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

                         THE BUDGET FOR FISCAL YEAR 2008

    [[Page 55]]

                            DEPARTMENT OF AGRICULTURE

                             OFFICE OF THE SECRETARY

                                  Federal Funds

                             Office of the Secretary

         For necessary expenses of the Office of the Secretary of
    Agriculture, $18,355,000: Provided, That not to exceed $11,000 of this
    amount shall be available for official reception and representation
    expenses, not otherwise provided for, as determined by the Secretary.

               Office of the Assistant Secretary for Administration

         For necessary salaries and expenses of the Office of the Assistant
    Secretary for Administration, $739,000.

          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, $4,099,000: 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 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,
    $654,000.

       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; $792,000.

                  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, $659,000.

         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, $695,000.

       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, $822,000.

               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, $695,000.

     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,
    $655,000.

                Office of the Assistant Secretary for Civil Rights

         For necessary salaries and expenses of the Office of the Assistant
    Secretary for Civil Rights, $897,000.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9913-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Office of the Secretary...........           5           4          16
    00.02 Under/Assistant Secretaries.......          11          10          11
    00.03 Trade negotiations and
            biotechnology resources.........           1           1           2
    00.04 Info share (CCE/HS)...............           3
    00.05 Avian influenza supplemental......           4
    09.01 Homeland security reimbursable....          11          11          11
    09.02 Reimbursable program..............           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          38          29          43
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           6           6
    22.00 New budget authority (gross)......          40          29          43
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          45          35          49
    23.95 Total new obligations.............         -38         -29         -43
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           6           6           6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          26          15          29
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).           8          14          14
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           6
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......          14          14          14
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          40          29          43
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           5           8
    73.10 Total new obligations.............          38          29          43
    73.20 Total outlays (gross).............         -27         -26         -43
    73.40 Adjustments in expired accounts
            (net)...........................           1
    73.45 Recoveries of prior year
            obligations.....................          -3
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -6
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           5           8           8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          27          25          39
    86.93 Outlays from discretionary
            balances........................                       1           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          27          26          43
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -9         -14         -14

    [[Page 56]]

          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -6
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          26          15          29
    90.00 Outlays...........................          18          12          29
    ---------------------------------------------------------------------------

        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 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.
    Additional funding is also proposed for the expenses of the Provincial
    Reconstruction Teams in Iraq and Afghanistan. USDA continues to support
    the agricultural reconstruction and development in these countries by
    providing agricultural advisors to assist on activities such as
    irrigation system rehabilitation, post-harvest loss reduction, and
    marketing system improvements. USDA has placed advisors in the Ministry
    of Agriculture in Iraq to assist agriculture planning, extension, and
    food safety and inspection.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9913-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           7           9          10
    12.1    Civilian personnel benefits.....           2           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           1
    25.2    Other services..................          15           4          17
                                               ---------   ---------  ----------
    99.0      Direct obligations............          25          15          29
    99.0  Reimbursable obligations..........          11          14          14
    99.5  Below reporting threshold.........           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          38          29          43
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-9913-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................          84          87          87
    ---------------------------------------------------------------------------

                              Fund for Rural America

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0012-0-1-999      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Change in obligated balances:
    72.40 Obligated balance, start of year..           1
    73.20 Total outlays (gross).............          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.60 Gifts and bequests, Departmental
            Administration..................           1           1           1
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           1           1           1
        Appropriations:
    05.00 Gifts and bequests................          -1          -1          -1
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8203-0-7-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Gifts and bequests................           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 99.5)...................           1           1           1
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Mandatory:

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

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

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

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

        The Secretary is authorized to accept and administer gifts and
    bequests of real and personal property to facilitate the work of the
    Department. Property and the proceeds thereof are used in accordance
    with the terms of the gift or bequest (7 U.S.C. 2269).

                              EXECUTIVE OPERATIONS

                                  Federal Funds

                               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 author

    [[Page 57]]

    ized by the Agricultural Marketing Act of 1946 (7 U.S.C. 1622g),
    $11,347,000.

                            National Appeals Division

         For necessary expenses of the National Appeals Division,
    $15,056,000.

                      Office of Budget and Program Analysis

         For necessary expenses of the Office of Budget and Program
    Analysis, $9,035,000.

                             Homeland Security Staff

         For necessary expenses of the Homeland Security Staff, $2,412,000.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0705-0-1-352      2006 actual   2007 est.   2008 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           9
    00.05 Homeland Security Staff...........           1           1           2
    09.01 Reimbursable program..............           2           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          37          36          39
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          38          36          39
    23.95 Total new obligations.............         -37         -36         -39
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          34          34          37
    58.10   Spending authority from
              offsetting collections: Change
              in uncollected customer
              payments from Federal sources
              (unexpired)...................           2
          Mandatory:

    62.00   Transferred from other accounts.           2           2           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          38          36          39
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           8          12          13
    73.10 Total new obligations.............          37          36          39
    73.20 Total outlays (gross).............         -35         -35         -39
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -2
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           4
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          12          13          13
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          27          30          33
    86.93 Outlays from discretionary
            balances........................           6           3           4
    86.97 Outlays from new mandatory
            authority.......................           2           2           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          35          35          39
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -2
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           2
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          36          36          39
    90.00 Outlays...........................          33          35          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

                                         2006 actual  2007 est.   2008 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 coordinates the
    preparation of departmental budget estimates and legislative reports;
    administers systems for the allotment and apportionment of funds;
    provides policy, program and budgetary analysis of United States
    Department of Agriculture (USDA) programs and proposals; and provides
    staff assistance to USDA agencies in meeting their responsibility for
    the development and review of regulations.

        The Homeland Security Staff formulates emergency preparedness
    policies and objectives for 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
    intelligence activities.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0705-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          21          23          24
    12.1    Civilian personnel benefits.....           5           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..................           6           4           6
    26.0    Supplies and materials..........           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          35          35          38
    99.0  Reimbursable obligations..........           2           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          37          36          39
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-0705-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         219         240         252
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................           3           5           4
    ---------------------------------------------------------------------------

                      Office of the Chief Financial Officer

         For necessary expenses of the Office of the Chief Financial
    Officer, $30,863,000, of which $24,787,000 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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution

    [[Page 58]]

    (P.L. 109-289, Division B, as amended). The amounts included for 2007 in
    this budget reflect the levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0014-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Office of the Chief Financial
            Officer.........................           6           6          31
    09.01 Reimbursable......................           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           9           9          34
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          10          11          36
    23.95 Total new obligations.............          -9          -9         -34
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           6           6          31
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).                       5           5
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           4
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......           4           5           5
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          10          11          36
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -3                      -2
    73.10 Total new obligations.............           9           9          34
    73.20 Total outlays (gross).............         -10         -11         -34
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -4
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           8
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                      -2          -2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           6          11          34
    86.93 Outlays from discretionary
            balances........................           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          10          11          34
    ----------------------------------------------------------------------------

        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)...................          -4
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           6           6          31
    90.00 Outlays...........................           5           6          29
    ---------------------------------------------------------------------------

        The Secretary established the Office of the Chief Financial Officer
    (OCFO) in 1995 under authority provided in Reorganization Plan Number 2
    of 1953 (7 U.S.C. 2201) to comply with the CFO Act of 1990. OCFO focuses
    on the Department's financial and performance management activities to
    improve program delivery and assure maximum contribution to the
    Secretary's Strategic Goals.

        Funding is requested to implement the Financial Management
    Modernization Initiative (FMMI) for the Department. Through FMMI, USDA
    will replace outdated mainframe technology with a modern, interactive
    core financial system which will strengthen the Departments internal
    controls, eliminate material weaknesses, and diminish improper payments.
    By consolidating several systems from across the Department, FMMI will
    allow for improved financial management and functional capability for
    USDA.

                              PERFORMANCE MEASURES

                                         2006 actual  2007 est.   2008 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           4           4           4
    12.1    Civilian personnel benefits.....           1           1           1
    25.2    Other services..................           1           1          26
                                               ---------   ---------  ----------
    99.0      Direct obligations............           6           6          31
    99.0  Reimbursable obligations..........           3           3           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           9           9          34
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-0014-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................          38          38          38
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................          17          17          17
    ---------------------------------------------------------------------------

                     Office of the Chief Information Officer

         For necessary expenses of the Office of the Chief Information
    Officer, $17,024,000.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0013-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Office of the Chief Information
            Officer.........................          16          16          17
    09.01 Reimbursable program..............          55          55          55
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          71          71          72
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          91          71          72
    23.95 Total new obligations.............         -71         -71         -72
    23.98 Unobligated balance expiring or
            withdrawn.......................         -21
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          16          16          17
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).          18          55          55
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          57
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......          75          55          55
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          91          71          72
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2         -29         -29
    73.10 Total new obligations.............          71          71          72
    73.20 Total outlays (gross).............         -67         -71         -72
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -57
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          23
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         -29         -29         -29
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          43          71          72
    86.93 Outlays from discretionary
            balances........................          24
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          67          71          72
    ----------------------------------------------------------------------------

    [[Page 59]]

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -41         -55         -55
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -57
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          23
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          16          16          17
    90.00 Outlays...........................          26          16          17
    ---------------------------------------------------------------------------

        The Clinger-Cohen Act of 1996 required the establishment of a Chief
    Information Officer (CIO) for all major Federal agencies. The Act
    requires USDA to maximize the value of information technology
    acquisitions to improve the efficiency and effectiveness of USDA
    programs. To meet the intent of the law and to provide a Departmental
    focus for information resources management issues, Secretary's
    Memorandum 1030-30, dated August 8, 1996, established the Office of the
    Chief Information Officer (OCIO). The CIO serves as the primary advisor
    to the Secretary and Mission Area Heads on information technology
    issues. OCIO provides leadership for the Department's information and
    information technology (IT) management activities in support of USDA
    program delivery.

        OCIO is leading USDA's efforts to transform the Department's
    delivery of information, programs, and services using integrated
    services that simplify citizen's interaction with their Government. OCIO
    is designing the Department's Enterprise Architecture to efficiently
    support USDA's move towards consolidation and standardization. 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 that they
    economically and effectively support program delivery.

        In addition, OCIO is coordinating the Departments participation in
    21 Presidential E-Government initiatives and 8 Lines of Business to
    support the President's Management Agenda goal to expand E-Government.
    Through these activities, the Department is transforming and enhancing
    its program delivery while improving the availability of information to
    the public.

        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. Direct ADP services are provided to the
    Office of the Secretary, Office of the General Counsel, Office of
    Communications, Office of the Chief Financial Office, and Executive
    Operations.

        OCIO also has direct management responsibility for the IT component
    of the Service Center Modernization Initiative. 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.....................           N.A.             5%              5%
    Percent of USDA IT systems
    that are certified,
    accredited, or otherwise
    authorized as being properly
    secured.......................           100%           100%            100%
    Percent of identified
    population that completed
    annual security awareness
    refresher training............            90%            90%             90%
    Number of program security
    reviews completed.............              8              8               8
    Through the use of Earned
    Value Management (EVM),
    increase the percentage of
    USDA IT projects that are
    within 10% of cost/schedule/
    performance objectives........           100%           100%            100%

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0013-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           7           7           7
    12.1    Civilian personnel benefits.....           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           7           7           8
                                               ---------   ---------  ----------
    99.0      Direct obligations............          16          16          17
    99.0  Reimbursable obligations..........          55          55          55
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          71          71          72
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-0013-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................          66          66          66
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................           3           3           3
    ---------------------------------------------------------------------------

                           Common Computing Environment

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0113-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Common computing environment......         110          45
    09.01 Reimbursable program..............          21          21           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         131          66           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          14          27          10
    22.00 New budget authority (gross)......         118          49           5
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          26
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         158          76          15
    23.95 Total new obligations.............        -131         -66          -5
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          27          10          10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         110          38
    40.35   Appropriation permanently
              reduced.......................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         109          38
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).          11          11           5
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -2
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......           9          11           5
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         118          49           5
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          64          18          15
    73.10 Total new obligations.............         131          66           5
    73.20 Total outlays (gross).............        -153         -69         -20
    73.45 Recoveries of prior year
            obligations.....................         -26
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          18          15
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          97          49           5
    86.93 Outlays from discretionary
            balances........................          56          20          15
                                               ---------   ---------  ----------

    [[Page 60]]

    87.00   Total outlays (gross)...........         153          69          20
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -11         -11          -5
          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..................         109          38
    90.00 Outlays...........................         142          58          15
    ---------------------------------------------------------------------------

        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)
    created the common computing environment (CCE) to optimize information
    sharing, customer service, and staff efficiencies. The funds provided
    under this account fund essential capital investments. Without these
    investments, the Department's ability to provide timely and efficient
    services will continue to erode. A reorganization that combines the
    information technology (IT) staffs of the Service Center Agencies (SCA)
    into one IT organization with OCIO went into effect on November 28,
    2004. The organization, the Information Technology Services (ITS),
    replaced 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. For
    2008, funding for this account is being requested through the individual
    agencies.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0113-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    23.3    Communications, utilities, and
              miscellaneous charges.........           2
    25.2    Other services..................          36          45
    25.3    Other purchases of goods and
              services from Government
              accounts......................          30
    26.0    Supplies and materials..........          20
    31.0    Equipment.......................          22
                                               ---------   ---------  ----------
    99.0      Direct obligations............         110          45
    99.0  Reimbursable obligations..........          21          21           5
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         131          66           5
    ---------------------------------------------------------------------------

                               Working Capital Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4609-0-4-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    09.01 Administration....................          33          28          28
    09.02 Communications....................           8           7           7
    09.03 Finance and management............         210         180         190
    09.04 Information technology............         311         277         283
    09.05 Executive secretariat.............           3           3           3
    09.06 Corporate systems.................          56          70          75
                                               ---------   ---------  ----------
    09.09   Subtotal, operating expenses....         621         565         586
    09.12 Finance and management............          16           4           6
    09.13 Information technology............                       8           6
    09.15 Corporate systems.................           9           3           5
                                               ---------   ---------  ----------
    09.19   Subtotal, purchase of equipment.          25          15          17
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         646         580         603
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          98          93         109
    22.00 New budget authority (gross)......         637         596         588
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
    22.22 Unobligated balance transferred
            from other accounts.............           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         739         689         697
    23.95 Total new obligations.............        -646        -580        -603
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          93         109          94
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          60
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).         668         596         588
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         -91
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......         577         596         588
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         637         596         588
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         -42          73          33
    73.10 Total new obligations.............         646         580         603
    73.20 Total outlays (gross).............        -621        -620        -589
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          91
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          73          33          47
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         547         516         509
    86.93 Outlays from discretionary
            balances........................          74         104          80
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         621         620         589
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -661        -592        -584
    88.40     Non-Federal sources...........          -7          -4          -4
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -668        -596        -588
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          91
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          60
    90.00 Outlays...........................         -47          24           1
    ---------------------------------------------------------------------------

        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, 2006. 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Reimbursable obligations:

    [[Page 61]]

          Personnel compensation:

    11.1    Full-time permanent.............         154         169         165
    11.3    Other than full-time permanent..           1           2           2
    11.5    Other personnel compensation....           9           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         164         172         168
    12.1  Civilian personnel benefits.......          43          46          45
    21.0  Travel and transportation of
            persons.........................           6           4           4
    22.0  Transportation of things..........           1           1           1
    23.1  Rental payments to GSA............           3           5           4
    23.2  Rental payments to others.........          10           2           3
    23.3  Communications, utilities, and
            miscellaneous charges...........         107          66          83
    24.0  Printing and reproduction.........           1           1           1
    25.2  Other services....................         256         249         256
    26.0  Supplies and materials............          16          13          13
    31.0  Equipment.........................          39          21          25
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         646         580         603
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-4609-0-4-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................       2,325       2,965       2,723
    ---------------------------------------------------------------------------

                             OFFICE OF CIVIL RIGHTS

                                  Federal Funds

                              Office of Civil Rights

                         (including transfers of funds)

         For necessary expenses of the Office of Civil Rights, $23,147,000.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3800-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Office of Civil Rights............          20          20          23
    09.01 Reimbursable program..............           5           4           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          25          24          28
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          25          24          28
    23.95 Total new obligations.............         -25         -24         -28
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          20          20          23
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).                       4           5
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           5
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......           5           4           5
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          25          24          28
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -1           7           7
    73.10 Total new obligations.............          25          24          28
    73.20 Total outlays (gross).............         -22         -24         -28
    73.40 Adjustments in expired accounts
            (net)...........................           5
    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..           7           7           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          22          24          28
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -5          -4          -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..................          20          20          23
    90.00 Outlays...........................          17          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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          12          13          13
    12.1    Civilian personnel benefits.....           3           3           3
    25.2    Other services..................                                   2
    25.3    Other purchases of goods and
              services from Government
              accounts......................           4           4           4
                                               ---------   ---------  ----------
    99.0      Direct obligations............          19          20          22
    99.0  Reimbursable obligations..........           5           4           4
    99.5  Below reporting threshold.........           1                       2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          25          24          28
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-3800-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         140         144         144
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................           6          10          10
    ---------------------------------------------------------------------------

                           DEPARTMENTAL ADMINISTRATION

                                  Federal Funds

                           Departmental Administration

                         (including transfers of funds)

         For Departmental Administration, $24,608,000, 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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0120-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.08 Departmental administration.......          22          23          25
    09.01 Reimbursable program..............          23          17          18
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          45          40          43
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          48          40          43

    [[Page 62]]

    23.95 Total new obligations.............         -45         -40         -43
    23.98 Unobligated balance expiring or
            withdrawn.......................          -3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          23          23          25
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).           4          17          18
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          21
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......          25          17          18
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          48          40          43
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -7         -14         -12
    73.10 Total new obligations.............          45          40          43
    73.20 Total outlays (gross).............         -42         -38         -43
    73.40 Adjustments in expired accounts
            (net)...........................           1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -21
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          10
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         -14         -12         -12
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          44          38          41
    86.93 Outlays from discretionary
            balances........................          -2                       2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          42          38          43
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -14         -17         -18
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -21
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          23          23          25
    90.00 Outlays...........................          28          21          25
    ---------------------------------------------------------------------------

        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, and Judicial Officer.

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          14          15          15
    12.1    Civilian personnel benefits.....           3           4           4
    23.3    Communications, utilities, and
              miscellaneous charges.........           1                       1
    25.2    Other services..................           2           2           2
    25.3    Other purchases of goods and
              services from Government
              accounts......................           1           1           2
    31.0    Equipment.......................           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          22          22          24
    99.0  Reimbursable obligations..........          22          16          17
    99.5  Below reporting threshold.........           1           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          45          40          43
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-0120-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         176         180         180
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................          64          87          86
    ---------------------------------------------------------------------------

                          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.), $12,200,000, 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.)

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0500-0-1-304      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Hazardous materials management....          17          12          12
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................          17          12          12
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           6           1           1
    22.00 New budget authority (gross)......          12          12          12
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          18          13          13
    23.95 Total new obligations.............         -17         -12         -12
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..          18          24          23
    73.10 Total new obligations.............          17          12          12
    73.20 Total outlays (gross).............         -11         -13         -13
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          24          23          22
    ----------------------------------------------------------------------------

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

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

        Under the Comprehensive Environmental Response, Compensation, and
    Liability Act (CERCLA) and the Resource Con

    [[Page 63]]

    servation 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 the Department's agencies may
    be reimbursed for their cleanup efforts. Projects are selected for
    funding according to objective criteria.

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-0500-0-1-304      2006 actual   2007 est.   2008 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, $216,837,000, to remain available until expended, of
    which $156,590,000 shall be available for payments to the General
    Services Administration for rent and the Department of Homeland Security
    for building security: 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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0117-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Rental payments to GSA: Non-
            recurring repairs...............         147         140         157
    00.02 Building operations and
            maintenance.....................          41          39          60
    00.04 Strategic space plan..............           2
    09.02 Reimbursable program..............           5           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         195         182         220
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4          11          11
    22.00 New budget authority (gross)......         190         182         220
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          12
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         206         193         231
    23.95 Total new obligations.............        -195        -182        -220
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          11          11          11
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         188         179         217
    40.35   Appropriation permanently
              reduced.......................          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         186         179         217
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).           2           3           3
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           2
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......           4           3           3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         190         182         220
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          52          18          20
    73.10 Total new obligations.............         195         182         220
    73.20 Total outlays (gross).............        -215        -180        -220
    73.45 Recoveries of prior year
            obligations.....................         -12
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          18          20          20
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         188         180         218
    86.93 Outlays from discretionary
            balances........................          27                       2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         215         180         220
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -2          -3          -3
          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..................         186         179         217
    90.00 Outlays...........................         213         177         217
    ---------------------------------------------------------------------------

        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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0117-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           6           7           7
    12.1    Civilian personnel benefits.....           2           2           2
    23.1    Rental payments to GSA..........         147         140         157
    23.3    Communications, utilities, and
              miscellaneous charges.........           9           8          10
    25.2    Other services..................          26          22          41
                                               ---------   ---------  ----------
    99.0      Direct obligations............         190         179         217
    99.0  Reimbursable obligations..........           5           3           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         195         182         220
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-0117-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................          74          86          86
    ---------------------------------------------------------------------------

                            OFFICE OF COMMUNICATIONS

                                  Federal 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, $9,720,000:
    Provided, That not to exceed $2,000,000 may be used for farmers'
    bulletins.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0150-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:

    [[Page 64]]

    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
    58.00   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           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           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           1           1           1
    ----------------------------------------------------------------------------

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

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................           9           9          10
    90.00 Outlays...........................           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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

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

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-0150-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................          70          79          79
    ---------------------------------------------------------------------------

                         OFFICE OF THE INSPECTOR GENERAL

                                  Federal 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,
    $83,998,000, 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.)

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0900-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Office of the Inspector General...          81          82          82
    09.01 Reimbursable program..............           3           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          84          85          85
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3           4           2
    22.00 New budget authority (gross)......          85          83          88
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          88          87          90
    23.95 Total new obligations.............         -84         -85         -85
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           4           2           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          81          79          84
    40.35   Appropriation permanently
              reduced.......................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          80          79          84
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).           4           4           4
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           1
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......           5           4           4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          85          83          88
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           5           8          13
    73.10 Total new obligations.............          84          85          85
    73.20 Total outlays (gross).............         -82         -83         -87
    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).......................           3           3           3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           8          13          14
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          75          76          80
    86.93 Outlays from discretionary
            balances........................           7           7           7
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          82          83          87
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -7          -4          -4
          Against gross budget authority only:

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

        Net budget authority and outlays:
    89.00 Budget authority..................          80          79          84
    90.00 Outlays...........................          75          79          83
    ---------------------------------------------------------------------------

    [[Page 65]]

            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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          52          52          52
    12.1    Civilian personnel benefits.....          15          16          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.......................           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          81          82          82
    99.0  Reimbursable obligations..........           3           3           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          84          85          85
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-0900-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         595         615         620
    ---------------------------------------------------------------------------

                          OFFICE OF THE GENERAL COUNSEL

                                  Federal Funds

                          Office of the General Counsel

         For necessary expenses of the Office of the General Counsel,
    $41,721,000. (7 U.S.C. 2201; 2202, 2214a.)

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2300-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Office of the General Counsel.....          39          39          42
    09.00 Reimbursable program..............           3           4           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          42          43          46
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          42          43          46
    23.95 Total new obligations.............         -42         -43         -46
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          39          39          42
    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           3           4           4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          42          43          46
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           4           4
    73.10 Total new obligations.............          42          43          46
    73.20 Total outlays (gross).............         -40         -43         -46
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           4           4           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          38          41          44
    86.93 Outlays from discretionary
            balances........................           2           2           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          40          43          46
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........          -3          -4          -4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          39          39          42
    90.00 Outlays...........................          37          39          42
    ---------------------------------------------------------------------------

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2300-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          28          29          31
    12.1    Civilian personnel benefits.....           7           7           8
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           1           1           1
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          39          39          42
    99.0  Reimbursable obligations..........           3           4           4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          42          43          46
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-2300-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         295         301         306
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................          22          24          24
    ---------------------------------------------------------------------------

                            ECONOMIC RESEARCH SERVICE

                                  Federal Funds

                            Economic Research Service

         For necessary expenses of the Economic Research Service in
    conducting economic research and analysis, $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.)

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

    [[Page 66]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1701-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Economic Research Service.........          75          75          83
    09.00 Reimbursable program..............           1           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          76          77          85
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          76          77          85
    23.95 Total new obligations.............         -76         -77         -85
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          76          75          83
    40.35   Appropriation permanently
              reduced.......................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          75          75          83
    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1           2           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          76          77          85
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          28          30          23
    73.10 Total new obligations.............          76          77          85
    73.20 Total outlays (gross).............         -74         -84         -84
    73.40 Adjustments in expired accounts
            (net)...........................          -2
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          30          23          24
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          57          67          74
    86.93 Outlays from discretionary
            balances........................          17          17          10
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          74          84          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..................          75          75          83
    90.00 Outlays...........................          73          82          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 2008 Budget request includes a program increase of $5 million to
    strengthen and enhance the ERS market analysis and outlook program to
    provide timely analysis of global agricultural product markets and a
    program increase of $1 million to strengthen ERS' research and modeling
    capacity in the area of bio-energy. Particular emphasis will be given to
    the market impacts associated with bio-energy development.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1701-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          37          38          42
    11.3      Other than full-time permanent           1           1           1
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          39          40          44
    12.1    Civilian personnel benefits.....           8           8           9
    13.0    Benefits for former personnel...           1
    21.0    Travel and transportation of
              persons.......................           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           6           6           7
    25.3    Other purchases of goods and
              services from Government
              accounts......................          11          11          11
    25.5    Research and development
              contracts.....................           5           5           7
    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............          75          75          83
    99.0  Reimbursable obligations..........           1           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          76          77          85
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-1701-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         400         412         442
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................           4           4           4
    ---------------------------------------------------------------------------

                    NATIONAL AGRICULTURAL STATISTICS SERVICE

                                  Federal Funds

                     National Agricultural Statistics Service

         For necessary expenses of the National Agricultural Statistics
    Service in conducting statistical reporting and service work,
    $167,699,000, of which up to $54,325,000 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.)

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1801-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Agricultural estimates............         103         104         107
    00.02 Statistical research and service..           6           7           7
    00.03 Census of agriculture.............          31          29          54
    09.01 Reimbursable program..............          21          18          15
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         161         158         183
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2           1           1
    22.00 New budget authority (gross)......         160         158         183
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         162         159         184
    23.95 Total new obligations.............        -161        -158        -183
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         140         140         168
    40.35   Appropriation permanently
              reduced.......................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         139         140         168
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).          10          18          15
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          10
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......          20          18          15
          Mandatory:

    60.26   Appropriation (trust fund)......           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         160         158         183
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          16          13          10
    73.10 Total new obligations.............         161         158         183
    73.20 Total outlays (gross).............        -163        -161        -185

    [[Page 67]]

    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -10
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           9
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          13          10           8
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         139         143         165
    86.93 Outlays from discretionary
            balances........................          23          18          20
    86.97 Outlays from new mandatory
            authority.......................           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         163         161         185
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -15         -15         -12
    88.40     Non-Federal sources...........          -5          -3          -3
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -20         -18         -15
          Against gross budget authority only:

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

        Net budget authority and outlays:
    89.00 Budget authority..................         140         140         168
    90.00 Outlays...........................         143         143         170
    ---------------------------------------------------------------------------

        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 500 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. Incentives and
    promotional items are used by NASS to support outreach efforts to
    maximize response rates on surveys and the Census of Agriculture.

        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.

        Census of Agriculture.--The Census of Agriculture is conducted every
    five years. A proposed program increase of $24.7 million due to cyclical
    activities will be used for many significant data collection and
    processing activities to occur in 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          71          75          77
    11.3      Other than full-time permanent           1           1           1
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          73          77          79
    12.1    Civilian personnel benefits.....          18          18          20
    21.0    Travel and transportation of
              persons.......................           2           2           2
    22.0    Transportation of things........           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           5           5           9
    25.2    Other services..................          22          22          35
    25.3    Other purchases of goods and
              services from Government
              accounts......................           9           7          14
    25.7    Operation and maintenance of
              equipment.....................           3           1           1
    26.0    Supplies and materials..........           2           2           2
    31.0    Equipment.......................           5           5           5
                                               ---------   ---------  ----------
    99.0      Direct obligations............         140         140         168
    99.0  Reimbursable obligations..........          21          18          15
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         161         158         183
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-1801-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................       1,029       1,033       1,033
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................         106         106         106
    ---------------------------------------------------------------------------

                          AGRICULTURAL RESEARCH SERVICE

                                  Federal 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, $1,021,517,000: Provided, That appropriations hereunder shall
    be available for the operation and maintenance of aircraft and the
    purchase of not to exceed one for replacement only: Provided further,
    That appropriations hereunder shall be available pursuant to 7 U.S.C.
    2250 for the construction, alteration, and repair of buildings and
    improvements, but unless otherwise provided, the cost of constructing
    any one building shall not exceed $375,000, except for headhouses or
    greenhouses which shall each be limited to $1,200,000, and except for 10
    buildings to be constructed or improved at a cost not to exceed $750,000
    each, and the cost of altering any one building during the fiscal year
    shall not exceed 10 percent of the current replacement value of the
    building or $375,000, whichever is greater: Provided further, That the
    limitations on alterations contained in this Act shall not apply to
    modernization or replacement of existing facilities at Beltsville,
    Maryland: Provided further, That appropriations hereunder shall be
    available for granting easements at the Beltsville Agricultural Research
    Center: Provided further, That the foregoing limitations shall not apply
    to replacement of buildings needed to carry out the Act of April 24,
    1948 (21 U.S.C. 113a): Provided further, That funds may be received from
    any State, other political subdivision, organization, or individual for
    the purpose of establishing or operating any research facility or
    research project of the Agricultural Research Service, as authorized by
    law: Provided further, That 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
    approximately 19 acres, 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 Mis

    [[Page 68]]

    sissippi 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.)

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1400-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.00 Balance, start of year............                       6           6
        Adjustments:
    01.91 Adjustments.......................           4
                                               ---------   ---------  ----------
    01.99 Balance, start of year............           4           6           6
        Receipts:
    02.20 Proceeds of land sales, ARS.......           2
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           6           6           6
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           6           6           6
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1400-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Product quality/value added.......         105          99         104
    00.02 Livestock production..............          85          80          71
    00.03 Crop production...................         201         190         169
    00.04 Food safety.......................          95          90          80
    00.05 Livestock protection..............          66          62          65
    00.06 Crop protection...................         187         176         150
    00.07 Human nutrition research..........          84          80          84
    00.08 Environmental stewardship.........         223         210         171
    00.09 National Agricultural Library.....          24          21          20
    00.10 Repair and maintenance of
            facilities......................          18          17          17
    00.11 Collaborative research program....           6
    00.12 Homeland security.................          36          33          91
    00.13 Construction/miscellaneous fees...           5          12
    09.00 Reimbursable program..............          87          87          87
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,222       1,157       1,109
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           2          12
    22.00 New budget authority (gross)......       1,235       1,145       1,109
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,237       1,157       1,109
    23.95 Total new obligations.............      -1,222      -1,157      -1,109
    23.98 Unobligated balance expiring or
            withdrawn.......................          -3
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          12
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,152       1,058       1,022
    40.35   Appropriation permanently
              reduced.......................         -11
    42.00 Transferred from other accounts...           6
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,147       1,058       1,022
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).          30          87          87
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          58
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......          88          87          87
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,235       1,145       1,109
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         304         303         317
    73.10 Total new obligations.............       1,222       1,157       1,109
    73.20 Total outlays (gross).............      -1,219      -1,143      -1,096
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -58
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          54
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         303         317         330
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         953         850         825
    86.93 Outlays from discretionary
            balances........................         266         293         271
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,219       1,143       1,096
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -71         -71         -71
    88.40     Non-Federal sources...........         -13         -16         -16
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -84         -87         -87
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -58
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          54
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,147       1,058       1,022
    90.00 Outlays...........................       1,135       1,056       1,009
    ---------------------------------------------------------------------------

        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 2008, the Service proposes increased emphases for critical
    research needs in agriculture, such as: support for homeland security
    efforts to protect the Nations food supply (emerging and exotic diseases
    of animals, food safety, and security for overseas biological control
    laboratories); renewable energy sources; equipment for the National
    Centers for Animal Health; obesity; genomics; genetic resources
    (specialty crops and plant introduction stations); organic production
    systems; and agricultural information services. Consistent with the 2007
    Budget, the 2008 Budget also proposes to eliminate funding for
    unrequested Congressional earmarks added to the Service since 2001. In
    2006, the Service submitted 83 new patent applications, participated in
    54 new Cooperative research and development agreements (CRADAs),
    licensed 25 new products, and developed 51 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.

    [[Page 69]]

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

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

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

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

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

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

        Library and Information Services.--Timely, relevant information is
    an essential raw material for the research process as well as for
    effective policy development and decision-making. Targeted information
    services are also required to support specialized USDA audiences such as
    inspectors, regulators, nutritionists, and others, as well as their
    peers, 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         512         516         516
    11.3      Other than full-time permanent          13          13          13
    11.5      Other personnel compensation..          13          13          13
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         538         542         542
    12.1    Civilian personnel benefits.....         144         146         147
    21.0    Travel and transportation of
              persons.......................          22          19          17
    22.0    Transportation of things........           1           1           1
    23.2    Rental payments to others.......           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........          48          36          32
    24.0    Printing and reproduction.......           2           1           1
    25.1    Advisory and assistance services           1           1           1
    25.2    Other services..................           1           6           1
    25.3    Other purchases of goods and
              services from Government
              accounts......................           1           1           1
    25.4    Operation and maintenance of
              facilities....................          37          28          24
    25.5    Research and development
              contracts.....................         172         157         138
    25.7    Operation and maintenance of
              equipment.....................           9           7           7
    25.8    Subsistence and support of
              persons.......................           1           1           1
    26.0    Supplies and materials..........          92          72          63
    31.0    Equipment.......................          43          33          29

    [[Page 70]]

    32.0    Land and structures.............           6           5           4
    41.0    Grants, subsidies, and
              contributions.................          16          13          12
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,135       1,070       1,022
    99.0  Reimbursable obligations..........          87          87          87
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,222       1,157       1,109
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-1400-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................       8,390       8,273       8,023
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................         184         184         184
    ---------------------------------------------------------------------------

                             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, $16,000,000, to
    remain available until expended. In addition, of the unobligated
    balances available under this heading, $16,000,000 are cancelled.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1401-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Building and facilities projects..         271         104          95
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         271         104          95
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         373         261         297
    22.00 New budget authority (gross)......         159         140
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         532         401         297
    23.95 Total new obligations.............        -271        -104         -95
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         261         297         202
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         160         140          16
    40.35   Appropriation permanently
              reduced.......................          -1
    40.36   Unobligated balance permanently
              reduced.......................                                 -16
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         159         140
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         137         237         189
    73.10 Total new obligations.............         271         104          95
    73.20 Total outlays (gross).............        -171        -152        -135
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         237         189         149
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          69          21
    86.93 Outlays from discretionary
            balances........................         102         131         135
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         171         152         135
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         159         140
    90.00 Outlays...........................         171         152         135
    ---------------------------------------------------------------------------

        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 2008 Budget request provides for additional funding
    required for the planning and design of the Southeast Poultry Researh
    Laboratory at Athens, Georgia.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1401-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.2  Other services....................         268         103          94
    32.0  Land and structures...............           3           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         271         104          95
    ---------------------------------------------------------------------------

                                   Trust Funds

                         Miscellaneous Contributed Funds

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.20 Deposits of miscellaneous
            contributed funds, Science and
            Education Administration........          17          18          18
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          17          18          18
        Appropriations:
    05.00 Miscellaneous contributed funds...         -17         -18         -18
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Miscellaneous contributed funds...          16          17          17
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          16          17          17
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          14          15          16
    22.00 New budget authority (gross)......          17          18          18
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          31          33          34
    23.95 Total new obligations.............         -16         -17         -17
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          15          16          17
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......          17          18          18
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           5           5           5
    73.10 Total new obligations.............          16          17          17
    73.20 Total outlays (gross).............         -16         -17         -18
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           5           5           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          13          13          13
    86.98 Outlays from mandatory balances...           3           4           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          16          17          18
    ----------------------------------------------------------------------------

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

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
          Personnel compensation:

    [[Page 71]]

    11.1    Full-time permanent.............           4           4           4
    11.5    Other personnel compensation....           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..           5           5           5
    12.1  Civilian personnel benefits.......           1           1           1
    21.0  Travel and transportation of
            persons.........................           1           1           1
    25.2  Other services....................           3           4           4
    25.5  Research and development contracts           3           3           3
    26.0  Supplies and materials............           3           3           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          16          17          17
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-8214-0-7-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................          93          93          93
    ---------------------------------------------------------------------------

          COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION SERVICE

                                  Federal Funds

                              Integrated Activities

         For the integrated research, education, and extension grants
    programs, including necessary administrative expenses, $20,120,000, as
    follows: 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, $1,990,000; for grants programs
    authorized under section 2(c)(1)(B) of Public Law 89-106, as amended,
    $2,475,000, to remain available until September 30, 2009 for the
    critical issues program; $1,378,000 for the regional rural development
    centers program; and $14,277,000 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, 2009. (7 U.S.C. 450i(c)(1)(B), 3292b, 3351, 7626.)

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1502-0-1-352      2006 actual   2007 est.   2008 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..............           4           4
    00.70 Methyl bromide transition program.           3           3
    00.71 Homeland Security.................          10          10          14
    00.86 International science and
            education grants................           1           2           2
    00.87 Rural development centers.........           1           1           1
    00.88 Organic transition................           2           2
    00.89 Critical issues--plant and animal
            diseases........................           2           1           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          59          59          23
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1
    22.00 New budget authority (gross)......          58          59          23
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          59          59          23
    23.95 Total new obligations.............         -59         -59         -23
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          56          56          20
    40.35   Appropriation permanently
              reduced.......................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          55          56          20
          Mandatory:

    60.00   Appropriation...................           3           3           3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          58          59          23
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         126         131         130
    73.10 Total new obligations.............          59          59          23
    73.20 Total outlays (gross).............         -53         -60         -63
    73.40 Adjustments in expired accounts
            (net)...........................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         131         130          90
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           8           7           7
    86.93 Outlays from discretionary
            balances........................          43          47          50
    86.98 Outlays from mandatory balances...           2           6           6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          53          60          63
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          58          59          23
    90.00 Outlays...........................          53          60          63
    ---------------------------------------------------------------------------

        Under the Integrated Activities account, research, education and/or
    extension grants are awarded for competitive and non-competitive
    programs. In 2008, the Budget proposes that Section 406 activities,
    formerly supported under the Integrated account, be supported within the
    Research and Education account. These 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.

        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 2008 Budget includes an
    increase to enhance agricultural defense. In particular, funding will
    maintain and enhance risk management tools for Asian soybean rust and
    other pathogens of legumes. 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    11.1  Personnel compensation: Full-time
            permanent.......................           1
    41.0  Grants, subsidies, and
            contributions...................          58          59          23
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          59          59          23
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-1502-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................           8           4           4
    ---------------------------------------------------------------------------

                Initiative for Future Agriculture and Food Systems

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1503-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Change in obligated balances:
    72.40 Obligated balance, start of year..          18           1           1
    73.20 Total outlays (gross).............         -18
    73.40 Adjustments in expired accounts
            (net)...........................           1
                                               ---------   ---------  ----------

    [[Page 72]]

    74.40   Obligated balance, end of year..           1           1           1
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................          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,
    $562,518,000, as follows: to carry out the provisions of the Hatch Act
    of 1887 (7 U.S.C. 361a-i), $164,430,000, 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)), $66,070,000 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 2007, 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), $20,487,000,
    of which $7,515,000 shall be allocated to eligible institutions on the
    same basis as such funds were allocated in FY 2007 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), $38,331,000, of which
    $1,507,000 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)), $3,258,000; for
    special grants for agricultural research on improved pest control (7
    U.S.C. 450i(c)), $14,856,000; for competitive research grants (7 U.S.C.
    450i(b)), $256,500,000, 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), $1,067,000, to remain available
    until expended; for higher education graduate fellowship grants (7
    U.S.C. 3152(b)(6)), $4,455,000, to remain available until expended (7
    U.S.C. 2209b); for higher education challenge grants (7 U.S.C.
    3152(b)(1)), $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), $5,588,000; for noncompetitive grants for the purpose of
    carrying out all provisions of 7 U.S.C. 3242 (section 759 of Public Law
    106-78) to individual eligible institutions or consortia of eligible
    institutions in Alaska and in Hawaii, with funds awarded equally to each
    of the States of Alaska and Hawaii, $2,967,000; for a secondary
    agriculture education program and 2-year post-secondary education (7
    U.S.C. 3152(j)), $990,000; for aquaculture grants (7 U.S.C. 3322),
    $3,956,000; for sustainable agriculture research and education (7 U.S.C.
    5811), $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, $12,375,000, 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,
    $2,227,000; 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), $495,000; and for necessary
    expenses of Research and Education Activities, $9,965,000, of which
    $2,723,000 for the Research, Education, and Economics Information System
    and $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.

