenced statement of the managers under
the heading ``Environmental Protection Agency, State and
Tribal Assistance Grants'' in Public Law 107-73, in
reference to item 184, is deemed to be amended by striking
``$2,000,000'' and inserting ``$29,945'' and by inserting
after ``improvements'' the following: ``, $500,000 to the
City of Sheridan for water system improvements, $500,000 to
Meagher County/Martinsdale Water and Sewer District for
Martinsdale Water System Improvements, and $970,055 to the
City of Bozeman for Hyalite Waterline and Intake''; and
(B) in the second paragraph strike ``original''.
(5) Under the heading ``Forest Service, Land Acquisition'' by
striking ``land that are encumbered'' and all that follows through
``under this section,'' and inserting the following: ``lands that
are encumbered by unpatented claims acquired under this section, or
with previously appropriated funds,''.
(6) At the end of title IV--General Provisions, insert the
following:

``SEC. 440. REDESIGNATION OF WILDERNESS.

``(a) Redesignation.--Section 140(c)(4) of division E of Public Law
108-447 is amended by striking `National'.
``(b) References.--Any reference in a law, map, regulation,
document, paper, or other record of the United States to the `Gaylord A.
Nelson National Wilderness' shall be deemed to be a reference to the
`Gaylord A. Nelson Wilderness'.''.] (Agriculture, Rural Development,
Food and Drug Administration, and Related Agencies Appropriations Act,
2006.)
Sec. 712. 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 2007 are hereby permanently cancelled;
(b) a Wildlife Habitat Incentives Program authorized by 16 U.S.C.
3839bb, et seq., in excess of $55,000,000. Funds exceeding this amount
for fiscal year 2007 are hereby permanently cancelled;
(c) a small Watershed Rehabilitation Program authorized by 16 U.S.C.
1012(h)(1). $65,000,000 of the funds available under such section for
fiscal year 2007 are hereby permanently cancelled;
(d) a Broadband Program authorized by 7 U.S.C. 950bb. Under this
section, of the funds made available under subsection j(1)(A) and funds
for fiscal year 2007 under subsection j(1)(B), $10,000,000 are hereby
permanently cancelled;
(e) a Value-added Grant Program authorized by 7 U.S.C. 1621 note.
$40,000,000 of the funds available under such section for fiscal year
2007 are hereby permanently cancelled;
(f) a Market-access Program authorized by 7 U.S.C. 5641(c), in
excess of $100,000,000. Funds exceeding this amount for fiscal year 2007
are hereby permanently cancelled;
(g) a Farm and Ranch Lands Protection Program authorized by 16
U.S.C. 3838h, in excess of $50,000,000. Funds exceeding this amount for
fiscal year 2007 are hereby permanently cancelled;
(h) 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 2007 are hereby permanently cancelled;
(i) 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 2007 are hereby permanently
cancelled;
(j) a Renewable Energy Systems and Energy Efficiency Improvements
Program authorized by section 9006 of Public Law 107-171. $3,000,000 of
the funds available under such section for fiscal year 2007 are hereby
permanently cancelled; and
(k) a Ground and Surface Water Conservation Program authorized by 16
U.S.C. 3839aa-9, in excess of $51,000,000. Funds exceeding this amount
for fiscal year 2007 are hereby permanently cancelled.
Sec. 713. Section 502(h)(2) of the Housing Act of 1949 is amended to
add the following sentence to the end of the paragraph:
``In addition the lender shall certify that--
``(A) the lender would not otherwise provide a loan to the
borrower absent the guarantee, and
``(B) the lender either--
``(i) does not provide loans under any other federal housing
program, or
``(ii) has determined that the borrower does not qualify for
any other federal housing program that the lender offers that
would serve the borrower's housing needs.''.

[[Page 200]]

Sec. 714. 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 subsection, an `emergency'
is an unanticipated event that requires a necessary expenditure that is
sudden, urgent and unforeseen.''
Sec. 715. Section 10417 of Public Law 107-171 is amended by adding
the following new subsections at the end:
``(d) Preconditions for a Transfer Availability.--Funds may be
transferred to combat emergencies.
``(e) Definitions.--For purposes of this subsection, an `emergency'
is an unanticipated event that requires a necessary expenditure that is
sudden, urgent and unforeseen.''
Sec. 716. In fiscal year 2007 and thereafter, the Commodity Futures
Trading Commission is authorized to collect transaction fees that are
designed to recover the costs to the Government of the supervision and
regulation of commodity futures and options markets and to credit these
fees to the Commodity Futures Trading Commission account as offsetting
collections.
Sec. 717. Section 739 of the Agriculture, Rural Development, Food
and Drug Administration, and Related Agencies Appropriation Act, 2001
(H.R. 5426 as enacted by Public Law 106-387, 115 Stat. 1549A-34) is
amended by striking ``2 percent'' and inserting ``3 percent''.
Sec. 718. Of the unobligated balances available in the High Energy
Cost Grants account, $25,265,000 is hereby cancelled.

