[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)

----------------------------------------------------------------------------
Identification code 12-9913-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-9913-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-8203-0-7-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

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

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

----------------------------------------------------------------------------
Identification code 12-0705-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0705-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-0014-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0014-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................           3           4           4
12.1    Civilian personnel benefits.....           1           1           1
25.2    Other services..................           1           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)

----------------------------------------------------------------------------
Identification code 12-0013-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0013-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

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

      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)

----------------------------------------------------------------------------
Identification code 12-4609-0-4-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4609-0-4-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-3800-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-3800-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-0120-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0120-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-0500-0-1-304      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0117-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0117-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................           7           8           8
12.1    Civilian personnel benefits.....           1           1           1
23.1    Rental payments to GSA..........         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)

----------------------------------------------------------------------------
Identification code 12-0150-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0150-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-0900-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0900-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-2300-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-2300-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1701-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1701-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1801-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1801-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1400-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1400-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1401-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-8214-0-7-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

----------------------------------------------------------------------------
Identification code 12-8214-0-7-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................         109         109         109
---------------------------------------------------------------------------

                                


 
      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)

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

    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)

----------------------------------------------------------------------------
Identification code 12-1500-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1500-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-0502-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0502-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-0601-0-1-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1600-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1600-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1600-2-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1600-2-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1601-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-9971-0-7-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-9971-0-7-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      Personnel compensation:

11.1    Full-time permanent.............           6           5           5
11.5    Other personnel compensation....           1           1           1
                                           ---------   ---------  ----------
11.9      Total personnel compensation..           7           6           6
12.1  Civilian personnel benefits.......           2           3           3
21.0  Travel and transportation of 
        persons.........................           2           2           2
25.2  Other services....................           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)

----------------------------------------------------------------------------
Identification code 12-3700-0-1-554      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-3700-0-1-554      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-3700-2-1-554      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-3700-2-1-554      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-8137-0-7-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

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

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

----------------------------------------------------------------------------
Identification code 12-8137-0-7-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-2400-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

----------------------------------------------------------------------------
Identification code 12-2400-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................         322         322         168
---------------------------------------------------------------------------

                          Salaries and Expenses

              (Legislative proposal, not subject to PAYGO)

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

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-2400-2-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

----------------------------------------------------------------------------
Identification code 12-2400-2-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................                                 154
---------------------------------------------------------------------------

                                

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)

----------------------------------------------------------------------------
Identification code 12-4050-0-3-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    Obligations by program activity:
09.00 Reimbursable program..............          37          42          42
                                           ---------   ---------  ----------
10.00   Total new obligations...........          37          42          42
----------------------------------------------------------------------------

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

----------------------------------------------------------------------------
Identification code 12-4050-0-3-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-2500-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-2500-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-2500-2-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-2500-4-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-5070-0-2-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-5209-0-2-605      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-5209-0-2-605      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-8015-0-7-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-8015-0-7-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-8412-0-8-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

----------------------------------------------------------------------------
Identification code 12-8412-0-8-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------
    Reimbursable:
2001  Civilian full-time equivalent 
        employment......................         422
---------------------------------------------------------------------------

                                


 
                         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)

----------------------------------------------------------------------------
Identification code 12-2707-0-1-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-2707-0-1-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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

1

1





1999

Total assets

3,731

2,971

    LIABILITIES:
2105

Federal liabilities: Other

3

1

      Non-Federal liabilities:

2201

Accounts payable

82

14

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)

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

      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)

----------------------------------------------------------------------------
Identification code 12-0600-0-1-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0600-0-1-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-0600-2-1-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1140-0-1-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1140-0-1-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------
25.3  Other purchases of goods and 
        services from Government 
        accounts........................         299         311         320
41.0  Grants, subsidies, and 
        contributions...................         310         343         122
                                           ---------   ---------  ----------
99.9    Total new obligations...........         609         654         442
---------------------------------------------------------------------------

[[Page 106]]



                                

    Agricultural Credit Insurance Fund Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4212-0-3-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

5

3

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)