                   Native American Institutions Endowment Fund

         For the Native American Institutions Endowment Fund authorized by
    Public Law 103-382 (7 U.S.C. 301 note), $11,880,000, to remain available
    until expended.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.00 Balance, start of year............          67          79          91
                                               ---------   ---------  ----------
    01.99 Balance, start of year............          67          79          91
        Receipts:
    02.40 Earnings on investments, Native
            American institutions endowment
            fund............................           3           3           3
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          70          82          94
        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..............          79          91         103
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Payments under the Hatch Act......         177         183         165
    00.02 Cooperative forestry research.....          22          23          20
    00.03 Payments to 1890 colleges and
            Tuskegee Univ. and West Virginia
            State College...................          37          38          38
    00.04 Special research grants...........         164         139          32
    00.05 National research initiative
            competitive grants..............         171         267         257
    00.06 Animal health and disease research           5           5
    00.07 Federal Administration............          51          40          10
    00.08 Higher education..................          44          35          41
    00.09 Native American Institutions
            Endowment Fund..................           3           3           3
    00.10 Veterinary Medical Services Act...           1
    09.00 Reimbursable program..............          12          15          15
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         687         748         581
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         116         116          38
    22.00 New budget authority (gross)......         687         670         581
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         803         786         619
    23.95 Total new obligations.............        -687        -748        -581
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         116          38          38
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         691         664         575
    40.00   Appropriation...................
    40.20   Appropriation (special fund)....           3           3           3
    40.35   Appropriation permanently
              reduced.......................          -7
    40.45   Portion precluded from
              obligation (-)................         -12         -12         -12
    41.00 Transferred to other accounts.....          -1
    42.00 Transferred from other accounts...           1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         675         655         566
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).                      15          15
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          12
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......          12          15          15
                                               ---------   ---------  ----------

    [[Page 73]]

    70.00   Total new budget authority
              (gross).......................         687         670         581
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         758         834         882
    73.10 Total new obligations.............         687         748         581
    73.20 Total outlays (gross).............        -610        -700        -674
    73.40 Adjustments in expired accounts
            (net)...........................          -5
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -12
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          16
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         834         882         789
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         369         351         305
    86.93 Outlays from discretionary
            balances........................         241         349         369
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         610         700         674
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -16         -15         -15
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -12
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         675         655         566
    90.00 Outlays...........................         594         685         659
    ----------------------------------------------------------------------------

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

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

        Payments under the Hatch Act.--Funds under the Hatch Act are
    allocated on a formula basis to agricultural experiment stations of the
    land-grant colleges in the 50 States, the District of Columbia, Puerto
    Rico, Guam, the Virgin Islands, American Samoa, Micronesia, and Northern
    Mariana Islands. The Budget proposes that beginning in 2008, 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 2008 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 2008.

        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 2008 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 2008, 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. Fund

    [[Page 74]]

    ing 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
    2008 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          18          18          19
    12.1    Civilian personnel benefits.....           5           5           5
    21.0    Travel and transportation of
              persons.......................           2           1           1
    23.1    Rental payments to GSA..........           1
    25.1    Advisory and assistance services           1           1           1
    25.2    Other services..................           2           1           1
    25.5    Research and development
              contracts.....................           5           3           1
    26.0    Supplies and materials..........           1
    41.0    Grants, subsidies, and
              contributions.................         640         702         537
                                               ---------   ---------  ----------
    99.0      Direct obligations............         675         731         565
    99.0  Reimbursable obligations..........          12          17          16
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         687         748         581
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-1500-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         234         242         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      2006 actual   2007 est.   2008 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 2008.

                               Extension Activities

         For payments to States, the District of Columbia, Puerto Rico,
    Guam, the Virgin Islands, Micronesia, Northern Marianas, and American
    Samoa, $431,125,000, 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,
    $273,181,000; payments for extension work at the 1994 Institutions under
    the Smith-Lever Act (7 U.S.C. 343(b)(3)), $3,240,000; payments for the
    nutrition and family education program for low-income areas under
    section 3(d) of the Act, $62,280,000; payments for the pest management
    program under section 3(d) of the Act, $10,651,000; payments for New
    Technologies for Ag Extension under Section 3(d) of the Act, $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), $16,609,000, to remain available until
    expended; payments for youth-at-risk programs under section 3(d) of the
    Smith-Lever Act, $8,396,000; for youth farm safety education and
    certification extension grants, to be awarded competitively under
    section 3(d) of the Act, $494,000; payments for carrying out the
    provisions of the Renewable Resources Extension Act of 1978 (16 U.S.C.
    1671 et seq.), $4,052,000; payments for federally-recognized Tribes
    Extension Program under section 3(d) of the Smith-Lever Act, $2,970,000;
    payments for sustainable agriculture programs under section 3(d) of the
    Act, $3,754,000; 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,
    $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; and for necessary expenses of Extension Activities,
    $8,455,000.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0502-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Smith-Lever Act, 3(b) and 3(c)....         273         273         273
    00.02 Youth at risk.....................           8           7           8
    00.04 Expanded food and nutrition
            education program (EFNEP).......          62          62          62
    00.05 Pest management...................          10          10          11
    00.06 Farm Safety.......................           5           5
    00.09 Indian reservation extension
            agents..........................           2           2           3
    00.13 Payments to 1890 colleges and
            Tuskegee Univ. and West Virginia
            State College...................          34          34          34
    00.15 Renewable resources extension act.           4           4           4
    00.16 Federal administration............          25          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
    00.24 Rural health and safety education.           2           2
    00.25 Grants to youth serving
            organizations...................           2           2
    00.26 Risk management education.........           5           5           5
    00.27 New technologies for ag. extension           1           1           3
    09.00 Reimbursable program..............          19          20          20
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         476         476         456
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         476         476         456
    23.95 Total new obligations.............        -476        -476        -456
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         456         451         431
    40.35   Appropriation permanently
              reduced.......................          -5
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         451         451         431
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).           1          20          20
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          19
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......          20          20          20
          Mandatory:

    [[Page 75]]

    62.00   Transferred from other accounts.           5           5           5
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         476         476         456
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         330         367         380
    73.10 Total new obligations.............         476         476         456
    73.20 Total outlays (gross).............        -440        -463        -516
    73.40 Adjustments in expired accounts
            (net)...........................           4
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -19
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          16
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         367         380         320
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         273         291         279
    86.93 Outlays from discretionary
            balances........................         163         167         232
    86.98 Outlays from mandatory balances...           4           5           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         440         463         516
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -17         -20         -20
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -19
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          16
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         456         456         436
    90.00 Outlays...........................         423         443         496
    ---------------------------------------------------------------------------

        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 2008, funding has been requested for the EFNEP, pest management,
    children, youth and families at risk, a youth farm safety education and
    certification pilot project, Federally-recognized Tribes extension,
    sustainable agriculture, new technologies for Agricultural 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          10          12          12
    12.1    Civilian personnel benefits.....           2           2           3
    21.0    Travel and transportation of
              persons.......................           1           1           1
    25.2    Other services..................           4           5           2
    25.5    Research and development
              contracts.....................           3           2           1
    41.0    Grants, subsidies, and
              contributions.................         437         434         417
                                               ---------   ---------  ----------
    99.0      Direct obligations............         457         456         436
    99.0  Reimbursable obligations..........          19          20          20
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         476         476         456
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-0502-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         165         183         183
    ---------------------------------------------------------------------------

                   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),
    $6,930,000, to remain available until expended.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0601-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.10 Outreach for socially
            disadvantaged farmers...........           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..          11          11           9
    73.10 Total new obligations.............           6           6           7
    73.20 Total outlays (gross).............          -6          -8          -9
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          11           9           7
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           6           6           7
    86.93 Outlays from discretionary
            balances........................                       2           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           6           8           9
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           6           6           7
    90.00 Outlays...........................           6           8           9
    ---------------------------------------------------------------------------

        Outreach for Socially Disadvantaged Farmers Grants.--This
    competitive program is authorized under section 2501 of Title XXV of the
    Food, Agriculture, Conservation, and Trade Act of 1990. The Secretary of
    Agriculture is authorized to make grants to eligible institutions and
    organizations so that they

    [[Page 76]]

    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.

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-0601-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................           2           2           2
    ---------------------------------------------------------------------------

                   ANIMAL AND PLANT HEALTH INSPECTION SERVICE

                                  Federal 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, $945,550,000, of which $4,163,000
    shall be available for the control of outbreaks of insects, plant
    diseases, animal diseases and for control of pest animals and birds to
    the extent necessary to meet emergency conditions; of which $16,098,000
    shall be used for the Cotton Pests program for cost share purposes or
    for debt retirement for active eradication zones; of which $33,125,000
    shall be available for a National Animal Identification program; of
    which $57,044,000 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,
    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 2008, 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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.00 Balance, start of year............          87          87          87
                                               ---------   ---------  ----------
    01.99 Balance, start of year............          87          87          87
        Receipts:
    02.20 Fees, Animal welfare user fee
            account--legislative proposal
            subject to PAYGO................                                   9
    02.60 1990 food, agricultural quarantine
            inspection fees.................         418         455         494
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         418         455         503
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         505         542         590
        Appropriations:
    05.00 Salaries and expenses.............        -418        -455        -494
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............          87          87          96
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Pest and disease exclusion........         157         156         182
    00.02 Plant and animal health monitoring         183         229         299
    00.03 Pest and disease management
            programs........................         343         334         325
    00.04 Animal care.......................          18          18          22
    00.05 Scientific and technical services.          79          79         103
    00.06 Contingencies.....................           5           4           4
    00.07 Emergency program funding.........         151
    00.08 Information technology
            infrastructure..................           4           5           5
    00.10 Physical/operational security.....           1           1           6
    00.11 Citrus Canker/Section 32..........         377         100
    00.12 Agricultural Quarantine Inspection
            User Fees.......................         183         182         194
                                               ---------   ---------  ----------
    01.00   Total direct program............       1,501       1,108       1,140
    09.01 Reimbursable program..............          94          89          89
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,595       1,197       1,229
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         255         305         304
    22.00 New budget authority (gross)......       1,597       1,196       1,229
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          49
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,901       1,501       1,533
    23.95 Total new obligations.............      -1,595      -1,197      -1,229
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         305         304         304
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         887         825         946
    40.35   Appropriation permanently
              reduced.......................          -8
    42.00 Transferred from other accounts...          60
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         939         825         946
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).          89          89          89
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -7
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......          82          89          89
          Mandatory:

    60.20   Appropriation (special fund)....         418         455         494
    61.00 Transferred to other accounts.....        -241        -273        -300
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         177         182         194
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).         400         100
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -1
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         399         100
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,597       1,196       1,229
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         472         434         373
    73.10 Total new obligations.............       1,595       1,197       1,229
    73.20 Total outlays (gross).............      -1,603      -1,258      -1,210
    73.40 Adjustments in expired accounts
            (net)...........................          -4
    73.45 Recoveries of prior year
            obligations.....................         -49
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           8
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          15
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         434         373         392
    ----------------------------------------------------------------------------

    [[Page 77]]

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         761         790         893
    86.93 Outlays from discretionary
            balances........................         319         101         124
    86.97 Outlays from new mandatory
            authority.......................         512         273         184
    86.98 Outlays from mandatory balances...          11          94           9
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,603       1,258       1,210
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -432        -130         -30
    88.40     Non-Federal sources...........         -68         -59         -59
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -500        -189         -89
          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..............          11
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,116       1,007       1,140
    90.00 Outlays...........................       1,103       1,069       1,121
    ---------------------------------------------------------------------------

        The major objective of the Animal and Plant Health Inspection
    Service (APHIS) is 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 2008 Budget proposes increases to enhance overseas
    surveillance and eradication efforts such as the 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 2008 Budget includes
    significant increases in monitoring programs to enhance agricultural
    defense efforts including the National Animal Health Laboratory,
    National Veterinary Stockpile, plant safeguarding activities, emergency
    coordination at the national level, and the regulatory oversight and
    inspection activities related to select agents. The request includes $57
    million 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 2008 Budget includes increases
    related to pests and diseases such as emerald ash borer, low pathogenic
    avian influenza, potato cyst nematode, 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 2008 request includes
    additional funding for increased inspection activities as well as for
    programs 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 2008
    Budget includes increases for biotechnology regulatory services, plant
    methods, veterinary biologics, and veterinary diagnostics. Several of
    these increases enhance agricultural defense.

        The 2008 Budget also proposes significant increases to continue
    enhanced security efforts initially implemented with 2002 emergency
    supplemental funds in response to the September 11, 2001, terrorist
    attacks.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         328         302         340
    11.3      Other than full-time permanent          16           9          11
    11.5      Other personnel compensation..          31           5           7
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         375         316         358
    12.1    Civilian personnel benefits.....         107          95         107
    13.0    Benefits for former personnel...           2           1           1
    21.0    Travel and transportation of
              persons.......................          37          31          35
    22.0    Transportation of things........          12          11          13
    23.1    Rental payments to GSA..........          10           4           5
    23.2    Rental payments to others.......           2           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........          25          21          24
    24.0    Printing and reproduction.......           3           2           2
    25.2    Other services..................         390         365         414
    26.0    Supplies and materials..........          68          69          78
    31.0    Equipment.......................          45          42          46
    41.0    United States-Colombia
              Commission to Prevent Foot-
              and-Mouth Disease.............           1           1           1
    41.0    Joint Screwworm eradication
              programs......................          10          10          10
    41.0    Joint Commission on the
              Mediterranean Fruit Fly.......           6           6           6
    41.0    Other grants, subsidies, and
              contributions.................         231          68          22
    42.0    Other insurance claims and
              indemnities...................         176          64          16
    43.0    Interest and dividends..........           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,501       1,108       1,140
    99.0  Reimbursable obligations..........          94          89          89
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,595       1,197       1,229
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-1600-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................       6,316       6,447       6,203
        Reimbursable:

    [[Page 78]]

    2001  Civilian full-time equivalent
            employment......................         833         833         833
    ---------------------------------------------------------------------------

                             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, $8,931,000, to
    remain available until expended.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1601-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Buildings and facilities..........          10          10           7
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          10          10           7
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          10           7           3
    22.00 New budget authority (gross)......           5           6           9
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          17          13          12
    23.95 Total new obligations.............         -10         -10          -7
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           7           3           5
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           5           6           9
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           1           1           2
    86.93 Outlays from discretionary
            balances........................           4           7           8
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           5           8          10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           5           6           9
    90.00 Outlays...........................           5           8          10
    ---------------------------------------------------------------------------

        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 2008 Budget proposes $8.9 million for this program, which
    consists of repairs, alterations, preventive maintenance, and
    renovations for currently owned APHIS facilities, including additional
    funding to address safety issues with several facilities.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1601-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.2  Other services....................           8           8           5
    26.0  Supplies and materials............           2           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          10          10           7
    ---------------------------------------------------------------------------

                                   Trust Funds

                            Miscellaneous Trust Funds

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.20 Deposits of miscellaneous
            contributed funds, APHIS........          16          14          14
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          16          14          14
        Appropriations:
    05.00 Miscellaneous trust funds.........         -16         -14         -14
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Miscellaneous trust funds.........          16          14          14
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          16          14          14
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          12          12          12
    22.00 New budget authority (gross)......          16          14          14
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          28          26          26
    23.95 Total new obligations.............         -16         -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)......          16          14          14
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           2           2
    73.10 Total new obligations.............          16          14          14
    73.20 Total outlays (gross).............         -15         -14         -14
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           2           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          15          14          14
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          16          14          14
    90.00 Outlays...........................          15          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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
          Personnel compensation:

    11.1    Full-time permanent.............           8           7           7
    11.5    Other personnel compensation....           2           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          10           8           8
    12.1  Civilian personnel benefits.......           1           1           1
    21.0  Travel and transportation of
            persons.........................           2           2           2
    25.2  Other services....................           1           1           1
    26.0  Supplies and materials............           1           1           1

    [[Page 79]]

    31.0  Equipment.........................           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          16          14          14
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-9971-0-7-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         150         150         150
    ---------------------------------------------------------------------------

                       FOOD SAFETY AND INSPECTION SERVICE

                                  Federal 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), $930,120,000, of which no
    less than $839,130,000 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 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.)

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-0-1-554      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.20 Fees, Food safety inspection user
            fee account--legislative
            proposal subject to PAYGO.......                                  96
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...                                  96
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............                                  96
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3700-0-1-554      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Salaries and expenses.............         830         830         930
    09.01 Reimbursable program..............         142         126         130
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         972         956       1,060
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          26           4           4
    22.00 New budget authority (gross)......         953         956       1,060
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         979         960       1,064
    23.95 Total new obligations.............        -972        -956      -1,060
    23.98 Unobligated balance expiring or
            withdrawn.......................          -3
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           4           4           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         838         830         930
    40.35   Appropriation permanently
              reduced.......................          -8
    41.00 Transferred to other accounts.....          -4
    42.00 Transferred from other accounts...           4
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         830         830         930
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).         130         126         130
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -7
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......         123         126         130
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         953         956       1,060
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          82          95          93
    73.10 Total new obligations.............         972         956       1,060
    73.20 Total outlays (gross).............        -962        -958      -1,049
    73.40 Adjustments in expired accounts
            (net)...........................          -6
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           7
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          95          93         104
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         871         875         968
    86.93 Outlays from discretionary
            balances........................          91          83          81
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         962         958       1,049
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -6          -2          -2
    88.40     Non-Federal sources...........        -124        -124        -128
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -130        -126        -130
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         830         830         930
    90.00 Outlays...........................         832         832         919
    ---------------------------------------------------------------------------

        The primary objectives of the Food Safety and Inspection Service
    (FSIS) are to ensure that meat, poultry, 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. In carrying out this mission, FSIS
    oversight responsibility covers 20 percent of the American food dollar.
    Providing adequate resources for Federal food safety agencies is a
    priority of the Administration, and the 2008 Budget proposes a $100
    million increase from the 2006 enacted funding level for inspection of
    meat, poultry, and egg products. This increase includes initiatives to
    cover the pay costs for existing employees in the Federal and State
    inspection programs, to support the full cost of expanding the
    inspection force to meet industry demand, for food and agriculture
    defense initiatives, and to prepare for risk-based inspection. In
    addition, legislation will be submitted for two new user fees. One fee
    is a licensing fee that all facilities will pay based on production
    levels. The second fee will be a performance fee charged to facilities
    that fail testing, have recalls, or are linked to outbreaks.

                     FEDERALLY FUNDED INSPECTION ACTIVITIES

                                         2006 actual  2007 est.   2008 est.
    Federally inspected establishments:
      Slaughter plants............            121            124             128
      Processing plants...........          4,029          3,997           3,992
      Combination slaughter and
        processing plants.........            927            922             920
      Talmadge-Aiken plants.......            368            375             370
      Import establishments.......            151            153             155
      Egg plants..................             64             67              68
      Other plants................            622            618             620
    Federally inspected and passed
        production (millions of pounds):
      Meat slaughter..............         46,855         47,000          47,500
      Poultry slaughter...........         56,683         57,000          57,500

    [[Page 80]]

      Egg products................          4,400          4,400           4,400
    Import/export activity (millions of
        pounds):
      Meat and poultry imported...          3,889          4,100           4,300
      Meat and poultry exported...          7,096          7,698           8,310
    States and territories with
        cooperative programs: \1\
      Intrastate inspection.......             27             27              27
      Talmadge-Aiken inspection...              9              9               9
      Number of slaughter and/or
        processing plants
        (excludes exempt plants)..          1,981          2,001           2,021
      Pounds inspected slaughter
        (millions)................            500            500             500
    Compliance activities:
      Surveillance activities.....         19,349         20,300          21,315
      Enforcement actions
        completed.................          2,101          2,200           2,300
    Product Testing (samples analyzed):
      Food chemistry..............          2,529          2,500           2,500
      Food microbiology...........         88,882         95,000         100,000
      Chemical residues...........         30,795         30,000          30,000
      Antibiotic residues.........        120,192        120,000         120,000
      Pathology samples...........          4,734          4,700           4,700
    Egg Products:
      Food microbiology...........          1,346          1,400           1,400
      Chemical residues...........             14              0               0
    Consumer Education and public
        outreach:
      Meat and poultry hotline
        calls received............         84,500         85,000          85,500
      Website visits..............     35,000,000     35,500,000      36,000,000
      Electronic messages received          6,500         17,000          17,500
      Publications distributed....        939,000        948,500         956,000
      Personal contacts (meetings,
        workshops, etc.)..........          1,000         30,000          30,000
      E-mail alert service
        subscribers...............         25,000         30,000          35,000
    Epidemiological Investigations:
      Cooperative efforts with
        State and public health
        offices...................             63             70              75
      Illnesses reported and
        treated \2\ ..............          1,419          1,500           1,500
    Field Automation and Information
        Management Project:
      Number of computers to be
        provided to federal field
        inspection staff..........            519          1,612             949
      Number of computers to be
        provided to state field
        inspection staff..........            100            235             540
        \1\ States with cooperative agreements which are operating programs.
        \2\ 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         469         480         507
    11.3      Other than full-time permanent          13          13          14
    11.5      Other personnel compensation..          22          23          23
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         504         516         544
    12.1    Civilian personnel benefits.....         169         172         190
    13.0    Benefits for former personnel...           1           2           2
    21.0    Travel and transportation of
              persons.......................          32          32          42
    22.0    Transportation of things........           4           4           5
    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.........          10          10          14
    24.0    Printing and reproduction.......           2           2           2
    25.1    Advisory and assistance services           4           4           4
    25.2    Other services..................          28          11          36
    25.3    Other purchases of goods and
              services from Government
              accounts......................          16          16          17
    25.4    Operation and maintenance of
              facilities....................                                   1
    25.7    Operation and maintenance of
              equipment.....................           1           1           2
    26.0    Supplies and materials..........          10          10          14
    31.0    Equipment.......................           3           3           8
    41.0    Grants, subsidies, and
              contributions.................          43          43          46
    42.0    Insurance claims and indemnities           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         830         829         930
    99.0  Reimbursable obligations..........         140         126         130
    99.5  Below reporting threshold.........           2           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         972         956       1,060
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-3700-0-1-554      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................       9,339       9,339       9,430
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................          39          39          39
    ---------------------------------------------------------------------------

                                   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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.20 Deposits of fees, Inspection and
            grading of farm products, Food
            Safety and Quality Service......           6           6           6
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           6           6           6
        Appropriations:
    05.00 Expenses and refunds, inspection
            and grading of farm products....          -6          -6          -6
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Expenses and refunds, inspection
            and grading of farm products....           6           6           6
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           6           6           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1           1
    22.00 New budget authority (gross)......           6           6           6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           7           7           7
    23.95 Total new obligations.............          -6          -6          -6
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......           6           6           6
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............           6           6           6
    73.20 Total outlays (gross).............          -6          -6          -6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           6           6           6
    ----------------------------------------------------------------------------

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

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
          Personnel compensation:

    11.1    Full-time permanent.............           2           2           2
    11.5    Other personnel compensation....           2           2           2
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..           4           4           4
    12.1  Civilian personnel benefits.......           1           1           1
    25.2  Other services....................           1           1           1
                                               ---------   ---------  ----------

    [[Page 81]]

    99.9    Total new obligations...........           6           6           6
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-8137-0-7-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................          46          46          46
    ---------------------------------------------------------------------------

             GRAIN INSPECTION, PACKERS AND STOCKYARDS ADMINISTRATION

                                  Federal 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, $44,385,000: 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.)

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.20 Fees, Grain inspection, packers
            and stockyards user fee
            account--legislative proposal
            subject to PAYGO................                                  22
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...                                  22
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............                                  22
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Standardization...................           4           4           4
    00.02 Compliance........................           7           7           7
    00.03 Methods development...............           7           7           8
    00.04 Packers and stockyards program....          20          20          24
    09.01 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          39          39          44
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          39          38          44
    23.95 Total new obligations.............         -39         -39         -44
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          38          38          44
    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          39          38          44
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          10          11          12
    73.10 Total new obligations.............          39          39          44
    73.20 Total outlays (gross).............         -38         -38         -43
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          11          12          13
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          33          31          36
    86.93 Outlays from discretionary
            balances........................           5           7           7
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          38          38          43
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................          38          38          44
    90.00 Outlays...........................          37          38          43
    ---------------------------------------------------------------------------

         The Grain Inspection, Packers and Stockyards Administration's
    (GIPSA) Grain Regulatory Program promotes and enforces the accurate and
    uniform application of the United States Grain Standards Act (USGSA) and
    applicable provisions of the Agricultural Marketing Act of 1946 (AMA).
    GIPSA identifies, evaluates, and implements new or improved techniques
    for measuring grain quality. GIPSA also establishes and updates testing
    and grading standards to facilitate the marketing of U.S. grain,
    oilseeds, and related products. GIPSA 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.

         GIPSA's Packers and Stockyards Program is responsible for
    administering the Packers and Stockyards Act of 1921 (P&S Act), which
    prohibits unfair, deceptive, and fraudulent practices by market
    agencies, dealers, packers, swine contractors, and live poultry dealers
    in the livestock, poultry, and meatpacking industries. The P&S Act makes
    it unlawful for a regulated entity to engage in unfair, unjustly
    discriminatory, or deceptive practices. Packers, live poultry dealers,
    and swine contractors are also prohibited from engaging in specific
    anti-competitive practices. GIPSA conducts two broad types of
    activities, regulatory and investigative, in its administration and
    enforcement of the P&S Act. GIPSA activities cover two general areas:
    Business Practices and Financial Protection. Business Practices are
    further divided into Competition and Trade Practices. The Agency also
    carries out the Secretary's responsibilities under Section 1324 of the
    Food Security Act of 1985 covering ``central filing systems''
    established by States for pre-notification of security interests against
    farm products.

                              MAIN WORKLOAD FACTORS

          Grain Regulatory Program       2006 actual  2007 est.   2008 est.
    U.S. standards and factors
    (attribute tests) in effect at
    end of year...................            132            134             136
    Standards reviews and factors
    in progress...................              3              2               2
    Standards reviews and factors
    completed.....................              3              2               2
    On-site investigations........              3              3               3
    Designations renewed..........             18             18              18
    Registration certificates
    issued........................             88             90              90

       Packers and Stockyards Program    2006 actual  2007 est.   2008 est.
    Investigations................            625            635             650
    Regulatory Activities.........          1,383          1,400           1,450
    Market agencies/dealers
    registered....................          5,547          5,550           5,550
    Stockyards posted.............          1,426          1,420           1,420
    Slaughtering and processing
    packers subject to the Act
    (estimated)...................          6,000          6,000           6,000
    Distributors, brokers, and
    dealers subject to the Act
    (estimated)...................          6,800          6,800           6,800
    Poultry operations subject to
    the Act.......................            200            200             200

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2400-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          22          22          26
    12.1    Civilian personnel benefits.....           6           6           7
    21.0    Travel and transportation of
              persons.......................           2           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           5           5           5

    [[Page 82]]

    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          38          38          43
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          39          39          44
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-2400-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         311         316         332
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................           5           5           5
    ---------------------------------------------------------------------------

             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.)

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4050-0-3-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    09.00 Limitation on inspection and
            weighing services expenses......          37          42          42
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          37          42          42
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4           6           6
    22.00 New budget authority (gross)......          39          42          42
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          43          48          48
    23.95 Total new obligations.............         -37         -42         -42
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           6           6           6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).          41          42          42
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -2
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          39          42          42
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -3          -2          -2
    73.10 Total new obligations.............          37          42          42
    73.20 Total outlays (gross).............         -38         -42         -42
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          -2          -2          -2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          38          42          42
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -41         -42         -42
          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...........................          -3
    ---------------------------------------------------------------------------

        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
    55 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).

                                         2006 actual  2007 est.   2008 est.
    Export grain inspected and/or
        weighed (million metric tons):
      By Federal personnel........           76.2           73.9            83.2
      By delegated States.........           26.6           34.4            37.0
    Quantity of grain inspected
    (official inspections)
    domestically (million metric
    tons).........................          174.8          139.0           136.7
    Number of grain official inspections
        and reinspections:
      By Federal personnel........         93,067        100,000         100,000
      By delegated state/official
        agency licenses...........      2,799,169      3,000,000       3,200,000
    Number of appeals (Grain,
    Rice, and Pulses).............          4,075          1,700           1,700
    Number of appeals to the Board
    of Appeals and Review (Grain,
    Rice, and Pulses).............            634            400             400
    Quantity of rice inspected
    (million metric tons).........            2.8            3.1             3.1
    Quantity of rice exports
    (million metric tons).........            3.6            3.8             3.7

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4050-0-3-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Reimbursable obligations:
          Personnel compensation:

    11.1    Full-time permanent.............          17          22          22
    11.3    Other than full-time permanent..           1           1           1
    11.5    Other personnel compensation....           8           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
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.2  Other services....................           3           3           3
    26.0  Supplies and materials............           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          37          42          42
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-4050-0-3-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................         329         353         353
    ---------------------------------------------------------------------------

                         AGRICULTURAL MARKETING SERVICE

                                  Federal Funds

                                Marketing Services

         For necessary expenses to carry out services related to consumer
    protection, agricultural marketing and distribution, transportation,

    [[Page 83]]

    and regulatory programs, as authorized by law, and for administration
    and coordination of payments to States, $74,988,000, including funds for
    the wholesale market development program for the design and development
    of wholesale and farmer market facilities for the major metropolitan
    areas of the country: Provided, That this appropriation shall be
    available pursuant to law (7 U.S.C. 2250) for the alteration and repair
    of buildings and improvements, but the cost of altering any one building
    during the fiscal year shall not exceed 10 percent of the current
    replacement value of the building.
         Fees may be collected for the cost of standardization activities,
    as established by regulation pursuant to law (31 U.S.C. 9701). (7 U.S.C.
    91-99, 136i-136l, 138-138l, 291-292, 415b-415d, 471-476, 501-508, 581-
    599, 951-957, 1031-1056, 1291, 1551-56, 1621-27, 2204(b)(c), 4401-06,
    6501-22; 15 U.S.C. 714-714p; 21 U.S.C. 1031-56; 26 U.S.C. 6804, 7233,
    7263, 7492-93, 7701; 49 U.S.C. 1653.)

                      limitation on administrative expenses

         Not to exceed $61,233,000 (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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2500-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Market news service...............          31          31          35
    00.02 Inspection and standardization....           7           7           8
    00.03 Market protection and promotion...          29          30          25
    00.04 Wholesale market development......           4           4           4
    00.05 Transportation services...........           3           3           3
    09.01 Reimbursable program..............          57          70          64
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         131         145         139
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          27          30          30
    22.00 New budget authority (gross)......         135         145         139
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         162         175         169
    23.95 Total new obligations.............        -131        -145        -139
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          30          30          30
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          75          75          75
    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          60          70          64
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         135         145         139
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          21          27          26
    73.10 Total new obligations.............         131         145         139
    73.20 Total outlays (gross).............        -127        -146        -141
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          27          26          24
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          81         137         131
    86.93 Outlays from discretionary
            balances........................          46           9          10
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         127         146         141
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -2          -3          -3
    88.40     Non-Federal sources...........         -58         -67         -61
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -60         -70         -64
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          75          75          75
    90.00 Outlays...........................          67          76          77
    ---------------------------------------------------------------------------

        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 on request for cotton and 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

                                         2006 actual  2007 est.   2008 est.
    Percentage of reports released
    on time.......................            97%            95%             95%

                       COTTON AND TOBACCO USER FEE PROGRAM

                                         2006 actual  2007 est.   2008 est.
    Cotton classed (bales in
    millions).....................             25             21              20
    Domestic tobacco graded
    (million pounds)..............             16             16              16
    Imported tobacco inspected
    (million kilograms)...........            175            175             175

              FEDERALLY FUNDED INSPECTION AND MARKETING ACTIVITIES

                                         2006 actual  2007 est.   2008 est.
    States and Commonwealths with
    cooperative agreements........             52             52              52
    Percentage of noncomplying
    shell egg lots that are
    reprocessed or diverted.......           100%           100%            100%

                           STANDARDIZATION ACTIVITIES

                                         2006 actual  2007 est.   2008 est.
    International and U.S.
    standards in effect, end of
    fiscal year...................            494            496             507
    Number of commodities covered.            226            227             237

        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.

    [[Page 84]]

        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

                                         2006 actual  2007 est.   2008 est.
    Pesticide data program:
      Number of analyses performed        151,633        131,500         131,500
      Percentage of sampling and
        analysis goal.............           127%           100%            100%
    Pesticide recordkeeping:
      Number of State/Federal
        Inspections conducted.....          4,662          4,000           4,000
      Percentage of sampling goal
        attained..................           122%           100%            100%
    Seed Act:
    Interstate investigations:
        Completed.................            390            370             370
        Pending...................            374            350             350
      Seed samples tested.........          1,911          2,000           2,000
      Percentage of cases
        submitted that are
        completed.................           104%           100%            100%
    Plant Variety Protection Act:

      Number of applications
        received..................            304            280             300
      Certificates of protection
        issued....................            233            300             300
    Research and promotion
    collections (dollars in
    millions).....................            487            500             500
    Percentage of board budgets
    and marketing plans approved
    within time frame goal........           100%            92%             92%

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

        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

                                         2006 actual  2007 est.   2008 est.
    Number of projects completed..             14             10              11

                       TRANSPORTATION SERVICES ACTIVITIES

                                         2006 actual  2007 est.   2008 est.
    Number of projects completed..              8             10              11

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2500-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          29          36          37
    11.3      Other than full-time permanent           3           3           3
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          32          39          40
    12.1    Civilian personnel benefits.....           9          10          10
    21.0    Travel and transportation of
              persons.......................           2           1           1
    23.2    Rental payments to others.......           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           1           1
    24.0    Printing and reproduction.......           1           1
    25.2    Other services..................          18          14          13
    25.3    Other purchases of goods and
              services from Government
              accounts......................           6           5           6
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           2           2           2
                                               ---------   ---------  ----------
    99.0      Direct obligations............          74          75          75
    99.0  Reimbursable obligations..........          57          70          64
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         131         145         139
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-2500-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         450         450         454
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................         597         595         586
    ---------------------------------------------------------------------------

                        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)),
    $1,334,000.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2501-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Payments to States and possessions           4           8           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           4           8           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       7
    22.00 New budget authority (gross)......          11           1           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          11           8           1
    23.95 Total new obligations.............          -4          -8          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..           8           7          14
    73.10 Total new obligations.............           4           8           1
    73.20 Total outlays (gross).............          -5          -1          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           7          14          14
    ----------------------------------------------------------------------------

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

        Net budget authority and outlays:
    89.00 Budget authority..................          11           1           1
    90.00 Outlays...........................           5           1           1
    ---------------------------------------------------------------------------

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.60 Deposits, Perishable Agricultural
            Commodities Act fund............           7           7           7
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           7           7           7

    [[Page 85]]

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Perishable Agricultural
            Commodities Act.................          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..........          21          18          15
    22.00 New budget authority (gross)......           7           7           7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          28          25          22
    23.95 Total new obligations.............         -10         -10         -10
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          18          15          12
    ----------------------------------------------------------------------------

        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..           2           1           4
    73.10 Total new obligations.............          10          10          10
    73.20 Total outlays (gross).............         -11          -7          -7
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           1           4           7
    ----------------------------------------------------------------------------

        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

                                         2006 actual  2007 est.   2008 est.
    Percentage of informal
    reparation complaints
    completed within time frame
    goal..........................            92%            85%             85%

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5070-0-2-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    11.1  Personnel compensation: Full-time
            permanent.......................           5           6           6
    12.1  Civilian personnel benefits.......           1           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.3  Other purchases of goods and
            services from Government
            accounts........................           3           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          10          10          10
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-5070-0-2-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................          82          80          80
    ---------------------------------------------------------------------------

         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 $16,798,000 for
    formulation and administration of marketing agreements and orders
    pursuant to the Agricultural Marketing Agreement Act of 1937 and the
    Agricultural Act of 1961.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.00 Balance, start of year............      11,618      12,485      13,487
                                               ---------   ---------  ----------
    01.99 Balance, start of year............      11,618      12,485      13,487
        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]..       7,349       8,030       8,864
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..       7,349       8,031       8,865
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...      18,967      20,516      22,352
        Appropriations:
    05.00 Funds for strengthening markets,
            income, and supply (section 32).                                 -37
    05.01 Funds for strengthening markets,
            income, and supply (section 32).      -6,482      -7,029      -7,552
                                               ---------   ---------  ----------
    05.99   Total appropriations............      -6,482      -7,029      -7,589
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............      12,485      13,487      14,763
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Child nutrition program purchases.         550         615         665
    00.02 Emergency surplus removal.........          81         302         416
    00.03 Direct payments...................         450         100
    00.04 State option contract.............                       5           5
    00.05 Removal of defective commodities..                       1           1
    00.06 Disaster Relief...................           2
    00.07 Direct payments, Hurricane relief.         250
                                               ---------   ---------  ----------
    00.91   Subtotal, Commodity program
              payments......................       1,333       1,023       1,087
    01.01 Administrative expenses...........          44          38          49
                                               ---------   ---------  ----------
    01.92   Total direct program............       1,377       1,061       1,136
    09.11 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------

    [[Page 86]]

    10.00   Total new obligations...........       1,378       1,062       1,137
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         286         146         300
    22.00 New budget authority (gross)......       1,178       1,216       1,138
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          60
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,524       1,362       1,438
    23.95 Total new obligations.............      -1,378      -1,062      -1,137
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         146         300         301
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (special fund)
              (Replacement of computer
              system).......................                                  37
    40.36   Unobligated balance permanently
              reduced.......................                                 -65
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                                 -28
          Mandatory:

    60.20   Appropriation (special fund)....       6,482       7,029       7,552
    60.36   Unobligated balance permanently
              reduced.......................         -38
    61.00 Transferred to other accounts.....      -5,267      -5,814      -6,387
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................       1,177       1,215       1,165
    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,178       1,216       1,138
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          64          56          55
    73.10 Total new obligations.............       1,378       1,062       1,137
    73.20 Total outlays (gross).............      -1,326      -1,063      -1,138
    73.45 Recoveries of prior year
            obligations.....................         -60
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          56          55          54
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 -28
    86.97 Outlays from new mandatory
            authority.......................         976         862         866
    86.98 Outlays from mandatory balances...         350         201         300
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,326       1,063       1,138
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................       1,177       1,215       1,137
    90.00 Outlays...........................       1,325       1,062       1,137
    ---------------------------------------------------------------------------

        The Agriculture Appropriations Act of 1935 established the Section
    32 program (7 U.S.C. 612c) which provides that 30 percent of U.S.
    Customs receipts for each calendar year are transferred to this account
    within the Department of Agriculture (USDA). The purpose of the Section
    32 program is three-fold: to encourage the exportation of agricultural
    commodities and products, to encourage domestic consumption of
    agricultural products by diverting them, and to reestablish farmers'
    purchasing power by making payments in connection with the normal
    production of any agricultural commodity for domestic consumption. There
    is also a requirement that the funds available under Section 32 shall be
    principally devoted to perishable agricultural commodities (e.g., fruits
    and vegetables). Program funds are used for a variety of purposes in
    support of the three primary purposes specified in the program's
    authorizing legislation. Funds may be used to stabilize market
    conditions through purchasing surplus commodities which are in turn,
    distributed to nutrition assistance programs. Program funds are also
    used to purchase commodities that are distributed to schools as part of
    child nutrition program entitlements. Furthermore, funds are transferred
    to the Food and Nutrition Service for commodity purchases under section
    6 of the National School Lunch Act and other authorities specified in
    the child nutrition appropriation. In recent years, program funds have
    also been used to provide specialty crop, livestock, sheep and lamb
    producers with disaster assistance in the form of direct payments and
    commodities.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................          12          12          12
    12.1    Civilian personnel benefits.....           3           3           3
    21.0    Travel and transportation of
              persons.......................           1           1           1
    22.0    Transportation of things........           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           2           2
    24.0    Printing and reproduction.......           2           2           2
    25.2    Other services..................         157          58          15
    25.3    Other purchases of goods and
              services from Government
              accounts......................          80          81           2
    25.7    Operation and maintenance of
              equipment.....................           1           1           1
    26.0    Supplies and materials: Grants
              of commodities to States......       1,118         899       1,096
    31.0    Equipment.......................           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,377       1,061       1,136
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,378       1,062       1,137
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-5209-0-2-605      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         111         111         111
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................           8           8           8
    ---------------------------------------------------------------------------

                                   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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.00 Balance, start of year............           2           3           4
                                               ---------   ---------  ----------
    01.99 Balance, start of year............           2           3           4
        Receipts:
    02.00 Interest on investments in public
            debt securities, AMS............           1
    02.01 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...         141         123         127
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         144         125         129
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         146         128         133
        Appropriations:
    05.00 Expenses and refunds, inspection
            and grading of farm products....        -143        -124        -126
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           3           4           7
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8015-0-7-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Dairy products....................           5           6           6
    00.02 Fruits and vegetables.............          60          55          57
    00.03 Meat grading......................          24          23          23
    00.04 Poultry products..................          36          28          29
    00.05 Miscellaneous agricultural
            commodities.....................          17          14          14
                                               ---------   ---------  ----------

    [[Page 87]]

    10.00   Total new obligations...........         142         126         129
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          35          38          38
    22.00 New budget authority (gross)......         145         126         128
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         180         164         166
    23.95 Total new obligations.............        -142        -126        -129
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          38          38          37
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......         143         124         126
    62.00 Transferred from other accounts...           2           2           2
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         145         126         128
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          25          18          18
    73.10 Total new obligations.............         142         126         129
    73.20 Total outlays (gross).............        -149        -126        -128
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          18          18          19
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          87         121         123
    86.98 Outlays from mandatory balances...          62           5           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         149         126         128
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         145         126         128
    90.00 Outlays...........................         149         126         128
    ---------------------------------------------------------------------------

        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

                                         2006 actual  2007 est.   2008 est.
    Weighted average cost per cwt.
    (1990 index)..................          $0.23          $0.21           $0.21

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8015-0-7-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
          Personnel compensation:

    11.1    Full-time permanent.............          69          58          59
    11.3    Other than full-time permanent..           6           6           6
    11.5    Other personnel compensation....          10          15          15
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          85          79          80
    12.1  Civilian personnel benefits.......          25          19          20
    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....................           9          10          11
    25.3  Other purchases of goods and
            services from Government
            accounts........................           4
    26.0  Supplies and materials............           2           2           2
    31.0  Equipment.........................           1           2           2
    41.0  Grants, subsidies, and
            contributions...................           2           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         142         126         129
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-8015-0-7-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................       1,527       1,602       1,602
    ---------------------------------------------------------------------------

                        Milk Market Orders Assessment Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8412-0-8-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    09.01 Administration....................          43          47          48
    09.02 Marketing service.................           5           6           7
    09.03 Purchase of non-Federal securities          24
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          72          53          55
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          26
    22.00 New budget authority (gross)......          46          53          55
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          72          53          55
    23.95 Total new obligations.............         -72         -53         -55
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).          46          43          43
    69.00     Offsetting collections
                (Proceeds from non-Federal
                securities not immediately
                reinvested).................                      10          12
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          46          53          55
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1
    73.10 Total new obligations.............          72          53          55
    73.20 Total outlays (gross).............         -73         -53         -55
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................          46          53          55
    86.98 Outlays from mandatory balances...          27
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          73          53          55
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.40     Non-Federal sources...........         -46         -43         -43
    88.40     Non-Federal sources (Proceeds
                from non-Federal securities
                not immediately reinvested).                     -10         -12
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -46         -53         -55
    ----------------------------------------------------------------------------

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

        Memorandum (non-add) entries:
    92.03 Total investments, start of year:
            non-Federal securities: Market
            value...........................                      24          14
    92.04 Total investments, end of year:
            non-Federal securities: Market
            value...........................          24          14           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. There
    are currently 10 Federally-sanctioned milk market orders in operation.