[GENERAL PROVISIONS--THIS CHAPTER]

[Sec. 101. Emergency Conservation Program. (a) In General.-- There
is hereby appropriated $199,800,000, to remain available until expended,
to provide assistance under the emergency conservation program
established under title IV of the Agricultural Credit Act of 1978 (16
U.S.C. 2201 et seq.) for expenses resulting from hurricanes that
occurred during the 2005 calendar year.
(b) Assistance to Nursery, Oyster, and Poultry Producers.--In
carrying out this section, the Secretary shall make payments to nursery,
oyster, and poultry producers to pay for up to 90 percent of the cost of
emergency measures to rehabilitate public and private oyster reefs or
farmland damaged by hurricanes that occurred during the 2005 calendar
year, including the cost of--
(1) cleaning up structures, such as barns and poultry houses;
(2) providing water to livestock;
(3) in the case of nursery producers, removing debris, such as
nursery structures, shade-houses, and above-ground irrigation
facilities;
(4) in the case of oyster producers, refurbishing oyster beds;
and
(5) in the case of poultry producers, removing poultry house
debris, including carcasses.
(c) Poultry Recovery Assistance.--
(1) In general.--The Secretary shall not use more than
$20,000,000 of the funds made available under this section to
provide assistance to poultry growers who suffered uninsured losses
to poultry houses in counties affected by hurricanes that occurred
during the 2005 calendar year.
(2) Limitations.--The amount of assistance provided to a poultry
grower under this subsection may not exceed the lesser of--
(A) 50 percent of the total costs associated with the
reconstruction or repair of a poultry house; or
(B) $50,000 for each poultry house.
(3) Limit on amount of assistance.--The total amount of
assistance provided under this subsection, and any indemnities for
losses to a poultry house paid to a poultry grower, may not exceed
90 percent of the total costs associated with the reconstruction or
repair of a poultry house.
(d) Assistance to Private Nonindustrial Forest Landowners.--
(1) Eligibility.--To be eligible to receive a payment under this
section, a private nonindustrial forest landowner shall (as
determined by the Secretary)--
(A) have suffered a loss of, or damage to, at least 35
percent of forest acres on commercial forest land of the forest
landowner in a county affected by hurricanes that occurred
during the 2005 calendar year, or a related condition; and
(B) during the 5-year period beginning on the date of the
loss--
(i) reforest the lost forest acres, in accordance with a
plan approved by the Secretary that is appropriate for the
forest type;
(ii) use best management practices on the forest land of
the landowner, in accordance with the best management
practices of the Secretary for the applicable State; and
(iii) exercise good stewardship on the forest land of
the landowner, while maintaining the land in a forested
state.
(2) Program.--The Secretary shall make payments under this
subsection to private nonindustrial forest landowners to pay for up
to 75 percent of the cost of reforestation, rehabilitation, and
related measures, except that the amount of assistance provided
under this subsection shall not exceed $150 per acre.
(e) Eligibility.--Failure to comply with subtitle C of title XII of
the Food Security Act of 1985 (16 U.S.C. 3821 et seq.) shall not prevent
an agricultural producer from receiving assistance under this section.
(f) Emergency Designation.--The amount provided under this section
is designated as an emergency requirement pursuant to section 402 of H.
Con. Res. 95 (109th Congress), the concurrent resolution on the budget
for fiscal year 2006.
Sec. 102. Emergency Watershed Protection Program. (a) In General.--
There is hereby appropriated $300,000,000, to remain available until
expended, to provide assistance under the emergency watershed protection
program established under section 403 of the Agricultural Credit Act of
1978 (16 U.S.C. 2203) to repair damages resulting from hurricanes that
occurred during the 2005 calendar year.
(b) Assistance.--In carrying out this section, the Secretary shall
make payments to landowners and land users to pay for up to 75 percent
of the cost resulting from damage caused by hurricanes that occurred
during the 2005 calendar year, or a related condition, including the
cost of--
(1) cleaning up structures on private land; and
(2) reimbursing private nonindustrial forest landowners for
costs associated with downed timber removal, except that the amount
of assistance provided under this paragraph shall not exceed $150
per acre.
(c) Notwithstanding any other provision of law, the Secretary,
acting through the Natural Resources Conservation Service, using funds
made available under this section may provide financial and technical
assistance to remove and dispose of debris and animal carcasses that
could adversely affect health and safety on non-Federal land in a
hurricane-related county.
(d) Emergency Designation.--The amount provided under this section
is designated as an emergency requirement pursuant to section 402 of H.
Con. Res. 95 (109th Congress), the concurrent resolution on the budget
for fiscal year 2006.
Sec. 103. Notwithstanding any other provision of law, funds
appropriated under this Act to the Secretary of Agriculture may be used
to reimburse accounts of the Secretary that have been used to pay costs
incurred to respond to damage caused by hurricanes that occurred during
the 2005 calendar year if those costs could have been paid with such
appropriated funds if such costs had arisen after the date of enactment
of this Act.
Sec. 104. Funds provided for hurricanes that occurred during the
2005 calendar year under the headings, ``Rural Housing Insurance Fund''
and ``Rural Housing Assistance Grants'', may be transferred between such
accounts at the Secretary's discretion.
Sec. 105. (a) Notwithstanding any other provision of this title,
with respect to the counties affected by hurricanes in the 2005 calendar
year and for any individuals who resided in such counties at the time of
the disaster the Secretary of Agriculture may, for a 6-month period that
begins upon the date of the enactment of this Act--
(1) convert rental assistance under section 521 of the Housing
Act of 1949 (42 U.S.C. 1490a) allocated for a property that is not
decent, safe, and sanitary because of the disaster into rural
housing vouchers authorized under title V of the Housing Act of
1949;
(2) guarantee loans under section 502(h) of the Housing Act of
1949 (42 U.S.C. 1472(h)) to--
(A) repair and rehabilitate single-family residences; and
(B) refinance any loan made to a single-family resident used
to acquire or construct the single-family residence if such
residence meets the requirements of subparagraphs (A), (B), and
(C) of section 502(h)(4) of the Housing Act of 1949 (42 U.S.C.
1472(h)(4));