----------------------------------------------------------------------------
Identification code 12-4213-0-3-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

7

7

1206

Non-Federal assets: Receivables, net

2

3

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

1501

Defaulted guaranteed loans receivable, gross

15

25

1502

Interest receivable

-2

-2

1505

Allowance for subsidy cost (-)

-12

-18





1599

Net present value of assets related to defaulted guaranteed loans

1

5





1999

Total assets

554

565

    LIABILITIES:
      Federal liabilities:

2104

Resources payable to Treasury

3

13

2105

Other

38

213

      Non-Federal liabilities:

2201

Accounts payable

351

313

2204

Liabilities for loan guarantees

162

26





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)

----------------------------------------------------------------------------
Identification code 12-4140-0-3-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

68

52

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

82

1606

Foreclosed property

28

21





1699

Value of assets related to direct loans

3,014

2,509

1701

Defaulted guaranteed loans, gross



9





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

5

1

2204

Liabilities for loan guarantees

2

2

2207

Other

6







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)

----------------------------------------------------------------------------
Identification code 12-4336-0-3-999      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

3

1

      Non-Federal assets:

1206

Receivables, net

439

357

1207

Advances and prepayments

35

28

      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

88

17

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



59

1802

Inventories and related properties

141

29

1803

Property, plant and equipment, net

48

52





1999

Total assets

2,822

2,165

    LIABILITIES:
      Federal liabilities:

2101

Accounts payable

1,037

814

2102

Interest payable

72

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)

----------------------------------------------------------------------------
Identification code 12-4336-0-3-999      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1336-0-1-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4337-0-3-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

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

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

                             Balance Sheet (in millions of dollars)

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

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

27

24

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



6





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)

----------------------------------------------------------------------------
Identification code 12-4338-0-3-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------
    Addendum:
      Cumulative balance of defaulted guaranteed 
          loans that result in loans receivable:

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

67

8

      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

21

15

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



3

2104

Resources payable to Treasury

2,586

1,294

2207

Non-Federal liabilities: Other

7

5





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)

----------------------------------------------------------------------------
Identification code 12-3301-0-1-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4158-0-3-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

66

76

        Investments in US securities:
1106

Receivables, net

14

3

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

1401

Direct loans receivable, gross

187

210

1402

Interest receivable

3

22

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

5

4





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)

----------------------------------------------------------------------------
Identification code 12-3303-0-1-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4221-0-3-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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



1

        Investments in US securities:
1106

Receivables, net



3

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

1401

Direct loans receivable, gross

10

10

1405

Allowance for subsidy cost (-)

-7

-10





1499

Net present value of assets related to direct loans

3







1999

Total assets

3

4

    LIABILITIES:
2103

Federal liabilities: Debt

3

4





2999

Total liabilities

3

4





4999

Total liabilities and net position

3

4

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

                                

                           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)

----------------------------------------------------------------------------
Identification code 12-8161-0-7-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1000-0-1-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1000-0-1-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1004-0-1-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1004-0-1-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1066-0-1-301      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1066-0-1-301      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1072-0-1-301      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1072-0-1-301      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1002-0-1-301      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1002-0-1-301      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1010-0-1-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1010-0-1-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1003-0-1-271      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1090-0-1-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

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

    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..................          -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.
----------------------------------------------------------------------------

    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:
                                           ---------   ---------  ----------
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.
----------------------------------------------------------------------------

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

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

----------------------------------------------------------------------------
Identification code 12-2086-0-1-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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.