        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

    [[Page 88]]

    from producers, are reported in these schedules. The majority of these
    funds are collected and deposited in checking and savings accounts in
    local banks, and disbursed directly by the market administrator. A
    portion of the funds collected are invested in securities such as
    certificates of deposit.

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Reimbursable obligations:
    11.1  Personnel compensation: Full-time
            permanent.......................          31          32          33
    12.1  Civilian personnel benefits.......           8          10          11
    21.0  Travel and transportation of
            persons.........................           3           3           3
    23.2  Rental payments to others.........           3           3           3
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           2           2
    25.2  Other services....................                       1           1
    26.0  Supplies and materials............           1           1           1
    31.0  Equipment.........................           1           1           1
    33.0  Investments and loans.............          24
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          72          53          55
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-8412-0-8-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................         423         423         423
    ---------------------------------------------------------------------------

                             RISK MANAGEMENT AGENCY

                                  Federal 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), $79,062,000: 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).

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2707-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Administrative and operating
            expenses........................          76          76          79
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          76          76          79
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          76          76          79
    23.95 Total new obligations.............         -76         -76         -79
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          77          76          79
    40.35   Appropriation permanently
              reduced.......................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          76          76          79
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          21          21          21
    73.10 Total new obligations.............          76          76          79
    73.20 Total outlays (gross).............         -74         -74         -78
    73.40 Adjustments in expired accounts
            (net)...........................          -2          -2          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          21          21          21
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          53          53          55
    86.93 Outlays from discretionary
            balances........................          21          21          23
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          74          74          78
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          76          76          79
    90.00 Outlays...........................          74          74          78
    ---------------------------------------------------------------------------

        This appropriation provides funding for the administrative and
    operating expenses of the Risk Management Agency (RMA). The Agricultural
    Risk Protection Act (ARPA) of 2000 significantly enhanced RMA's role in
    protecting the integrity of the Federal Crop Insurance program for
    farmers. ARPA imposed new regulatory responsibilities and expanded the
    scope of program compliance and monitoring activities. Accordingly, it
    impacted on the amount and type of information RMA collects. The budget
    requests additional funding 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. In addition, the data
    mining project and RMA's portion of the Common Information Management
    System are proposed to be funded through a general provision that will
    expand the uses of research and development funding in the Crop
    Insurance Act to include these purposes, up to $11.2 million.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2707-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
          Personnel compensation:

    11.1    Full-time permanent.............          38          39          39
    11.3    Other than full-time permanent..           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          39          40          40
    12.1  Civilian personnel benefits.......          10           9           9
    21.0  Travel and transportation of
            persons.........................           2           2           2
    23.2  Rental payments to others.........           1           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    25.2  Other services....................          19          21          24
    26.0  Supplies and materials............           2           1           1
    31.0  Equipment.........................           2           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          76          76          79
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-2707-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         477         553         553
    ---------------------------------------------------------------------------

                                   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

    [[Page 89]]

    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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                     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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4085-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Indemnities.......................       2,375       3,702       3,671
    00.02 A&O reimbursements................         962       1,111       1,190
    00.03 ARPA obligations..................          43          70          70
    09.01 Reimbursable program--indemnities.       1,208       1,184       1,401
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       4,588       6,067       6,332
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,355       1,266         757
    22.00 New budget authority (gross)......       4,499       5,558       6,214
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,854       6,824       6,971
    23.95 Total new obligations.............      -4,588      -6,067      -6,332
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       1,266         757         639
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................       3,296       4,379       4,818
    61.00   Transferred to other accounts...          -5          -5          -5
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................       3,291       4,374       4,813
    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).       1,208       1,184       1,401
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       4,499       5,558       6,214
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         246         254       1,219
    73.10 Total new obligations.............       4,588       6,067       6,332
    73.20 Total outlays (gross).............      -4,580      -5,102      -5,943
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         254       1,219       1,608
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................       3,225       3,836       4,458
    86.98 Outlays from mandatory balances...       1,355       1,266       1,485
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       4,580       5,102       5,943
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....      -1,208      -1,184      -1,401
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       3,291       4,374       4,813
    90.00 Outlays...........................       3,372       3,918       4,542
    ---------------------------------------------------------------------------

        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 yield and
    revenue insurance, pasture, rangeland and forage, livestock, and other
    educational and risk mitigation initiatives/tools to manage risk.

        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 a crop's 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, a
    modification of AGR, 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 recently expanded to cover 28 States starting with the
    2007 crop year.

        During 2006, RMA continued, as one of its highest priorities, the
    contracted development of new insurance programs for pasture, rangeland
    and forage, implementing two new pilot programs effective for the 2007
    crop year in 9 states, the Rainfall and Vegetative Index programs. In
    addition, RMA presented two new alternatives for addressing situations
    of declining actual production history yields due to successive years of
    yield loss to the Board of Directors for consideration of expert review.
    Also, RMA awarded 8 research and development partnership agreements
    totaling over $3 million to develop financial and risk management
    decision support tools, and for funding technical and scientific
    innovations for better disease management and to increase information on
    expected yield impacts associated with reduced irrigation water
    application. Additionally RMA funded approximately $3 million for
    improvements and expansion to decision support tools 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 2006, 242 million acres were insured, with an estimated
    $4,579 million in total premium income, including $2,681 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 in years 2001-2005. In 2006, $3.6 million was
    appropriated in the Administrative and Operating Account for data mining
    and data

    [[Page 90]]

    warehousing activities. To ensure data mining has annual funding, RMA is
    requesting authorization to fund data mining costs through ARPA. The
    2008 Budget also requests authorization to fund the Common Information
    Management System through ARPA.

        The 2008 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, livestock, and pasture/rangeland insurance which
    have greatly expanded the program and taxed the IT system due to new
    requirements, such as daily livestock 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.

        The following table compares the scope of the insurance operations
    planned for 2008. Amounts in the 2006 column are as of September 30,
    2006, and pertain to the 2006 crop year.

                                        2006 CY est. 2007 CY est.2008 CY est.
    Number of States..............             50             50              50
    Number of counties............          3,066          3,066           3,066
    Insurance in force (millions).         49,930         63,004          67,796
    Insured acreage (millions)....            242            262             288
                                        ====================================
    Producer premium (millions)\1\         $1,898         $2,235          $2,388
    Premium subsidy (millions)\1\.         $2,681         $3,144          $3,368
                                        ------------------------------------
          Total premium
            (millions)\1\.........         $4,579         $5,379          $5,756
                                        ====================================
    Indemnities (millions)\1\.....         $4,505         $5,771          $6,087
    Loss ratio....................            .98          1.075           1.075
                                        ====================================
        \1\Includes amounts that will appear on the books of the reinsured
    companies.

        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]

                                          FY 2006
                                           actual    FY 2007 est.FY 2008 est.
    Premiums:
      Additional coverage premium
        subsidy...................          2,045          2,510           3,218
      Catastrophic coverage--
        Reinsurance premium
        subsidy...................            246            217             248
                                        ------------------------------------
        Subtotal, premium subsidy.          2,291          2,727           3,467
      Producer premium............          1,161          1,141           1,357
                                        ------------------------------------
          Total premiums..........          3,452          3,868           4,824
                                        ====================================
    Indemnities:
      Additional coverage.........          3,338          4,801           5,000
      Catastrophic coverage--
        Reinsurance...............            251            151             253
                                        ------------------------------------
          Total indemnities.......          3,589          4,952           5,253
                                        ====================================

        The following table summarizes the insurance operations for 2006,
    2007, and 2008:

                 NET INCOME OR LOSS (-) ON INSURANCE OPERATIONS

                            [In millions of dollars]

                                          FY 2006
                                           actual    FY 2007 est.FY 2008 est.
    Producer premium less
    indemnities...................         -2,428         -3,811          -3,896
    Interest expense, net.........              0              0               0
    Delivery expenses\1\..........           -962         -1,111          -1,190
    Other income or expense, net..             47             43              44
    ARPA costs....................            -43            -75             -75
    Reinsurance underwriting gain
    (+) or loss (-)...............           -924           -790            -892
                                        ------------------------------------
    Net income or loss (-)........         -4,310         -5,744          -6,009
                                        ====================================
        \1\ Figures reflect delivery expenses borne by the Fund in accordance
    with the Agriculture 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

    2005 actual

    2006 actual

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

    Federal assets: Fund balances with Treasury

    1,601

    1,431

    1206

    Non-Federal assets: Receivables, net

    1,369

    1,713

    1803

    Other Federal assets: Property, plant and equipment, net

    1

    1

    1999

    Total assets

    2,971

    3,145

        LIABILITIES:
    2105

    Federal liabilities: Other

    1

          Non-Federal liabilities:

    2201

    Accounts payable

    14

    11

    2207

    Other

    3,485

    3,916

    2999

    Total liabilities

    3,500

    3,927

        NET POSITION:
    3100

    Appropriated capital

    465

    510

    3300

    Cumulative results of operations

    -994

    -1,292

    3999

    Total net position

    -529

    -782

    4999

    Total liabilities and net position

    2,971

    3,145

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4085-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.2  Other services-ARPA requirements..          43          70          70
    25.2  Other services....................         962       1,111       1,190
    42.0  Insurance claims and indemnities
            (reinsured buyup)...............       2,375       3,702       3,671
                                               ---------   ---------  ----------
    99.0    Direct obligations..............       3,380       4,883       4,931
    42.0  Reimbursable obligations:
            Insurance claims and indemnities       1,208       1,184       1,401
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       4,588       6,067       6,332
    ---------------------------------------------------------------------------

                               FARM SERVICE AGENCY

                                  Federal 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,
    $1,228,662,000: 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

    [[Page 91]]

    made available to the Agency for authorized activities may be advanced
    to and merged with this account.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0600-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Conservation......................         140         136         191
    00.02 Income support....................         802         770         961
    00.05 Commodity operations..............          61          59          77
                                               ---------   ---------  ----------
    03.00   Subtotal, direct program........       1,003         965       1,229
    09.01 Farm loans........................         301         302         312
    09.02 Other programs....................         182         102          99
                                               ---------   ---------  ----------
    09.99   Subtotal, reimbursable program..         483         404         411
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,486       1,369       1,640
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          24          77          77
    22.00 New budget authority (gross)......       1,503       1,369       1,640
    22.30 Expired unobligated balance
            transfer to unexpired account...          46
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,573       1,446       1,717
    23.95 Total new obligations.............      -1,486      -1,369      -1,640
    23.98 Unobligated balance expiring or
            withdrawn.......................         -10
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          77          77          77
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,030         965       1,229
    40.35   Appropriation permanently
              reduced.......................         -10
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,020         965       1,229
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).         473         404         411
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          10
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......         483         404         411
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,503       1,369       1,640
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         104         159         159
    73.10 Total new obligations.............       1,486       1,369       1,640
    73.20 Total outlays (gross).............      -1,443      -1,369      -1,613
    73.40 Adjustments in expired accounts
            (net)...........................          -2
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -10
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          24
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         159         159         186
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,327       1,270       1,514
    86.93 Outlays from discretionary
            balances........................         116          99          99
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,443       1,369       1,613
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -482        -387        -394
    88.40     Non-Federal sources...........         -24         -17         -17
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -506        -404        -411
          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..............          33
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,020         965       1,229
    90.00 Outlays...........................         937         965       1,202
    ---------------------------------------------------------------------------

        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; 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) conducting referendums and certifying results; (f)
    accepting farmer certifications and checking compliance

    [[Page 92]]

    for specific purposes; (g) processing commodity loan documents and
    issuing checks; (h) processing direct and counter-cyclical payments and
    issuing checks; (i) certifying payment eligibility and monitoring
    payment limitations; and (j) 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 paid to this consolidated
    account from the ACIF. Appropriations representing subsidy amounts
    necessary to support the individual program loan levels under Federal
    Credit Reform are made to the ACIF account.

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0600-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         143         145         154
    11.3      Other than full-time permanent           3           3           3
    11.5      Other personnel compensation..           3           3           3
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         149         151         160
    12.1    Civilian personnel benefits.....          44          45          47
    21.0    Travel and transportation of
              persons.......................           9                      17
    22.0    Transportation of things........           3                       4
    23.3    Communications, utilities, and
              miscellaneous charges.........           7          17          35
    24.0    Printing and reproduction.......           1                       1
    25.2    Other services..................         146         163         273
    26.0    Supplies and materials..........           6                       4
    31.0    Equipment.......................           3                       1
    41.0    Grants, subsidies, and
              contributions.................         635         589         687
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,003         965       1,229
    99.0  Reimbursable obligations..........         483         404         411
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,486       1,369       1,640
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-0600-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................       2,001       2,023       2,079
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................       3,234       3,230       3,174
    ---------------------------------------------------------------------------

                              State Mediation Grants

         For grants pursuant to section 502(b) of the Agricultural Credit
    Act of 1987, as amended (7 U.S.C. 5101-5106), $4,000,000.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0170-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 State mediation grants............           4           4           4
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           4           4           4
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           4           4           4
    23.95 Total new obligations.............          -4          -4          -4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

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

    [[Page 93]]

    mediation programs have been certified by the Farm Service Agency. A
    grant will not exceed 70 percent of the total fiscal year funds that a
    qualifying State requires to operate and administer its agricultural
    mediation program. In no case will the total amount of a grant exceed
    $500,000 annually.

                                GRANT OBLIGATIONS

                                         2006 actual  2007 est.   2008 est.
    Number of States receiving
    grants........................             33             36              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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Change in obligated balances:
    72.40 Obligated balance, start of year..           3           2
    73.20 Total outlays (gross).............          -1
    73.40 Adjustments in expired accounts
            (net)...........................                      -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           2
    ----------------------------------------------------------------------------

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

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

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

        The most reccent appropriation for TAP was in 2004, when the
    Consolidated Appropriations Act, P.L. 108-199, appropriated $12.5
    million for the program in southern California. During the 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 2009.

        For 2006, no appropriation was provided for TAP. However, funding
    was provided under the Commodity Credit Corporation. During 2006,
    $550,302 was paid to producers in Southern California from 2004
    obligations.

        No funding is requested for 2008.

                        Agricultural Conservation Program

        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 2006 a transfer of $100,000 in
    unobligated funds was made to the USDA Working Capital Fund as
    authorized in Section 705 of the Agriculture Appropriations Act, 2006,
    P.L. 109-97. Outlays to States in 2006 totaled $2,000.

                          Emergency Conservation Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3316-0-1-453      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Emergency conservation program....         108         120          30
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         108         120          30
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          96         150          30
    22.00 New budget authority (gross)......         162
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         258         150          30
    23.95 Total new obligations.............        -108        -120         -30
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         150          30
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         200
    41.00   Transferred to other accounts...         -38
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         162
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          41          61          46
    73.10 Total new obligations.............         108         120          30
    73.20 Total outlays (gross).............         -88        -135         -50
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          61          46          26
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          72         135          50
    86.98 Outlays from mandatory balances...          16
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          88         135          50
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         162
    90.00 Outlays...........................          88         135          50
    ---------------------------------------------------------------------------

        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.

        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 continued to operate nationwide using unobligated funds carried
    forward from 2005 along with recoveries from prior fiscal years. These
    funds are available until expended. On June 15, 2006, the President
    approved P.L. 109-234, transferring $38 million from the ECP to the
    National Oceanic and Atmospheric Administration. The $38 million
    transfer will be used for oyster damage caused by hurricanes during
    calendar year 2005.

        Under the 2006 program, cost-sharing and technical assistance were
    provided in 38 States to treat farmlands damaged by hurricanes, drought,
    floods, ice storms, tornadoes, and other natural disasters. Outlays to
    States in 2006 totaled $88 million, including $25,186,086 for damage
    caused by hurricanes during the 2005 calendar year.

        The 2008 Budget proposes no funding for this program.

                    Grassroots Source Water Protection Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3304-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Grassroots source water payments..           4           4
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           4           4
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           4           4
    23.95 Total new obligations.............          -4          -4
    ----------------------------------------------------------------------------

    [[Page 94]]

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    73.10 Total new obligations.............           4           4
    73.20 Total outlays (gross).............          -4          -4
    ----------------------------------------------------------------------------

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

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

                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, $1,423,857,000, of which $1,200,000,000 shall be for
    unsubsidized guaranteed loans and $223,857,000 shall be for direct
    loans; operating loans, $1,879,595,000, of which $1,000,000,000 shall be
    for unsubsidized guaranteed loans, $250,000,000 shall be for subsidized
    guaranteed loans, and $629,595,000 shall be for direct loans; Indian
    tribe land acquisition loans, $3,960,000; and for boll weevil
    eradication program loans, $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, $14,762,000, of which
    $4,800,000 shall be for unsubsidized guaranteed loans and $9,962,000
    shall be for direct loans; operating loans, $137,446,000, of which
    $24,200,000 shall be for unsubsidized guaranteed loans, $33,350,000
    shall be for subsidized guaranteed loans, and $79,896,000 shall be for
    direct loans; and Indian tribe land acquisition loans, $125,000.
         In addition, for administrative expenses necessary to carry out the
    direct and guaranteed loan programs, $319,657,000, of which $311,737,000
    shall be paid to 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).

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loan subsidy...............          83          93          97
    00.02 Guaranteed loan subsidy...........          67          65          62
    00.05 Reestimates of direct loan subsidy         143          30
    00.06 Interest on reestimates of direct
            loan subsidy....................          31          16
    00.07 Reestimates of guaranteed loan
            subsidy.........................           4          47
    00.08 Interest on reestimate of
            guaranteed loan subsidy.........           3          10
    00.09 Administrative expenses--salaries
            and expenses....................         302         301         312
    00.10 Administrative expenses--PLCE.....           6           8           8
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         639         570         479
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          22          16           8
    22.00 New budget authority (gross)......         640         562         472
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         662         578         480
    23.95 Total new obligations.............        -639        -570        -479
    23.98 Unobligated balance expiring or
            withdrawn.......................          -7
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          16           8           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         464         459         472
    40.35   Appropriation permanently
              reduced.......................          -5
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         459         459         472
          Mandatory:

    60.00   Appropriation...................         181         103
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         640         562         472
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          15          16          27
    73.10 Total new obligations.............         639         570         479
    73.20 Total outlays (gross).............        -636        -559        -478
    73.40 Adjustments in expired accounts
            (net)...........................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          16          27          28
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         444         437         449
    86.93 Outlays from discretionary
            balances........................          11          19          29
    86.97 Outlays from new mandatory
            authority.......................         181         103
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         636         559         478
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         640         562         472
    90.00 Outlays...........................         636         559         478
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Farm ownership....................         275         223         224
    115002Farm operating....................         641         649         630
    115003Emergency disaster................          51          60          60
    115004Indian tribe land acquisition.....                       4           4
    115005Boll weevil eradication...........          22          59          59
                                               ---------   ---------  ----------
    115999Total direct loan levels..........         989         995         977
        Direct loan subsidy (in percent):
    132001Farm ownership....................        5.12        4.19        4.45
    132002Farm operating....................        9.95       11.69       12.69
    132003Emergency disaster................       10.94       11.77       11.15
    132004Indian tribe land acquisition.....        0.00       21.15        3.15
    132005Boll weevil eradication...........      -18.09        1.90       -0.27
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....        8.03        9.47        9.88
        Direct loan subsidy budget authority:
    133001Farm ownership....................          14           9          10
    133002Farm operating....................          64          76          80
    133003Emergency disaster................           6           7           7
    133004Indian tribe land acquisition.....                       1
    133005Boll weevil eradication...........          -4           1
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....          80          94          97
        Direct loan subsidy outlays:
    134001Farm ownership....................          13           9          10
    134002Farm operating....................          61          70          77
    134003Emergency disaster................           5           7           7
    134004Indian tribe land acquisition.....                       1
    134005Boll weevil eradication...........          -3
                                               ---------   ---------  ----------

    [[Page 95]]

    134999Total subsidy outlays.............          76          87          94
        Direct loan upward reestimates:
    135001Farm ownership....................          37          10
    135002Farm operating....................          16
    135003Emergency disaster................           1          14
    135005Boll weevil eradication...........         119          20
    135009Indian Land, Credit Sales, Seed,
            Soil & Water....................           1           2
                                               ---------   ---------  ----------
    135999Total upward reestimate budget
            authority.......................         174          46
        Direct loan downward reestimates:
    137001Farm ownership....................         -70         -40
    137002Farm operating....................         -89
    137003Emergency disaster................         -18          -4
    137004Indian tribe land acquisition.....          -1          -1
    137005Boll weevil eradication...........                      -5
    137006Seed Cotton.......................                      -2
    137008Farm ownership credit sales.......          -1          -1
                                               ---------   ---------  ----------
    137999Total downward reestimate budget
            authority.......................        -179         -53
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Farm ownership, unsubsidized......         934       1,201       1,200
    215002Farm operating, unsubsidized......         941       1,151       1,000
    215003Farm operating, subsidized........         272         272         250
                                               ---------   ---------  ----------
    215999Total loan guarantee levels.......       2,147       2,624       2,450
        Guaranteed loan subsidy (in percent):
    232001Farm ownership, unsubsidized......        0.48        0.58        0.40
    232002Farm operating, unsubsidized......        3.03        2.47        2.42
    232003Farm operating, subsidized........       12.50       10.07       13.34
                                               ---------   ---------  ----------
    232999Weighted average subsidy rate.....        3.12        2.39        2.54
        Guaranteed loan subsidy budget authority:
    233001Farm ownership, unsubsidized......           5           7           5
    233002Farm operating, unsubsidized......          28          30          24
    233003Farm operating, subsidized........          34          28          33
                                               ---------   ---------  ----------
    233999Total subsidy budget authority....          67          65          62
        Guaranteed loan subsidy outlays:
    234001Farm ownership, unsubsidized......           4           8           5
    234002Farm operating, unsubsidized......          28          26          25
    234003Farm operating, subsidized........          34          24          32
                                               ---------   ---------  ----------
    234999Total subsidy outlays.............          66          58          62
        Guaranteed loan upward reestimates:
    235001Farm ownership, unsubsidized......           7
    235002Farm operating, unsubsidized......                      10
    235003Farm operating, subsidized........                      47
                                               ---------   ---------  ----------
    235999Total upward reestimate budget
            authority.......................           7          57
        Guaranteed loan downward reestimates:
    237001Farm ownership, unsubsidized......          -6         -15
    237002Farm operating, unsubsidized......         -95         -16
    237003Farm operating, subsidized........        -112          -4
                                               ---------   ---------  ----------
    237999Total downward reestimate subsidy
            budget authority................        -213         -35
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................         301         309         320
    3590  Outlays from new authority........         301         309         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 2006, $132 thousand was paid to producers who filed claims under
    the program.

        The 2008 Budget requests $100 thousand for this program.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1140-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.3  Other purchases of goods and
            services from Government
            accounts........................         307         309         320
    41.0  Grants, subsidies, and
            contributions...................         332         261         159
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         639         570         479
    ---------------------------------------------------------------------------

         Agricultural Credit Insurance Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4212-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loan obligations...........         989         995         977
    00.02 Payments of interest to Treasury..         308         250         250
    00.03 Fees, collateral and other........           2           4           4
    00.04 Advances on behalf of borrowers...           5           3           3
                                               ---------   ---------  ----------
    00.91   Direct program by activities--
              subtotal (1 level)............       1,304       1,252       1,234
    08.01 Negative subsidy..................           4
    08.02 Downward reestimate...............         145          44
    08.04 Interest on downward reestimate...          34           9
                                               ---------   ---------  ----------
    08.91   Direct program by activities--
              Subtotal (1 level)............         183          53
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,487       1,305       1,234
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,909         596           1
    22.00 New financing authority (gross)...         714         710       1,234
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          14
    22.60 Portion applied to repay debt.....        -542
    22.70 Balance of authority to borrow
            withdrawn.......................         -12
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,083       1,306       1,235
    23.95 Total new obligations.............      -1,487      -1,305      -1,234
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         596           1           1
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............       1,259       1,039       1,007
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).       1,363       1,261       1,177
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           1
    69.47     Portion applied to repay debt.      -1,909      -1,590        -950
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........        -545        -329         227
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         714         710       1,234
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         170         188         371
    73.10 Total new obligations.............       1,487       1,305       1,234
    73.20 Total financing disbursements
            (gross).........................      -1,454      -1,122      -1,103
    73.45 Recoveries of prior year
            obligations.....................         -14
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         188         371         502
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................       1,454       1,122       1,103
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    [[Page 96]]

            Offsetting collections (cash)
                from:
    88.00     Federal Sources: Reestimate
                payment from program account        -174         -46
    88.00     Federal Sources: Subsidy
                payment from program account         -79         -88         -94
    88.25     Federal Sources: Interest on
                uninvested funds............        -127        -115        -115
    88.40     Repayments of principal.......        -807        -815        -762
    88.40     Repayments of interest........        -169        -197        -206
    88.40     Interest and principal
                repayments--judgements......          -3
    88.40     Proceeds from sale of acquired
                property....................          -1
    88.40     Fees, shared appreciation,
                other.......................          -3
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................      -1,363      -1,261      -1,177
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          -1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............        -650        -551          57
    90.00 Financing disbursements...........          92        -139         -74
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4212-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........         936         933         917
    1121  Limitation available from carry-
            forward.........................         177         124          62
    1143  Unobligated limitation carried
            forward (P.L. 106-113) (-)......        -124         -62          -2
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         989         995         977
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       4,342       4,434       4,389
    1231  Disbursements: Direct loan
            disbursements...................         965         820         853
    1251  Repayments: Repayments and
            prepayments.....................        -868        -815        -762
    1263  Write-offs for default: Direct
            loans...........................          -5         -50         -50
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       4,434       4,389       4,430
    ---------------------------------------------------------------------------

        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

    2005 actual

    2006 actual

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

    1101

    Fund balances with Treasury

    1,909

    597

            Investments in US securities:
    1106

    Receivables, net

    149

    58

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

    1401

    Direct loans receivable, gross

    4,342

    4,434

    1402

    Interest receivable

    190

    191

    1403

    Accounts receivable from foreclosed property

    3

    4

    1405

    Allowance for subsidy cost (-)

    -687

    -627

    1499

    Net present value of assets related to direct loans

    3,848

    4,002

    1999

    Total assets

    5,906

    4,657

        LIABILITIES:
    2104

    Federal liabilities: Resources payable to Treasury

    5,709

    4,489

    2207

    Non-Federal liabilities: Other

    197

    168

    2999

    Total liabilities

    5,906

    4,657

    4999

    Total liabilities and net position

    5,906

    4,657

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

       Agricultural Credit Insurance Fund Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4213-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Default claims....................          36          47          47
    00.02 Payment of Interest to Treasury...           5           2           2
    00.03 Guaranteed debt offset/purchases/
            settlement expense..............           1
    00.04 Interest assistance...............          69         110         110
                                               ---------   ---------  ----------
    00.91   Direct program by activities--
              subtotal (1 level)............         111         159         159
    08.02 Downward reestimate of subsidy....         166          28
    08.04 Downward reestimate of subsidy-
            interest........................          46           7
                                               ---------   ---------  ----------
    08.91   Subtotal, reestimates...........         212          35
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         323         194         159
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         237         185         212
    22.00 New financing authority (gross)...         207         221         168
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          64
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         508         406         380
    23.95 Total new obligations.............        -323        -194        -159
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         185         212         221
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          89          53          53
    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         118         168         115
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         207         221         168
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         313         275         300
    73.10 Total new obligations.............         323         194         159
    73.20 Total financing disbursements
            (gross).........................        -297        -169        -145
    73.45 Recoveries of prior year
            obligations.....................         -64
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         275         300         314
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................         297         169         145
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account
                upward reestimate...........          -7         -57
    88.00     Payments from program account
                subsidy.....................         -66         -58         -62
    88.25     Interest on uninvested funds..         -23         -25         -25
    88.40     Fees and premiums.............         -17         -22         -22
    88.40     Loss recoveries and repayments          -4          -6          -6
    88.40     Miscellaneous.................          -1
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -118        -168        -115
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          89          53          53
    90.00 Financing disbursements...........         178           1          30
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4213-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........       2,147       2,622       2,450
    2121  Limitation available from carry-
            forward.........................          83          83          81
    2143  Uncommitted limitation carried
            forward.........................         -83         -81         -81
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       2,147       2,624       2,450
    2199  Guaranteed amount of guaranteed
            loan commitments................       1,931       2,434       2,238
    ----------------------------------------------------------------------------

    [[Page 97]]

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      10,208      10,087      10,442
    2231  Disbursements of new guaranteed
            loans...........................       2,146       2,569       2,125
    2251  Repayments and prepayments........      -2,231      -2,167      -2,196
          Adjustments:

    2261    Terminations for default that
              result in loans receivable....         -18         -18         -18
    2263    Terminations for default that
              result in claim payments......         -18         -29         -29
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      10,087      10,442      10,324
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       9,046       9,294       9,294
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......          25          38          45
    2331    Disbursements for guaranteed
              loan claims...................          18          18          18
    2351    Repayments of loans receivable..          -2          -6          -6
    2361    Write-offs of loans receivable..          -3          -5          -7
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......          38          45          50
    ---------------------------------------------------------------------------

        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

    2005 actual

    2006 actual

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

    1101

    Fund balances with Treasury

    550

    460

            Investments in US securities:
    1106

    Receivables, net

    7

    1206

    Non-Federal assets: Receivables, net

    3

    57

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

    1501

    Defaulted guaranteed loans receivable, gross

    25

    36

    1502

    Interest receivable

    -2

    1

    1505

    Allowance for subsidy cost (-)

    -18

    -22

    1599

    Net present value of assets related to defaulted guaranteed loans

    5

    15

    1999

    Total assets

    565

    532

        LIABILITIES:
          Federal liabilities:

    2104

    Resources payable to Treasury

    13

    102

    2105

    Other

    213

    34

          Non-Federal liabilities:

    2201

    Accounts payable

    313

    275

    2204

    Liabilities for loan guarantees

    26

    121

    2999

    Total liabilities

    565

    532

    4999

    Total liabilities and net position

    565

    532

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

              Agricultural Credit Insurance Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.08 Loan recoverable costs............           2           5           5
    00.09 Minor capital improvements........           1           1           1
                                               ---------   ---------  ----------
    00.91   Direct program by activities--
              subtotal (1 level)............           3           6           6
    01.08 Admininstrative expenses--
            Department of Justice fees......           1           1           1
    01.09 Costs incidental to acquisition of
            real property...................                       2           2
    01.13 Interest assistance--guaranteed
            loans...........................           8           1           1
    01.14 Loss settlement expenses
            guaranteed loans................                       1           1
    01.18 Civil rights settlements..........                       2           2
                                               ---------   ---------  ----------
    01.91   Total operating expenses........           9           7           7
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          12          13          13
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          51          24
    22.00 New budget authority (gross)......          28          13          13
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           8
    22.40 Capital transfer to general fund..         -51         -24
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          36          13          13
    23.95 Total new obligations.............         -12         -13         -13
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          24
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).         473         469         420
    69.27     Capital transfer to general
                fund........................        -445        -456        -407
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          28          13          13
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           2           2
    73.10 Total new obligations.............          12          13          13
    73.20 Total outlays (gross).............          -3         -13         -13
    73.45 Recoveries of prior year
            obligations.....................          -8
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           2           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           3          13          13
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -1          -1          -1
    88.40     Guaranteed loans purchased
                from holders--principal.....          -1
    88.40     Interest on loans.............        -139        -145        -145
    88.40     Miscellaneous undistributed
                receipts....................                      -1          -1
    88.40     Interest on judgments.........          -1          -2          -2
    88.40     Repayments on loans--principal        -299        -286        -239
    88.40     Judgments--principal..........          -9          -9          -7
    88.40     Shared appreciation recapture.          -5         -10         -10
    88.40     Sale of acquired property/
                chattels....................         -11         -14         -14
    88.40     Write-offs....................          -7          -1          -1
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -473        -469        -420
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -445        -456        -407
    90.00 Outlays...........................        -470        -456        -407
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       2,328       1,989       1,675
    1251  Repayments: Repayments and
            prepayments.....................        -299        -286        -239
    1261  Adjustments: Capitalized interest.
    1263  Write-offs for default: Direct
            loans...........................         -40         -28         -20
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,989       1,675       1,416
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         130          86          60
    2251  Repayments and prepayments........         -43         -25         -20
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................          -1          -1          -1
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          86          60          39
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          77          54          35
    ----------------------------------------------------------------------------

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

    [[Page 98]]

    2310    Outstanding, start of year......           9           8           7
    2351    Repayments of loans receivable..          -1          -1          -1
    2361    Write-offs of loans receivable..
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......           8           7           6
    ---------------------------------------------------------------------------

        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

    2005 actual

    2006 actual

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

    Federal assets: Fund balances with Treasury

    52

    26

    1601

    Loans Receivable

    1,989

    1602

    Interest receivable

    419

    351

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -267

    -397

    1604

    Direct loans and interest receivable, net

    152

    1,943

    1605

    Accounts receivable/judgments receivable

    82

    1606

    Foreclosed property

    21

    13

    1699

    Value of assets related to direct loans

    255

    1,956

    1701

    Defaulted guaranteed loans, gross

    9

    8

    1999

    Total assets

    316

    1,990

        LIABILITIES:
    2104

    Federal liabilities: Resources payable to Treasury

    313

    1,980

          Non-Federal liabilities:

    2201

    Accounts payable

    1

    1

    2204

    Liabilities for loan guarantees

    2

    1

    2207

    Other

    8

    2999

    Total liabilities

    316

    1,990

    4999

    Total liabilities and net position

    316

    1,990

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4140-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.2  Other services....................          12          12          12
    43.0  Interest and dividends............                       1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          12          13          13
    ---------------------------------------------------------------------------

                        Commodity Credit Corporation Fund

                      reimbursement for net realized losses

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

                           hazardous waste management

                            (limitation on expenses)

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

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-0-3-999      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Commodity purchases and related
            inventory transactions..........       5,891       3,635       3,585
    00.02 Storage, transportation and other
            obligations.....................         290         225         132
    00.04 Market access program.............         157         173         200
    00.05 Dairy export incentive program....                       3           3
    00.07 Foreign market development
            cooperative.....................          36          35          35
    00.08 Quality samples program...........           1           3           3
    00.10 Feed grains.......................       9,019       2,330       2,396
    00.11 Wheat.............................       1,155       1,076       1,126
    00.12 Rice..............................         657         297         439
    00.13 Cotton............................       2,654       1,686       2,347
    00.14 Dairy program.....................         440         236
    00.15 Tobacco program...................         967         960         960
    00.16 Peanut program....................         324         174         209
    00.17 Wool and Mohair program...........           8           9          10
    00.19 Lentils...........................          15           3           3
    00.21 Dry Peas program..................          45          10          17
    00.23 Non-Insured assistance program....          66         328         325
    00.24 Oilseeds payment program..........         635         502         706
    00.25 Marketing loan writeoffs..........         280          68          18
    00.27 Crop disaster program.............         178         152
    00.32 Livestock assistance..............         194          95
    00.33 Livestock Indemnity...............                      45
    00.34 Tree Assistance Program...........           4          35
    00.35 American Indian Livestock
            Assistance......................           7
    00.36 Conservation reserve program (CRP)       1,801       1,900       1,949
    00.47 Reimbursable agreement/transfers
            to State and Federal Agencies...          51          55          53
    00.48 Treasury..........................         557         346         321
    00.49 Other Interest....................           5           5           4
    00.52 Technical assistance..............         129          87          64
    00.57 BEHT Non-Commodity Costs..........                     140         140
    00.58 Section 416b/FFP/ocean
            transportation..................          54          61          61
                                               ---------   ---------  ----------
    01.92   Total support and related
              programs......................      25,620      14,674      15,106
    09.01 Commodity loans...................      12,014      11,347      10,066
    09.02 Commodities procured--PL480 Titles
            II / III Commodity costs........         495         543         463
    09.04 P. L. 480 ocean transportation....         803         680         653
                                               ---------   ---------  ----------
    09.09   Subtotal, reimbursable programs.      13,312      12,570      11,182
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      38,932      27,244      26,288
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         964         741         138
    22.00 New budget authority (gross)......      33,865      27,244      26,201
    22.10 Resources available from
            recoveries of prior year
            obligations.....................       4,851
    22.60 Portion applied to repay debt.....          -7        -603         -51
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      39,673      27,382      26,288
    23.95 Total new obligations.............     -38,932     -27,244     -26,288
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         741         138
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          60
    40.35   Appropriation permanently
              reduced.......................                                 -87
    41.00   Transferred to other accounts...         -60
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............                                 -87
          Mandatory:

    60.00   Appropriation...................      25,371      23,098      12,983
    60.47   Portion applied to repay debt...     -23,567     -20,594     -10,676
    61.00   Transferred to other accounts...      -1,804      -2,504      -2,307
                                               ---------   ---------  ----------

    [[Page 99]]

    62.50     Appropriation (total
                mandatory)..................
    67.10   Authority to borrow.............      36,924      10,778      10,587
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).      14,563      16,460      15,692
    69.00     MARAD Cargo Preference
                Reimbursements..............          15           6           9
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          54
    69.47     Portion applied to repay debt.     -17,691
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........      -3,059      16,466      15,701
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      33,865      27,244      26,201
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       7,173       6,492       4,873
    73.10 Total new obligations.............      38,932      27,244      26,288
    73.20 Total outlays (gross).............     -34,708     -28,863     -26,346
    73.45 Recoveries of prior year
            obligations.....................      -4,851
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -54
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       6,492       4,873       4,815
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 -87
    86.97 Outlays from new mandatory
            authority.......................      33,618      11,758      11,599
    86.98 Outlays from mandatory balances...       1,090      17,105      14,834
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      34,708      28,863      26,346
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Sales to special activities...        -495        -543        -462
    88.00     Advances from Foreign
                Assistance Programs (P.L.
                480)........................      -1,501      -1,223      -1,116
    88.00     Other Revenue.................      -1,490
    88.00     Tobacco Trust Fund............        -891        -960        -960
    88.00     MARAD Reimbursements..........         -15          -6          -9
    88.40     Sales and other proceeds......        -181        -114         -25
    88.40     Interest Revenue..............        -103        -182        -158
    88.40     Loans Repaid..................      -5,848     -11,022     -10,177
    88.40     Commodity Certificates
                Redeemed....................      -4,048      -2,411      -2,790
    88.40     Export Credit Sales Program
                Repayments..................          -4          -3          -3
    88.40     Interest Revenue..............          -2          -2          -1
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................     -14,578     -16,466     -15,701
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -54
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      19,233      10,778      10,500
    90.00 Outlays...........................      20,130      12,397      10,645
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2006 actual  2007 est.   2008 est.
    Enacted/requested:
      Budget Authority............         19,233         10,778          10,500
      Outlays.....................         20,130         12,397          10,645
    Legislative proposal, subject to
        PAYGO:
      Budget Authority............                                           500
      Outlays.....................                                           500

    Total:
      Budget Authority............         19,233         10,778          11,000
      Outlays.....................         20,130         12,397          11,145

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-0-3-999      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          29          24          21
    1251  Repayments: Repayments and
            prepayments.....................          -5          -3          -3
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          24          21          18
    ----------------------------------------------------------------------------

        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................      12,014      11,347      10,066
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...      12,014      11,347      10,066
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,108       1,463       1,721
    1231  Disbursements: Direct loan
            disbursements...................      11,119      11,347      10,066
    1251  Repayments: Repayments and
            prepayments.....................     -10,636     -11,022     -10,176
          Write-offs for default:

    1263    Direct loans....................
    1264    Other adjustments, net..........        -128         -67        -302
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,463       1,721       1,309
    ---------------------------------------------------------------------------

        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 2007 and 2008 budget estimates: (a) national
    income will rise both in 2007 and 2008 from the present level; (b) 2007
    crop production will increase from 2006 crop levels for some
    commodities; (c) generally, exports of agricultural commodities in 2008
    are expected to be higher than 2007 levels; and (d) yields for the 2007
    crops are based on recent averages adjusted for trends.

        It is difficult to accurately forecast requirements for the year
    ending September 30, 2008, 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, food, and
    energy needs here and overseas, and available dollar exchange.