[[Page 201]]

(3) waive the application or the rural area or similar
limitations under any program funded through an appropriations act
and administered by the Rural Development Mission Area;
(4) issue housing vouchers under section 542 of the Housing Act
of 1949 (42 U.S.C. 1490r), except that--
(A) notwithstanding the first sentence of subsection (a) of
section 542 of such Act, the Secretary may assist low-income
families and persons whose residence has become uninhabitable or
inaccessible as a result of a 2005 hurricane; and
(B) subsection (b) of such section 542 of such Act shall not
apply;
(5) provide loans, loan guarantees and grants from the Renewable
Energy System and Energy Efficiency Improvements Program authorized
in section 9006 of the Farm Security and Rural Investment Act of
2002 (7 U.S.C. 8106) to any rural business--
(A) with a cost share requirement not to exceed 50 percent;
(B) without regard to any limitation of the grant amount;
and
(C) which may include businesses processing unsegregated
solid waste and paper, as determined by the Secretary;
(6) provide grants under the Value-added Agricultural Product
Market Development Grant Program and Rural Cooperative Development
Grant Program without regard to any grant amount limitations or
matching requirements; and
(7) provide grants under the Community Facilities Grant Program
without regard to any graduated funding requirements, grant amount
limitations or matching requirements.
(b) The funds made available under this section are designated as an
emergency requirement pursuant to section 402 of H. Con. Res. 95 (109th
Congress), the concurrent resolution on the budget for fiscal year 2006.
Sec. 106. Section 759 of the Agriculture, Rural Development, Food
and Drug Administration and Related Agencies Appropriations Act, 2006
(Public Law 109-97) is amended to read as follows:
``Sec. 759. None of the funds appropriated or otherwise made
available under this or any other Act shall be used to pay the salaries
and expenses of personnel to expend more than $12,000,000 of the funds
initially made available for fiscal year 2006 by section 310(a)(2) of
the Biomass Research and Development Act of 2000 (7 U.S.C. 7624
note).''.