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

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4177-0-3-351

2004 actual

2005 actual

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

1101

Fund balances with Treasury

1

1

        Investments in US securities:
1106

Receivables, net



1





1999

Total assets

1

2

    LIABILITIES:
      Federal liabilities:

2104

Resources payable to Treasury

1

1

2105

Other



1





2999

Total liabilities

1

2





4999

Total liabilities and net position

1

2

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

                                

  

                               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)

----------------------------------------------------------------------------
Identification code 12-8210-0-7-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

----------------------------------------------------------------------------
Identification code 12-8210-0-7-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------
    Direct:
1001  Civilian full-time equivalent 
        employment......................           1           1           1
---------------------------------------------------------------------------

                                


 
                            RURAL DEVELOPMENT

                              Federal Funds

General and special funds:

                          Salaries and Expenses

                     (including transfers of funds)

    For necessary expenses for carrying out the administration and 
implementation of programs in the Rural Development mission area, 
including activities with institutions concerning the development and 
operation of agricultural cooperatives; and for cooperative agreements; 
[$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)

----------------------------------------------------------------------------
Identification code 12-0403-0-1-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-0403-0-1-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-0400-0-1-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

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

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

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

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

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

    The 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)

----------------------------------------------------------------------------
Identification code 12-1953-0-1-604      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4269-0-3-604      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1954-0-1-604      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-2002-0-1-604      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4225-0-3-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

27

13

        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

20

22

1404

Foreclosed property

2

1

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

8

16





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)

----------------------------------------------------------------------------
Identification code 12-4228-0-3-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

6

10

        Investments in US securities:
1106

Receivables, net

15

15





1999

Total assets

21

25

    LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

14

13

2204

Non-Federal liabilities: Liabilities for loan guarantees

7

12





2999

Total liabilities

21

25





4999

Total liabilities and net position

21

25

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

                                

              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)

----------------------------------------------------------------------------
Identification code 12-2081-0-1-371      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4215-0-3-371      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

14

-77

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

1401

Direct loans receivable, gross

12,451

12,761

1402

Interest receivable

69

132

1404

Foreclosed property

23

18

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

8





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)

----------------------------------------------------------------------------
Identification code 12-4216-0-3-371      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

34

29





1999

Total assets

461

546

    LIABILITIES:
      Non-Federal liabilities:

2204

Liabilities for loan guarantees

440

545

2207

Other

21

1





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)

----------------------------------------------------------------------------
Identification code 12-4141-0-3-371      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

17

13





1699

Value of assets related to direct loans

7,530

7,187

1901

Other Federal assets: Other assets

85

94





1999

Total assets

7,855

7,441

    LIABILITIES:
      Federal liabilities:

2102

Interest payable

36

1

2103

Debt

680

1

2104

Resources payable to Treasury

7,055

7,347

      Non-Federal liabilities:

2203

Debt

1



2204

Liabilities for loan guarantees

81

1

2207

Other

2

91





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)

----------------------------------------------------------------------------
Identification code 12-4223-0-3-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

44

7

        Investments in US securities:
1106

Receivables, net



-6

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

1401

Direct loans receivable, gross

89

83

1402

Interest receivable

7

7

1405

Allowance for subsidy cost (-)

-78

-75





1499

Net present value of assets related to direct loans

18

15





1999

Total assets

62

16

    LIABILITIES:
      Federal liabilities:

2104

Resources payable to Treasury

62

15

2105

Other



1





2999

Total liabilities

62

16





4999

Total liabilities and net position

62

16

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

                                

     Rural Business and Industry Guaranteed Loans Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4227-0-3-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

1

8

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)

----------------------------------------------------------------------------
Identification code 12-2069-0-1-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4219-0-3-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

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

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

    This account finances loans to intermediary borrowers, who in turn 
relend the funds to small rural businesses, community

[[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

13

13

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

1401

Direct loans receivable, gross

359

379

1402

Interest receivable

2

2

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)

----------------------------------------------------------------------------
Identification code 12-4233-0-3-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

1

1

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

1601

Direct loans, gross

55

52

1603

Allowance for estimated uncollectible loans and interest (-)

-27

-25





1604

Direct loans and interest receivable, net

28

27





1699

Value of assets related to direct loans

28

27





1999

Total assets

29

28

    LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

29

28





2999

Total liabilities

29

28





4999

Total liabilities and net position

29

28

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

                                

            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)

----------------------------------------------------------------------------
Identification code 12-3108-0-1-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4176-0-3-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

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

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

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4176-0-3-452

2004 actual

2005 actual

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

Federal assets: Fund balances with Treasury

4

2

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

1401

Direct loans receivable, gross

75

73

1405

Allowance for subsidy cost (-)