        The 2002 Act re-authorized CRP enrollment through calendar year
    2007, increased maximum CRP enrollment at any one time from 36.4 million
    acres to 39.2 million acres, expanded the Farmable Wetlands Program
    (FWP) from six states to nationwide with a 1-million-acre cap, and
    included provisions for managed haying and grazing. Enrollment under
    competitive general CRP sign-up provisions and under non-competitive
    continuous CRP (CCRP), Conservation Reserve Enhancement Program (CREP),
    and the FWP are guided by eligibility and selection criteria rules
    published in May 2003 and May 2004.

        Subsequent to passage of the 2002 Act, USDA initiated several
    enhancements to CRP continuous signup, including: 1) A goal of enrolling
    500,000 acres of bottomland hardwood trees to enhance wildlife habitats
    and sequester carbon; 2) Setting aside 500,000 and 250,000 acres,
    respectively, for enrollment of floodplain and non-floodplain wetlands;
    3) Setting aside 250,000 acres for enrollment of upland bird habitat
    buffers; 4) Setting aside 100,000 acres to provide habitat for duck
    nesting in wetland complexes located outside the recognized 100-year
    floodplain; and 5) Setting aside 250,000 acres for enrollment of
    longleaf pine. Also, in August 2004, the Administration announced it was
    committed to full enrollment of CRP. Recognizing that contracts on 28.6
    million acres mature during 2007--2010, the Administration announced it
    would provide for early re-enrollment and extension.

        Total CRP enrollment, about 36.0 million acres at the end of 2006,
    is projected to increase to 37.1 million acres at the end of 2007.
    Enrollment is then expected to decline in 2008 and 2009 before steadily
    increasing to 39.2 million acres by 2016. As for EFCRP, USDA estimates
    total enrollment during calendar year 2006 to be 215,000 acres.

        There are no general sign-ups assumed during 2007 or 2008.
    Continuous sign-up enrollment is assumed as follows (by sign-up year):

    [[Page 100]]

        2007: 556,000 (250,000 acres of new lands and 306,000 acres of re-
    enrolled lands)

        2008: 395,000 (250,000 acres of new lands and 145,000 acres of re-
    enrolled lands)

        To encourage participation in CCRP and CREP, USDA will provide
    financial incentives including a signing bonus and a payment based on
    practice installation cost are expected to total about $63 million in
    2007 and $39 million in 2008.

        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.

        USDA has incorporated stochastic price and production variability
    into its 10-year budget baseline process starting with the 2007
    President's Budget. For the 2007-2016 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.

                                  2008 ESTIMATE

                            [In millions of dollars]

                   Program                 Gross
                                         obligations Net outlaysNet realized
                                                                loss for year
    Farm income, marketing assistance
        loans, and price support:
      Commodity loans.............         10,066          2,848               0
      Feed grain payments.........          2,396          2,396           2,396
      Wheat payments..............          1,126          1,126           1,126
      Rice payments...............            439            439             439
      Cotton payments.............          2,347          2,347           2,347
      Other support and related...          6,394           -919           4,336
    Other items not distributed by
        program:
      Interest....................            326            182             166
      All other...................             65            300              65
                                        ------------------------------------
          Total, farm income,
            marketing assistance
            loans, and price-
            support programs......         23,159          8,719          10,875
    Conservation programs:
      Conservation reserve program          2,013          2,013           2,013
                                        ------------------------------------
        Total, conservation
          programs................          2,013          2,013           2,013
            Total, Commodity Credit
              Corporation...............   25,172         10,732          12,888
                                        ------------------------------------

                           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 sugar and dairy products. Marketing
    assistance loans are mandatory for wheat, feed grains, oilseeds, upland
    cotton, peanuts, and rice. Loans are also required to be made for sugar,
    honey, wool, mohair, extra long staple cotton, and the pulse crops.

        One method of providing support is loans to and purchases from
    producers. With limited exceptions, loans made on commodities are
    nonrecourse. The commodities serve as collateral for the loan and on
    maturity the producer may deliver or forfeit such collateral to satisfy
    the loan obligation without further payment.

        Direct purchases may be made from processors as well as producers,
    depending on the commodity involved. Also, special purchases are made
    under various laws for the removal of surpluses; for example, the Act of
    August 19, 1958, as amended, and section 416 of the Agricultural Act of
    1949, as amended.

        Direct Payments and Counter-Cyclical Payments.--The 2002 Farm Bill
    established direct payments and counter-cyclical payments for May 2002
    through 2007. The eligible commodities for both direct payments and
    counter-cyclical payments are wheat, corn, grain sorghum, barley, oats,
    upland cotton, rice, soybeans, other oilseeds, and peanuts.

        Direct Payments are payments to producers for which payment yields
    and base acres are established. The commodity payment amount is
    calculated as follows: Payment Amount = specified rate x payment acres x
    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 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 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,

    [[Page 101]]

    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.

        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 Agricultural Disaster Assistance Act of
    2006, P.L. 109-234, authorized almost $500 million in financial relief
    for farmers, ranchers, foresters, and other agricultural producers who
    incurred losses due to hurricanes.

        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.

        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 2002-2012. Actual DEIP subsidies
    are further limited on a product-by-product basis under the Uruguay
    Round.

        Export Enhancement Program (EEP).--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 2002, $110 million for 2003, $125
    million for 2004, $140 million for 2005, and $200 million for 2006 and
    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 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.

    [[Page 102]]

        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 2007. CCC is authorized to
    hold funds as well as commodities in the reserve.

        Conservation Programs.--Title II of the Farm Security and Rural
    Investment Act of 2002, P.L. 107-171, authorizes funding for new and
    existing conservation programs implemented by the Farm Service Agency or
    the Natural Resources Conservation Service and funded through the
    Commodity Credit Corporation. The bill provides additional funding to
    help farmers adopt and maintain conservation systems that protect water
    quality, reduce soil erosion, protect and enhance wildlife habitat and
    wetlands, conserve water, and sequester carbon. One such program is the
    Conservation Reserve Program administered by FSA.

        Up to 39.2 million acres may be enrolled at any one time. CRP is
    USDA's largest conservation/environmental program. The purpose of CRP is
    to cost-effectively assist farm owners and operators in conserving and
    improving soil, water, air, and wildlife resources by converting highly
    erodible and other environmentally sensitive acreage normally devoted to
    the production of agricultural commodities to a long-term resource-
    conserving cover. CRP participants enroll contracts for periods from 10
    to 15 years in exchange for annual rental payments and cost-share and
    technical assistance for installing approved conservation practices.

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

        The financial assistance for conservation programs where the Natural
    Resources Conservation Service (NRCS) is the lead agency, is transferred
    from CCC to NRCS's Farm Security and Rural Investment Programs account
    (see the NRCS section). Specifically, these programs include the
    Environmental Quality Incentives Program, Wetlands Reserve Program,
    Wildlife Habitat Incentives program, Farm and Ranch Lands Protection
    Program, Conservation Security Program, and Grassland Reserve Program.

        The Agricultural Risk Protection Act of 2000 authorized CCC funding
    of $10 million for 2001 and subsequent years for the Agricultural
    Management Assistance Program (AMAP). AMAP provides cost-share
    assistance to producers in not less than 10, nor more than 15, States in
    which the Federal Crop Insurance Program is historically low as
    determined by the Secretary of Agriculture. The 2002 Farm Bill increased
    CCC funding to $20 million annually through 2007. The Secretary
    delegated authority to Natural Resources Conservation Service, Risk
    Management Agency, and the Agricultural Marketing Service. The 2008
    Budget assumes the $10 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. The
    Agricultural Disaster Assistance Act ot 2006, P.L. 109-234, authorized
    another $100 million for this program. By the end of calendar year 2006,
    USDA estimates that it will have enrolled about 215,000 acres into
    EFCRP.

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

                            [In millions of dollars]

                    Item                 2006 actual  2007 est.   2008 est.
    Loans outstanding, gross, start of
        year:
      Commodity Credit Corporation          1,108          1,463           1,721
      Additional loans made.......         12,014         11,347          10,066
    Deduct:
      Loans repaid................        -11,472        -11,022         -10,176
      Acquisition of loan
        collateral................           -128            -67            -302
      Write-offs..................            -59
                                        ------------------------------------
          Total loans outstanding,
            gross, end of year....          1,463          1,721           1,309
                                        ====================================

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

                            AGRICULTURAL COMMODITIES

                            [In millions of dollars]

                    Item                 2006 actual  2007 est.   2008 est.
    On hand, start of year, gross.            304            226             149
                                        ====================================
    Acquisitions:
      Forfeiture of loan
        collateral................            128             67             302
      Excess of collateral
        acquired over loans
        canceled..................              4              3               0
      Purchases...................          5,885          3,618           3,575
      Transfers and exchanges.....             -1              0               0
    Carrying charges:
      Charges to inventory........              4             14              10
      Storage and handling (non-
        add)......................             96             98              20
      Transportation (non-add)....              4              2               5
                                        ------------------------------------
          Total acquisitions......          6,020          3,702           3,887
                                        ====================================
    Dispositions:
    Domestic donations to:
        Families..................             27              1              17
        Institutions..............             43             40              23
                                        ------------------------------------
          Total domestic donations             70             41              40
                                        ====================================
      Export donations............            198            117             117
    Sales and transfers:
        Special programs: Title
          II, Public Law 480......            485            543             463
        Other sales...............          4,220          2,510           2,813
        Net loss or gain (-) on
          sales and transfers.....          1,125            568             158
                                        ------------------------------------
          Total sales and
            transfers.............          5,830          3,621           3,434
                                        ====================================
          Total dispositions......          6,098          3,779           3,591
                                        ====================================
    On hand, end of year, gross...            226            149             445
    Allowances for losses.........           -171           -113            -337
                                        ------------------------------------
    On hand, end of year, net.....             55             36             108
                                        ====================================

        Other data.--The following table reflects other data which are
    applicable to price support and related programs:

    [[Page 103]]

                      DATA ON SUPPORT AND RELATED PROGRAMS

                            [In millions of dollars]

                    Item                 2006 actual  2007 est.   2008 est.
    Loans made....................         12,014         11,347          10,066
    Loans repaid..................         11,472         11,022          10,177
    Loan collateral forfeited.....            128             67             302
    Loans outstanding, end of year          1,463          1,721           1,309
    Acquisitions..................          6,020          3,702           3,887
    Cost of commodities sold......          5,830          3,621           3,434
    Cost of commodities donated...            268            158             157
    Inventory, end of year........            226            149             445
    Investment in loans and
    inventory, end of year........          1,689          1,870           1,753
    Direct producer payments......         17,950         11,093           9,591
    Net expenditures..............         20,146         12,397          10,732
    Realized losses...............         23,098         12,983          12,888

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

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

        Section 161 of the 1996 Act amended Section 11 of the CCC Charter
    Act to limit the use of CCC funds for the transfer and allotment of
    funds to State and Federal agencies. The Section 11 cap of $56 million
    including FSA loan service fees remains at $56 million in 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                 2006 actual  2007 est.   2008 est.
    Statutory borrowing authority.         30,000         30,000          30,000
    Deduct: Borrowings from
    Treasury......................         16,420          8,158           8,186
    Net statutory borrowing
    authority available...........         13,580         21,842          21,814

        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]
                                                          2006 actual
    Realized losses, 1933 to 2006, inclusive..........             441,542
     Reimbursements by the Treasury:
     Reimbursements of realized losses:
       Appropriations (67 times)......................             415,286
       Note cancellations (6 times)...................               2,698
       Less dividends paid to Treasury (4 times)......                -138
                                                      --------------------

       Total reimbursements for net realized losses...             417,846
                                                      ====================

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

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

      Total...........................................             418,444
                                                      --------------------

    Realized deficit as of September 30, 2006, support
     and related programs.............................              23,098
                                                      ====================

        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

    [[Page 104]]

    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 2016.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 12-4336-0-
    3-999

    2005 actual

    2006 actual

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

    1101

    Fund balances with Treasury

    -975

    -1,372

            Investments in US securities:
    1106

    Receivables, net

    1,557

    1,689

    1107

    Advances and prepayments

    1

    1

          Non-Federal assets:

    1206

    Receivables, net

    357

    60

    1207

    Advances and prepayments

    28

    32

    1601

    Direct loans, gross

    1,137

    1,487

    1602

    Interest receivable

    17

    30

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -97

    -137

    1604

    Direct loans and interest receivable, net

    1,057

    1,380

    1699

    Value of assets related to direct loans

    1,057

    1,380

          Other Federal assets:

    1801

    Cash and other monetary assets

    59

    33

    1802

    Inventories and related properties

    29

    55

    1803

    Property, plant and equipment, net

    52

    52

    1999

    Total assets

    2,165

    1,930

        LIABILITIES:
          Federal liabilities:

    2101

    Accounts payable

    814

    2102

    Interest payable

    323

    427

    2103

    Debt

    19,491

    16,595

    2105

    Other

    759

    1,038

          Non-Federal liabilities:

    2201

    Accounts payable

    466

    151

    2207

    Other

    14,695

    7,390

    2999

    Total liabilities

    36,548

    25,601

        NET POSITION:
    3300

    Cumulative results of operations

    -34,383

    -23,671

    3999

    Total net position

    -34,383

    -23,671

    4999

    Total liabilities and net position

    2,165

    1,930

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-0-3-999      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    22.0    Transportation of things........          58         203         206
    25.2    Other services..................         283         102         114
    25.2    Other services: Storage and
              handling......................          96          98          20
    26.0    Supplies and materials: Costs of
              commodities sold or donated...       5,891       3,635       3,585
    41.0    Grants, subsidies, and
              contributions.................      18,730      10,285      10,856
    43.0    Interest and dividends..........         562         351         325
                                               ---------   ---------  ----------
    99.0      Direct obligations............      25,620      14,674      15,106
          Reimbursable obligations:

    22.0    Transportation of things: P. L.
              480 ocean transportation......         803         680         653
    26.0    Supplies and materials--Cost of
              Commodities Procured/Donated--
              PL 480........................         495         543         463
    33.0    Investments and loans...........      12,014      11,347      10,066
                                               ---------   ---------  ----------
    99.0  Reimbursable obligations..........      13,312      12,570      11,182
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      38,932      27,244      26,288
    ---------------------------------------------------------------------------

                        Commodity Credit Corporation fund

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-4-3-999      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.59 Farm bill proposal................                                 500
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                 500
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 500
    23.95 Total new obligations.............                                -500
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                                 500
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                 500
    73.20 Total outlays (gross).............                                -500
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                 500
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 500
    90.00 Outlays...........................                                 500
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4336-4-3-999      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........
    1251  Repayments: Repayments and
            prepayments.....................                                   1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........                                   1
    ----------------------------------------------------------------------------

        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........                                   1
    1131  Direct loan obligations exempt
            from limitation.................                                   1
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...                                   2
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........                                   1
    1231  Disbursements: Direct loan
            disbursements...................                                   1
    1251  Repayments: Repayments and
            prepayments.....................                                   1
          Write-offs for default:

    1263    Direct loans....................                                   1
    1264    Other adjustments, net..........                                   1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........                                   5
    ---------------------------------------------------------------------------

            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, $5,344,000;
    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 $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 $359,000 may be paid to
    the appropriation for ``Farm Service Agency, Salaries and Expenses''.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

    [[Page 105]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1336-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........          71          61          64
    00.03 Adjustment to the prior year......           1
    00.07 Reestimates of subsidy............          64          77
    00.08 Interest on reestimates...........           4           6
    00.09 Administrative expenses...........           5           5           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         145         149          69
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         104         161         161
    22.00 New budget authority (gross)......         202         149          69
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         306         310         230
    23.95 Total new obligations.............        -145        -149         -69
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         161         161         161
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

    60.00   Appropriation...................         129          61          64
    60.00   Appropriation--upward reestimate          68          83
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         197         144          64
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         202         149          69
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         166         169         118
    73.10 Total new obligations.............         145         149          69
    73.20 Total outlays (gross).............        -142        -200         -68
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         169         118         119
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           5           5           5
    86.97 Outlays from new mandatory
            authority.......................          68         126          45
    86.98 Outlays from mandatory balances...          69          69          18
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         142         200          68
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         202         149          69
    90.00 Outlays...........................         142         200          68
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1336-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001GSM 102...........................       1,453       1,964       2,214
    215002Supplier Credit...................                                 200
    215003Export guarantee program--
            Facilities......................                      26          26
                                               ---------   ---------  ----------
    215999Total loan guarantee levels.......       1,453       1,990       2,440
        Guaranteed loan subsidy (in percent):
    232001GSM 102...........................        4.88        3.04        2.39
    232002Supplier Credit...................        0.00        4.55        5.60
    232003Export guarantee program--
            Facilities......................        0.00        0.34       -0.05
                                               ---------   ---------  ----------
    232999Weighted average subsidy rate.....        4.88        3.00        2.63
        Guaranteed loan subsidy budget authority:
    233001GSM 102...........................          71          60          53
    233002Supplier Credit...................                                  11
    233003Export guarantee program--
            Facilities......................                       1          -1
                                               ---------   ---------  ----------
    233999Total subsidy budget authority....          71          61          63
        Guaranteed loan subsidy outlays:
    234001GSM 102...........................          69         112          63
                                               ---------   ---------  ----------
    234999Total subsidy outlays.............          69         112          63
        Guaranteed loan upward reestimates:
    235001GSM 102...........................                       2
    235002Supplier Credit...................          63          81
    235003Export guarantee program--
            Facilities......................           5
                                               ---------   ---------  ----------
    235999Total upward reestimate budget
            authority.......................          68          83
        Guaranteed loan downward reestimates:
    237001GSM 102...........................        -541        -379
    237002Supplier Credit...................          -6          -2
    237003Export guarantee program--
            Facilities......................          -4
    237004GSM 103...........................                      -9
                                               ---------   ---------  ----------
    237999Total downward reestimate subsidy
            budget authority................        -551        -390
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           5           5           5
    3590  Outlays from new authority........           5           5           5
    ---------------------------------------------------------------------------

        This is the program account for the GSM-102 CCC Export Credit
    Guarantee Program. The GSM-102 Export Credit Guarantee Program covers
    credit terms of up to 3 years. Under this program, 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 program is 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 2008 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.3  Other purchases of goods and
            services from Government
            accounts........................           5           5           5
    41.0  Grants, subsidies, and
            contributions...................         140         144          64
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         145         149          69
    ---------------------------------------------------------------------------

    [[Page 106]]

         Commodity Credit Corporation Export Guarantee Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4337-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Default claims....................          24          52          61
    00.02 Interest on debt to Treasury......          65         155         163
    00.03 Modification savings..............                      20
                                               ---------   ---------  ----------
    00.91   Subtotal, new loans.............          89         227         224
    08.02 Reestimates of guaranteed loan
            subsidy.........................         430         308
    08.04 Interest on reestimates of
            guaranteed loan subsidy.........         121          82
                                               ---------   ---------  ----------
    08.91   Subtotal, reestimates...........         551         390
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         640         617         224
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,159         895       1,080
    22.00 New financing authority (gross)...         913         802         259
    22.60 Portion applied to repay debt.....        -537
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,535       1,697       1,339
    23.95 Total new obligations.............        -640        -617        -224
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         895       1,080       1,115
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............         233
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).         709         341         259
    69.00     Offsetting collections --
                Prepayments.................                     461
    69.10     Receivable from Federal
                sources.....................         -29
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         680         802         259
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         913         802         259
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..        -160        -130        -130
    73.10 Total new obligations.............         640         617         224
    73.20 Total financing disbursements
            (gross).........................        -639        -617        -224
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          29
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..        -130        -130        -130
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................         639         617         224
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.        -137        -195         -63
    88.25     Interest on uninvested funds..         -42         -54         -54
    88.40     Loan origination fee..........         -10         -15         -15
    88.40     Principal collections.........        -432        -487         -81
    88.40     Interest collections..........         -91         -51         -46
    88.40     Other actual collections Non-
                Federal sources.............           3
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -709        -802        -259
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          29
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         233
    90.00 Financing disbursements...........         -70        -185         -35
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4337-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:
    2111  Limitation on guaranteed loans
            made by private lenders.........
    2131  Guaranteed loan commitments exempt
            from limitation.................       1,453       1,990       2,440
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       1,453       1,990       2,440
    2199  Guaranteed amount of guaranteed
            loan commitments................       1,366       1,890       2,324
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       2,461       3,022       3,180
    2231  Disbursements of new guaranteed
            loans...........................       1,030       1,899       1,952
    2251  Repayments and prepayments........        -432      -1,689      -2,074
          Adjustments:

    2263    Terminations for default that
              result in claim payments......         -24         -52         -61
    2264    Other adjustments, net..........         -13
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       3,022       3,180       2,997
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       2,925
    ----------------------------------------------------------------------------

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

    2310    Outstanding, start of year......       1,604       1,189       1,199
    2331    Disbursements for guaranteed
              loan claims...................          20          52          61
    2351    Repayments of loans receivable..        -533         -42         -49
    2364    Other adjustments, net..........          98
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......       1,189       1,199       1,211
    ---------------------------------------------------------------------------

        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

    2005 actual

    2006 actual

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

    1101

    Fund balances with Treasury

    997

    765

    1101

    Accounts Receivable, net

    233

    214

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

    1501

    Defaulted guaranteed loans receivable, gross

    1,605

    1,189

    1502

    Interest receivable

    24

    20

    1505

    Allowance for subsidy cost (-)

    -691

    -406

    1599

    Net present value of assets related to defaulted guaranteed loans

    938

    803

    1999

    Total assets

    2,168

    1,782

        LIABILITIES:
          Federal liabilities:

    2101

    Accounts payable

    398

    394

    2104

    Resources payable to Treasury

    1,342

    1,038

    2105

    Liability Subsidy for Unidsbursed Loans

    161

    131

    2204

    Non-Federal liabilities: Liabilities for loan guarantees

    267

    219

    2999

    Total liabilities

    2,168

    1,782

    4999

    Total liabilities and net position

    2,168

    1,782

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

        Commodity Credit Corporation Guaranteed Loans Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4338-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Operating expenses................           6           5           4
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.3)...................           6           5           4
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           5          74
    22.00 New budget authority (gross)......          80           5           4
    22.40 Capital transfer to general fund..          -5         -74
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          80           5           4
    23.95 Total new obligations.............          -6          -5          -4
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          74
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    [[Page 107]]

            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).         980         196          45
    69.27     Capital transfer to general
                fund........................        -900        -191         -41
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          80           5           4
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           3           3           3
    73.10 Total new obligations.............           6           5           4
    73.20 Total outlays (gross).............          -6          -5          -4
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           3           3           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           6           5           4
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.40     Repayments of principal.......        -885        -174         -30
    88.40     Interest received on loans....         -86         -22         -15
    88.40     Other Interest................          -9
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -980        -196         -45
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -900        -191         -41
    90.00 Outlays...........................        -974        -191         -41
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4338-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Addendum:
          Cumulative balance of defaulted guaranteed
              loans that result in loans receivable:

    2310    Outstanding, start of year......       1,401         516         342
    2351    Repayments of loans receivable..        -885        -174         -30
                                               ---------   ---------  ----------
    2390      Outstanding, end of year......         516         342         312
    ---------------------------------------------------------------------------

        Note.--Includes amounts for activities previously funded in the
    Commodity Credit Corporation Fund.

        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

    2005 actual

    2006 actual

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

    Federal assets: Fund balances with Treasury

    8

    77

    1701

    Defaulted guaranteed loans, gross

    1,401

    516

    1702

    Interest receivable

    15

    7

    1703

    Allowance for estimated uncollectible loans and interest (-)

    -122

    -137

    1799

    Value of assets related to loan guarantees

    1,294

    386

    1999

    Total assets

    1,302

    463

        LIABILITIES:
          Federal liabilities:

    2101

    Accounts payable

    3

    3

    2104

    Resources payable to Treasury

    1,294

    452

    2207

    Non-Federal liabilities: Other

    5

    8

    2999

    Total liabilities

    1,302

    463

    4999

    Total liabilities and net position

    1,302

    463

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

                   Farm Storage Facility Loans Program Account

         For administrative expenses necessary to carry out the Farm Storage
    and Sugar Storage Facility Loan Programs, $4,660,000, shall be paid to
    the appropriation for ``Farm Service Agency, Salaries and Expenses''.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3301-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loan subsidy...............                                   1
    00.05 Upward reestimate.................           3
    00.09 Administrative expenses...........                                   5
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           3                       6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1           1
    22.00 New budget authority (gross)......           4                       6
    22.40 Capital transfer to general fund..          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           4           1           7
    23.95 Total new obligations.............          -3                      -6
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

    60.00   Appropriation...................           4                       1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           4                       6
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............           3                       6
    73.20 Total outlays (gross).............          -3                      -6
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                   5
    86.97 Outlays from new mandatory
            authority.......................           3                       1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           3                       6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           4                       6
    90.00 Outlays...........................           3                       6
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-3301-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Farm Storage facility loans.......         111          71          90
    115002Sugar Storage facility Loans......                       3           3
                                               ---------   ---------  ----------
    115999Total direct loan levels..........         111          74          93
        Direct loan subsidy (in percent):
    132001Farm Storage facility loans.......       -0.62        0.38        1.12
    132002Sugar Storage facility Loans......        0.00       -2.71        0.98
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....       -0.62        0.25        1.12
        Direct loan subsidy budget authority:
    133001Farm Storage facility loans.......          -1                       1
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....          -1                       1
        Direct loan subsidy outlays:
    134001Farm Storage facility loans.......          -1                       1
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............          -1                       1
        Direct loan upward reestimates:
    135001Farm Storage facility loans.......           3
                                               ---------   ---------  ----------
    135999Total upward reestimate budget
            authority.......................           3
        Direct loan downward reestimates:
    137001Farm Storage facility loans.......          -4
                                               ---------   ---------  ----------
    137999Total downward reestimate budget
            authority.......................          -4
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................                                   5
    3590  Outlays 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

    [[Page 108]]

    storage facilities. The program was discontinued in the early 1980's
    when studies showed sufficient storage space was available. The FSFL was
    re-established in 2000 due to a severe shortage of sufficient available
    storage. The program was implemented in 2000 by CCC under Section 504(c)
    of the Federal Credit Reform Act of 1990. The program provides producers
    financing with five- to ten-year repayment terms and low interest rates.
    The program gives producers greater marketing flexibility when farm
    storage is limited and/or transportation difficulties cause storage
    problems, allows farmers to benefit from new marketing and technological
    advances, and maximizes their returns through identity-preserved
    marketing.

        Sugar Storage Facility Loans.The 2002 Farm Bill directs that the CCC
    establish a sugar storage facility loan program to provide financing for
    processors of domestically produced sugarcane and sugar beets to
    construct or upgrade storage and handling facilities for raw sugars and
    refined sugars. The loan term is a minimum of 7 years with the amount
    and terms being determined as any other commercial loan.

        As required by the Federal Credit Reform Act of 1990, this account
    records the subsidy costs associated with the direct loans obligated in
    1992 and beyond, as well as administrative expenses of this program. The
    subsidy amounts are estimated on a prevent value basis; the
    administrative expenses are estimated on a cash basis.

               Farm Storage Facility Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4158-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loans......................         111          74          93
    00.02 Payment of interest to Treasury...          15          12          13
                                               ---------   ---------  ----------
    00.91   Obligations associated with
              loans.........................         126          86         106
    08.01 Negative subsidies paid to receipt
            account.........................           1
    08.02 Downward reestimates paid to
            receipt accounts................           4
                                               ---------   ---------  ----------
    08.91   Other obligations by program
              activities....................           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         131          86         106
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          29          22          19
    22.00 New financing authority (gross)...         147         105         188
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
    22.60 Portion applied to repay debt.....         -18         -22         -18
    22.75 Other authority withdrawn.........          -9
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         153         105         189
    23.95 Total new obligations.............        -131         -86        -106
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          22          19          83
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............         134          86         106
            Spending authority from
                offsetting collections:
    69.00     Payments from program account.           3                       1
    69.00     Principal.....................          52          52          62
    69.00     Interest collections (cash)...                      11          13
    69.00     Interest on Uninvested Funds..           7           6           6
    69.47     Portion applied to repay debt.         -49         -50
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          13          19          82
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         147         105         188
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          47          72          74
    73.10 Total new obligations.............         131          86         106
    73.20 Total financing disbursements
            (gross).........................        -102         -84         -99
    73.45 Recoveries of prior year
            obligations.....................          -4
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          72          74          81
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................         102          84          99
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from Program Account.          -3                      -1
    88.25     Interest on uninvested funds..          -7          -6          -6
    88.40     Principal collections.........         -43         -52         -62
    88.40     Interest collections..........          -9         -11         -13
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -62         -69         -82
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          85          36         106
    90.00 Financing disbursements...........          40          15          17
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4158-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................         111          74          93
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         111          74          93
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         210         248         280
    1231  Disbursements: Direct loan
            disbursements...................          81          84          82
    1251  Repayments: Repayments and
            prepayments.....................         -43         -52         -62
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         248         280         300
    ---------------------------------------------------------------------------

        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 12-4158-0-
    3-351

    2005 actual

    2006 actual

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

    1101

    Fund balances with Treasury

    76

    95

            Investments in US securities:
    1106

    Receivables, net

    3

    47

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

    1401

    Direct loans receivable, gross

    210

    248

    1402

    Interest receivable

    22

    25

    1405

    Allowance for subsidy cost (-)

    -21

    -70

    1499

    Net present value of assets related to direct loans

    211

    203

    1999

    Total assets

    290

    345

        LIABILITIES:
          Federal liabilities:

    2103

    Debt payable to Treasury

    286

    344

    2105

    Other Federal Liabilities

    4

    1

    2999

    Total liabilities

    290

    345

    4999

    Total liabilities and net position

    290

    345

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

                           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 man

    [[Page 109]]

    agement is performed through farm loan programs. No further funding is
    requested for this program.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the direct
    loans obligated in 1992 and beyond (including modifications of direct
    loans or loan guarantees that resulted from obligations or commitments
    in any year), as well as administrative expenses of this program. The
    subsidy amounts are estimated on a present value basis; the
    administrative expenses are estimated on a cash basis.

                    Emergency Boll Weevil Loan Program Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3303-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.05 Upward reestimate.................           3
                                               ---------   ---------  ----------
    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
    ----------------------------------------------------------------------------

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan upward reestimates:
    135001Emergency boll weevil loans.......           3
                                               ---------   ---------  ----------
    135999Total 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           5           5
    22.00 New financing authority (gross)...           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           5           5           5
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           5           5           5
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           4
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -3
    88.45     Offsetting governmental
                collections (from non-
                Federal sources)............          -1
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................          -4
    ----------------------------------------------------------------------------

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          10          10          10
                                               ---------   ---------  ----------
    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

    2005 actual

    2006 actual

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

    1101

    Fund balances with Treasury

    1

    1

            Investments in US securities:
    1106

    Receivables, net

    3

    3

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

    1401

    Direct loans receivable, gross

    10

    10

    1405

    Allowance for subsidy cost (-)

    -10

    -10

    1499

    Net present value of assets related to direct loans

    1999

    Total assets

    4

    4

        LIABILITIES:
    2103

    Federal liabilities: Debt

    4

    4

    2999

    Total liabilities

    4

    4

    4999

    Total liabilities and net position

    4

    4

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

                                   Trust Funds

                                Tobacco Trust Fund

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8161-0-7-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.60 Excise taxes for tobacco
            assessments, Tobacco trust fund.         891         960         960
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         891         960         960
        Appropriations:
    05.00 Tobacco trust fund................        -891        -960        -960
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8161-0-7-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    09.01 Tobacco buyout cost reimbursement
            to CCC..........................         891         960         960
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         891         960         960
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         891         960         960
    23.95 Total new obligations.............        -891        -960        -960
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......         891         960         960
    ----------------------------------------------------------------------------

    [[Page 110]]

        Change in obligated balances:
    73.10 Total new obligations.............         891         960         960
    73.20 Total outlays (gross).............        -891        -960        -960
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         891         960         960
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         891         960         960
    90.00 Outlays...........................         891         960         960
    ---------------------------------------------------------------------------

                     NATURAL RESOURCES CONSERVATION SERVICE

                                  Federal Funds

                             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,
    $801,825,000, to remain available until June 30, 2009, of which not less
    than $10,760,000 is for snow survey and water forecasting, and not less
    than $10,858,000 is for operation and establishment of the plant
    materials centers, and not less than $10,000,000 shall be for the
    grazing lands conservation initiative: Provided, That appropriations
    hereunder shall be available pursuant to 7 U.S.C. 2250 for construction
    and improvement of buildings and public improvements at plant materials
    centers, except that the cost of alterations and improvements to other
    buildings and other public improvements shall not exceed $250,000:
    Provided further, That when buildings or other structures are erected on
    non-Federal land, that the right to use such land is obtained as
    provided in 7 U.S.C. 2250a: Provided further, That this appropriation
    shall be available for technical assistance and related expenses to
    carry out programs authorized by section 202(c) of title II of the
    Colorado River Basin Salinity Control Act of 1974 (43 U.S.C. 1592(c)):
    Provided further, That qualified local engineers may be temporarily
    employed at per diem rates to perform the technical planning work of the
    Service. (7 U.S.C. 2201-02; 16 U.S.C. 1101--5; 33 U.S.C. 7016-11.)

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1000-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Technical assistance..............         727         708         689
    00.02 Soil surveys......................          88          89          91
    00.03 Snow survey and water forecasting.          11          11          11
    00.04 Plant materials centers...........          11          12          11
    09.00 Reimbursable program..............          37          44          44
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         874         864         846
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          32          29
    22.00 New budget authority (gross)......         853         835         846
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          20
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         905         864         846
    23.95 Total new obligations.............        -874        -864        -846
    23.98 Unobligated balance expiring or
            withdrawn.......................          -2
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          29
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         840         791         802
    40.35   Appropriation permanently
              reduced.......................          -8
    40.36   Unobligated balance permanently
              reduced.......................         -10
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         822         791         802
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).          51          44          44
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         -20
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......          31          44          44
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         853         835         846
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         312         297         213
    73.10 Total new obligations.............         874         864         846
    73.20 Total outlays (gross).............        -889        -948        -861
    73.45 Recoveries of prior year
            obligations.....................         -20
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          20
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         297         213         198
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         704         685         694
    86.93 Outlays from discretionary
            balances........................         185         263         167
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         889         948         861
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -42         -30         -39
    88.40     Non-Federal sources...........          -9         -14          -5
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -51         -44         -44
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          20
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         822         791         802
    90.00 Outlays...........................         838         904         817
    ---------------------------------------------------------------------------

        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

                                         2006 actual  2007 est.   2008 est.
    Customers receiving technical
    assistance for planning &
    application, number...........        132,400        125,000         120,000
    Conservation systems planned,
    acres.........................           45.7           42.0            40.5
    Cropland with conservation
    applied to improve soil
    quality, acres................            6.4            6.0             5.7
    Grazing and forest land with
    conservation applied to
    protect and improve the
    resource base, acres..........           11.7            8.0             7.7

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

    [[Page 111]]

    the Soil and Water Resources Conservation Act of 1977 as amended.

        The 2008 Budget specifically targets invasive species conservation
    priorities by including $10 million for the Grazing Lands Conservation
    Initiative. This funding will help ranchers and range managers fight and
    control priority invasive species by funding a competitive grants
    program that funds cooperative and cost-effective strategies to address
    invasive species on private grazing lands.

        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

                                         2006 actual  2007 est.   2008 est.
    Acres mapped annually (millions)....        35.5        32.5        35.0
    New or updated Web Soil Surveys
    published, number...................         126          80          60

        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, evaluation and
    release of plant materials are made at 27 plant materials centers
    through field trials to determine their suitability for erosion control,
    water quality and quantity, range and pasture management, biofuel and
    biomass, air quality, wildlife management, and other environmental
    improvements. Plant science technology is also documented in fact
    sheets, technical notes, and the Field Office Technical Guide.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1000-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         416         408         395
    11.3      Other than full-time permanent           7           7           7
    11.5      Other personnel compensation..           5           5           5
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         428         420         407
    12.1    Civilian personnel benefits.....         119         116         113
    21.0    Travel and transportation of
              persons.......................          13          13          12
    22.0    Transportation of things........           5           5           4
    23.2    Rental payments to others.......          22          22          20
    23.3    Communications, utilities, and
              miscellaneous charges.........          13          13          12
    24.0    Printing and reproduction.......           3           3           2
    25.2    Other services..................         203         198         184
    26.0    Supplies and materials..........          13          13          12
    31.0    Equipment.......................          17          16          35
    42.0    Insurance claims and indemnities           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         837         820         802
    99.0  Reimbursable obligations..........          37          44          44
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         874         864         846
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-1000-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................       7,115       6,855       6,458
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................         204         221         201
    ---------------------------------------------------------------------------

                   Farm Security and Rural Investment Programs

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1004-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Wetlands Reserve program..........         191         264         455
    00.02 Environmental Quality Incentives
            program.........................         992       1,017       1,000
    00.03 Ground and Surface Water
            Conservation....................          70          51          60
    00.04 Klamath Basin.....................          11           6
    00.05 Wildlife Habitat Incentives
            program.........................          43          43
    00.06 Farm and Ranch Lands Protection
            program.........................          74          50          97
    00.07 Conservation Security program.....         257         259         316
    00.08 Grassland Reserve program.........          35          16
    00.10 Agricultural Management Assistance
            program.........................           5           6
    09.00 Reimbursable program-CRP..........          78          80          58
    09.01 Reimbursable program--Other.......           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,757       1,792       1,986
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......       1,848       1,792       1,986
    23.95 Total new obligations.............      -1,757      -1,792      -1,986
    23.98 Unobligated balance expiring or
            withdrawn.......................         -91
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.35   Appropriation permanently
              reduced.......................                    -639        -360
          Mandatory:

    62.00   Transferred from other accounts.       1,768       2,351       2,288
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).          51          80          58
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          29
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          80          80          58
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,848       1,792       1,986
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,702       2,706       2,945
    73.10 Total new obligations.............       1,757       1,792       1,986
    73.20 Total outlays (gross).............      -1,591      -1,553      -1,506
    73.40 Adjustments in expired accounts
            (net)...........................        -161
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -29
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          28
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       2,706       2,945       3,425
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                    -204        -115
    86.93 Outlays from discretionary
            balances........................                                -153
    86.97 Outlays from new mandatory
            authority.......................         707         816         785
    86.98 Outlays from mandatory balances...         884         941         989
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,591       1,553       1,506
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -78         -80         -58
    88.40     Non-Federal sources...........          -1
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -79         -80         -58
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -29
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          28
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,768       1,712       1,928
    90.00 Outlays...........................       1,512       1,473       1,448
    ---------------------------------------------------------------------------

        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

    [[Page 112]]

    the cost-share, monitoring, easement, and other financial assistance
    activities associated with the programs under title II of the 2002 Farm
    Bill. In addition, this account funds the technical assistance costs
    necessary for delivering the Environmental Quality Incentives Program,
    Ground and Surface Water Conservation, Klamath Basin, Wildlife Habitat
    Incentives Program, Farm and 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. Because the
    program's authority to use CCC funds to enroll new contracts expires at
    the end of 2007, the 2008 Budget includes a general provision to extend
    WRP's authority to enroll acres through 2008. USDA estimates that
    extending WRP's enrollment authority through 2008 will allow NRCS to
    reach the program's total acreage cap.

        Environmental Quality Incentives Program (EQIP) was re-authorized in
    the Deficit Reduction Act of 2005. The purpose of the program is to
    promote agricultural production and environmental quality as compatible
    national goals. The 2008 Budget proposes canceling mandatory funds in
    excess of $1 billion for this program in 2008.

        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. Authorization for mandatory funding for this
    program expires at the end of 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. This program will reach its authorized funding level by the end
    of 2007.

        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. Authorization for mandatory funding for this program
    expires at the end of 2007.

        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. Authorization for mandatory
    funding for this program expires at the end of 2007.

        Conservation Security Program (CSP) was reauthorized in the Deficit
    Reduction Act of 2005. 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. The 2008 Budget proposes to both block
    spending authority in excess of $316.2 million in 2008 and to reduce the
    program's ten-year (2006 through 2015) budget authority limit by $80
    million.

        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 2007.

        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 the amount of $10 million in 2008.