SEC. 107. EMERGENCY FORESTRY CONSERVATION RESERVE PROGRAM.

(a) Section 1231 of the Food Security Act of 1985 (16 U.S.C. 3831)
is amended by adding at the end the following:
``(k) Emergency Forestry Conservation Reserve Program.--
``(1) Definitions.--In this subsection:
``(A) Merchantable timber.--The term `merchantable timber'
means timber on private nonindustrial forest land on which the
average tree has a trunk diameter of at least 6 inches measured
at a point no less than 4.5 feet above the ground.
``(B) Private nonindustrial forest land.--The term `private
nonindustrial forest land' includes State school trust land.
``(2) Program.--During calendar year 2006, the Secretary shall
carry out an emergency pilot program in States that the Secretary
determines have suffered damage to merchantable timber in counties
affected by hurricanes during the 2005 calendar year.
``(3) Eligible acreage.--
``(A) In general.--Subject to subparagraph (B) and the
availability of funds under subparagraph (G), an owner or
operator may enroll private nonindustrial forest land in the
conservation reserve under this subsection.
``(B) Determination of damages.--Eligibility for enrollment
shall be limited to owners and operators of private
nonindustrial forest land that have experienced a loss of 35
percent or more of merchantable timber in a county affected by
hurricanes during the 2005 calendar year.
``(C) Exemptions.--Acreage enrolled in the conservation
reserve under this subsection shall not count toward--
``(i) county acreage limitations described in section
1243(b); or
``(ii) the maximum enrollment described in subsection
(d).
``(D) Duties of owners and operators.--As a condition of
entering into a contract under this subsection, during the term
of the contract, the owner or operator of private nonindustrial
forest land shall agree--
``(i) to restore the land, through site preparation and
planting of similar species as existing prior to hurricane
damages or to the maximum extent practicable with other
native species, as determined by the Secretary; and
``(ii) to establish temporary vegetative cover the
purpose of which is to prevent soil erosion on the eligible
acreage, as determined by the Secretary.
``(E) Duties of the secretary.--
``(i) In general.--In return for a contract entered into
by an owner or operator of private nonindustrial forest land
under this subsection, the Secretary shall provide, at the
option of the landowner--
``(I) notwithstanding the limitation in section 1234(f)(1),
a lump sum payment; or
``(II) annual rental payments.
``(ii) Calculation of lump sum payment.--The lump sum
payment described in clause (i)(I) shall be calculated using
a net present value formula, as determined by the Secretary,
based on the total amount a producer would receive over the
duration of the contract.
``(iii) Calculation of annual rental payments.--The
annual rental payment described in clause (i)(II) shall be
equal to the average rental rate for conservation reserve
contracts in the county in which the land is located.
``(iv) Rolling signup.--The Secretary shall offer a
rolling signup for contracts under this subsection.
``(v) Duration of contracts.--A contract entered into
under this subsection shall have a term of 10 years.
``(F) Balance of natural resources.--In determining the
acceptability of contract offers under this subsection, the
Secretary shall consider an equitable balance among the purposes
of soil erosion prevention, water quality improvement, wildlife
habitat restoration, and mitigation of economic loss.
``(G) Funding.--The Secretary shall use $404,100,000, to
remain available until expended, of funds of the Commodity
Credit Corporation to carry out this subsection.
``(H) Determinations by secretary.--A determination made by
the Secretary under this subsection shall be final and
conclusive.
``(I) Regulations.--
``(i) In general.--Not later than 90 days after the date
of enactment of this Act, the Secretary shall promulgate
such regulations as are necessary to implement this
subsection.
``(ii) Procedure.--The promulgation of regulations and
administration of this subsection shall be made without
regard to--
``(I) the notice and comment provisions of section 553 of
title 5, United States Code;
``(II) 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
``(III) chapter 35 of title 44, United States Code (commonly
known as the `Paperwork Reduction Act').
``(iii) Congressional review of agency rulemaking.--In
carrying out this subsection, the Secretary shall use the
authority provided under section 808 of title 5, United
States Code.''.
(b) Emergency Designation.--The amount provided under this section
is designated as an emergency requirement pursuant to section 402 of H.
Con. Res. 95 (109th Congress), the concurrent resolution on the budget
for fiscal year 2006.] (Emergency Supplemental Appropriations Act to
Address Hurricanes in the Gulf of Mexico and Pandemic Influenza, 2006.)