-8

-5





1499

Net present value of assets related to direct loans

67

68





1999

Total assets

71

70

    LIABILITIES:
      Federal liabilities:

2104

Resources payable to Treasury

70

69

2105

Other

1

1





2999

Total liabilities

71

70





4999

Total liabilities and net position

71

70

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

[[Page 152]]



                                

               Rural Business Investment Programs Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-1907-0-1-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4033-0-3-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1908-0-1-451      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4267-0-3-451      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4226-0-3-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

64

72

        Investments in US securities:
1106

Receivables, net

9

-1

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

1401

Direct loans receivable, gross

6,009

6,639

1402

Interest receivable

65

67

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

14

50





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)

----------------------------------------------------------------------------
Identification code 12-4218-0-3-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

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

    As required by the Federal Credit Reform Act of 1990, this non-
budgetary account records all cash flows to and from the Government 
resulting from guaranteed loans committed in 1992 and beyond. The 
amounts in this account are a means of financing and are not included in 
the budget totals. Loans made prior to 1992 are recorded in the Rural 
Development Insurance Fund Liquidating Account.

    This account finances loan guarantee commitments for water systems, 
and waste disposal facilities in rural areas.

                                

   Rural Electrification and Telecommunications Loans Program Account

                      (including transfer of funds)

    Insured loans pursuant to the authority of section 305 of the Rural 
Electrification Act of 1936 (7 U.S.C. 935) shall be made as follows: 5 
percent rural electrification loans, [$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)

----------------------------------------------------------------------------
Identification code 12-1230-0-1-271      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1230-0-1-271      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------
25.3  Other purchases of goods and 
        services from Government 
        accounts........................          38          39          39
41.0  Grants, subsidies, and 
        contributions...................         242          14           4
                                           ---------   ---------  ----------
99.9    Total new obligations...........         280          53          43
---------------------------------------------------------------------------

                                

   Rural Electrification and Telecommunications Direct Loan Financing 
                                 Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4208-0-3-271      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

89

17

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

1401

Direct loans receivable, gross

14,675

17,858

1402

Interest receivable

4

2

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

19

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

99

        Investments in US securities:
1106

Receivables, net

24

6

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

1401

Direct loans receivable, gross

1,844

1,987

1402

Interest receivable

1

1

1405

Allowance for subsidy cost (-)

-10

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

20

28





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

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

    This account finances loan guarantee commitments.

                                

    Rural Electrification and Telecommunications Liquidating Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4230-0-3-999      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

28

26

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

67

83





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

9

9

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

4

1,416





2999

Total liabilities

2,278

3,561

    NET POSITION:
3300

Cumulative results of operations

10

420





3999

Total net position

10

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)

----------------------------------------------------------------------------
Identification code 12-4230-0-3-999      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------
25.2  Other services....................         139          89          82
33.0  Investments and loans.............                      13          13
43.0  Interest and dividends............         713       2,136         686
                                           ---------   ---------  ----------
99.9    Total new obligations...........         852       2,238         781
---------------------------------------------------------------------------

                                

                  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)

----------------------------------------------------------------------------
Identification code 12-1231-0-1-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1231-0-1-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------
25.2  Other services....................           3           3
41.0  Grants, subsidies, and 
        contributions...................           2
                                           ---------   ---------  ----------
99.9    Total new obligations...........           5           3
---------------------------------------------------------------------------

                                

           Rural Telephone Bank Direct Loan Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4210-0-3-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

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

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

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4210-0-3-452

2004 actual

2005 actual

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

1101

Fund balances with Treasury

11

13

        Investments in US securities:
1106

Receivables, net

1

1

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

1401

Direct loans receivable, gross

374

356

1405

Allowance for subsidy cost (-)

-6

10





1499

Net present value of assets related to direct loans

368

366





1999

Total assets

380

380

    LIABILITIES:
      Federal liabilities:

2103

Debt

343

336

2105

Other

37

44





2999

Total liabilities

380

380





4999

Total liabilities and net position

380

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)