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         179         213         220
    11.3      Other than full-time permanent           2           3           3
    11.5      Other personnel compensation..           2           3           2
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         183         219         225
    12.1    Civilian personnel benefits.....          54          63          65
    21.0    Travel and transportation of
              persons.......................           5           6           7
    22.0    Transportation of things........           1           1           1
    23.2    Rental payments to others.......          10          11          13
    23.3    Communications, utilities, and
              miscellaneous charges.........           6           7           8
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          74          93          94
    26.0    Supplies and materials..........           7           8           8
    31.0    Equipment.......................           7           7           8
    32.0    Land and structures.............         164         231         429
    41.0    Grants, subsidies, and
              contributions.................       1,165       1,065       1,069
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,677       1,712       1,928
    99.0  Reimbursable obligations..........          79          80          58
    99.5  Below reporting threshold.........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,757       1,792       1,986
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-1004-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................       3,055       3,571       3,307
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................         755         691         478
    ---------------------------------------------------------------------------

                          Watershed Surveys and Planning

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1066-0-1-301      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Watershed surveys and planning....           6           6
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           6           6
    ----------------------------------------------------------------------------

    [[Page 113]]

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

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..           3           2           2
    73.10 Total new obligations.............           6           6
    73.20 Total outlays (gross).............          -7          -6          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           2           2           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           5           5
    86.93 Outlays from discretionary
            balances........................           2           1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           7           6           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           6           6
    90.00 Outlays...........................           7           6           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 2008 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      2006 actual   2007 est.   2008 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.........           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           6           6
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-1066-0-1-301      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................          44          43
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................           3           2
    ---------------------------------------------------------------------------

                    Watershed and Flood Prevention Operations

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1072-0-1-301      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Watershed operations (P.L. 534)...           7           7
    00.03 Emergency watershed protection
            operations......................         234         311
    00.04 Small watershed operations (P.L.
            566)............................          96          47
    09.01 Reimbursable program..............          25          26
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         362         391
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         178         323
    22.00 New budget authority (gross)......         446          68
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          61
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         685         391
    23.95 Total new obligations.............        -362        -391
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         323
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         426          40
    40.35   Appropriation permanently
              reduced.......................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         425          40
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).          20          28
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           1
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......          21          28
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         446          68
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         461         405         412
    73.10 Total new obligations.............         362         391
    73.20 Total outlays (gross).............        -356        -384        -205
    73.45 Recoveries of prior year
            obligations.....................         -61
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         405         412         207
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          87          48
    86.93 Outlays from discretionary
            balances........................         269         336         205
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         356         384         205
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -13         -28
    88.40     Non-Federal sources...........          -7
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -20         -28
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         425          40
    90.00 Outlays...........................         336         356         205
    ---------------------------------------------------------------------------

        These programs provide for cooperative actions between the Federal
    Government and States and their political subdivisions to reduce damage
    from floodwater, sediment, and erosion, for the conservation,
    development, utilization, and disposal of water, and for the
    conservation and proper utilization of land. Funds in Watershed and
    Flood Prevention Operations can be used for either flood prevention
    projects or flood damage rehabilitation efforts, depending upon the
    needs and opportunities. In order to improve the environmental and
    economic benefits of these projects, NRCS intends to focus on developing
    and funding non-structural flood prevention measures.

        Emergency watershed protection.--This program authorizes the
    Secretary of Agriculture to undertake such emergency measures for runoff
    retardation and soil erosion prevention as may be needed to safeguard
    life and property from floods and the products of erosion on any
    watershed whenever natural elements or forces cause a sudden impairment
    of that watershed. An emergency is considered to exist when a watershed
    is suddenly impaired by flood, fire, wind, earthquake, drought or other
    natural causes and consequently life and property are endangered by
    floodwater, erosion, or sediment discharge. The emergency area need not
    be declared a national disaster area to be eligible for emergency
    watershed protection. Emergency watershed protection is applicable to

    [[Page 114]]

    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.

        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 2008.

        The 2008 Budget does not request funding for the watershed
    operations programs and instead redirects their resources to other
    priority programs within the Agency.

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

                              MAIN WORKLOAD FACTORS

                                         2006 actual  2007 est.   2008 est.
    Status of operational projects:
      Projects receiving land
        treatment.................            104            100
      Structural projects.........            196            197
      Land treatment and
        structural................             65             65
                                        ------------------------------------
          Subtotal active projects            365            362
      Projects continuing post-
        installation assistance...           1006           1006
      Inactive projects...........            187            187
      Project life completed......             41             49
      Deauthorized projects.......            157            157
                                        ------------------------------------
          Total operational
            projects..............           1756           1761
                                        ------------------------------------
      New projects approved during
        year......................              0              5
                                        ====================================

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1072-0-1-301      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          26          38
    11.3      Other than full-time permanent                       1
    11.5      Other personnel compensation..           3           7
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          29          46
    12.1    Civilian personnel benefits.....           7          11
    21.0    Travel and transportation of
              persons.......................           3           4
    23.2    Rental payments to others.......           1           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           2
    25.2    Other services..................          19          34
    25.2    Other services..................         134         124
    26.0    Supplies and materials..........           1           1
    31.0    Equipment.......................           1           2
    41.0    Grants, subsidies, and
              contributions.................         140         138
                                               ---------   ---------  ----------
    99.0      Direct obligations............         336         364
    99.0  Reimbursable obligations..........          24          24
    99.5  Below reporting threshold.........           2           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         362         391
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-1072-0-1-301      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         425         620
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................          29          28
    ---------------------------------------------------------------------------

                         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,
    $5,807,000, to remain available until expended. (16 U.S.C. 1001 et seq.)

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1002-0-1-301      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Watershed rehabilitation program..          30          32           6
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          30          32           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           3
    22.00 New budget authority (gross)......          31          29           6
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          33          32           6
    23.95 Total new obligations.............         -30         -32          -6
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          31          29           6
    40.35   Appropriation permanently
              reduced.......................                     -65
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          31         -36           6
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).           1
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -1
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......
          Mandatory:

    62.00   Transferred from other accounts.                      65
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          31          29           6
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          40          48          58
    73.10 Total new obligations.............          30          32           6
    73.20 Total outlays (gross).............         -22         -22         -21
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          48          58          43
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          10         -11           2
    86.93 Outlays from discretionary
            balances........................          12          12          -4
    86.97 Outlays from new mandatory
            authority.......................                      21
    86.98 Outlays from mandatory balances...                                  23
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          22          22          21
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................           1
    ----------------------------------------------------------------------------

    [[Page 115]]

        Net budget authority and outlays:
    89.00 Budget authority..................          31          29           6
    90.00 Outlays...........................          21          22          21
    ---------------------------------------------------------------------------

        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 2008 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    11.1  Personnel compensation: Full-time
            permanent.......................           6           7           3
    12.1  Civilian personnel benefits.......           2           2           1
    25.2  Other services....................           4           4           2
    25.2  Other services....................           5           6
    41.0  Grants, subsidies, and
            contributions...................          11          11
                                               ---------   ---------  ----------
    99.0    Direct obligations..............          28          30           6
    99.5  Below reporting threshold.........           2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          30          32           6
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-1002-0-1-301      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................          92          96          35
    ---------------------------------------------------------------------------

                      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), $14,653,000, to remain available
    until expended. (7 U.S.C. 2225.)

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1010-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.02 Technical assistance..............          51          52          15
    09.01 Reimbursable program..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          52          53          16
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1
    22.00 New budget authority (gross)......          51          52          16
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          53          53          16
    23.95 Total new obligations.............         -52         -53         -16
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          51          51          15
    40.35   Appropriation permanently
              reduced.......................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          50          51          15
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).                       2           1
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           1          -1
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          51          52          16
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          10           9           6
    73.10 Total new obligations.............          52          53          16
    73.20 Total outlays (gross).............         -51         -57         -18
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           9           6           4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          44          47          15
    86.93 Outlays from discretionary
            balances........................           7          10           3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          51          57          18
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -1           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          50          51          15
    90.00 Outlays...........................          51          55          17
    ---------------------------------------------------------------------------

        The Resource Conservation and Development (RC&D) Program was
    developed under the Soil Conservation and Domestic Allotment Act, (16
    U.S.C 590a-590f), the Bankhead-Jones Farm Tenant Act, (16 U.S.C. 1010
    and 1011), and the Food and Agricultural Act of 1962 (P.L. 87-703) and
    is authorized under subtitle H, title XV of the Agricultural and Food
    Act of 1981, (16 U.S.C. 3451-3461), as amended. The Food Security and
    Rural Investment Act of 2002 (2002 Act) permanently authorized the
    program. The Natural Resources Conservation Service (NRCS) administers
    the program. In 1981, sections 1528-1538 of the Agriculture and Food 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 program, RC&D areas establish or improve
    coordination systems in rural communities and build rural community
    leadership skills to effectively use Federal, State and local programs
    for the communities' benefit. The 2002 Act further strengthened the
    relationship between the Department of Agriculture (USDA) and the RC&D
    areas.

        The NRCS provides program administration and assistance to RC&D
    areas through volunteer non-profit RC&D Councils. Other USDA agencies
    with conservation or development activities are involved in the
    development of program policy and guidance and are members of the USDA
    RC&D Policy Advisory Board and Working Group. These agencies provide
    limited technical and financial assistance to RC&D Councils. Councils
    also obtain the assistance from other local, State, and Federal
    agencies, private organizations, and foundations to carry out their
    specific projects.

        The RC&D program provides assistance to local communities to develop
    strategic plans that address their locally identified natural resource
    and economic development concerns.

        The budget proposes to consolidate the RC&D Coordinator functions at
    the State level, reducing the number of coordinator positions from 375
    to about 50. Additionally, it will support RC&D assistance as collateral
    duties for field staff. The request would maintain the current number of
    authorized RC&D areas nationwide without any increases, decreases,
    substitutions, or consolidations. The responsibilities and duties of the
    RC&D Coordinator position would be modified

    [[Page 116]]

    to provide more programmatic oversight instead of hands-on day-to-day
    activities. RC&D Councils would be responsible for operation of their
    non-profit corporations without an NRCS employee being involved in day-
    to-day activities.

        The program's long-term goal is to improve the capability of local
    communities to plan and deliver improvement projects. This reduction in
    funding for the RC&D program will require that coordinators' activities
    be more focused on multi-county/parish planning, intergovernmental
    relations, serving as the Federal Government Representative on any
    Federal contracts with RC&D Councils, and coordinating USDA assistance
    available toward implementation of RC&D Area Plans.

        The following tabulation shows the status of RC&D areas authorized
    to receive technical and financial assistance.

                              MAIN WORKLOAD FACTORS

                                         2006 actual  2007 est.   2008 est.
    Areas funded at beginning of
    year..........................            375            375             375
    Areas funded at end of year...            375            375             375
    Project plans adopted.........          4,362          4,000             520
    Projects completed............          3,350          3,000             390

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1010-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          29          30           9
    11.3      Other than full-time permanent           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          30          31           9
    12.1    Civilian personnel benefits.....           8           8           2
    21.0    Travel and transportation of
              persons.......................           1           2           1
    23.2    Rental payments to others.......           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    25.2    Other services..................           7           6           2
    26.0    Supplies and materials..........           1           1
    31.0    Equipment.......................           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............          51          52          15
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          52          53          16
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-1010-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         456         454         123
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................           1           1           1
    ---------------------------------------------------------------------------

                         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), $2,476,000.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1090-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Healthy forests reserve program...           2           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 32.0)...................           2           2           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           2           2           2
    23.95 Total new obligations.............          -2          -2          -2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           2           2           2
    ----------------------------------------------------------------------------

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

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

        Net budget authority and outlays:
    89.00 Budget authority..................           2           2           2
    90.00 Outlays...........................                       2           3
    ---------------------------------------------------------------------------

        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. HFRP supports the NRCS mission goal
    of Healthy Plant and Animal Communities.

        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.

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-1090-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................           1           1           1
    ---------------------------------------------------------------------------

                        Great Plains Conservation Program

        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

                                              2006 actual      2007 est.
    Program participants:...................
     Number of contracts serviced during
      year..................................            31              --
     Number of acres under contracts........       148,900              --

        Co-landowners or operators finance the entire cost of installing
    recurring management-type practices and pay a speci

    [[Page 117]]

    fied 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4           4           4
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           4           4           4
    ----------------------------------------------------------------------------

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

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

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................                      -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      2006 actual   2007 est.   2008 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
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    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 2008 Budget
    does not request program funding.

                  Colorado River Basin Salinity Control Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3318-0-1-304      2006 actual   2007 est.   2008 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
    ----------------------------------------------------------------------------

        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 the authorities 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      2006 actual   2007 est.   2008 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..           3           3           3
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           3           3           3
    ----------------------------------------------------------------------------

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           3           5           5
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           5           5           5
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           5           5           5
    ----------------------------------------------------------------------------

    [[Page 118]]

        Change in obligated balances:
    72.40 Obligated balance, start of year..          13          10           8
    73.20 Total outlays (gross).............          -1          -2          -3
    73.45 Recoveries of prior year
            obligations.....................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          10           8           5
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...           1           2           3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................
    90.00 Outlays...........................           1           2           3
    ---------------------------------------------------------------------------

        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      2006 actual   2007 est.   2008 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Guaranteed loan upward reestimates:
    235001Agricultural resource conservation
            demo............................           1
                                               ---------   ---------  ----------
    235999Total upward reestimate budget
            authority.......................           1
        Guaranteed loan downward reestimates:
    237001Agricultural resource conservation
            demo............................          -1
                                               ---------   ---------  ----------
    237999Total downward reestimate subsidy
            budget authority................          -1
    ---------------------------------------------------------------------------

        Agricultural Resource Conservation Demonstration Guaranteed Loan
                                Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4177-0-3-351      2006 actual   2007 est.   2008 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
    22.00 New financing authority (gross)...           1
    22.60 Portion applied to repay debt.....          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           1
    23.95 Total new obligations.............          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................          -1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

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

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    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

    2005 actual

    2006 actual

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

    1101

    Fund balances with Treasury

    1

            Investments in US securities:
    1106

    Receivables, net

    1

    1999

    Total assets

    2

        LIABILITIES:
          Federal liabilities:

    2104

    Resources payable to Treasury

    1

    2105

    Other

    1

    2999

    Total liabilities

    2

    4999

    Negative subsidy BA total [12-2086]

    2

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

    [[Page 119]]

                                   Trust Funds

                         Miscellaneous Contributed Funds

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.00 Balance, start of year............           5           4           5
                                               ---------   ---------  ----------
    01.99 Balance, start of year............           5           4           5
        Receipts:
    02.20 Miscellaneous contributed funds...           1           1           1
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           6           5           6
        Appropriations:
    05.00 National Agricultural Statistics
            Service.........................          -1
    05.01 Miscellaneous contributed funds...          -1
                                               ---------   ---------  ----------
    05.99   Total appropriations............          -2
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           4           5           6
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Miscellaneous contributed funds...           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................           2
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Mandatory:

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

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

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...                       2
    ----------------------------------------------------------------------------

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

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-8210-0-7-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................           1           1           1
    ---------------------------------------------------------------------------

                                RURAL DEVELOPMENT

                                  Federal 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;
    $208,194,000: Provided, That notwithstanding any other provision of law,
    funds appropriated under this section may be used for advertising and
    promotional activities that support the Rural Development mission area:
    Provided further, That not more than $10,000 may be expended to provide
    modest nonmonetary awards to non-USDA employees: Provided further, That
    any balances available from prior years for the Rural Utilities Service,
    Rural Housing Service, and the Rural Business-Cooperative Service
    salaries and expenses accounts shall be transferred to and merged with
    this appropriation.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0403-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Salaries and expenses.............         166         157         208
    09.01 Reimbursable program..............         503         453         476
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         669         610         684
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       6
    22.00 New budget authority (gross)......         678         610         684
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         678         616         684
    23.95 Total new obligations.............        -669        -610        -684
    23.98 Unobligated balance expiring or
            withdrawn.......................          -3          -6
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         166         157         208
    40.35   Appropriation permanently
              reduced.......................          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         164         157         208
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).         513         453         476
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           1
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......         514         453         476
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         678         610         684
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         132         118         135
    73.10 Total new obligations.............         669         610         684
    73.20 Total outlays (gross).............        -670        -593        -675
    73.40 Adjustments in expired accounts
            (net)...........................         -14
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................           2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         118         135         144
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         588         518         582
    86.93 Outlays from discretionary
            balances........................          82          75          93
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         670         593         675
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -514        -453        -476
          Against gross budget authority only:

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

        Net budget authority and outlays:
    89.00 Budget authority..................         164         157         208
    90.00 Outlays...........................         156         140         199
    ---------------------------------------------------------------------------

        Since 2001, Rural Development has had a consolidated Salaries and
    Expenses account to administer all Rural Development programs, including
    programs administered by the

    [[Page 120]]

    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. Most of 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 and from the former Rural
    Electrification Administration. 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          96          96         126
    11.3      Other than full-time permanent           1           1           2
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          98          98         129
    12.1    Civilian personnel benefits.....          26          26          33
    21.0    Travel and transportation of
              persons.......................           4           4           4
    23.1    Rental payments to GSA..........           5           6           8
    23.2    Rental payments to others.......           1                       2
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           2
    24.0    Printing and reproduction.......           1           1           2
    25.2    Other services..................          14           7          10
    25.3    Other purchases of goods and
              services from Government
              accounts......................           1           1           2
    25.4    Operation and maintenance of
              facilities....................           1           4           6
    25.5    Research and development
              contracts.....................           6           6           6
    25.7    Operation and maintenance of
              equipment.....................           4           1           2
    26.0    Supplies and materials..........           2           1           1
    31.0    Equipment.......................           2           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         166         157         208
    99.0  Reimbursable obligations..........         503         453         476
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         669         610         684
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-0403-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................       1,520       1,490       1,512
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................       4,955       4,810       4,788
    ---------------------------------------------------------------------------

                       Rural Community Advancement Program

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0400-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loan subsidy...............          83          91
    00.02 Guaranteed loan subsidy...........          38          49
    00.05 Reestimate of Direct Loan Subsidy.           2
    00.06 Interest on Reestimates of Direct
            Loan Subsidy....................           1
    00.07 Reestimates of Guaranteed Loan
            Subsidy.........................          74
    00.08 Interest on Reestimate of
            Guaranteed Loan Subsidy.........          14
    00.11 Water and waste disposal systems
            grants..........................         437         464
    00.12 Water and waste disposal systems
            emergency supplemental grants...          26          30
    00.13 Emergency and imminent community
            water assistance grants.........           7          14
    00.14 Solid waste management grants.....           3           4
    00.15 Community facility grants.........          26          25
    00.16 Community facility emergency
            supplemental grants.............           3          19
    00.18 Economic impact initiative grants.          18          19
    00.20 Rural business enterprise grants..          44          42
    00.21 Rural business opportunity grants.           3           3
    00.26 Rural Community Development
            Initiative Grants...............           8          15
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         787         775
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          60         146
    22.00 New budget authority (gross)......         834         629
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          39
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         933         775
    23.95 Total new obligations.............        -787        -775
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         146
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         776         655
    40.35   Appropriation permanently
              reduced.......................          -7
    41.00   Transferred to other accounts...         -26         -26
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         743         629
          Mandatory:

    60.00   Appropriation...................          91
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         834         629
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,519       2,390       2,340
    73.10 Total new obligations.............         787         775
    73.20 Total outlays (gross).............        -877        -825
    73.31 Obligated balance transferred to
            other accounts..................                              -2,340
    73.45 Recoveries of prior year
            obligations.....................         -39
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       2,390       2,340
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          67          45        -159
    86.93 Outlays from discretionary
            balances........................         719         780         159
    86.97 Outlays from new mandatory
            authority.......................          91
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         877         825
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         834         629
    90.00 Outlays...........................         877         825
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-0400-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Direct water and waste disposal...       1,008         737
    115002Direct community facility.........         398         272
                                               ---------   ---------  ----------
    115999Total direct loan levels..........       1,406       1,009
        Direct loan subsidy (in percent):
    132001Direct water and waste disposal...        6.91        9.96
    132002Direct community facility.........        3.35        6.41
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....        5.90        9.00
        Direct loan subsidy budget authority:
    133001Direct water and waste disposal...          70          73
    133002Direct community facility.........          13          17
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....          83          90
        Direct loan subsidy outlays:
    134001Direct water and waste disposal...          51          84
    134002Direct community facility.........          13          18
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............          64         102
        Direct loan upward reestimates:

    [[Page 121]]

    135001Direct water and waste disposal...           2
    135002Direct community facility.........           1
                                               ---------   ---------  ----------
    135999Total upward reestimate budget
            authority.......................           3
        Direct loan downward reestimates:
    137001Direct water and waste disposal...         -78
    137002Direct community facility.........         -24
                                               ---------   ---------  ----------
    137999Total downward reestimate budget
            authority.......................        -102
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Waste and waste disposal loan
            guarantees......................           3          75
    215002Community facility loan guarantees         164          20
    215003Business and industry loan
            guarantees......................         766       1,102
                                               ---------   ---------  ----------
    215999Total loan guarantee levels.......         933       1,197
        Guaranteed loan subsidy (in percent):
    232001Waste and waste disposal loan
            guarantees......................       -0.90       -0.90        0.00
    232002Community facility loan guarantees        0.36        3.66        0.00
    232003Business and industry loan
            guarantees......................        4.79        4.36        0.00
                                               ---------   ---------  ----------
    232999Weighted average subsidy rate.....        3.99        4.02        0.00
        Guaranteed loan subsidy budget authority:
    233001Waste and waste disposal loan
            guarantees......................                      -1
    233002Community facility loan guarantees           1           1
    233003Business and industry loan
            guarantees......................          37          48
                                               ---------   ---------  ----------
    233999Total subsidy budget authority....          38          48
        Guaranteed loan subsidy outlays:
    234003Business and industry loan
            guarantees......................          31          34
                                               ---------   ---------  ----------
    234999Total subsidy outlays.............          31          34
        Guaranteed loan upward reestimates:
    235002Community facility loan guarantees          28
    235003Business and industry loan
            guarantees......................          59
                                               ---------   ---------  ----------
    235999Total upward reestimate budget
            authority.......................          87
        Guaranteed loan downward reestimates:
    237003Business and industry loan
            guarantees......................         -14
                                               ---------   ---------  ----------
    237999Total downward reestimate subsidy
            budget authority................         -14
    ---------------------------------------------------------------------------

        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).

        RCAP is composed of the following three funding streams: Rural
    Community Facilities, Rural Utilities, and Rural Business. Funds for
    Native American Communities are provided as part of the whole amount
    appropriated for these streams, but are earmarked to the Rural Utilities
    funding streams.

        For 2008, funding for the three streams will no longer be combined
    in RCAP. Instead, each stream will be funded separately, with separate
    appropriations language. The new accounts and appropriations language
    appear in each stream's respective Service. The Water and Wastewater
    funding stream is in the Rural Utilities Service, the Community
    Facilities funding stream is in the Rural Housing Service, and the
    Business stream is in the Rural Business Service. Specific descriptions
    of each program funded in the streams appear with new accounts.

                     Northern Great Plains Regional Authority

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0404-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1
    23.98 Unobligated balance expiring or
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

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

        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

                         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,
    $39,000,000, to remain available until expended: Provided, That of the
    total amount appropriated, $1,188,000 shall be available through June
    30, 2008, 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''.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1953-0-1-604      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Multi-Family Housing Preservation
            Demo Revolving Fund Direct
            Subsidy.........................           2           4
    00.11 Farm Labor Grants Natural Disaster                       1
    00.12 Very Low-Income Housing Repair
            Grants..........................          30          28          30
    00.13 Very Low-Income Housing Repair
            Natural Disaster Grants.........           1           7
    00.14 Supervisory and Technical
            Assistance Grants...............           1           1
    00.15 Processing Workers Housing Grants.           1           7
    00.16 Rural Housing Preservation Grants.          10           9           9
    00.17 Domestic Farm Labor Housing Grants
            2005 Hurricanes Emer Supp.......          16
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          61          57          39
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          12          16
    22.00 New budget authority (gross)......          64          41          39
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          77          57          39
    23.95 Total new obligations.............         -61         -57         -39
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          16
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          64          41          39
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          35          39          47
    73.10 Total new obligations.............          61          57          39
    73.20 Total outlays (gross).............         -56         -49         -51
    73.45 Recoveries of prior year
            obligations.....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          39          47          35
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          41          25          27
    86.93 Outlays from discretionary
            balances........................          15          24          24
                                               ---------   ---------  ----------

    [[Page 122]]

    87.00   Total outlays (gross)...........          56          49          51
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          64          41          39
    90.00 Outlays...........................          56          49          51
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1953-0-1-604      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Multi-family housing
            revitalization..................           4           8
                                               ---------   ---------  ----------
    115999Total direct loan levels..........           4           8
        Direct loan subsidy (in percent):
    132001Multi-family housing
            revitalization..................       46.76       47.82
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....       46.76       47.82
        Direct loan subsidy budget authority:
    133001Multi-family housing
            revitalization..................           2           4
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....           2           4
        Direct loan subsidy outlays:
    134001Multi-family housing
            revitalization..................                       3           4
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............                       3           4
    ---------------------------------------------------------------------------

        The rural housing for domestic farm labor grant program is
    authorized under section 516 of the Housing Act of 1949. The very low-
    income housing repair grant program is authorized under section 504 of
    the Housing Act of 1949, as amended. This grant program enables very
    low-income elderly residents in rural areas to improve or modernize
    their dwellings, to make the dwelling safer or more sanitary, or to
    remove health and safety hazards. The Budget provides $30 million for
    this program in 2008.

        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. Funding for this activity should be through the use of
    carryover balances or redirection of funding from housing preservation
    or housing repair grants since no allocation of funds are provided
    specifically for this activity in 2008.

        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 million is provided for this
    program in 2008.

         Multifamily Housing Revitalization Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4269-0-3-604      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loan obligations...........          10          11
    08.03 Adjusting payments to liquidating
            accounts........................          48          40
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          58          51
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...          59          51           3
    22.70 Balance of authority to borrow
            withdrawn.......................          -1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          58          51           3
    23.95 Total new obligations.............         -58         -51
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                                   3
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          45          45
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).                       5           3
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          14           1
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          14           6           3
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          59          51           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           3          46          90
    73.10 Total new obligations.............          58          51
    73.20 Total financing disbursements
            (gross).........................          -1          -6
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -14          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          46          90          90
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................           1           6
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

    88.00   Offsetting collections (cash)
              from: Federal sources.........                      -5          -3
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............         -14          -1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          45          45
    90.00 Financing disbursements...........                       1          -3
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4269-0-3-604      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................          10          11
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          10          11
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........                       1          91
          Disbursements:

    1231    Direct loan disbursements.......                       3
    1233    Purchase of loans assets from a
              liquidating account...........           1          87
    1251  Repayments: Repayments and
            prepayments.....................
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........           1          91          91
    ---------------------------------------------------------------------------

                            Farm Labor Program Account

         For the cost of direct loans, grants, and contracts, as authorized
    by 42 U.S.C. 1484 and 1486, $9,849,000, to remain available until

    [[Page 123]]

    expended, for direct farm labor housing loans and domestic farm labor
    housing grants and contracts.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1954-0-1-604      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loan subsidy...............           9           5           6
    00.11 Farm labor housing grants.........          26          26           4
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          35          31          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       4
    22.00 New budget authority (gross)......          31          27          10
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           8
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          39          31          10
    23.95 Total new obligations.............         -35         -31         -10
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           4
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          31          27          10
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         129         141         141
    73.10 Total new obligations.............          35          31          10
    73.20 Total outlays (gross).............         -15         -31         -38
    73.45 Recoveries of prior year
            obligations.....................          -8
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         141         141         113
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................          15          31          38
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          31          27          10
    90.00 Outlays...........................          15          31          38
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1954-0-1-604      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Direct loan levels................          20          10          14
                                               ---------   ---------  ----------
    115999Total direct loan levels..........          20          10          14
        Direct loan subsidy (in percent):
    132001Subsidy rate......................       44.59       47.95       43.26
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....       44.59       47.95       43.26
        Direct loan subsidy budget authority:
    133001Subsidy budget authority..........           9           5           6
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....           9           5           6
        Direct loan subsidy outlays:
    134001Net subsidy outlays...............           9          18          16
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............           9          18          16
    ---------------------------------------------------------------------------

        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 2008 is $18 million ($4 million in grants and $14 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,
    $567,000,000 to remain available until September 30, 2009; 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 agreements entered into or renewed during the
    current fiscal year shall be funded for a one-year period: Provided
    further, That the life of any such agreement may be extended to fully
    utilize amounts obligated.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0137-0-1-604      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Rental assistance program.........         647         335         567
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................         647         335         567
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         647         335         567
    23.95 Total new obligations.............        -647        -335        -567
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         708         335         567
    40.00   Appropriation...................                      56          56
    40.35   Appropriation permanently
              reduced.......................          -6
    40.47   Portion applied to repay debt...                     -56         -56
    40.53   Portion substituted for
              borrowing authority...........         -55
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         647         335         567
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Unpaid obligations, appropriation,
            start of year...................       2,363       2,153       1,419
    73.10 Total new obligations.............         647         335         567
    73.20 Total outlays (gross).............        -857      -1,069      -1,120
                                               ---------   ---------  ----------
    74.40   Obligated balance,
              appropriation, end of year....       2,153       1,419         866
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          50         221         340
    86.93 Outlays from discretionary
            balances........................         807         848         780
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         857       1,069       1,120
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         647         335         567
    90.00 Outlays...........................         857       1,069       1,120
    ---------------------------------------------------------------------------

        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 2008, the request for rental assistance grants is for one year
    contracts with two-year availability, with a total funding level of $567
    million.

        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 124]]

                Multifamily Housing Revitalization Program Account

         For the rural housing voucher program as authorized under section
    542 of the Housing Act of 1949, but notwithstanding subsection (b) of
    such section, $27,800,000, 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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2002-0-1-604      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Choctaw Indians housing relending
            loan program direct subsidy.....           1           1
    00.03 Administrative expenses...........           1           1           3
    00.11 Vouchers..........................           1           2          25
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           3           4          28
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                      14          14
    22.00 New budget authority (gross)......          17           4          28
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          17          18          42
    23.95 Total new obligations.............          -3          -4         -28
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          14          14          14
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          17           4          28
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           4           6
    73.10 Total new obligations.............           3           4          28
    73.20 Total outlays (gross).............                      -2         -12
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           4           6          22
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                   8
    86.93 Outlays from discretionary
            balances........................                       2           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                       2          12
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          17           4          28
    90.00 Outlays...........................                       2          12
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-2002-0-1-604      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Direct loan levels................           2           2
                                               ---------   ---------  ----------
    115999Total direct loan levels..........           2           2
        Direct loan subsidy (in percent):
    132001Subsidy rate......................       46.76       47.82        0.00
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....       46.76       47.82        0.00
        Direct loan subsidy budget authority:
    133001Subsidy budget authority..........           1           1
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....           1           1
        Direct loan subsidy outlays:
    134001Net subsidy outlays...............                       1
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............                       1
    ---------------------------------------------------------------------------

        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
    were newly funded in 2006, but have been minimally used. The 2008 Budget
    includes $28 million to continue the multifamily housing revitalization
    proposal that was initially proposed in the 2006 Budget. The funding may
    be used 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 2008 appropriation language provides the
    flexibility to use the $28 million for debt restructuring and other
    revitalization incentives when they are authorized. Draft legislation
    will be resubmitted to Congress to authorize this revitalization effort.
    We expect this authorization to be passed before or during 2008.

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.1  Advisory and assistance services..           1           2           3
    41.0  Grants, subsidies, and
            contributions...................           2           2          25
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           3           4          28
    ---------------------------------------------------------------------------

                       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), $9,500,000, to remain available
    until expended.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2006-0-1-604      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Mutual and self-help housing
            grants..........................          34          35          10
                                               ---------   ---------  ----------

    [[Page 125]]

    10.00   Total new obligations (object
              class 41.0)...................          34          35          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           2           1
    22.00 New budget authority (gross)......          34          34          10
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          36          36          11
    23.95 Total new obligations.............         -34         -35         -10
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           2           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          34          34          10
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          58          55          54
    73.10 Total new obligations.............          34          35          10
    73.20 Total outlays (gross).............         -36         -36         -33
    73.45 Recoveries of prior year
            obligations.....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          55          54          31
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           7           6           2
    86.93 Outlays from discretionary
            balances........................          29          30          31
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          36          36          33
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          34          34          10
    90.00 Outlays...........................          36          36          33
    ---------------------------------------------------------------------------

        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. No funds are provided in the Budget because
    this type of program activity is redundant with other programs in Forest
    Service, Federal Emergency Management Agency, and the Bureau of Land
    Management, which provide significant funding for this purpose.

                     Rural Community Facility Program Account

                        (including transfer of balances)

         For the costs of direct loans, loan guarantees, and grants for
    rural community programs as authorized by 7 U.S.C. 1926 and 1932 and
    described in section 381E(d)(1) of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1921 note), $24,512,000, to remain available
    until expended: Provided, That of the amount appropriated under this
    heading, not to exceed $100,000 shall be available through June 30,
    2008, for authorized empowerment zones and enterprise communities
    designated by the Secretary of Agriculture as Rural Economic Area
    Partnership Zones for the rural community programs described in section
    381E(d)(1) of such Act: 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: Provided further, That sections 381E-H and 381N of the
    Consolidated Farm and Rural Development Act, are not applicable to funds
    made available under this heading: Provided further, That any prior year
    balances in the ``Rural Development, Rural Community Advancement
    Program'' account for programs authorized by 7 U.S.C. 1926 and 1932 and
    described in section 381E(d)(1) of the Consolidated Farm and Rural
    Development Act (7 U.S.C. 1921 note) shall be transferred and merged
    with this account: Provided further, That the Secretary shall transfer
    and merge with this account any other prior balances from the ``Rural
    Development, Rural Community Advancement Program'' account that the
    Secretary determines is appropriate to transfer.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1951-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct Loan Subsidy...............                                  17
    00.02 Guaranteed Loan Subsidy...........                                   8
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                  25
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                  25
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                  25
    73.20 Total outlays (gross).............                                 -86
    73.32 Obligated balance transferred from
            other accounts..................                                 174
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                 113
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                   3
    86.93 Outlays from discretionary
            balances........................                                  83
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                                  86
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  25
    90.00 Outlays...........................                                  86
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1951-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115002Direct community facility.........                                 302
                                               ---------   ---------  ----------
    115999Total direct loan levels..........                                 302
        Direct loan subsidy (in percent):
    132002Direct community facility.........                                5.55
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....                                5.55
        Direct loan subsidy budget authority:
    133002Direct community facility.........                                  17
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....                                  17
        Direct loan subsidy outlays:
    134002Direct community facility.........                                  18
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............                                  18
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215002Community facility loan guarantees                                 210
                                               ---------   ---------  ----------
    215999Total loan guarantee levels.......                                 210
        Guaranteed loan subsidy (in percent):
    232002Community facility loan guarantees                                3.68
                                               ---------   ---------  ----------

    [[Page 126]]

    232999Weighted average subsidy rate.....                                3.68
        Guaranteed loan subsidy budget authority:
    233002Community facility loan guarantees                                   8
                                               ---------   ---------  ----------
    233999Total subsidy budget authority....                                   8
        Guaranteed loan subsidy outlays:
    234002Community facility loan guarantees                                   2
                                               ---------   ---------  ----------
    234999Total subsidy outlays.............                                   2
    ---------------------------------------------------------------------------

        This account funds the direct and guaranteed community facility
    loans and community facility grants. Since the passage of the Federal
    Agriculture Improvement and Reform Act of 1996 through 2007, the funding
    for these programs was provided as part of the Rural Community
    Advancement Program (RCAP). For 2008, no funding is proposed in the RCAP
    account and instead, each funding stream is being appropriated
    separately in a new account. This is the new account for the Community
    programs funding stream.

        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 2008 is projected to be $512 million.

             Rural Community Facility Direct Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4225-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loans......................         397         272         302
    00.02 Interest on Treasury borrowing....         111         137         146
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............         508         409         448
    08.01 Negative subsidy..................           1           1
    08.02 Downward reestimate paid to
            receipt account.................          18
    08.04 Interest paid on downward
            reestimates paid to receipt
            account.........................           6
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............          25           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         533         410         448
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4           7
    22.00 New financing authority (gross)...         609         403         448
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          63
    22.60 Portion applied to repay debt.....         -76
    22.70 Balance of authority to borrow
            withdrawn.......................         -60
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         540         410         448
    23.95 Total new obligations.............        -533        -410        -448
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           7
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............         421         146         176
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).         191         258         273
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -3          -1          -1
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         188         257         272
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         609         403         448
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,226       1,158         935
    73.10 Total new obligations.............         533         410         448
    73.20 Total financing disbursements
            (gross).........................        -541        -634        -574
    73.45 Recoveries of prior year
            obligations.....................         -63
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           3           1           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       1,158         935         810
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................         541         634         574
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -15         -19         -18
    88.25     Interest on uninvested funds..         -16         -29         -31
    88.40     Repayment of principal........         -80        -122        -145
    88.40     Interest received on loans....         -80         -88         -79
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -191        -258        -273
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           3           1           1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         421         146         176
    90.00 Financing disbursements...........         350         376         301
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4225-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................         397         272         302
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         397         272         302
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,662       1,982       2,356
    1231  Disbursements: Direct loan
            disbursements...................         405         496         428
    1251  Repayments: Repayments and
            prepayments.....................         -80        -122        -145
    1261  Adjustments: Capitalized interest.           1
          Write-offs for default:

    1263    Direct loans....................          -5
    1264    Other adjustments, net..........          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,982       2,356       2,639
    ---------------------------------------------------------------------------

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

        This account provides funding to non-profit organizations and local
    governments for the construction and improvement of community facilities
    providing essential services in rural areas, such as hospitals,
    telecommunications applications, child care centers and fire stations.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 12-4225-0-
    3-452

    2005 actual

    2006 actual

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

    1101

    Fund balances with Treasury

    13

    7

            Investments in US securities:
    1106

    Receivables, net

    -3

    1

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

    1401

    Direct loans receivable, gross

    1,663

    1,982

    1402

    Interest receivable

    22

    29

    1404

    Foreclosed property

    1

    1405

    Allowance for subsidy cost (-)

    -74

    -63

    [[Page 127]]

    1499

    Net present value of assets related to direct loans

    1,612

    1,948

    1999

    Total assets

    1,622

    1,956

        LIABILITIES:
          Federal liabilities:

    2101

    Accounts payable

    1,606

    1,949

    2105

    Other

    16

    7

    2999

    Total liabilities

    1,622

    1,956

    4999

    Total liabilities and net position

    1,622

    1,956

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

           Rural Community Facility Guaranteed Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4228-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Default claims....................           1           2           2
    00.02 Interest to Treasury..............           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           2           3           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           9          33
    22.00 New financing authority (gross)...          26           6          16
    22.60 Portion applied to repay debt.....                     -36         -13
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          35           3           3
    23.95 Total new obligations.............          -2          -3          -3
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          33
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............           1           3           3
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).          37           1           4
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........                       2           9
    69.47     Portion applied to repay debt.         -12
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          25           3          13
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          26           6          16
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           1           2
    73.10 Total new obligations.............           2           3           3
    73.20 Total financing disbursements
            (gross).........................          -2
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................                      -2          -9
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           1           2          -4
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................           2
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -29                      -2
    88.25     Interest on uninvested funds..          -1                      -1
    88.40     Non-Federal sources, Guarantee
                Fees........................          -7          -1          -1
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -37          -1          -4
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............                      -2          -9
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         -11           3           3
    90.00 Financing disbursements...........         -34          -1          -4
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4228-0-3-452      2006 actual   2007 est.   2008 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.................         164          20         210
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................         164          20         210
    2199  Guaranteed amount of guaranteed
            loan commitments................         131          16         168
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         488         564         607
    2231  Disbursements of new guaranteed
            loans...........................         132         142         150
    2251  Repayments and prepayments........         -56         -97        -105
          Adjustments:

    2263    Terminations for default that
              result in claim payments......          -2          -2          -2
    2264    Other adjustments, net..........           2
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         564         607         650
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         496         492         528
    ---------------------------------------------------------------------------

        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

    2005 actual

    2006 actual

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

    1101

    Fund balances with Treasury

    10

    33

            Investments in US securities:
    1106

    Receivables, net

    15

    7

    1999

    Total assets

    25

    40

        LIABILITIES:
    2104

    Federal liabilities: Resources payable to Treasury

    13

    8

    2204

    Non-Federal liabilities: Liabilities for loan guarantees

    12

    32

    2999

    Total liabilities

    25

    40

    4999

    Total liabilities and net position

    25

    40

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

                   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:
    $4,848,611,000 for loans to section 502 unsubsidized guaranteed loans;
    $22,855,000 for section 504 housing repair loans; $200,000,000 for
    section 538 guaranteed multi-family housing loans; $5,045,000 for
    section 524 site loans; and $11,408,000 for credit sales of acquired
    property, of which up to $1,408,000 may be for multi-family credit
    sales.
         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, $10,070,000, to remain
    available until expended, shall be for unsubsidized guaranteed loans;
    section 504 housing repair loans, $6,461,000; section 538 multi-family
    housing guaranteed loans, $18,800,000; and credit sales of acquired
    property, $523,000: Provided, That of the total amount appropriated in
    this paragraph, $180,000 shall be available through June 30, 2008, 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 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''.
         In addition, for administrative expenses necessary to carry out the
    direct and guaranteed loan programs, $434,890,000, which shall be

    [[Page 128]]

     paid to the appropriation for ``Rural Development, Salaries and
    Expenses''.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loan subsidy...............         199         195           7
    00.02 Guaranteed loan subsidy...........          41          63          29
    00.03 Modifications of direct loans.....           5           8
    00.04 Modification of guaranteed loans..                       1
    00.05 Reestimates of direct loan subsidy         240
    00.06 Interest on reestimates of direct
            loan subsidy....................         131
    00.07 Reestimates of loan guarantee
            subsidy.........................          48
    00.08 Interest on reestimates of loan
            guarantee subsidy...............           7
    00.09 Administrative expenses...........         450         409         435
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,121         676         471
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           8          49
    22.00 New budget authority (gross)......       1,162         627         471
    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......       1,170         676         471
    23.95 Total new obligations.............      -1,121        -676        -471
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          49
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         742         627         471
    40.35   Appropriation permanently
              reduced.......................          -7
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         735         627         471
          Mandatory:

    60.00   Appropriation...................         427
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,162         627         471
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         170         175         230
    73.10 Total new obligations.............       1,121         676         471
    73.20 Total outlays (gross).............      -1,105        -621        -547
    73.40 Adjustments in expired accounts
            (net)...........................         -10
    73.45 Recoveries of prior year
            obligations.....................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         175         230         154
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         610         539         460
    86.93 Outlays from discretionary
            balances........................          68          82          87
    86.97 Outlays from new mandatory
            authority.......................         427
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,105         621         547
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,162         627         471
    90.00 Outlays...........................       1,105         621         547
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Direct 502 single family housing..       1,129       1,165
    115003Direct 502 natural disaster.......                       2
    115004Direct 515 multi-family housing...          98          90
    115007Direct 504 housing repair.........          33          31          23
    115008Direct 504 natural disaster.......                       3
    115009Direct 504, Katrina hurricane
            supplemental....................           3          46
    115011Direct Farm Labor Housing Supp....                       1
    115012Direct 524 site development.......           3           5           5
    115013Direct 523 self-help housing......           4           2
    115014Single family credit sales........                      10          10
    115015Multi-family credit sales.........           2           1           1
    115016502 ND Katrina hurricane
            supplemental....................          81         107
    115017Multi-family housing
            revitalization seconds..........           4
                                               ---------   ---------  ----------
    115999Total direct loan levels..........       1,357       1,463          39
        Direct loan subsidy (in percent):
    132001Direct 502 single family housing..       11.39       10.03        0.00
    132003Direct 502 natural disaster.......        0.00       10.03        0.00
    132004Direct 515 multi-family housing...       45.88       45.67        0.00
    132007Direct 504 housing repair.........       29.25       29.55       28.27
    132008Direct 504 natural disaster.......        0.00       29.55        0.00
    132009Direct 504, Katrina hurricane
            supplemental....................       29.25       29.55        0.00
    132011Direct Farm Labor Housing Supp....        0.00       47.95        0.00
    132012Direct 524 site development.......       -3.51       -1.66       -0.79
    132013Direct 523 self-help housing......        1.03        2.47        0.00
    132014Single family credit sales........      -14.53        0.48       -1.15
    132015Multi-family credit sales.........       45.40       45.33       37.14
    132016502 ND Katrina hurricane
            supplemental....................       11.39       10.03        0.00
    132017Multi-family housing
            revitalization seconds..........       87.52        0.00        0.00
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....       14.57       13.22       17.23
        Direct loan subsidy budget authority:
    133001Direct 502 single family housing..         129         117
    133004Direct 515 multi-family housing...          45          41
    133007Direct 504 housing repair.........          10           9           6
    133008Direct 504 natural disaster.......                       1
    133009Direct 504, Katrina hurricane
            supplemental....................           1          14
    133011Direct Farm Labor Housing Supp....                       1
    133015Multi-family credit sales.........           1           1           1
    133016502 ND Katrina hurricane
            supplemental....................           9          11
    133017Multi-family housing
            revitalization seconds..........           4
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....         199         195           7
        Direct loan subsidy outlays:
    134001Direct 502 single family housing..         131         111          29
    134004Direct 515 multi-family housing...          38          53          43
    134007Direct 504 housing repair.........          10           8           7
    134009Direct 504, Katrina hurricane
            supplemental....................           1
    134010Direct Farm Labor Housing.........           1
    134015Multi-family credit sales.........           1           1           1
    134016502 ND Katrina hurricane
            supplemental....................           6           3
    134017Multi-family housing
            revitalization seconds..........                       1           1
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............         188         177          81
        Direct loan upward reestimates:
    135001Direct 502 single family housing..         357
    135007Direct 504 housing repair.........           1
    135010Direct Farm Labor Housing.........           3
    135014Single family credit sales........          10
                                               ---------   ---------  ----------
    135999Total upward reestimate budget
            authority.......................         371
        Direct loan downward reestimates:
    137001Direct 502 single family housing..         -86
    137004Direct 515 multi-family housing...         -60
    137007Direct 504 housing repair.........         -16
    137014Single family credit sales........         -20
                                               ---------   ---------  ----------
    137999Total downward reestimate budget
            authority.......................        -182
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Guaranteed 502 single family
            housing, purchase...............       2,891       3,662         798
    215002Guaranteed 502 refinance..........           4         247          61
    215003Guaranteed 538 multi-family
            housing.........................          98          63         200
    215004Guaranteed 502 Katrina hurricane
            supplemental....................         180       1,026
                                               ---------   ---------  ----------
    215999Total loan guarantee levels.......       3,173       4,998       1,059
        Guaranteed loan subsidy (in percent):
    232001Guaranteed 502 single family
            housing, purchase...............        1.16        1.21        1.20
    232002Guaranteed 502 refinance..........        0.29        0.50        0.81
    232003Guaranteed 538 multi-family
            housing.........................        5.42        7.74        9.40
    232004Guaranteed 502 Katrina hurricane
            supplemental....................        1.16        1.21        0.00
                                               ---------   ---------  ----------
    232999Weighted average subsidy rate.....        1.29        1.26        2.73
        Guaranteed loan subsidy budget authority:
    233001Guaranteed 502 single family
            housing, purchase...............          34          44          10
    233002Guaranteed 502 refinance..........                       1
    233003Guaranteed 538 multi-family
            housing.........................           5           5          19
    233004Guaranteed 502 Katrina hurricane
            supplemental....................           2          12
                                               ---------   ---------  ----------
    233999Total subsidy budget authority....          41          62          29
        Guaranteed loan subsidy outlays:
    234001Guaranteed 502 single family
            housing, purchase...............          33          28          14
    234002Guaranteed 502 refinance..........                       1
    234003Guaranteed 538 multi-family
            housing.........................           5           3          13
    234004Guaranteed 502 Katrina hurricane
            supplemental....................           2
                                               ---------   ---------  ----------
    234999Total subsidy outlays.............          40          32          27

    [[Page 129]]

        Guaranteed loan upward reestimates:
    235001Guaranteed 502 single family
            housing, purchase...............          39
    235003Guaranteed 538 multi-family
            housing.........................          17
                                               ---------   ---------  ----------
    235999Total upward reestimate budget
            authority.......................          56
        Guaranteed loan downward reestimates:
    237001Guaranteed 502 single family
            housing, purchase...............          -5
                                               ---------   ---------  ----------
    237999Total downward reestimate subsidy
            budget authority................          -5
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................         450         409         435
    3590  Outlays from new authority........         450         409         435
    ---------------------------------------------------------------------------

        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.
    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. The
    section 523 self-help housing land development loan program is funded in
    this account as of 1997, but no funds are provided for 2008, due to
    expected lack of demand.

        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 2008 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.

        Guaranteed lending is the direction of Federal assistance for
    mortgage credit. With improvements and innovations in the banking
    industry, utilizing the private sector with guarantees is a more
    efficient way to deliver homeownership assistance. With that in mind, no
    funds are requested for 502 direct single family housing loans for 2008.
    A separate legislative proposal that goes along with the move to
    guaranteed loans within single family housing programs will be proposed
    to authorize subsidized guaranteed single family housing loans for very-
    low and low income rural residents. Funding requests for these new loans
    will follow authorization. Meanwhile the 502 guaranteed single family
    housing loan program has been increased to $4.8 billion, replacing the
    lost lending level from the 502 direct loans.

        For 502 guaranteed single family housing loans in 2008, the Budget
    reflects a 3.0 percent fee on new loans. This fee will enable the
    program to make more loans available to serve lower income rural
    Americans. In 2002, RHS approved separate risk categories for the
    guarantee refinancing and guarantees of new loans. The guarantee fee for
    the refinancing will remain at 0.5 percent. This change reflects the
    lower risk on refinancing as compared to an unseasoned borrower
    receiving a new loan. It is consistent with the rate that HUD and the VA
    charge on similar loans.

        As required by the Federal Credit Reform Act of 1990, this account
    records, for this program, the subsidy costs associated with the direct
    loans obligated and loan guarantees committed in 1992 and beyond
    (including credit sales of acquired property), as well as administrative
    expenses of this program. The subsidy amounts are estimated on a present
    value basis; the administrative expenses are estimated on a cash basis.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2081-0-1-371      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.3  Other purchases of goods and
            services from Government
            accounts........................         450         409         435
    41.0  Grants, subsidies, and
            contributions...................         671         267          36
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,121         676         471
    ---------------------------------------------------------------------------

                   Rural housing insurance fund program account

                  (Legislative proposal, not subject to PAYGO)

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

    ----------------------------------------------------------------------------
    Identification code 12-2081-2-1-371      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Guaranteed 502 single family
            housing, purchase...............                               3,990
                                               ---------   ---------  ----------
    215999Total loan guarantee levels.......                               3,990
        Guaranteed loan subsidy (in percent):
    232001Guaranteed 502 single family
            housing, purchase...............                               -1.00
                                               ---------   ---------  ----------
    232999Weighted average subsidy rate.....                               -2.16
    ---------------------------------------------------------------------------

        For the 502 guarantee program, the Budget includes a general
    provision that allows for the guarantee fee on new 502 guaranteed loans
    to be increased to 3 percent from 2 percent. This causes the loans to be
    less costly for the Government without a significant additional burden
    to the borrowers, given that they can finance the fee as part of the
    loan. This proposal will allow funding in 2008 to be at an increased
    amount of $4.8 billion for purchase loans. The increase is meant to
    compensate for no funding for direct single family housing loans.

            Rural Housing Insurance Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4215-0-3-371      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loans including upward
            adjustments of prior year
            obligations.....................       1,373       1,473          53
    00.02 Interest on Treasury Borrowing....         692         730         748
    00.05 Advances on behalf of borrowers...          32                      45
    00.06 Other expenses....................          41          98          35
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating program.....       2,138       2,301         881
    08.02 Downward subsidy reestimates paid
            to receipt account..............         131
    08.04 Interest on downward reestimates
            paid to receipt account.........          51
                                               ---------   ---------  ----------
    08.91   Subtotal, Reestimates...........         182
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,320       2,301         881
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         572          80
    22.00 New financing authority (gross)...       2,030       2,221         881
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          95
    22.60 Portion applied to repay debt.....        -224
    22.70 Balance of authority to borrow
            withdrawn.......................         -73
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       2,400       2,301         881
    23.95 Total new obligations.............      -2,320      -2,301        -881
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          80
    ----------------------------------------------------------------------------

    [[Page 130]]

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............       1,075         373         314
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).       2,152       1,971       1,710
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -8         -15         -30
    69.47     Portion applied to repay debt.      -1,189        -108      -1,113
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         955       1,848         567
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       2,030       2,221         881
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Unpaid obligations, fund balance
            with Treasury, start of year....         570         535         969
    73.10 Total new obligations.............       2,320       2,301         881
    73.20 Total financing disbursements
            (gross).........................      -2,268      -1,882      -2,191
    73.45 Recoveries of prior year
            obligations.....................         -95
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           8          15          30
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         535         969        -311
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................       2,268       1,882       2,191
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources: payments from
                program account.............        -569        -195         -97
    88.25     Interest on uninvested funds..        -102        -206        -190
    88.40     Non-Federal sources:
                Repayments of principal.....        -737        -920        -837
    88.40     Interest received on loans....        -636        -563        -491
    88.40     Payments on judgments.........         -12         -13         -14
    88.40     Proceeds on sale of acquired
                property....................         -17         -25         -31
    88.40     Recaptured income.............          -2         -10         -36
    88.40     Fees..........................          -2          -5          -7
    88.40     Miscellaneous collections.....         -75         -34          -7
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................      -2,152      -1,971      -1,710
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           8          15          30
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............        -114         265        -799
    90.00 Financing disbursements...........         116         -89         481
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4215-0-3-371      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................       1,373       1,473          53
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       1,373       1,473          53
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      12,761      13,162      13,625
    1231  Disbursements: Direct loan
            disbursements...................       1,390       1,472       1,464
    1251  Repayments: Repayments and
            prepayments.....................        -919        -937      -1,078
    1261  Adjustments: Capitalized interest.          20          23          25
          Write-offs for default:

    1263    Direct loans....................         -50         -65         -83
    1264    Other adjustments, net..........         -40         -30         -25
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      13,162      13,625      13,928
    ---------------------------------------------------------------------------

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

        This account finances direct rural housing loans for section 502
    very low- and low-to-moderate-income home ownership loan program;
    section 504 very low income housing repair loan program; section 514
    domestic farm labor housing loan program; section 515 rural rental
    housing loan program; sections 523 self-help housing loans, and 524 site
    development loans; and single family and multi-family housing credit
    sales of acquired property.

        Loan programs are limited to rural areas that include towns,
    villages and other places which are not part of an urban area and that
    have a population not in excess of 2,500 inhabitants, or is in excess of
    2,500 but not in excess of 10,000 if rural in character, or has a
    population in excess of 10,000 but not more than 20,000 and is not
    within a standard metropolitan statistical area and has a serious lack
    of mortgage credit for low and moderate-income borrowers.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 12-4215-0-
    3-371

    2005 actual

    2006 actual

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

    1101

    Fund balances with Treasury

    224

    80

            Investments in US securities:
    1106

    Receivables, net

    -77

    192

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

    1401

    Direct loans receivable, gross

    12,761

    13,162

    1402

    Interest receivable

    132

    63

    1404

    Foreclosed property

    18

    16

    1405

    Allowance for subsidy cost (-)

    -1,040

    -2,036

    1499

    Net present value of assets related to direct loans

    11,871

    11,205

    1999

    Total assets

    12,018

    11,477

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    10,989

    10,960

    2105

    Other

    1,021

    503

    2207

    Non-Federal liabilities: Other

    8

    14

    2999

    Total liabilities

    12,018

    11,477

    4999

    Negative subsidy BA total [12-2081]

    12,018

    11,477

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

          Rural Housing Insurance Fund Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4216-0-3-371      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Default claims....................         107         107         140
    00.02 Interest assistance paid to
            lenders.........................                       5           7
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............         107         112         147
    08.02 Payments of downward estimates to
            receipt account.................           2
    08.04 Payment of interest on downward
            reestimate to receipt account...           3
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         112         112         147
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         527         591         588
    22.00 New financing authority (gross)...         176         109          96
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         703         700         684
    23.95 Total new obligations.............        -112        -112        -147
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         591         588         537
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............           5           5           8
    67.35   Authority to borrow permanently
              reduced.......................         -14
                                               ---------   ---------  ----------

    [[Page 131]]

    67.90     Authority to borrow (total
                mandatory)..................          -9           5           8
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).         185         104          89
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........                                  -1
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         185         104          88
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         176         109          96
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............         112         112         147
    73.20 Total financing disbursements
            (gross).........................        -112        -112        -148
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................                                   1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................         112         112         148
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -96         -32         -27
    88.25     Interest on uninvested funds..         -27         -25         -24
    88.40     Non-Federal sources: guarantee
                fees........................         -62         -47         -38
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -185        -104         -89
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............                                   1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          -9           5           8
    90.00 Financing disbursements...........         -73           8          59
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4216-0-3-371      2006 actual   2007 est.   2008 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.................       3,173       4,998       1,059
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................       3,173       4,998       1,059
    2199  Guaranteed amount of guaranteed
            loan commitments................       2,856       4,498         953
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........      14,673      15,579      15,916
    2231  Disbursements of new guaranteed
            loans...........................       3,056       2,463       1,888
    2251  Repayments and prepayments........      -1,901      -2,019      -2,197
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................        -249        -107        -230
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........      15,579      15,916      15,377
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..      14,834      14,176      13,840
    ---------------------------------------------------------------------------

        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 as well as the re-
    financings those loans 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

    2005 actual

    2006 actual

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

    1101

    Fund balances with Treasury

    517

    591

            Investments in US securities:
    1106

    Receivables, net

    29

    8

    1999

    Total assets

    546

    599

        LIABILITIES:
          Non-Federal liabilities:

    2204

    Liabilities for loan guarantees

    545

    8

    2207

    Other

    1

    591

    2999

    Total liabilities

    546

    599

    4999

    Negative subsidy BA total [12-2081]

    546

    599

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

          Rural housing insurance fund guaranteed loan financing account

                  (Legislative proposal, not subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4216-2-3-371      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Default claim payments............                                  12
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                  12
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...                                 117
    23.95 Total new obligations.............                                 -12
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........                                 105
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).                                 117
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                  12
    73.20 Total financing disbursements
            (gross).........................                                 -12
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................                                  12
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..                                  -6
    88.40     Non-Federal sources: guarantee
                fees........................                                -111
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................                                -117
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........                                -105
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4216-2-3-371      2006 actual   2007 est.   2008 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.................                               3,990
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................                               3,990
    2199  Guaranteed amount of guaranteed
            loan commitments................                               3,591
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........
    2231  Disbursements of new guaranteed
            loans...........................                               2,993
    2251  Repayments and prepayments........                                -100
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................                                 -12
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........                               2,881
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                               2,582
    ---------------------------------------------------------------------------

        This financing account data reflects the proposal on 502 guarantees
    contained in a general provision that allows for

    [[Page 132]]

    the guarantee fee on new 502 guaranteed loans to be increased to 3
    percent from 2 percent.

                 Rural Housing Insurance Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.02 Advances on behalf of borrowers...          40          38          35
    01.06 Interest credits on loans sold to
            investors.......................           1
    01.07 Other costs incident to loans.....           4           4           3
                                               ---------   ---------  ----------
    01.91   Total operating expenses........           5           4           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          45          42          38
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          88          59
    22.00 New budget authority (gross)......                      41          38
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          58
    22.40 Capital transfer to general fund..         -42         -58
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         104          42          38
    23.95 Total new obligations.............         -45         -42         -38
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          59
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).       1,204       1,132       1,054
    69.27     Capital transfer to general
                fund........................      -1,204      -1,091      -1,016
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........                      41          38
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Unpaid fund balance with treasury,
            end of year.....................          72          29          30
    73.10 Total new obligations.............          45          42          38
    73.20 Total outlays (gross).............         -30         -41         -38
    73.45 Recoveries of prior year
            obligations.....................         -58
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          29          30          30
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                      41          38
    86.98 Outlays from mandatory balances...          30
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          30          41          38
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -1
    88.40     Repayments of loans and
                advances....................        -629        -588        -556
    88.40     Proceeds from sale of acquired
                property....................          -9         -12         -13
    88.40     Payments on judgments.........          -5          -8          -9
    88.40     Interest payments from
                borrowers...................        -423        -356        -311
    88.40     Recapture of subsidies........        -115        -156        -155
    88.40     Income from residual
                investment in loan asset
                sale........................         -14         -12         -10
    88.40     Fees and other revenue........          -8
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................      -1,204      -1,132      -1,054
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      -1,204      -1,091      -1,016
    90.00 Outlays...........................      -1,174      -1,091      -1,016
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      12,149      11,468      10,853
    1251  Repayments: Repayments and
            prepayments.....................        -629        -588        -556
    1261  Adjustments: Capitalized interest.           8          10          10
          Write-offs for default:

    1263    Direct loans....................         -40         -34         -29
    1264    Other adjustments, net..........         -20          -3          -5
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      11,468      10,853      10,273
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........           7           6           5
    2251  Repayments and prepayments........          -1          -1          -1
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........           6           5           4
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..           5           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

    2005 actual

    2006 actual

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

    Federal assets: Fund balances with Treasury

    160

    89

    1601

    Direct loans, gross

    12,149

    11,468

    1602

    Interest receivable

    711

    737

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -5,686

    -5,735

    1604

    Direct loans and interest receivable, net

    7,174

    6,470

    1606

    Foreclosed property

    13

    16

    1699

    Value of assets related to direct loans

    7,187

    6,486

    1901

    Other Federal assets: Other assets

    94

    3

    1999

    Total assets

    7,441

    6,578

        LIABILITIES:
          Federal liabilities:

    2102

    Interest payable

    1

    1

    2103

    Debt

    1

    1

    2104

    Resources payable to Treasury

    7,347

    6,477

          Non-Federal liabilities:

    2204

    Liabilities for loan guarantees

    1

    1

    2207

    Other

    91

    98

    2999

    Total liabilities

    7,441

    6,578

    4999

    Total liabilities and net position

    7,441

    6,578

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4141-0-3-371      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.2  Other services....................           3           3           3
    33.0  Investments and loans.............          41          39          35
    43.0  Interest and dividends............           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          45          42          38
    ---------------------------------------------------------------------------

                       RURAL BUSINESS--COOPERATIVE SERVICE

                                  Federal Funds

                         Biomass Research and Development

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1003-0-1-271      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Biomass research and development..          12          26
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          12          26
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          14          14

    [[Page 133]]

    22.00 New budget authority (gross)......          12          12
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          26          26
    23.95 Total new obligations.............         -12         -26
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          14
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.35   Appropriation permanently
              reduced.......................                      -4
          Mandatory:

    62.00   Transferred from other accounts.          12          16
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          12          12
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          18          23          47
    73.10 Total new obligations.............          12          26
    73.20 Total outlays (gross).............          -7          -2          -4
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          23          47          43
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                       2
    86.98 Outlays from mandatory balances...           7                       4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           7           2           4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          12          12
    90.00 Outlays...........................           7           2           4
    ---------------------------------------------------------------------------

        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.

             Rural Empowerment Zones and Enterprise Community Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-0402-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Rural empowerment zones and
            enterprise community grants.....          12          14
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          12          14
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           4           3
    22.00 New budget authority (gross)......          11          11
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          15          14
    23.95 Total new obligations.............         -12         -14
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          11          11
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          25          24          25
    73.10 Total new obligations.............          12          14
    73.20 Total outlays (gross).............         -13         -13         -12
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          24          25          13
    ----------------------------------------------------------------------------

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

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

        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. No funding is provided in 2008 for EZ/EC
    grants.

                       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), $20,928,000, of which not to exceed $1,473,000 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 $15,000,000, 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).

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1900-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Rural Cooperative Development
            Grants..........................           6           9           6
    00.10 Value-added Agricultural Product
            Marketing (mandatory)...........           2
    00.11 Value added Agricultural Product
            Marketing (discretionary).......          34          20          15
    00.12 Appropriate Technology Transfer
            for Rural Areas.................           3
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          45          29          21
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          15           1
    22.00 New budget authority (gross)......          29          28          21
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          46          29          21
    23.95 Total new obligations.............         -45         -29         -21
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          30          29          21
    40.35   Appropriation permanently
              reduced.......................                     -40
    40.40   Appropriations permanently
              reduced pursuant to PL xx-xx
              (-)...........................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          29         -11          21
          Mandatory:

    60.36   Unobligated balance permanently
              reduced.......................                      -1
    62.00   Transferred from other accounts.                      40
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................                      39
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          29          28          21
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          40          53          74
    73.10 Total new obligations.............          45          29          21
    73.20 Total outlays (gross).............         -29          -8         -33
    73.40 Adjustments in expired accounts
            (net)...........................          -1
    73.45 Recoveries of prior year
            obligations.....................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          53          74          62
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           8          -4           5
    86.93 Outlays from discretionary
            balances........................          17                      -4

    [[Page 134]]

    86.97 Outlays from new mandatory
            authority.......................                      12
    86.98 Outlays from mandatory balances...           4                      32
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          29           8          33
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          29          28          21
    90.00 Outlays...........................          29           8          33
    ---------------------------------------------------------------------------

        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. In 2006, the Rural Business
    Service began a separate solicitation for the Small Minority Producer
    Grant. These grants provide assistance to small, minority producers
    through cooperatives and associations of cooperatives.

        The Appropriate Technology Transfer to Rural Areas (ATTRA) program
    was first authorized by the Food Security Act of 1985. The program
    provides information and technical assistance to agricultural producers
    to adopt sustainable agricultural practices that are environmentally
    friendly and lower production costs. The 2008 Budget provides no funding
    for this purpose.

        Additionally, USDA provides value added marketing grants for
    producers of agricultural commodities. These grants can be used for
    planning activities and for working capital for marketing value-added
    agricultural products.

                        Rural Economic Development Grants

                        (including cancellation 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, $34,000,000 is permanently cancelled.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3105-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Rural economic development grants.          10          10          10
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          10          10          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         187          82          59
    22.00 New budget authority (gross)......         -95         -13          15
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          92          69          74
    23.95 Total new obligations.............         -10         -10         -10
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          82          59          64
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance permanently
              reduced.......................                     -79         -34
          Mandatory:

    60.36   Unobligated balance permanently
              reduced.......................        -170
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).          90          70          52
    69.00     Offsetting collections (cash).           4           7           7
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         -19         -11         -10
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          75          66          49
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         -95         -13          15
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         -79         -58        -112
    73.10 Total new obligations.............          10          10          10
    73.20 Total outlays (gross).............          -8         -75         -58
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          19          11          10
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         -58        -112        -150
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           8          66          49
    86.98 Outlays from mandatory balances...                       9           9
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           8          75          58
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -90         -70         -52
    88.40     Non-Federal sources...........          -4          -7          -7
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -94         -77         -59
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          19          11          10
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -170         -79         -34
    90.00 Outlays...........................         -86          -2          -1
    ---------------------------------------------------------------------------

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct program....................           6           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           6           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           6           1
    22.00 New budget authority (gross)......           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           7           1
    23.95 Total new obligations.............          -6          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................           1
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                       5
    73.10 Total new obligations.............           6           1
    73.20 Total outlays (gross).............          -1          -6          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           5                      -1
    ----------------------------------------------------------------------------

    [[Page 135]]

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           1
    86.98 Outlays from mandatory balances...                       6           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           1           6           1
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           1
    90.00 Outlays...........................           1           6           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. This Program was privatized in September
    2006, as required by statute, and is now the American Sheep and Goat
    Center.

                    Rural Strategic Investment Program Grants

        The Rural Strategic Investment Program is authorized under 7 U.S.C.
    2009dd. The Rural Strategic Investment Program provides rural
    communities with flexible resources to develop comprehensive,
    collaborative, and locally-based strategic planning processes; and
    implemented 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 Deficit Reduction Act
    canceled the funding and no funds are provided in the Budget.

                          Rural Business Program Account

                        (including transfer of balances)

         For the costs of loan guarantees and grants, for the rural business
    and cooperative development programs as authorized by 7 U.S.C. 1926 and
    1932 and described in sections 381E(d)(3) and 310B(f) of the
    Consolidated Farm and Rural Development Act (7 U.S.C. 1921 note),
    $43,200,000, to remain available until expended: Provided, That of the
    amount appropriated under this heading, not to exceed $236,000 shall be
    available through June 30, 2008, for authorized empowerment zones and
    enterprise communities and communities designated by the Secretary of
    Agriculture as Rural Economic Area Partnership Zones for the rural
    business and cooperative development programs described in section
    381E(d)(3) of such Act: Provided further, That sections 381E-H and 381N
    of the Consolidated Farm and Rural Development Act, are not applicable
    to funds made available under this heading: Provided further, That any
    prior year balances in the ``Rural Development, Rural Community
    Advancement Program'' account for programs authorized by 7 U.S.C. 1926
    and 1932 and described in sections 381E(d)(3) and 310B(f) of the
    Consolidated Farm and Rural Development Act (7 U.S.C. 1921 note) shall
    be transferred to and merged with this account: Provided further, That
    the Secretary shall transfer and merge with this account any other prior
    balances from the ``Rural Development, Rural Community Advancement
    Program'' account that the Secretary determines is appropriate to
    transfer.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1902-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........                                  43
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                  43
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                  43
    23.95 Total new obligations.............                                 -43
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                  43
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                  43
    73.20 Total outlays (gross).............                                 -79
    73.32 Obligated balance transferred from
            other accounts..................                                 118
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                  82
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                  17
    86.93 Outlays from discretionary
            balances........................                                  62
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                                  79
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                  43
    90.00 Outlays...........................                                  79
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1902-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215003Business and industry loan
            guarantees......................                               1,000
                                               ---------   ---------  ----------
    215999Total loan guarantee levels.......                               1,000
        Guaranteed loan subsidy (in percent):
    232003Business and industry loan
            guarantees......................                                4.32
                                               ---------   ---------  ----------
    232999Weighted average subsidy rate.....                                4.32
        Guaranteed loan subsidy budget authority:
    233003Business and industry loan
            guarantees......................                                  43
                                               ---------   ---------  ----------
    233999Total subsidy budget authority....                                  43
        Guaranteed loan subsidy outlays:
    234003Business and industry loan
            guarantees......................                                  42
                                               ---------   ---------  ----------
    234999Total subsidy outlays.............                                  42
    ---------------------------------------------------------------------------

        This account funds direct and guaranteed business and industry
    loans, rural business enterprise grants, and rural business opportunity
    grants. Since the passage of the Federal Agriculture Improvement and
    Reform Act of 1996 through 2007, the funding for these programs was
    provided as part of the Rural Community Advancement Program (RCAP). For
    2008, no funding is proposed in the RCAP account and instead, each
    funding stream is being appropriated separately in a new account. This
    is the new account for the Business funding stream.

        Business and industry guaranteed and direct loans are authorized
    under section 310B(a)(1) of the Consolidated Farm and Rural Development,
    as amended. These loans are made to public, private or cooperative
    organizations, Indian tribes or tribal groups, corporate entities, or
    individuals for the purpose of improving the economic climate in rural
    areas. For direct loans no funds were requested or provided since 2002,
    and no funds are requested in 2008. 2008 projections for loan guarantees
    are $1 billion. No funding is provided in this account for the rural
    business enterprise grants or the rural business opportunity grants.

            Rural Business and Industry Direct Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4223-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.02 Interest on Treasury borrowings...           1           1           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           1           1           1
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          19           9

    [[Page 136]]

    22.00 New financing authority (gross)...           3           9           7
    22.60 Portion applied to repay debt.....                     -17          -6
    22.70 Balance of authority to borrow
            withdrawn.......................         -12
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          10           1           1
    23.95 Total new obligations.............          -1          -1          -1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           9
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).          13           9           7
    69.47     Portion applied to repay debt.         -10
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........           3           9           7
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................           1           1           1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.25     Interest on uninvested funds..          -1          -3          -2
    88.40     Repayments of principal.......         -12          -6          -5
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -13          -9          -7
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         -10
    90.00 Financing disbursements...........         -12          -8          -6
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4223-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          81          69          59
    1251  Repayments: Repayments and
            prepayments.....................          -8          -6          -5
    1263  Write-offs for default: Direct
            loans...........................          -4          -4          -4
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          69          59          50
    ---------------------------------------------------------------------------

        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 were 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

    2005 actual

    2006 actual

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

    1101

    Fund balances with Treasury

    7

    9

            Investments in US securities:
    1106

    Receivables, net

    -6

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

    1401

    Direct loans receivable, gross

    83

    70

    1402

    Interest receivable

    7

    7

    1405

    Allowance for subsidy cost (-)

    -75

    -66

    1499

    Net present value of assets related to direct loans

    15

    11

    1999

    Total assets

    16

    20

        LIABILITIES:
          Federal liabilities:

    2104

    Resources payable to Treasury

    15

    5

    2105

    Other

    1

    15

    2999

    Total liabilities

    16

    20

    4999

    Total liabilities and net position

    16

    20

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

          Rural Business and Industry Guaranteed Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4227-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Default claims....................          26          29          32
    00.02 Interest to Treasury..............           8           6           6
    00.05 Purchase from Secondary Market....          57          63          69
    00.06 Other.............................           2
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............          93          98         107
    08.02 Subsidy reestimates paid to
            receipt account.................          10
    08.04 Interest on downward reestimates..           4
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............          14
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         107          98         107
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         300         331         295
    22.00 New financing authority (gross)...         152          89         106
    22.60 Portion applied to repay debt.....         -14         -27         -27
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         438         393         374
    23.95 Total new obligations.............        -107         -98        -107
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         331         295         267
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          23          14          16
    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         129          75          90
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         152          89         106
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............         107          98         107
    73.20 Total financing disbursements
            (gross).........................        -107         -98        -107
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................         107          98         107
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -90         -34         -42
    88.25     Interest on uninvested funds..         -12          -8          -9
    88.40     Interest and principal on
                purchased loans from
                secondary market............         -27         -25         -30
    88.40     Guarantee fees................                      -8          -9
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -129         -75         -90
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          23          14          16
    90.00 Financing disbursements...........         -22          23          17
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4227-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on commitments:

    [[Page 137]]

    2111  Limitation on guaranteed loans
            made by private lenders.........
    2131  Guaranteed loan commitments exempt
            from limitation.................         766       1,102       1,000
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................         766       1,102       1,000
    2199  Guaranteed amount of guaranteed
            loan commitments................         613         881         800
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........       4,183       3,884       3,978
    2231  Disbursements of new guaranteed
            loans...........................         489         889       1,018
    2251  Repayments and prepayments........        -674        -662        -698
          Adjustments:

    2263    Terminations for default that
              result in claim payments......        -113        -133        -156
    2264    Other adjustments, net..........          -1
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........       3,884       3,978       4,142
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..       3,110       3,189       3,320
    ---------------------------------------------------------------------------

        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 industrial
    development in rural areas.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 12-4227-0-
    3-452

    2005 actual

    2006 actual

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

    1101

    Fund balances with Treasury

    300

    332

            Investments in US securities:
    1106

    Receivables, net

    216

    162

    1999

    Total assets

    516

    494

        LIABILITIES:
          Federal liabilities:

    2104

    Resources payable to Treasury

    141

    150

    2105

    Other

    8

    17

    2204

    Non-Federal liabilities: Liabilities for loan guarantees

    367

    327

    2999

    Total liabilities

    516

    494

    4999

    Total liabilities and net position

    516

    494

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

                   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)), $33,772,000.
         For the cost of direct loans, $14,485,000, as authorized by the
    Rural Development Loan Fund (42 U.S.C. 9812(a)): Provided, That such
    costs, including the cost of modifying such loans, shall be as defined
    in section 502 of the Congressional Budget Act of 1974: Provided
    further, That of the total amount appropriated, $880,000 shall be
    available through June 30, 2008, 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, $4,576,000 shall be paid to the appropriation for ``Rural
    Development, Salaries and Expenses''.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2069-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loan subsidy...............          15          15          14
    00.09 Administrative expense............           5           5           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          20          20          19
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          20          20          19
    23.95 Total new obligations.............         -20         -20         -19
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          20          20          19
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          49          43          41
    73.10 Total new obligations.............          20          20          19
    73.20 Total outlays (gross).............         -22         -22         -22
    73.40 Adjustments in expired accounts
            (net)...........................          -4
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          43          41          38
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           7           6           6
    86.93 Outlays from discretionary
            balances........................          15          16          16
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          22          22          22
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          20          20          19
    90.00 Outlays...........................          22          22          22
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-2069-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Rural development loan fund
            program.........................          34          33          34
                                               ---------   ---------  ----------
    115999Total direct loan levels..........          34          33          34
        Direct loan subsidy (in percent):
    132001Rural development loan fund
            program.........................       43.02       44.07       42.89
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....       43.02       44.07       42.89
        Direct loan subsidy budget authority:
    133001Rural development loan fund
            program.........................          15          15          14
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....          15          15          14
        Direct loan subsidy outlays:
    134001Rural development loan fund
            program.........................          17          17          17
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............          17          17          17
        Direct loan downward reestimates:
    137001Rural development loan fund
            program.........................          -3
                                               ---------   ---------  ----------
    137999Total downward reestimate budget
            authority.......................          -3
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           5           5           5
    3590  Outlays from new authority........                       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.

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.3  Other purchases of goods and
            services from Government
            accounts........................           5           5           5

    [[Page 138]]

    41.0  Grants, subsidies, and
            contributions...................          15          15          14
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          20          20          19
    ---------------------------------------------------------------------------

            Rural Development Loan Fund Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4219-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loans......................          34          33          34
    00.02 Interest on Treasury Borrowing....          15          16          16
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal......................          49          49          50
    08.02 Downward subsidy reestimate paid
            to receipt account..............           2
    08.04 Interest on downward subsidy
            reestimate paid to receipt
            account.........................           1
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal......................           3
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          52          49          50
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       1
    22.00 New financing authority (gross)...          49          66          59
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           9
    22.60 Portion applied to repay debt.....                     -18          -9
    22.70 Balance of authority to borrow
            withdrawn.......................          -5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          53          49          50
    23.95 Total new obligations.............         -52         -49         -50
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          29          24          24
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).          38          42          35
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -6
    69.47     Portion applied to repay debt.         -12
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          20          42          35
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          49          66          59
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          57          52          22
    73.10 Total new obligations.............          52          49          50
    73.20 Total financing disbursements
            (gross).........................         -54         -79         -62
    73.45 Recoveries of prior year
            obligations.....................          -9
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           6
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          52          22          10
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................          54          79          62
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.         -17         -17         -17
    88.25     Interest on uninvested funds..          -2          -3          -4
    88.40     Non-Federal sources--repayment
                of principal................         -19         -17         -12
    88.40     Non-Federal sources--interest
                on loans....................                      -5          -2
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -38         -42         -35
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           6
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          17          24          24
    90.00 Financing disbursements...........          17          37          27
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4219-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................          34          33          34
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          34          33          34
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         379         399         418
    1231  Disbursements: Direct loan
            disbursements...................          36          37          27
    1251  Repayments: Repayments and
            prepayments.....................         -16         -18         -14
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         399         418         431
    ---------------------------------------------------------------------------

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

        This account finances loans to intermediary borrowers, who in turn
    relend the funds to small rural businesses, community development
    corporations, or other organizations for the purpose of improving
    economic opportunities in rural areas. Through the use of local
    intermediaries, this program serves small-scale enterprises and gives
    preference to those communities with the greatest need.