----------------------------------------------------------------------------
Identification code 12-1232-0-1-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4146-0-3-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

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

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

                             Balance Sheet (in millions of dollars)

-----------------------------------------------------------------------------------------------
Identification code   12-4146-0-3-452

2004 actual

2005 actual

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

Federal assets: Fund balances with Treasury

7

5

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

1401

Direct loans receivable, gross

131

190

1402

Interest receivable

3

2

1405

Allowance for subsidy cost (-)



3





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)

----------------------------------------------------------------------------
Identification code 12-4155-0-3-452      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

24

1201

Non-Federal assets: Investments in non-Federal securities, net

34

34

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

1601

Direct loans, gross

2,125

1,931

1602

Interest receivable

32

29

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

5

3





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

14



2204

Liabilities for loan guarantees

5

2

2207

Other

7







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

3

3

1602

Interest receivable

1

1

1603

Allowance for estimated uncollectible loans and interest (-)

-1

-1





1604

Direct loans and interest receivable, net

3

3





1699

Value of assets related to direct loans

3

3





1999

Total assets

3

3

    LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

3

3





2999

Total liabilities

3

3





4999

Total liabilities and net position

3

3

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

[[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)

----------------------------------------------------------------------------
Identification code 12-2900-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-2900-0-1-352      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-2903-0-1-151      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-2278-0-1-151      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-2277-0-1-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-2277-0-1-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------
25.3  Other purchases of goods and 
        services from Government 
        accounts........................           4           3           3
41.0  Grants, subsidies, and 
        contributions...................         101         174          10
                                           ---------   ---------  ----------
99.9    Total new obligations...........         105         177          13
---------------------------------------------------------------------------

                                

                P.L. 480 Direct Credit Financing Account

               Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
Identification code 12-4049-0-3-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

50

43

      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

78

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

63

413

2102

Interest payable

79

43

2103

Debt

46

42

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)

----------------------------------------------------------------------------
Identification code 12-4143-0-3-351      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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



34

        Investments in US securities:
1106

Receivables, net

46

134

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

1401

Direct loans receivable, gross

525

521

1402

Interest receivable

18

22

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

96

82

2102

Interest payable



19

2104

Resources payable to Treasury



246

2105

Other

94

1





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)

----------------------------------------------------------------------------
Identification code 12-2274-0-1-151      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

60

43

      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)

----------------------------------------------------------------------------
Identification code 12-3508-0-1-605      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-3508-0-1-605      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-3505-0-1-605      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-3505-0-1-605      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      Direct obligations:

11.1    Personnel compensation: Full-
          time permanent................           6           6           6
12.1    Civilian personnel benefits.....           1           1           1
21.0    Travel and transportation of 
          persons.......................           2           2           2
23.3    Communications, utilities, and 
          miscellaneous charges.........           3           3           3
24.0    Printing and reproduction.......           2           2           2
25.2    Other services..................          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)

----------------------------------------------------------------------------
Identification code 12-3539-0-1-605      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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

----------------------------------------------------------------------------
Identification code 12-3539-0-1-605      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------
1001  Civilian full-time equivalent 
        employment......................         156         164         155
---------------------------------------------------------------------------

                                

                        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)

----------------------------------------------------------------------------
Identification code 12-3510-0-1-605      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-3507-0-1-605      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1106-0-1-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1106-0-1-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1103-0-1-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1103-0-1-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1104-0-1-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1104-0-1-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1105-0-1-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1105-0-1-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-1119-0-1-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1115-0-1-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-1115-0-1-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-5207-0-2-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-9923-0-2-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-9923-0-2-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-9921-0-2-999      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-9921-0-2-999      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-4605-0-4-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-4605-0-4-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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)

----------------------------------------------------------------------------
Identification code 12-9974-0-7-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

    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)

----------------------------------------------------------------------------
Identification code 12-9974-0-7-302      2005 actual   2006 est.   2007 est.
----------------------------------------------------------------------------

      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

[[Page 196]]

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

[[Page 197]]

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.)