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 12-4219-0-
    3-452

    2005 actual

    2006 actual

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

    Federal assets: Fund balances with Treasury

    13

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

    1401

    Direct loans receivable, gross

    379

    399

    1402

    Interest receivable

    2

    2

    1405

    Allowance for subsidy cost (-)

    -151

    -154

    1499

    Net present value of assets related to direct loans

    230

    247

    1999

    Total assets

    243

    247

        LIABILITIES:
    2104

    Federal liabilities: Resources payable to Treasury

    243

    247

    2999

    Total liabilities

    243

    247

    4999

    Total liabilities and net position

    243

    247

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

                 Rural Development Loan Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4233-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        New budget authority (gross), detail:
          Mandatory:

            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).           6           6           5
    69.27     Capital transfer to general
                fund........................          -6          -6          -5
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.40     Loan repayments...............          -5          -5          -4
    88.40     Borrower interest payments....          -1          -1          -1
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................          -6          -6          -5
    ----------------------------------------------------------------------------

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

    [[Page 139]]

    90.00 Outlays...........................          -6          -6          -5
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4233-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          52          44          37
    1251  Repayments: Repayments and
            prepayments.....................          -5          -5          -4
    1263  Write-offs for default: Direct
            loans...........................          -3          -2          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          44          37          32
    ---------------------------------------------------------------------------

        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

    2005 actual

    2006 actual

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

    Federal assets: Fund balances with Treasury

    1

    1601

    Direct loans, gross

    52

    44

    1602

    Interest receivable

    1

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -25

    -22

    1604

    Direct loans and interest receivable, net

    27

    23

    1699

    Value of assets related to direct loans

    27

    23

    1999

    Total assets

    28

    23

        LIABILITIES:
    2104

    Federal liabilities: Resources payable to Treasury

    28

    23

    2999

    Total liabilities

    28

    23

    4999

    Total liabilities and net position

    28

    23

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

                 Rural Economic Development Loans Program Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3108-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loan subsidy...............           5           5           7
    00.05 Reestimates of Direct Loan
            Subsidies.......................           1
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           6           5           7
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           6           5           7
    23.95 Total new obligations.............          -6          -5          -7
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

    60.00   Appropriation...................           1
    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).                                   7
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................           6           5           7
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           1
    86.93 Outlays from discretionary
            balances........................           3           4           3
    86.97 Outlays from new mandatory
            authority.......................           1                       2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           6           5           5
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....                                  -7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           6           5
    90.00 Outlays...........................           6           5          -2
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-3108-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Rural economic development loans
            program.........................          25          23          33
                                               ---------   ---------  ----------
    115999Total direct loan levels..........          25          23          33
        Direct loan subsidy (in percent):
    132001Rural economic development loans
            program.........................       19.97       21.84       22.59
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....       19.97       21.84       22.59
        Direct loan subsidy budget authority:
    133001Rural economic development loans
            program.........................           5           5           7
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....           5           5           7
        Direct loan subsidy outlays:
    134001Rural economic development loans
            program.........................           5           5           5
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............           5           5           5
        Direct loan upward reestimates:
    135001Rural economic development loans
            program.........................           1
                                               ---------   ---------  ----------
    135999Total upward reestimate budget
            authority.......................           1
        Direct loan downward reestimates:
    137001Rural economic development loans
            program.........................          -1
                                               ---------   ---------  ----------
    137999Total downward reestimate budget
            authority.......................          -1
    ---------------------------------------------------------------------------

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loans......................          25          23          33
    00.02 Interest expense..................           5           5           5
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............          30          28          38
    08.02 Downward subsidy reestimate paid
            to receipt account..............           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          31          28          38
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New financing authority (gross)...          34          27          40
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
    22.60 Portion applied to repay debt.....                                  -2
    22.70 Balance of authority to borrow
            withdrawn.......................          -6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          30          27          38
    23.95 Total new obligations.............         -31         -28         -38
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          29          21          28
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).          21          27          40
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -1
    69.47     Portion applied to repay debt.         -15         -21         -28
                                               ---------   ---------  ----------

    [[Page 140]]

    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........           5           6          12
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          34          27          40
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          20          15          16
    73.10 Total new obligations.............          31          28          38
    73.20 Total financing disbursements
            (gross).........................         -35         -27         -40
    73.45 Recoveries of prior year
            obligations.....................          -2
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          15          16          14
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................          35          27          40
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal Funds: Program Account          -6          -5          -5
    88.25     Interest on uninvested funds..          -1          -2          -4
    88.40     Non-Federal sources: Repayment
                of Principal................         -14         -20         -31
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -21         -27         -40
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............          14
    90.00 Financing disbursements...........          14
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4176-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................          25          23          33
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          25          23          33
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........          73          83          82
    1231  Disbursements: Direct loan
            disbursements...................          24          19          24
    1251  Repayments: Repayments and
            prepayments.....................         -14         -20         -23
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........          83          82          83
    ---------------------------------------------------------------------------

        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

    2005 actual

    2006 actual

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

    Federal assets: Fund balances with Treasury

    2

    2

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

    1401

    Direct loans receivable, gross

    73

    83

    1405

    Allowance for subsidy cost (-)

    -5

    -2

    1499

    Net present value of assets related to direct loans

    68

    81

    1999

    Total assets

    70

    83

        LIABILITIES:
          Federal liabilities:

    2104

    Resources payable to Treasury

    69

    82

    2105

    Other

    1

    1

    2999

    Total liabilities

    70

    83

    4999

    Total liabilities and net position

    70

    83

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

                    Rural Business Investment Programs Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1907-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.02 Debenture subsidy.................           2
    00.09 Administrative expense............           2
    00.10 Grants............................           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          99          94
    22.00 New budget authority (gross)......                     -94
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          99
    23.95 Total new obligations.............          -5
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          94
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.36   Unobligated balance permanently
              reduced.......................                     -94
    ----------------------------------------------------------------------------

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

        Outlays (gross), detail:
    86.98 Outlays from mandatory balances...                       3
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                     -94
    90.00 Outlays...........................                       3
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1907-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Rural Business Investment Program.          24
                                               ---------   ---------  ----------
    215999Total loan guarantee levels.......          24
        Guaranteed loan subsidy (in percent):
    232001Rural Business Investment Program.        7.72        0.00        0.00
                                               ---------   ---------  ----------
    232999Weighted average subsidy rate.....        7.72        0.00        0.00
        Guaranteed loan subsidy budget authority:
    233001Rural Business Investment Program.           2
                                               ---------   ---------  ----------
    233999Total subsidy budget authority....           2
        Guaranteed loan subsidy outlays:
    234001Rural Business Investment Program.                       2
                                               ---------   ---------  ----------
    234999Total subsidy outlays.............                       2
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           2
    3580  Outlays from balances.............                       2
    ---------------------------------------------------------------------------

        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

    [[Page 141]]

    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 Deficit Reduction Act cancelled the unobligated balance and no
    funds are requested 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.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1907-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.2  Administrative Expenses...........           2
    41.0  Grants, subsidies, and
            contributions...................           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           5
    ---------------------------------------------------------------------------

          Rural Business Investment Program Guarantee Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4033-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       2           2
    22.00 New financing authority (gross)...           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           2           2           2
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           2           2           2
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).                       2
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           2          -2
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........           2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                      -2
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -2           2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          -2
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

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

    88.95   Change in receivables from
              program accounts..............          -2           2
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........                      -2
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4033-0-3-452      2006 actual   2007 est.   2008 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.................          24
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................          24
    2199  Guaranteed amount of guaranteed
            loan commitments................          24
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........                                  24
    2231  Disbursements of new guaranteed
            loans...........................                      24
    2251  Repayments and prepayments........                                  -1
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........                      24          23
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                      24          23
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 12-4033-0-
    3-452

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
          Federal assets: Investments in US
              securities:

    1106

    Receivables, net

    2

        LIABILITIES:
    2204

    Non-Federal liabilities: Liabilities for loan guarantees

    2

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

                             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), $33,941,000 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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1908-0-1-451      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.02 Guaranteed loan subsidy...........           2          10          19
    00.10 Renewable energy grants...........          21          13          15
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          23          23          34
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          23          23          34
    23.95 Total new obligations.............         -23         -23         -34
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          23          20          34
          Mandatory:

    62.00   Transferred from other accounts.                       3
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          23          23          34
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          55          67          74
    73.10 Total new obligations.............          23          23          34
    73.20 Total outlays (gross).............          -9         -16         -25
    73.40 Adjustments in expired accounts
            (net)...........................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          67          74          83
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           9          16          27
    86.98 Outlays from mandatory balances...                                  -2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           9          16          25
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          23          23          34
    90.00 Outlays...........................           9          16          25
    ---------------------------------------------------------------------------

    [[Page 142]]

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

    ----------------------------------------------------------------------------
    Identification code 12-1908-0-1-451      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Renewable energy program..........          24         154         195
                                               ---------   ---------  ----------
    215999Total loan guarantee levels.......          24         154         195
        Guaranteed loan subsidy (in percent):
    232001Renewable energy program..........        6.45        6.49        9.69
                                               ---------   ---------  ----------
    232999Weighted average subsidy rate.....        6.45        6.49        9.69
        Guaranteed loan subsidy budget authority:
    233001Renewable energy program..........           2          10          19
                                               ---------   ---------  ----------
    233999Total subsidy budget authority....           2          10          19
        Guaranteed loan subsidy outlays:
    234001Renewable energy program..........           2           2           2
                                               ---------   ---------  ----------
    234999Total subsidy outlays.............           2           2           2
    ---------------------------------------------------------------------------

        Renewable Energy Systems and Energy Efficiency Improvements are
    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, as amended by the Deficit Reduction Act
    of 2005, Public Law 109-171, dated February 8, 2006, provides $3 million
    in mandatory funding in 2007 from the Commodity Credit Corporation,
    canceling $20 million.

               Renewable Energy Guaranteed Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4267-0-3-451      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           3           5
    22.00 New financing authority (gross)...           2           2           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           3           5           7
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           3           5           7
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           2           2           2
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

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

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............
    90.00 Financing disbursements...........          -2          -2          -2
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4267-0-3-451      2006 actual   2007 est.   2008 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.................          24         154         195
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................          24         154         195
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........                                   5
    2231  Disbursements of new guaranteed
            loans...........................                       5          38
    2251  Repayments and prepayments........                                  -2
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........                       5          41
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..                       4          33
    ---------------------------------------------------------------------------

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 12-4267-0-
    3-451

    2005 actual

    2006 actual

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

    Federal assets: Fund balances with Treasury

    2

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

    1401

    Direct loans receivable, gross

    1

    1405

    Allowance for subsidy cost (-)

    -1

    1499

    Net present value of assets related to direct loans

    1999

    Total assets

    2

        LIABILITIES:
    2104

    Federal liabilities: Resources payable to Treasury

    2

    2999

    Total liabilities

    2

    4999

    Negative subsidy BA total [12-1908]

    2

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

       Alternative Agricultural Research and Commercialization Corporation
                                 Revolving Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4144-0-3-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       1           1
    22.00 New budget authority (gross)......           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           1           1           1
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

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

                             RURAL UTILITIES SERVICE

                                  Federal Funds

                             High Energy Cost Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2042-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 High energy cost grants...........          39
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          39
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          30          17
    22.00 New budget authority (gross)......          26         -17
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          56
    23.95 Total new obligations.............         -39
                                               ---------   ---------  ----------

    [[Page 143]]

    24.40   Unobligated balance carried
              forward, end of year..........          17
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.36   Unobligated balance permanently
              reduced.......................                     -17
    42.00   Transferred from other accounts.          26
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          26         -17
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          10          28          12
    73.10 Total new obligations.............          39
    73.20 Total outlays (gross).............         -21         -16           4
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          28          12          16
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          18          -8
    86.93 Outlays from discretionary
            balances........................           3          24          -4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          21          16          -4
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          26         -17
    90.00 Outlays...........................          21          16          -4
    ---------------------------------------------------------------------------

        Funding has been provided since 2001 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.

                  Rural Water and Waste Disposal Program Account

                        (including transfer of balances)

         For the costs of direct loans, loan guarantees, and grants for the
    rural utilities programs as authorized by 7 U.S.C. 1926, 1926a, 1926c,
    1926d, and 1932 and described in sections 381E(d)(2), 360C(a)(2), and
    306D of the Consolidated Farm and Rural Development Act (7 U.S.C. 1921
    note), $502,779,000, to remain available until expended: Provided, That
    of the total amount appropriated in this account, not to exceed
    $1,000,000 shall be available for the rural utilities program described
    in section 306E of such Act: Provided further, That not to exceed
    $9,000,000 of the amounts appropriated in this account 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: Provided further, That not to exceed
    $10,000,000 of the amounts appropriated in this account 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: Provided further, That not to exceed $16,215,000 of the
    amount appropriated in this account shall be for technical assistance
    grants for rural water and waste systems pursuant to section 306(a)(14)
    of such Act: Provided further, That not to exceed $9,500,000 of the
    amount appropriated in this account shall be for contracting with
    qualified national organizations for a circuit rider program to provide
    technical assistance for rural water systems: Provided further, That not
    to exceed $13,400,000 of the amounts appropriated in this account shall
    be available through June 30, 2008, for authorized empowerment zones and
    enterprise communities and communities designated by Secretary of
    Agriculture as Rural Economic Area Partnership Zones for the rural
    utilities programs described in section 381E(d)(2) of such Act: Provided
    further, That sections 381E-H and 381N of such Act, are not applicable
    to funds made available under this heading: Provided further, That any
    prior year balances in the ``Rural Development, Rural Community
    Advancement Program'' account for programs authorized by 7 U.S.C. 1926,
    1926a, 1926c, 1926d, and 1932 and described in sections 381E(d)(2),
    360C(a)(2), and 306D of the Consolidated Farm and Rural Development Act
    (7 U.S.C. 1921 note) shall be transferred and merged with this account:
    Provided further, That the Secretary shall transfer and merge with this
    account any other prior balances from the ``Rural Development, Rural
    Community Advancement Program'' account that the Secretary determines is
    appropriate to transfer.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1980-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct Loan Subsidy...............                                 153
    00.10 Water and waste disposal systems
            grants..........................                                 346
    00.11 Solid waste management grants.....                                   4
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                 503
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 503
    23.95 Total new obligations.............                                -503
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                 503
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                 503
    73.20 Total outlays (gross).............                                -486
    73.32 Obligated balance transferred from
            other accounts..................                               2,048
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                               2,065
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                  22
    86.93 Outlays from discretionary
            balances........................                                 464
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                                 486
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 503
    90.00 Outlays...........................                                 486
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1980-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Direct water and waste disposal...                               1,080
                                               ---------   ---------  ----------
    115999Total direct loan levels..........                               1,080
        Direct loan subsidy (in percent):
    132001Direct water and waste disposal...                               14.20
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....                               14.20
        Direct loan subsidy budget authority:
    133001Direct water and waste disposal...                                 153
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....                                 153
        Direct loan subsidy outlays:
    134001Direct water and waste disposal...                                  82
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............                                  82
    ----------------------------------------------------------------------------

        Guaranteed loan levels supportable by subsidy
                    budget authority:
    215001Water and waste disposal loan
            guarantees......................                                  75
                                               ---------   ---------  ----------
    215999Total loan guarantee levels.......                                  75
        Guaranteed loan subsidy (in percent):
    232001Water and waste disposal loan
            guarantees......................                               -0.82
                                               ---------   ---------  ----------
    232999Weighted average subsidy rate.....                               -0.82
        Guaranteed loan subsidy budget authority:
    233001Water and waste disposal loan
            guarantees......................                                  -1
                                               ---------   ---------  ----------
    233999Total subsidy budget authority....                                  -1
    ---------------------------------------------------------------------------

        This account funds the direct and guaranteed water and waste
    disposal loans, water and waste disposal grants, emer

    [[Page 144]]

    gency community water assistance grants, and solid waste management
    grants. Since the passage of the Federal Agriculture Improvement and
    Reform Act of 1996 through 2007, the funding for these programs was
    provided as part of the Rural Community Advancement Program (RCAP). For
    2008, no funding is proposed in the RCAP account and instead, each
    funding stream is being appropriated separately in a new account. This
    is the new account for the Water and Wastewater funding stream.

        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. The
    projected loan level for direct loans is $1.08 billion in 2008 and for
    guarantees it is $75 million. The 2008 direct loan subsidy rate reflects
    a reduction in the borrower's interest rate for the direct 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 2008.

        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 2008.

          Rural Water and Waste Disposal Direct Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4226-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
          Operating program:

    00.01   Direct loans....................       1,008         737       1,080
    00.02   Interest on Treasury borrowing..         391         421         452
    00.06 Other.............................           7
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal......................       1,406       1,158       1,532
    08.02 Subsidy reestimate paid to receipt
            account.........................          58
    08.04 Interest on reestimate paid to
            receipt account.................          20
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............          78
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,484       1,158       1,532
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         187          17
    22.00 New financing authority (gross)...       1,416       1,365       1,757
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          62
    22.60 Portion applied to repay debt.....                    -224        -225
    22.70 Balance of authority to borrow
            withdrawn.......................        -164
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,501       1,158       1,532
    23.95 Total new obligations.............      -1,484      -1,158      -1,532
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          17
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............       1,017         753       1,042
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).         605         623         645
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          13         -11          70
    69.47     Portion applied to repay debt.        -219
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         399         612         715
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       1,416       1,365       1,757
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       2,461       2,726       2,448
    73.10 Total new obligations.............       1,484       1,158       1,532
    73.20 Total financing disbursements
            (gross).........................      -1,144      -1,447      -1,443
    73.45 Recoveries of prior year
            obligations.....................         -62
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -13          11         -70
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       2,726       2,448       2,467
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................       1,144       1,447       1,443
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -53         -84         -82
    88.25     Interest on uninvested funds..         -37         -40         -41
    88.40     Repayment of principal........        -219        -244        -252
    88.40     Interest Received on Loans....        -308        -255        -264
    88.40     Non-Federal sources...........          12                      -6
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -605        -623        -645
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............         -13          11         -70
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         798         753       1,042
    90.00 Financing disbursements...........         539         824         798
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4226-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................       1,008         737       1,080
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       1,008         737       1,080
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       6,639       7,105       7,887
    1231  Disbursements: Direct loan
            disbursements...................         675       1,026         984
    1251  Repayments: Repayments and
            prepayments.....................        -213        -244        -252
    1264  Write-offs for default: Other
            adjustments, net................           4
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       7,105       7,887       8,619
    ---------------------------------------------------------------------------

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

    [[Page 145]]

    sidy 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

    2005 actual

    2006 actual

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

    1101

    Fund balances with Treasury

    72

    16

            Investments in US securities:
    1106

    Receivables, net

    -1

    4

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

    1401

    Direct loans receivable, gross

    6,639

    7,104

    1402

    Interest receivable

    67

    76

    1405

    Allowance for subsidy cost (-)

    -705

    -663

    1499

    Net present value of assets related to direct loans

    6,001

    6,517

    1999

    Total assets

    6,072

    6,537

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    6,022

    6,506

    2105

    Other

    50

    31

    2999

    Total liabilities

    6,072

    6,537

    4999

    Total liabilities and net position

    6,072

    6,537

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

     Rural Water and Waste Water Disposal Guaranteed Loans Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4218-0-3-452      2006 actual   2007 est.   2008 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:
          Mandatory:

    69.00   Spending authority from
              offsetting collections:
              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      2006 actual   2007 est.   2008 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          45
    2231  Disbursements of new guaranteed
            loans...........................           1          16          62
    2251  Repayments and prepayments........          -1          -4          -6
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          33          45         101
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          27          38          81
    ---------------------------------------------------------------------------

        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; loans made pursuant
    to section 306 of that Act, rural electric, $4,000,000,000; 5 percent
    rural telecommunications loans, $145,000,000; cost of money rural
    telecommunications loans, $250,000,000; and for loans made pursuant to
    section 306 of that Act, rural telecommunications loans, $295,000,000.
         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, $120,000, and the cost of telecommunications
    loans, $3,620,000: Provided, That notwithstanding section 305(d)(2) of
    the Rural Electrification Act of 1936, borrower interest rates may
    exceed 7 percent per year.
         In addition, for administrative expenses necessary to carry out the
    direct and guaranteed loan programs, $37,009,000 which shall be paid to
    the appropriation for ``Rural Development, Salaries and Expenses''.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1230-0-1-271      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loan subsidy...............           6           4           4
    00.03 Subsidy for modifications of
            direct loans....................           1
    00.05 Reestimate of direct loan subsidy.          25
    00.06 Interest on reestimates of direct
            loan subsidy....................           8
    00.09 Administrative expenses subject to
            limitation......................          38          39          37
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          78          43          41
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       8           8
    22.00 New budget authority (gross)......          86          43          41
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          86          51          49
    23.95 Total new obligations.............         -78         -43         -41
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           8           8           8
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          53          43          41
          Mandatory:

    60.00   Appropriation...................          33
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          86          43          41
    ----------------------------------------------------------------------------

    [[Page 146]]

        Change in obligated balances:
    72.40 Obligated balance, start of year..          42          39          34
    73.10 Total new obligations.............          78          43          41
    73.20 Total outlays (gross).............         -79         -48         -44
    73.40 Adjustments in expired accounts
            (net)...........................          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          39          34          31
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          40          39          37
    86.93 Outlays from discretionary
            balances........................           6           9           7
    86.97 Outlays from new mandatory
            authority.......................          33
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          79          48          44
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          86          43          41
    90.00 Outlays...........................          79          48          44
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1230-0-1-271      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Hardship electric.................          99          99         100
    115002Municipal electric................         101          99
    115003Treasury electric.................         990         990
    115004FFB electric......................       2,700       3,000       4,000
    115005Hardship telephone................         145         143         145
    115006Treasury telephone................         420         247         250
    115007FFB telephone.....................         125         299         295
    115008Electric Underwriter..............       1,500         500
                                               ---------   ---------  ----------
    115999Total direct loan levels..........       6,080       5,377       4,790
        Direct loan subsidy (in percent):
    132001Hardship electric.................        0.92        2.14        0.12
    132002Municipal electric................        5.05        1.51        0.00
    132003Treasury electric.................        0.01        0.00        0.00
    132004FFB electric......................       -0.48       -1.19       -0.70
    132005Hardship telephone................       -1.80        0.37        0.08
    132006Treasury telephone................        0.05        0.03        0.67
    132007FFB telephone.....................       -1.57       -1.49        0.62
    132008Electric Underwriter..............       -1.26       -0.44        0.00
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....       -0.50       -0.71       -0.51
        Direct loan subsidy budget authority:
    133001Hardship electric.................           1           2
    133002Municipal electric................           5           1
    133004FFB electric......................         -13         -36         -28
    133005Hardship telephone................          -3           1
    133006Treasury telephone................                                   2
    133007FFB telephone.....................          -2          -4           2
    133008Electric Underwriter..............         -19          -2
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....         -31         -38         -24
        Direct loan subsidy outlays:
    134001Hardship electric.................           4           1           1
    134002Municipal electric................                       4           3
    134003Treasury electric.................          -1
    134004FFB electric......................         -38         -34         -36
    134005Hardship telephone................           1           4           3
    134007FFB telephone.....................          -1          -2          -2
    134008Electric Underwriter..............         -16          -5          -2
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............         -51         -32         -33
        Direct loan upward reestimates:
    135001Hardship electric.................           1
    135002Municipal electric................          13
    135003Treasury electric.................           2
    135004FFB electric......................          13
    135006Treasury telephone................           1
    135007FFB telephone.....................           3
                                               ---------   ---------  ----------
    135999Total upward reestimate budget
            authority.......................          33
        Direct loan downward reestimates:
    137001Hardship electric.................         -12
    137002Municipal electric................         -55
    137003Treasury electric.................         -14
    137004FFB electric......................          -3
    137005Hardship telephone................         -19
    137006Treasury telephone................         -25
    137007FFB telephone.....................         -15
    137008Electric Underwriter..............        -144
                                               ---------   ---------  ----------
    137999Total downward reestimate budget
            authority.......................        -287
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................          39          38          37
    3590  Outlays from new authority........          39          38          37
    ---------------------------------------------------------------------------

        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.

        Since 1992, RUS electric loans have been used primarily to finance
    transmission, distribution and upgrades to generation facilities. During
    this time, generation has been deregulated and has become a more
    commercial operation. With the increased needs for all aspects of
    electricity provision, and to ensure adequate funding for rural areas,
    RUS loans will continue to focus on transmission, distribution, and
    upgrading generation facilities. Construction of new generation
    facilities should be financed through the commercial market.

        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 2008 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 analyzed borrower and community characteristics for
    loans approved in 2005. The $3.3 billion in financing, funding 94
    distribution loans and 16 generation and transmission loans, supported
    projects in 1,682 of the 2,500 non-metropolitan counties, including 332
    counties classified as persistent poverty counties. In addition, of the
    over 2 million consumers supported by the 94 distribution loans, 92.5%
    were in areas classified as rural by the U.S. Census.

        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 147]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1230-0-1-271      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.3  Other purchases of goods and
            services from Government
            accounts........................          38          39          37
    41.0  Grants, subsidies, and
            contributions...................          40           4           4
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          78          43          41
    ---------------------------------------------------------------------------

       Rural Electrification and Telecommunications Direct Loan Financing
                                     Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4208-0-3-271      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loans......................       6,080       5,377       4,790
    00.02 Interest on Treasury borrowing....       1,026       1,300       1,300
                                               ---------   ---------  ----------
    00.91   Subtotal, Operating program.....       7,106       6,677       6,090
    08.01 Negative subsidy paid to receipt
            account.........................          36          42          28
    08.02 Downward subsidy amount paid to
            receipt account.................         223
    08.03 Adjusting payments to liquidating
            account.........................          20
    08.04 Interest on downward subsidy
            reestimate......................          64
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............         343          42          28
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       7,449       6,719       6,118
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         274         227
    22.00 New financing authority (gross)...       8,426       6,718       6,118
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         359
    22.60 Portion applied to repay debt.....        -664        -226
    22.70 Balance of authority to borrow
            withdrawn.......................        -719
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       7,676       6,719       6,118
    23.95 Total new obligations.............      -7,449      -6,719      -6,118
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         227
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............       6,703       5,709       5,972
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).       1,725       1,715       1,731
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -2          -6          -7
    69.47     Portion applied to repay debt.                    -700      -1,578
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........       1,723       1,009         146
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................       8,426       6,718       6,118
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..      11,586      12,137      12,485
    73.10 Total new obligations.............       7,449       6,719       6,118
    73.20 Total financing disbursements
            (gross).........................      -6,541      -6,377      -5,867
    73.45 Recoveries of prior year
            obligations.....................        -359
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           2           6           7
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..      12,137      12,485      12,743
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................       6,541       6,377       5,867
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payment from program account..         -40         -10          -7
    88.25     Interest on uninvested funds..         -86         -88         -78
    88.40     Repayment of principal........        -681        -694        -706
    88.40     Interest received on loans....        -906        -923        -940
    88.40     Other.........................         -12
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................      -1,725      -1,715      -1,731
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           2           6           7
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............       6,703       5,009       4,394
    90.00 Financing disbursements...........       4,816       4,662       4,136
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4208-0-3-271      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................       6,080       5,377       4,790
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...       6,080       5,377       4,790
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      19,845      24,328      28,585
          Disbursements:

    1231    Direct loan disbursements.......       5,130       5,033       4,537
    1233    Purchase of loans assets from a
              liquidating account...........          20
    1251  Repayments: Repayments and
            prepayments.....................        -680        -776        -775
    1261  Adjustments: Capitalized interest.           2
          Write-offs for default:

    1263    Direct loans....................          -2
    1264    Other adjustments, Reclassifed,
              net...........................          13
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      24,328      28,585      32,347
    ---------------------------------------------------------------------------

        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 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

    2005 actual

    2006 actual

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

    1101

    Fund balances with Treasury

    245

    167

            Investments in US securities:
    1106

    Receivables, net

    17

    18

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

    1401

    Direct loans receivable, gross

    17,858

    22,226

    1402

    Interest receivable

    2

    -22

    1405

    Allowance for subsidy cost (-)

    -600

    -204

    1499

    Net present value of assets related to direct loans

    17,260

    22,000

    1999

    Total assets

    17,522

    22,185

        LIABILITIES:
    2103

    Federal liabilities: Debt

    17,384

    21,932

    2207

    Non-Federal liabilities: Other

    138

    253

    2999

    Total liabilities

    17,522

    22,185

    4999

    Total liabilities and net position

    17,522

    22,185

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

    1101

    Fund balances with Treasury

    99

    69

            Investments in US securities:
    1106

    Receivables, net

    6

    5

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

    1401

    Direct loans receivable, gross

    1,987

    2,102

    1402

    Interest receivable

    1

    1

    1405

    Allowance for subsidy cost (-)

    10

    70

    1499

    Net present value of assets related to direct loans

    1,998

    2,173

    1999

    Total assets

    2,103

    2,247

        LIABILITIES:
    2103

    Federal liabilities: Debt

    2,075

    2,214

    2207

    Non-Federal liabilities: Other

    28

    33

    2999

    Total liabilities

    2,103

    2,247

    4999

    Negative subsidy BA total [12-1230]

    2,103

    2,247

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

    [[Page 148]]

     Rural Electrification and Telecommunications Guaranteed Loans Financing
                                    Account

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4209-0-3-271      2006 actual   2007 est.   2008 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.................
                                               ---------   ---------  ----------
    2150    Total guaranteed loan
              commitments...................
    2199  Guaranteed amount of guaranteed
            loan commitments................
    ----------------------------------------------------------------------------

        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         221         218         214
    2231  Disbursements of new guaranteed
            loans...........................           3
    2251  Repayments and prepayments........          -9          -4          -4
    2264  Adjustments: Other adjustments,
            net.............................           3
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         218         214         210
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         218         214         210
    ---------------------------------------------------------------------------

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Interest expense on certificates
            of beneficial ownership.........         226         197         197
    00.02 Interest expense, FFB direct......         346         293         274
    00.03 Other interest expense............                      13          17
    00.05 Other: cushion of credit..........          70          59          49
    00.07 Other RTB.........................       1,437
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,079         562         537
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       3,784       1,138         792
    22.00 New budget authority (gross)......          -3         480         495
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          43
    22.40 Capital transfer to general fund..        -540
    22.60 Portion applied to repay debt.....         -67        -264        -156
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       3,217       1,354       1,131
    23.95 Total new obligations.............      -2,079        -562        -537
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       1,138         792         594
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.36   Unobligated balance permanently
              reduced.......................          -3
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).       1,322       1,405       1,295
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -6
    69.27     Capital transfer to general
                fund........................        -464
    69.47     Portion applied to repay debt.        -852        -925        -800
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........                     480         495
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          -3         480         495
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         269         157          45
    73.10 Total new obligations.............       2,079         562         537
    73.20 Total outlays (gross).............      -2,154        -674        -582
    73.45 Recoveries of prior year
            obligations.....................         -43
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           6
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         157          45
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                     459         439
    86.98 Outlays from mandatory balances...       2,154         215         143
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,154         674         582
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -21
    88.25     Interest on uninvested funds..         -46
    88.40     Loans repaid including Cushion
                of Credit of 282............        -903      -1,021        -968
    88.40     Interest repaid including
                Cushion of Credit of 308....        -352        -377        -320
    88.40     Fees--Electric Underwriter....                      -7          -7
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................      -1,322      -1,405      -1,295
          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..................      -1,319        -925        -800
    90.00 Outlays...........................         832        -731        -713
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-999      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........      13,831      12,686      11,505
    1231  Disbursements: Direct loan
            disbursements...................           6           6           6
    1251  Repayments: Repayments and
            prepayments.....................      -1,185      -1,185      -1,028
    1261  Adjustments: Capitalized interest.          60
          Write-offs for default:

    1263    Direct loans....................          -7
    1264    Other adjustments, net..........         -19          -2          -1
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........      12,686      11,505      10,482
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-999      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........         233         167         149
    2251  Repayments and prepayments........         -66         -18         -15
    2263  Adjustments: Terminations for
            default that result in claim
            payments........................
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........         167         149         134
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..         167         149         134
    ---------------------------------------------------------------------------

                              STATUS OF AGENCY DEBT

                            [In millions of dollars]

                                         2006 actual  2007 est.   2008 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

    [[Page 149]]

    and beyond is recorded in corresponding program and financing accounts.

        The Rural Telephone Bank has dissolved. To accomplish this, the
    Rural Telephone Bank liquidating account loans were used to redeem a
    portion of the Government'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]

                                         2006 actual  2007 est.   2008 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...................              0              0               0
    Number of borrowers...........            705            705             705

        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]

                                         2006 actual  2007 est.   2008 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...................              0              0               0
    Number of borrowers...........            487            487             487

                     RURAL TELEPHONE BANK PROGRAM STATISTICS

                              [dollars in millions]

                                         2006 actual  2007 est.   2008 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

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 12-4230-0-
    3-999

    2005 actual

    2006 actual

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

    Federal assets: Fund balances with Treasury

    1,792

    927

    1601

    Direct loans, gross

    12,308

    11,969

    1602

    Interest receivable

    26

    25

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -1,599

    -1,460

    1604

    Direct loans and interest receivable, net

    10,735

    10,534

    1699

    Value of assets related to direct loans

    10,735

    10,534

    1999

    Total assets

    12,527

    11,461

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    13,936

    13,125

    2104

    Resources payable to Treasury

    -1,492

    -1,729

    2105

    Other

    83

    65

    2999

    Total liabilities

    12,527

    11,461

    4999

    Total liabilities and net position

    12,527

    11,461

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

    Federal assets: Fund balances with Treasury

    2,205

    371

    1201

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

    369

    1601

    Direct loans, gross

    1,523

    1,235

    1602

    Interest receivable

    9

    42

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -125

    -79

    1604

    Direct loans and interest receivable, net

    1,407

    1,198

    1699

    Value of assets related to direct loans

    1,407

    1,198

    1999

    Total assets

    3,981

    1,569

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    1,343

    1,296

    2104

    Resources payable to Treasury

    802

    201

    2105

    Other

    1,416

    5

    2999

    Total liabilities

    3,561

    1,502

        NET POSITION:
    3300

    Cumulative results of operations

    420

    67

    3999

    Total net position

    420

    67

    4999

    Total liabilities and net position

    3,981

    1,569

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

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4230-0-3-999      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.2  Other services....................       1,507          59          49
    33.0  Investments and loans.............                      13          17
    43.0  Interest and dividends............         572         490         471
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       2,079         562         537
    ---------------------------------------------------------------------------

                       Rural Telephone Bank Program Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1231-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.09 Administrative expenses subject to
            limitation......................           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......           3
    23.95 Total new obligations.............          -2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          16          13          12
    73.10 Total new obligations.............           2
    73.20 Total outlays (gross).............          -3          -1          -1
    73.40 Adjustments in expired accounts
            (net)...........................          -2
                                               ---------   ---------  ----------

    [[Page 150]]

    74.40   Obligated balance, end of year..          13          12          11
    ----------------------------------------------------------------------------

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

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

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

    ----------------------------------------------------------------------------
    Identification code 12-1231-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan subsidy outlays:
    134001Rural Telephone Bank..............          -1           1           1
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............          -1           1           1
        Direct loan downward reestimates:
    137001Rural Telephone Bank..............         -27
                                               ---------   ---------  ----------
    137999Total downward reestimate budget
            authority.......................         -27
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           2
    3590  Outlays from new authority........           2
    ---------------------------------------------------------------------------

        The Rural Telephone Bank completed dissolution in 2006 so no
    federally funded RTB 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.

                Rural Telephone Bank Direct Loan Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4210-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.02 Interest on Treasury borrowing....          24          26          28
    08.02 Downward reestimates paid to
            receipt accounts................          17
    08.04 Interest on downward reestimate
            paid to receipt account.........          10
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal......................          27
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          51          26          28
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          82           3          41
    22.00 New financing authority (gross)...          38          67          77
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         258
    22.60 Portion applied to repay debt.....                      -3
    22.70 Balance of authority to borrow
            withdrawn.......................        -324
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          54          67         118
    23.95 Total new obligations.............         -51         -26         -28
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           3          41          90
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          27          47          63
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).          70         172         165
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -3          -2          -1
    69.47     Portion applied to repay debt.         -56        -150        -150
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          11          20          14
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................          38          67          77
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,218         894         782
    73.10 Total new obligations.............          51          26          28
    73.20 Total financing disbursements
            (gross).........................        -120        -140        -112
    73.45 Recoveries of prior year
            obligations.....................        -258
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           3           2           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         894         782         699
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................         120         140         112
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............                      -1          -1
    88.25     Interest on uninvested funds..          -5         -13         -12
    88.40     Principal received on loans...         -45         -77         -74
    88.40     Interest received on loans....         -20         -81         -78
    88.40     Sale of RTB Stock.............
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -70        -172        -165
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............           3           2           1
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         -29        -103         -87
    90.00 Financing disbursements...........          49         -32         -53
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4210-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         356         378         415
    1231  Disbursements: Direct loan
            disbursements...................          66         114          85
    1251  Repayments: Repayments and
            prepayments.....................         -44         -77         -75
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         378         415         425
    ---------------------------------------------------------------------------

        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

    2005 actual

    2006 actual

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

    1101

    Fund balances with Treasury

    13

    2

            Investments in US securities:
    1106

    Receivables, net

    1

    2

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

    1401

    Direct loans receivable, gross

    356

    377

    1405

    Allowance for subsidy cost (-)

    10

    6

    1499

    Net present value of assets related to direct loans

    366

    383

    1999

    Total assets

    380

    387

        LIABILITIES:
          Federal liabilities:

    2103

    Debt

    336

    374

    2105

    Other

    44

    13

    [[Page 151]]

    2999

    Total liabilities

    380

    387

    4999

    Total liabilities and net position

    380

    387

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

              Distance Learning, Telemedicine, and Broadband Program

         For the principal amount of broadband telecommunication loans,
    $300,000,000.
         For grants for telemedicine and distance learning services in rural
    areas, as authorized by 7 U.S.C. 950aaa et seq., $24,750,000, to remain
    available until expended.
         For the cost of broadband loans, as authorized by 7 U.S.C. 901 et
    seq., $6,450,000: Provided, That the cost of direct loans shall be as
    defined in section 502 of the Congressional Budget Act of 1974.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1232-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loan subsidy...............           7          22           6
    00.05 Reestimate of direct loan subsidy.           7
    00.06 Interest of reestimate of direct
            loan subsidy....................           1
    00.10 Grants............................          70          35          25
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................          85          57          31
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          88          53           2
    22.00 New budget authority (gross)......          48           6          31
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           4
    22.21 Unobligated balance transferred to
            other accounts..................          -2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         138          59          33
    23.95 Total new obligations.............         -85         -57         -31
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          53           2           2
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          50          44          31
    40.35   Appropriation permanently
              reduced.......................          -1         -10
    40.36   Unobligated balance permanently
              reduced.......................          -9
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          40          34          31
          Mandatory:

    60.00   Appropriation...................           8
    60.36   Unobligated balance permanently
              reduced.......................                     -38
    62.00   Transferred from other accounts.                      10
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................           8         -28
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          48           6          31
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         108         140         151
    73.10 Total new obligations.............          85          57          31
    73.20 Total outlays (gross).............         -49         -46         -56
    73.45 Recoveries of prior year
            obligations.....................          -4
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         140         151         126
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           5          -1           2
    86.93 Outlays from discretionary
            balances........................          36          56          57
    86.97 Outlays from new mandatory
            authority.......................           8         -10
    86.98 Outlays from mandatory balances...                       1          -3
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          49          46          56
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          48           6          31
    90.00 Outlays...........................          49          46          56
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-1232-0-1-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001Distance Learning and Telemedicine           4         156
    115003Direct Broadband Treasury Rate
            loans...........................         329         999         300
                                               ---------   ---------  ----------
    115999Total direct loan levels..........         333       1,155         300
        Direct loan subsidy (in percent):
    132001Distance Learning and Telemedicine        1.50        0.63        0.00
    132003Direct Broadband Treasury Rate
            loans...........................        2.15        2.15        2.15
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....        2.14        1.94        2.15
        Direct loan subsidy budget authority:
    133001Distance Learning and Telemedicine                       1
    133003Direct Broadband Treasury Rate
            loans...........................           7          21           6
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....           7          22           6
        Direct loan subsidy outlays:
    134001Distance Learning and Telemedicine                       1           1
    134003Direct Broadband Treasury Rate
            loans...........................           1          18          18
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............           1          19          19
        Direct loan upward reestimates:
    135001Distance Learning and Telemedicine           4
    135003Direct Broadband Treasury Rate
            loans...........................           4
                                               ---------   ---------  ----------
    135999Total upward reestimate budget
            authority.......................           8
    ---------------------------------------------------------------------------

        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 provides discretionary
    funding for loans to finance installation of broadband transmission
    capacity.

         Since there is little demand for the DLT loans and the loans cost
    the Government, the Budget proposes to not provide any DLT loans in
    2008.

      Distance Learning, Telemedicine, and Broadband Direct Loan Financing
                                     Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4146-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loans......................         333       1,155         300
    00.02 Interest on Treasury borrowing....          13          20          25
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         346       1,175         325
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           8           2
    22.00 New financing authority (gross)...         345       1,237         395
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          12
    22.60 Portion applied to repay debt.....                     -64         -70
    22.70 Balance of authority to borrow
            withdrawn.......................         -17
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         348       1,175         325
    23.95 Total new obligations.............        -346      -1,175        -325
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           2
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............         331       1,171         321
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).          37          66          65
    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           6                       9
    69.47     Portion applied to repay debt.         -29
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          14          66          74
                                               ---------   ---------  ----------

    [[Page 152]]

    70.00   Total new financing authority
              (gross).......................         345       1,237         395
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         730         973       1,934
    73.10 Total new obligations.............         346       1,175         325
    73.20 Total financing disbursements
            (gross).........................         -85        -214        -425
    73.45 Recoveries of prior year
            obligations.....................         -12
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -6                      -9
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         973       1,934       1,825
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................          85         214         425
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -9         -19         -19
    88.25     Interest on uninvested funds..          -3          -4          -4
    88.40     Repayment of principal........         -17         -23         -22
    88.40     Interest received on loans....          -8         -20         -20
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -37         -66         -65
          Against gross financing authority only:

    88.95   Change in receivables from
              program accounts..............          -6                      -9
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         302       1,171         321
    90.00 Financing disbursements...........          47         148         360
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4146-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........
    1131  Direct loan obligations exempt
            from limitation.................         333       1,155         300
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...         333       1,155         300
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         190         239         430
    1231  Disbursements: Direct loan
            disbursements...................          71         214         400
    1251  Repayments: Repayments and
            prepayments.....................         -17         -23         -22
    1264  Write-offs for default: Charge
            Off--Misc and Assn Loans, net...          -5
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         239         430         808
    ---------------------------------------------------------------------------

        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

    2005 actual

    2006 actual

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

    Federal assets: Fund balances with Treasury

    5

    2

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

    1401

    Direct loans receivable, gross

    190

    239

    1402

    Interest receivable

    2

    3

    1405

    Allowance for subsidy cost (-)

    3

    1499

    Net present value of assets related to direct loans

    195

    242

    1999

    Total assets

    200

    244

        LIABILITIES:
          Federal liabilities:

    2101

    Accounts payable

    200

    2103

    Debt

    244

    2999

    Total liabilities

    200

    244

    4999

    Total liabilities and net position

    200

    244

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

              Rural Development Insurance Fund Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4155-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          24          22
    22.40 Capital transfer to general fund..          -2         -22
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          22
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          22
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).         271         375         336
    69.27     Capital transfer to general
                fund........................        -271        -375        -336
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.40     Non-Federal sources...........        -165        -234        -203
    88.40     Repayments of guaranteed loans
                purchased from investors....           1                      -1
    88.40     Interest revenue..............        -102        -141        -132
    88.40     Other.........................          -5
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -271        -375        -336
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -271        -375        -336
    90.00 Outlays...........................        -271        -375        -336
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4155-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       1,931       1,767       1,532
    1251  Repayments: Repayments and
            prepayments.....................        -165        -234        -203
          Write-offs for default:

    1263    Direct loans....................          -1          -1          -1
    1264    Other adjustments aje #1
              Allocation, net...............           2
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       1,767       1,532       1,328
    ---------------------------------------------------------------------------

                 Status of Guaranteed Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4155-0-3-452      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........          36          29          25
    2251  Repayments and prepayments........          -7          -4          -3
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........          29          25          22
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..          21          18          15
    ---------------------------------------------------------------------------

        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 obli

    [[Page 153]]

    gated and loan guarantees committed prior to 1992. All new activity in
    these programs is recorded in corresponding program accounts and
    financing accounts.

        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

    2005 actual

    2006 actual

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

    Federal assets: Fund balances with Treasury

    24

    22

    1201

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

    34

    34

    1601

    Direct loans, gross

    1,931

    1,769

    1602

    Interest receivable

    29

    26

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -283

    -240

    1604

    Direct loans and interest receivable, net

    1,677

    1,555

    1699

    Value of assets related to direct loans

    1,677

    1,555

    1901

    Other Federal assets: Other assets

    3

    4

    1999

    Total assets

    1,738

    1,615

        LIABILITIES:
    2104

    Federal liabilities: Resources payable to Treasury

    1,736

    1,609

          Non-Federal liabilities:

    2204

    Liabilities for loan guarantees

    2

    1

    2207

    Other

    5

    2999

    Total liabilities

    1,738

    1,615

    4999

    Total liabilities and net position

    1,738

    1,615

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

             Rural Communication Development Fund Liquidating Account

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4142-0-3-452      2006 actual   2007 est.   2008 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of guaranteed loans
                    outstanding:
    2210  Outstanding, start of year........           4           4           4
    2251  Repayments and prepayments........
    2264  Adjustments: Other adjustments,
            net.............................
                                               ---------   ---------  ----------
    2290    Outstanding, end of year........           4           4           4
    ----------------------------------------------------------------------------

        Memorandum:
    2299  Guaranteed amount of guaranteed
            loans outstanding, end of year..           4           4           4
    ---------------------------------------------------------------------------

        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

    2005 actual

    2006 actual

    -----------------------------------------------------------------------------------------------
        ASSETS:
    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

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

                          FOREIGN AGRICULTURAL SERVICE

                                  Federal 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), $168,209,000: 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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2900-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.99 Balance, start of year............
        Receipts:
    02.20 Deposits of miscellaneous
            contributed funds, International
            cooperation and development.....                       4           4
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...                       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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Market Access.....................          51          52          61
    00.02 Trade Development.................          51          49          52
    00.03 Trade Related Technical Assistance          29          29          33
    00.04 SPS Issues Resolution.............          20          21          27
    09.00 Reimbursable program..............          97          97          97
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         248         248         270
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          22          24          23
    22.00 New budget authority (gross)......         254         247         269
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         276         271         292
    23.95 Total new obligations.............        -248        -248        -270
    23.98 Unobligated balance expiring or
            withdrawn.......................          -4
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          24          23          22
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         148         146         168
    40.35   Appropriation permanently
              reduced.......................          -1
    42.00 Transferred from other accounts...          13
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         160         146         168
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).          59          97          97
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          35
                                               ---------   ---------  ----------

    [[Page 154]]

    58.90     Spending authority from
                offsetting collections
                (total discretionary).......          94          97          97
          Mandatory:

    60.26   Appropriation (trust fund)......                       4           4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         254         247         269
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          38          30          31
    73.10 Total new obligations.............         248         248         270
    73.20 Total outlays (gross).............        -248        -247        -268
    73.40 Adjustments in expired accounts
            (net)...........................           1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -35
    74.10 Change in uncollected customer
            payments from Federal sources
            (expired).......................          26
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          30          31          33
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         241         231         252
    86.93 Outlays from discretionary
            balances........................           7          12          12
    86.97 Outlays from new mandatory
            authority.......................                       4           4
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         248         247         268
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -104         -97         -97
    88.40     Non-Federal sources...........          23
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -81         -97         -97
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -35
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............          22
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         160         150         172
    90.00 Outlays...........................         167         150         171
    ---------------------------------------------------------------------------

        FAS' mission is to create economic opportunity for American
    agriculture by expanding global markets. FAS serves U.S. agriculture's
    interests by expanding and maintaining international export
    opportunities for U.S. agricultural, fish, and forest products,
    supporting international economic development and trade capacity
    building, and improving the Sanitary and Phytosanitary (SPS) system to
    facilitate agricultural trade. FAS' goals are three-fold: to level the
    playing field for U.S. agricultural producers and exporters in the
    global marketplace, to help developing and transitioning countries to
    expand their ability to sustain economic growth and trade capacity, and
    to make a concerted effort to reduce technical trade barriers and
    restrictive SPS measures. The outcomes envisioned are increased access
    to global markets for U.S. agricultural producers and exporters,
    improved ability in developing countries to sustain economic growth and
    benefit from international trade, and an improved global SPS system for
    facilitating agricultural trade. In addition to its Washington-based
    staff, the agency maintains a network of overseas offices that serve as
    first responders in cases of market disruption. The overseas offices
    also provide critical market and policy intelligence to support their
    strategic goals, and represent U.S. agriculture in consultations with
    foreign governments.

        Market Access--Agricultural trade is important to America's
    agricultural and food sector and contributes to the overall growth in
    the U.S. economy. As the global economy changes, expansion and creation
    of new foreign market opportunities is critical, as is maintaining
    existing market access for agricultural products. FAS monitors the
    enforcement of agricultural trade agreements to ensure that U.S.
    agriculture receives the full economic benefit of international trade
    agreements and trade rules. FAS also analyzes tariff and non-tariff
    barriers that continue to restrict trade, and works with other
    government agencies to open markets through the negotiation of trade
    agreements. FAS programs that contribute to market access include the:
    Market Access Program (MAP), Technical Assistance for Specialty Crops
    (TASC) Program, Emerging Markets Program (EMP), and the Cochran
    Fellowship Program (CFP).

        Trade Development--FAS supports U.S. private sector efforts to
    develop and expand commercial markets through trade-related programs
    which help U.S. producers and exporters realize the benefits that will
    flow from trade reform and the resulting global market expansion. FAS
    programs that contribute to trade development include the: MAP, TASC
    Program, EMP, Foreign Market Development (FMD) Program, and Quality
    Samples Program which are carried out chiefly in cooperation with non-
    profit agricultural trade associations and private firms. These programs
    provide matching funds to U.S. organizations to conduct a wide range of
    activities including market research, consumer promotion, trade
    servicing, capacity building, and market access support. The TASC
    Program provides grants to address sanitary, phytosanitary, or technical
    barriers that prohibit or threaten exports of U.S. specialty crops.
    Also, 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.

        Trade Related Technical Assistance--U.S. agriculture benefits from
    growth in global trade and a trading system that adheres to
    international rules and norms. Two-thirds of World Trade Organization
    members are developing countries, many of which lack the knowledge,
    expertise, and regulatory and policy frameworks to participate in the
    global trading system. FAS provides trade-related technical assistance
    or trade capacity building focused on developing capacity within
    governments to implement open, market-based trade policies and to
    regulate trade in agricultural and food products on the basis of
    transparent, science-based requirements. Trade capacity building
    supports the President's 2002 National Security Strategy (NSS) by
    promoting free trade and open markets as a way to spread economic
    prosperity. Food assistance programs such as the P.L. 480 Title I
    Program, McGovern Dole Food for Education (FFE) and Child Nutrition
    Program, Section 416(b) Program, and Food for Progress (FFP) Program
    help developing countries with humanitarian crises, economic
    development, or transitioning from being food aid recipients to
    commercial markets. Programs that contribute to trade related technical
    assistance includes the: MAP, TASC Program, EMP, CFP, Borlaug Fellowship
    Program (BFP), FFE Program, FFP Program, and the Section 416(b) Program.
    The CFP provides short-term training in the United States for
    international participants who meet with U.S. agribusiness, attend food
    safety seminars, and receive technical training related to short- and
    long-term market development and trade capacity building. The BFP helps
    developing countries strengthen their agricultural practices through the
    transfer of new science and agricultural technologies, including those
    related to production, processing, and marketing. The program also
    addresses obstacles to the adoption of technology, such as ineffectual
    policies and regulations.

        SPS Issues Resolution--Agricultural trade is unique with respect to
    the risks associated with the transfer of pests and

    [[Page 155]]

    disease. Unnecessarily restrictive regulations to address human and
    animal health (sanitary) and plant health (phytosanitary) risks are
    major impediments to U.S. market access and the expansion of global
    agricultural trade. As tariff barriers have been reduced, there has been
    a dramatic increase in non-tariff barriers to trade, particularly in the
    SPS area. In spite of the SPS Agreement within the WTO, countries have
    relied increasingly on erecting SPS barriers as a means to protect
    domestic industries in the face of quickly growing global trade. Given
    the increasingly global interdependence in the flow of food and
    agricultural products, the ability and willingness of foreign countries
    to develop and implement sound science-based regulatory systems is also
    vital to the long-term safety of U.S. agriculture and our food supply.
    U.S. agriculture benefits greatly from the development of regulatory
    frameworks in other countries that can address SPS issues and technical
    barriers to trade in a transparent and scientifically based manner. FAS
    works on several fronts to reduce technical barriers to trade and
    restrictive SPS and TBT measures. These include enforcing international
    SPS rules, promoting two-way trade, encouraging adoption of
    international standards, and strengthening the global SPS regulatory
    framework. Programs that contribute to SPS issues resolution include
    the: MAP, TASC Program, and EMP.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2900-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          64          66          68
    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..          72          74          76
    12.1    Civilian personnel benefits.....          24          24          25
    21.0    Travel and transportation of
              persons.......................           8           8           8
    22.0    Transportation of things........           1           1           1
    23.2    Rental payments to others.......           6           6           6
    23.3    Communications, utilities, and
              miscellaneous charges.........           1           1           1
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          32          32          51
    25.8    Subsistence and support of
              persons.......................           1           1           1
    26.0    Supplies and materials..........           1           1           1
    31.0    Equipment.......................           3           1           1
    41.0    Grants, subsidies, and
              contributions.................           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         151         151         173
    99.0  Reimbursable obligations..........          97          97          97
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         248         248         270
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-2900-0-1-352      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         738         784         784
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................         220         220         220
    ---------------------------------------------------------------------------

                     Trade Adjustment Assistance for Farmers

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1406-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Payment to liquidating account....           3           3
    00.02 Trade adjustment assistance for
            farmers.........................           3           3
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................           6           6
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......          90          90
    23.95 Total new obligations.............          -6          -6
    23.98 Unobligated balance expiring or
            withdrawn.......................         -84         -84
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................          90          90
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          38           8         -38
    73.10 Total new obligations.............           6           6
    73.20 Total outlays (gross).............          -3         -45
    73.40 Adjustments in expired accounts
            (net)...........................         -33          -7
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           8         -38         -38
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           3          45
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          90          90
    90.00 Outlays...........................           3          45
    ---------------------------------------------------------------------------

        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 2003 through
    2007 to carry out the program. No funding is available in 2008, because
    the program authority will have expired.

        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]

                                         2006 actual  2007 est.   2008 est.
    McGovern-Dole International
    Food for Education and Child
    Nutrition (budget authority)..             97             98             100
    Public Law 480
      Title I Credit (budget
        authority)................             50              0               0

    [[Page 156]]

      Title II Grants (budget
        authority)................          1,489          1,223           1,219
    Food for Progress
      CCC Funded..................            131            151             163
      P.L. 480 Title I Funded
        (budget authority)........             73             39               0
    CCC Surplus Commodity
    Donations (416)...............              3              0               0
    Bill Emerson Humanitarian
    Trust.........................              0              *               *

        *Up to 500,000 metric tons are avaliable 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, 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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2903-0-1-151      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 McGovern-Dole International Food
            for Education & Child Nutrition
            Program.........................          99          98         100
    09.00 Reimbursable program..............                       5           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          99         103         105
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1           1
    22.00 New budget authority (gross)......          99         103         105
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         100         104         106
    23.95 Total new obligations.............         -99        -103        -105
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1           1           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         100          98         100
    40.35   Appropriation permanently
              reduced.......................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          99          98         100
          Mandatory:

    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).                       5           5
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          99         103         105
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..           1           2           2
    73.10 Total new obligations.............          99         103         105
    73.20 Total outlays (gross).............         -98        -103        -105
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           2           2           2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          98          98         100
    86.97 Outlays from new mandatory
            authority.......................                       5           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          98         103         105
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................          99          98         100
    90.00 Outlays...........................          98          98         100
    ---------------------------------------------------------------------------

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....          99          98         100
    99.0    Reimbursable obligations:
              reimbursable obligations......                       5           5
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          99         103         105
    ---------------------------------------------------------------------------

             Public Law 480 Title I Ocean Freight Differential Grants

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2271-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 P.L. 480 grant--Title I: Ocean
            freight differential (OFD)......           7
    09.01 Reimbursable program..............          11          10          10
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          18          10          10
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          37          17          26
    22.00 New budget authority (gross)......          -2          19          19
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          35          36          45
    23.95 Total new obligations.............         -18         -10         -10
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          17          26          35
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          12
    40.36   Unobligated balance permanently
              reduced.......................         -35
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         -23
          Mandatory:

    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          21          19          19
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          -2          19          19
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          13          15          23
    73.10 Total new obligations.............          18          10          10
    73.20 Total outlays (gross).............         -16          -2         -17
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          15          23          16
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.93 Outlays from discretionary
            balances........................           7          -9          -1
    86.97 Outlays from new mandatory
            authority.......................           9          11          11
    86.98 Outlays from mandatory balances...                                   7
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          16           2          17
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -21         -19         -19
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         -23
    90.00 Outlays...........................          -5         -17          -2
    ---------------------------------------------------------------------------

        This account funds the title I ocean freight differential program.
    No funding is requested for 2008.

    [[Page 157]]

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2271-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....           7
    99.0    Reimbursable obligations:
              reimbursable obligations......          11          10          10
                                               ---------   ---------  ----------
    99.9    Total new obligations...........          18          10          10
    ---------------------------------------------------------------------------

                          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, $1,219,400,000, 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.)

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2278-0-1-151      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.02 Title II..........................       1,632       1,223       1,219
    09.01 Reimbursable program..............         141          82         124
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,773       1,305       1,343
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          51          81          81
    22.00 New budget authority (gross)......       1,710       1,305       1,343
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          93
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,854       1,386       1,424
    23.95 Total new obligations.............      -1,773      -1,305      -1,343
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          81          81          81
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,500       1,223       1,219
    40.35   Appropriation permanently
              reduced.......................         -11
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,489       1,223       1,219
          Mandatory:

    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         221          82         124
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,710       1,305       1,343
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,042       1,207       1,179
    73.10 Total new obligations.............       1,773       1,305       1,343
    73.20 Total outlays (gross).............      -1,515      -1,333      -1,296
    73.45 Recoveries of prior year
            obligations.....................         -93
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       1,207       1,179       1,226
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         517         642         640
    86.93 Outlays from discretionary
            balances........................         858         571         550
    86.97 Outlays from new mandatory
            authority.......................          79          79          92
    86.98 Outlays from mandatory balances...          61          41          14
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,515       1,333       1,296
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........        -221         -82        -124
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,489       1,223       1,219
    90.00 Outlays...........................       1,294       1,251       1,172
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2006 actual  2007 est.   2008 est.
    Enacted/requested:
      Budget Authority............          1,489          1,223           1,219
      Outlays.....................          1,294          1,251           1,172
    Supplemental proposal:
      Budget Authority............                           350
      Outlays.....................                           184             107

    Total:
      Budget Authority............          1,489          1,573           1,219
      Outlays.....................          1,294          1,435           1,279

        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 Commodity Credit Corporation (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 language that would authorize the
    use of up to 25 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 would permit USAID to provide food assistance in the most
    timely and efficient manner to the most critical emergency food crises.
    This authority would 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    41.0  Direct obligations: Grants,
            subsidies, and contributions....       1,632       1,223       1,219
    99.0    Reimbursable obligations:
              reimbursable obligations......         141          82         124
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,773       1,305       1,343
    ---------------------------------------------------------------------------

    [[Page 158]]

       Public Law 480 Title I Direct Credit and Food for Progress Program
                                     Account

                         (including transfers of funds)

         For administrative expenses to carry out the credit program of
    title I, Public Law 83-480 $2,761,000, to be transferred to and merged
    with the appropriation for ``Farm Service Agency, Salaries and
    Expenses''.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2277-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct credit subsidy.............          27
    00.05 Re-estimates of subsidy...........                       8
    00.06 Interest on re-estimates..........                       5
    00.09 Administrative expenses...........           3           3           3
    00.10 Food for Progress Grants..........          97          39
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         127          55           3
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          88          39
    22.00 New budget authority (gross)......          78          16           3
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         166          55           3
    23.95 Total new obligations.............        -127         -55          -3
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          39
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          65
    40.00   Appropriation...................           3           3           3
    40.35   Appropriation permanently
              reduced.......................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          67           3           3
    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          11
          Mandatory:

    60.00   Appropriation...................                      13
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          78          16           3
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          76         118          79
    73.10 Total new obligations.............         127          55           3
    73.20 Total outlays (gross).............         -85         -94         -39
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         118          79          43
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           2           3           3
    86.93 Outlays from discretionary
            balances........................          83          78          36
    86.97 Outlays from new mandatory
            authority.......................                      13
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          85          94          39
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -11
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          67          16           3
    90.00 Outlays...........................          74          94          39
    ---------------------------------------------------------------------------

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

    ----------------------------------------------------------------------------
    Identification code 12-2277-0-1-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct loan levels supportable by subsidy
                    budget authority:
    115001P. L. 480 title I loans...........          39
                                               ---------   ---------  ----------
    115999Total direct loan levels..........          39
        Direct loan subsidy (in percent):
    132001P. L. 480 title I loans...........       67.92        0.00        0.00
                                               ---------   ---------  ----------
    132999Weighted average subsidy rate.....       67.92        0.00        0.00
        Direct loan subsidy budget authority:
    133001P. L. 480 title I loans...........          27
                                               ---------   ---------  ----------
    133999Total subsidy budget authority....          27
        Direct loan subsidy outlays:
    134001P. L. 480 title I loans...........          21
                                               ---------   ---------  ----------
    134999Total subsidy outlays.............          21
        Direct loan upward reestimates:
    135001P. L. 480 title I loans...........                      13
                                               ---------   ---------  ----------
    135999Total upward reestimate budget
            authority.......................                      13
        Direct loan downward reestimates:
    137001P. L. 480 title I loans...........        -415         -66
                                               ---------   ---------  ----------
    137999Total downward reestimate budget
            authority.......................        -415         -66
    ----------------------------------------------------------------------------

        Administrative expense data:
    3510  Budget authority..................           3           3           3
    3590  Outlays from new authority........           3           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 $8.1 billion. No additional funding is requested
    for new Title I loans in 2008. 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    25.3  Other purchases of goods and
            services from Government
            accounts........................           3           3           3
    41.0  Grants, subsidies, and
            contributions...................         124          52
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         127          55           3
    ---------------------------------------------------------------------------

                     P.L. 480 Direct Credit Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4049-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Direct loans......................          39
    00.02 Interest on Treasury borrowing....         103          55          50
                                               ---------   ---------  ----------
    00.91   Direct Program by Activities--
              Subtotal (1 level)............         142          55          50
    08.02 Payment of downward reestimate to
            receipt account.................         239          34
    08.04 Payment of interest on downward
            reestimate to receipt account...         176          32
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............         415          66
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         557         121          50
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       1,458         625         540
    22.00 New financing authority (gross)...         702         286         263
    22.60 Portion applied to repay debt.....        -978        -250        -250
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,182         661         553
    23.95 Total new obligations.............        -557        -121         -50
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         625         540         503
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............         437          55          50
    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).         265         231         213
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         702         286         263
    ----------------------------------------------------------------------------

    [[Page 159]]

        Change in obligated balances:
    72.40 Obligated balance, start of year..         -41         -41         -87
    73.10 Total new obligations.............         557         121          50
    73.20 Total financing disbursements
            (gross).........................        -557        -167        -156
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         -41         -87        -193
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................         557         167         156
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Payments from program account.         -21         -13
    88.25     Interest on uninvested funds..         -38         -37         -37
    88.40     Interest received on loans....        -206         -42         -37
    88.40     Principal received on loans...                    -139        -139
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -265        -231        -213
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         437          55          50
    90.00 Financing disbursements...........         292         -64         -57
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4049-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Position with respect to appropriations act
                    limitation on obligations:
    1111  Limitation on direct loans........          39
                                               ---------   ---------  ----------
    1150    Total direct loan obligations...          39
    ----------------------------------------------------------------------------

        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       2,273       2,166       2,027
    1231  Disbursements: Direct loan
            disbursements...................          39
          Repayments:

    1251    Repayments and prepayments......        -154        -139        -139
    1251    Loans transferred to debt
              reduction financing fund......
          Write-offs for default:

    1263    Direct loans....................
    1264    Other adjustments, net..........           8
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       2,166       2,027       1,888
    ---------------------------------------------------------------------------

        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

    2005 actual

    2006 actual

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

    1101

    Fund balances with Treasury

    865

    32

            Investments in US securities:
    1106

    Receivables, net

    43

    50

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

    1401

    Direct loans receivable, gross

    2,273

    2,166

    1402

    Interest receivable

    78

    33

    1405

    Allowance for subsidy cost (-)

    -1,028

    -1,003

    1499

    Net present value of assets related to direct loans

    1,323

    1,196

    1999

    Total assets

    2,231

    1,278

        LIABILITIES:
          Federal liabilities:

    2101

    Accounts payable

    413

    43

    2102

    Interest payable

    43

    43

    2103

    Debt

    42

    2104

    Resources payable to Treasury

    1,733

    1,192

    2999

    Total liabilities

    2,231

    1,278

    4999

    Total liabilities and net position

    2,231

    1,278

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

                        Debt Reduction--Financing Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4143-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.02 Interest to Treasury..............          11          18          18
    08.02 Payment of downward reestimate to
            receipt account.................          17           4
    08.03 Payments to financing and
            liquidating account for debt
            reduction.......................                      10          35
    08.04 Payment of interest on downward
            reestimate to receipt account...           1           3
                                               ---------   ---------  ----------
    08.91   Direct Program by Activities--
              Subtotal (1 level)............          18          17          35
                                               ---------   ---------  ----------
    10.00   Total new obligations...........          29          35          53
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          54          80          89
    22.00 New financing authority (gross)...         108          44          53
    22.60 Portion applied to repay debt.....         -53
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         109         124         142
    23.95 Total new obligations.............         -29         -35         -53
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          80          89          89
    ----------------------------------------------------------------------------

        New financing authority (gross), detail:
          Mandatory:

    67.10   Authority to borrow.............          19          18          18
            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).         134          42          51
    69.47     Portion applied to repay debt.         -45         -16         -16
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          89          26          35
                                               ---------   ---------  ----------
    70.00   Total new financing authority
              (gross).......................         108          44          53
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............          29          35          53
    73.20 Total financing disbursements
            (gross).........................         -29         -35         -53
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    87.00 Total financing disbursements
            (gross).........................          29          35          53
    ----------------------------------------------------------------------------

        Offsets:
          Against gross financing authority and
              financing disbursements:

            Offsetting collections (cash)
                from:
    88.00     Federal sources--Subsidy from
                Debt account................        -117         -26         -35
    88.25     Interest on uninvested funds..          -2          -2          -2
    88.40     Loan Repayments--Principal....         -15         -10         -10
    88.40     Loan Repayments- Interest.....                      -4          -4
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -134         -42         -51
    ----------------------------------------------------------------------------

        Net financing authority and financing
            disbursements:
    89.00 Financing authority...............         -26           2           2
    90.00 Negative subsidy BA total [11-
            0091]...........................        -106          -7           2
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4143-0-3-351      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........         521         382         382
    1233  Disbursements: Purchase of loans
            assets from a liquidating
            account.........................                      10          35
    1251  Repayments: Repayments and
            prepayments.....................          -9         -10         -10
    1261  Adjustments: Capitalized interest.
    1263  Write-offs for default: Direct
            loans...........................        -130
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........         382         382         407
    ---------------------------------------------------------------------------

        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.

    [[Page 160]]

                                 Balance Sheet (in millions of dollars)

    -----------------------------------------------------------------------------------------------
    Identification code 12-4143-0-
    3-351

    2005 actual

    2006 actual

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

    1101

    Fund balances with Treasury

    34

    59

            Investments in US securities:
    1106

    Receivables, net

    134

    25

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

    1401

    Direct loans receivable, gross

    521

    382

    1402

    Interest receivable

    22

    1

    1405

    Allowance for subsidy cost (-)

    -363

    -246

    1499

    Net present value of assets related to direct loans

    180

    137

    1999

    Total assets

    348

    221

        LIABILITIES:
          Federal liabilities:

    2101

    Accounts payable

    82

    2102

    Interest payable

    19

    35

    2104

    Resources payable to Treasury

    246

    166

    2105

    Other

    1

    20

    2999

    Total liabilities

    348

    221

    4999

    Total liabilities and net position

    348

    221

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

       Expenses, Public Law 480, Foreign Assistance Programs, Agriculture
                               Liquidating Account

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2274-0-1-151      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Expenses, Public Law 480, Foreign
            Assistance Programs.............           2           2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................           2           2           2
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          43          53
    22.00 New budget authority (gross)......          12          67           2
    22.40 Capital transfer to general fund..                    -118
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......          55           2           2
    23.95 Total new obligations.............          -2          -2          -2
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          53
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash)
                (Principal and interest)....         423         461         377
    69.27     Capital transfer to general
                fund........................        -411        -394        -375
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........          12          67           2
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............           2           2           2
    73.20 Total outlays (gross).............          -3          -2          -2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................           3           2           2
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.40     Principal Collections.........        -423        -323        -267
    88.40     Interest Collections..........                    -138        -110
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -423        -461        -377
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................        -411        -394        -375
    90.00 Outlays...........................        -420        -459        -375
    ---------------------------------------------------------------------------

                   Status of Direct Loans (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-2274-0-1-151      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Cumulative balance of direct loans
                    outstanding:
    1210  Outstanding, start of year........       5,909       5,600       5,139
    1251  Repayments: Repayments and
            prepayments.....................        -295        -461        -377
    1261  Adjustments: Capitalized interest.
          Write-offs for default:

    1263    Direct loans....................
    1264    Other adjustments, net..........         -14
                                               ---------   ---------  ----------
    1290    Outstanding, end of year........       5,600       5,139       4,762
    ---------------------------------------------------------------------------

        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 2008 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 2008.

        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.

    [[Page 161]]

        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

    2005 actual

    2006 actual

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

    Federal assets: Fund balances with Treasury

    43

    52

    1601

    Direct loans, gross

    5,909

    5,600

    1602

    Interest receivable

    715

    68

    1603

    Allowance for estimated uncollectible loans and interest (-)

    -2,588

    -2,567

    1699

    Value of assets related to direct loans

    4,036

    3,101

    1999

    Total assets

    4,079

    3,153

        LIABILITIES:
    2104

    Federal liabilities: Resources payable to Treasury

    3,387

    3,146

    2207

    Non-Federal liabilities: Other

    692

    7

    2999

    Total liabilities

    4,079

    3,153

    4999

    Total liabilities and net position

    4,079

    3,153

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

                           FOOD AND NUTRITION SERVICE

                                  Federal Funds

                        Nutrition Programs Administration

         For necessary administrative expenses of the domestic nutrition
    assistance programs funded under this Act, $148,926,000.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3508-0-1-605      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
          Direct program:

    00.01   Nutrition programs
              administration................         140         140         149
    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...........         143         143         150
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......         143         143         150
    23.95 Total new obligations.............        -143        -143        -150
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         143         142         149
    40.35   Appropriation permanently
              reduced.......................          -1
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         142         142         149
    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           1           1           1
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         143         143         150
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          29          29          22
    73.10 Total new obligations.............         143         143         150
    73.20 Total outlays (gross).............        -142        -150        -149
    73.40 Adjustments in expired accounts
            (net)...........................          -1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          29          22          23
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         121         121         127
    86.93 Outlays from discretionary
            balances........................          21          29          22
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         142         150         149
    ----------------------------------------------------------------------------

        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..................         142         142         149
    90.00 Outlays...........................         141         149         148
    ---------------------------------------------------------------------------

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          91          91          96
    11.3      Other than full-time permanent           1           1           1
    11.5      Other personnel compensation..           1           1           1
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          93          93          98
    12.1    Civilian personnel benefits.....          22          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          23
    26.0    Supplies and materials..........           2           2           1
    41.0    Grants, subsidies, and
              contributions.................           2           2
                                               ---------   ---------  ----------
    99.0      Direct obligations............         142         142         149
    99.0  Reimbursable obligations..........           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         143         143         150
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-3508-0-1-605      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................       1,194       1,141       1,141
    ---------------------------------------------------------------------------

                                Food Stamp Program

         For necessary expenses to carry out the Food Stamp Act (7 U.S.C.
    2011 et seq.), $39,838,223,000, of which $3,000,000,000 to remain
    available through September 30, 2009, 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 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
    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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution

    [[Page 162]]

    (P.L. 109-289, Division B, as amended). The amounts included for 2007 in
    this budget reflect the levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3505-0-1-605      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Benefits issued...................      30,123      30,444      31,909
    00.02 State administration..............       2,455       2,551       2,662
    00.03 Employment and training program...         323         316         324
    00.04 Other program costs...............          58          60          66
    00.05 Nutrition Assistance for Puerto
            Rico............................       1,518       1,551       1,615
    00.06 Food distribution program on
            Indian reservations (Commodities
            in lieu of food stamps).........          54          51          51
    00.07 Food distribution program on
            Indian reservations (Cooperator
            administrative expense).........          25          27          29
    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           9           9
    00.13 Program access....................           5           5           5
    00.14 Disregard special military pays
            for deployed....................           1           1
    00.15 CSFP transitional benefit.........                                  22
    09.01 Reimbursable program..............          24          35          35
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      34,745      35,201      36,878
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........       2,042       3,033       3,018
    22.00 New budget authority (gross)......      40,748      38,186      39,873
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          11
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      42,801      41,219      42,891
    23.95 Total new obligations.............     -34,745     -35,201     -36,878
    23.98 Unobligated balance expiring or
            withdrawn.......................      -5,023      -3,000      -3,000
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........       3,033       3,018       3,013
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................          17          10          45
          Mandatory:

    60.00   Appropriation...................      40,694      38,141      39,793
    60.36   Unobligated balance permanently
              reduced.......................         -11
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      40,683      38,141      39,793
    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          48          35          35
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      40,748      38,186      39,873
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,629       1,491       1,093
    73.10 Total new obligations.............      34,745      35,201      36,878
    73.20 Total outlays (gross).............     -34,677     -35,599     -36,864
    73.40 Adjustments in expired accounts
            (net)...........................        -195
    73.45 Recoveries of prior year
            obligations.....................         -11
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       1,491       1,093       1,107
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           9          14          35
    86.93 Outlays from discretionary
            balances........................           9           7           7
    86.97 Outlays from new mandatory
            authority.......................      33,039      34,093      35,699
    86.98 Outlays from mandatory balances...       1,620       1,485       1,123
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      34,677      35,599      36,864
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -57         -35         -35
          Against gross budget authority only:

    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           9
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      40,700      38,151      39,838
    90.00 Outlays...........................      34,620      35,564      36,829
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2006 actual  2007 est.   2008 est.
    Enacted/requested:
      Budget Authority............         40,700         38,151          39,838
      Outlays.....................         34,620         35,564          36,829
    Legislative proposal, subject to
        PAYGO:
      Budget Authority............                                           -12
      Outlays.....................                                           -11

    Total:
      Budget Authority............         40,700         38,151          39,826
      Outlays.....................         34,620         35,564          36,818

        The Food Stamp Program is the primary source of nutrition assistance
    for low-income Americans.

        This account also includes funds for a grant to Puerto Rico to
    administer a low-income nutrition assistance program, in lieu of the
    Food Stamp Program; funds to carry out the Emergency Food Assistance Act
    of 1983; and funds 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           6           6           9
    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.......           1           1           2
    25.2    Other services..................          44          47          49
    26.0    Supplies and materials..........         185         181         181
    31.0    Equipment.......................           1           1           1
    41.0    Grants, subsidies, and
              contributions.................      34,478      34,924      36,595
                                               ---------   ---------  ----------
    99.0      Direct obligations............      34,721      35,166      36,843
    99.0  Reimbursable obligations..........          24          35          35
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      34,745      35,201      36,878
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-3505-0-1-605      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................          67          68          98
    ---------------------------------------------------------------------------

                                Food stamp program

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3505-4-1-605      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
          Direct program:

    00.01   Benefits issued.................                                 -12
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                 -12
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 -12
    23.95 Total new obligations.............                                  12
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    [[Page 163]]

    60.00   Appropriation...................                                 -12
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                 -12
    73.20 Total outlays (gross).............                                  11
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..                                  -1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                                 -11
    ----------------------------------------------------------------------------

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

        This schedule shows the net effects of the following legislative
    proposals. The Budget proposes to exclude all retirement and education
    savings 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 exclude combat-related military pay when
    determining if a household is eligible for food stamp benefits. This
    policy ensures that the families of the Nation's servicemen and women do
    not lose food stamp benefits when their family member serves in combat.

                             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;
    $13,897,272,000, to remain available through September 30, 2009, of
    which $7,592,797,000 is hereby appropriated and $6,304,475,000 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 up to $5,505,000 shall
    be available for independent verification of school food service claims.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3539-0-1-605      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Above 185 of poverty..............         468         489         510
    00.02 130-185 of poverty................         951         998       1,040
    00.03 Below 130 of poverty..............       6,149       6,368       6,631
                                               ---------   ---------  ----------
    00.91   Subtotal, school lunch program..       7,568       7,855       8,181
    01.01 Above 185 of poverty..............          71          80          85
    01.02 130-185 of poverty................         183         199         212
    01.03 Below 130 of poverty..............       1,828       1,962       2,093
                                               ---------   ---------  ----------
    01.91   Subtotal, school breakfast
              program.......................       2,082       2,241       2,390
    02.01 Above 185 of poverty..............         184         184         193
    02.02 130-185 of poverty................         117         121         128
    02.03 Below 130 of poverty..............       1,803       1,844       1,935
    02.04 Audits............................          22          23          33
                                               ---------   ---------  ----------
    02.91   Subtotal, child and adult care
              feeding program...............       2,126       2,172       2,289
    03.01 Summer food service program.......         283         294         311
    03.02 Special milk program..............          15          14          15
    03.03 State administrative expenses.....         156         164         176
    03.04 Commodity procurement.............         496         476         508
                                               ---------   ---------  ----------
    03.91   Subtotal, Other mandatory
              activities....................         950         948       1,010
    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
    04.06 CACFP CRE.........................                                   2
                                               ---------   ---------  ----------
    04.91   Subtotal, discretionary
              activities....................          26          26          28
    05.01 Food service management institute
            and information clearinghouse
            and Reauthorization Activities..          44          43          20
                                               ---------   ---------  ----------
    10.00   Total new obligations...........      12,796      13,285      13,918
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          52          84           3
    22.00 New budget authority (gross)......      12,711      13,204      13,918
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         119
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......      12,882      13,288      13,921
    23.95 Total new obligations.............     -12,796     -13,285     -13,918
    23.98 Unobligated balance expiring or
            withdrawn.......................          -2
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          84           3           3
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................           7          13           9
          Mandatory:

    60.00   Appropriation...................       7,510       7,440       7,585
    60.00   Appropriation- Permanent
              Appropriation.................                      20          20
    62.00   Transferred from other accounts.       5,188       5,731       6,304
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................      12,698      13,191      13,909
    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           6
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................      12,711      13,204      13,918
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..       1,739       1,995       1,624
    73.10 Total new obligations.............      12,796      13,285      13,918
    73.20 Total outlays (gross).............     -12,449     -13,656     -13,850
    73.40 Adjustments in expired accounts
            (net)...........................          28
    73.45 Recoveries of prior year
            obligations.....................        -119
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..       1,995       1,624       1,692
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           4           7           5
    86.93 Outlays from discretionary
            balances........................           3           3           6
    86.97 Outlays from new mandatory
            authority.......................      10,520      11,642      12,215
    86.98 Outlays from mandatory balances...       1,922       2,004       1,624
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........      12,449      13,656      13,850
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           6
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................      12,705      13,204      13,918
    90.00 Outlays...........................      12,437      13,656      13,850
    ---------------------------------------------------------------------------

                     Summary of Budget Authority and Outlays

                            (in millions of dollars)

                                         2006 actual  2007 est.   2008 est.
    Enacted/requested:
      Budget Authority............         12,705         13,204          13,918
      Outlays.....................         12,437         13,656          13,850
    Legislative proposal, subject to
        PAYGO:
      Budget Authority............                                            -8
      Outlays.....................                                            -7

    Total:
      Budget Authority............         12,705         13,204          13,910
      Outlays.....................         12,437         13,656          13,843

        Payments are made for cash and commodity meal subsidies through the
    School Lunch, School Breakfast, Special Milk, Summer Food Service, and
    Child and Adult Care Food programs.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3539-0-1-605      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    11.1  Personnel compensation: Full-time
            permanent.......................           9          11          12
    12.1  Civilian personnel benefits.......           3           3           3
    21.0  Travel and transportation of
            persons.........................           1           1           1

    [[Page 164]]

    24.0  Printing and reproduction.........           3           3           7
    25.2  Other services....................          13          13          13
    26.0  Supplies and materials
            (Commodities)...................         733         733         733
    41.0  Grants, subsidies, and
            contributions...................      12,034      12,521      13,149
                                               ---------   ---------  ----------
    99.9    Total new obligations...........      12,796      13,285      13,918
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-3539-0-1-605      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         160         155         164
    ---------------------------------------------------------------------------

                             Child Nutrition Programs

                    (Legislative proposal, subject to PAYGO)

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3539-4-1-605      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 School Lunch......................                                  -6
    00.02 School Breakfast..................                                  -2
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................                                  -8
    ----------------------------------------------------------------------------

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

        New budget authority (gross), detail:
          Mandatory:

    60.00   Appropriation...................                                  -8
    ----------------------------------------------------------------------------

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

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

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

        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), $5,386,597,000, to remain available through
    September 30, 2009, of which, such sums as are necessary to restore the
    contingency reserve to $200,000,000 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 $14,850,000 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) shall be
    effective in 2008; including $13,860,000 for the purposes specified in
    section 17(h)(10)(B)(i): 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 notwithstanding Section
    17(h)(1)(B) of the Child Nutrition Act of 1966, the amount of the
    national average per participant grant shall be not more than $14.12:
    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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3510-0-1-605      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Base grants.......................       5,363       5,463       5,477
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 41.0)...................       5,363       5,463       5,477
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         159         162          34
    22.00 New budget authority (gross)......       5,176       5,169       5,387
    22.10 Resources available from
            recoveries of prior year
            obligations.....................         192         166         115
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       5,527       5,497       5,536
    23.95 Total new obligations.............      -5,363      -5,463      -5,477
    23.98 Unobligated balance expiring or
            withdrawn.......................          -2
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         162          34          59
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       5,257       5,169       5,387
    40.35   Appropriation permanently
              reduced.......................         -53
    40.36   Unobligated balance permanently
              reduced.......................         -32
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       5,172       5,169       5,387
    58.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).           4
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       5,176       5,169       5,387
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         519         624         749
    73.10 Total new obligations.............       5,363       5,463       5,477
    73.20 Total outlays (gross).............      -5,060      -5,172      -5,319
    73.40 Adjustments in expired accounts
            (net)...........................          -6
    73.45 Recoveries of prior year
            obligations.....................        -192        -166        -115
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         624         749         792
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       4,457       4,737       4,887
    86.93 Outlays from discretionary
            balances........................         603         435         432
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       5,060       5,172       5,319
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................       5,172       5,169       5,387
    90.00 Outlays...........................       5,056       5,172       5,319
    ---------------------------------------------------------------------------

        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

    [[Page 165]]

    education and counseling, and health and immunization referrals. This
    request limits growth in funding for nutrition services and
    administration.

                           Commodity Assistance Program

         For necessary expenses to carry out disaster assistance, 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 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,
    $70,370,000, to remain available through September 30, 2009: 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 2008 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, 2009: Provided further, That no funds available for SFMNP in fiscal
    year 2008 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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3507-0-1-605      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Commodity procurement.............          84          78
    00.02 Administrative costs..............          28          29
                                               ---------   ---------  ----------
    00.91   Subtotal, commodity supplemental
              food program..................         112         107
    02.01 TEFAP Administrative & Hurricane
            Assistance......................          56          50          50
    03.01 Senior farmers' market............          15          16          15
    04.01 Farmers' market nutrition program.          24          24          23
    05.01 Pacific island and disaster
            assistance......................           2           1           1
    09.01 Reimbursable program (NSIP).......           3           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         212         200          89
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1
    22.00 New budget authority (gross)......         207         194          85
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           5           5           4
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         213         200          89
    23.95 Total new obligations.............        -212        -200         -89
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         189         177          70
    40.35   Appropriation permanently
              reduced.......................          -2
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         187         177          70
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).           4
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........           1           2
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......           5           2
          Mandatory:

    62.00   Transferred from other accounts.          15          15          15
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         207         194          85
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          33          35          34
    73.10 Total new obligations.............         212         200          89
    73.20 Total outlays (gross).............        -209        -194         -92
    73.40 Adjustments in expired accounts
            (net)...........................           5
    73.45 Recoveries of prior year
            obligations.....................          -5          -5          -4
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          -1          -2
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          35          34          27
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         175         149          47
    86.93 Outlays from discretionary
            balances........................          19          30          30
    86.97 Outlays from new mandatory
            authority.......................           8           8           8
    86.98 Outlays from mandatory balances...           7           7           7
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         209         194          92
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -10
    88.40     Non-Federal sources...........          -1
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -11
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          -1          -2
    88.96   Portion of offsetting
              collections (cash) credited to
              expired accounts..............           7
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         202         192          85
    90.00 Outlays...........................         198         194          92
    ---------------------------------------------------------------------------

        This account funds the Commodity Supplemental Food Program (CSFP),
    the Emergency Food Assistance Program (TEFAP), farmers' market nutrition
    programs, assistance for the nuclear affected islands, and disaster
    relief.

        TEFAP provides cash to support State administrative activities and
    to maintain the storage and distribution pipeline for USDA and
    privately-donated commodities. The account also funds two programs which
    provide low-income participants vouchers to purchase 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 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 Budget also 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    26.0    Supplies and materials
              (commodities).................          89          78
    41.0    Grants, subsidies, and
              contributions.................         120         120          89
                                               ---------   ---------  ----------
    99.0      Direct obligations............         209         198          89
    99.0  Reimbursable obligations..........           3           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         212         200          89
    ---------------------------------------------------------------------------

    [[Page 166]]

                             Food Donations Programs

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-3503-0-1-605      2006 actual   2007 est.   2008 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 outlays of prior year funds for the Nutrition
    Services Incentive Program (NSIP). NSIP was transferred to the
    Department of Health and Human Services (HHS) in 2003. NSIP grantees
    traditionally have had the option to receive all or a portion of their
    grant in the form of USDA-provided commodities. Between 2004 and 2007,
    USDA was reimbursed by HHS for the cost of these commodities, the
    amounts for which are reflected in the Commodity Assistance Programs
    account. Under the reauthorization of the Older Americans Act, the
    authority for USDA to provide commodities to NSIP grantees ends in 2008.

                                 FOREST SERVICE

                                  Federal 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, $1,344,377,000, 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)).

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 National forest system............       1,469       1,464       1,344
    09.01 Reimbursable program..............          92          90          90
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       1,561       1,554       1,434
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          87         167         152
    22.00 New budget authority (gross)......       1,634       1,539       1,434
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           7
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,728       1,706       1,586
    23.95 Total new obligations.............      -1,561      -1,554      -1,434
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         167         152         152
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,464       1,444       1,344
    40.20   Appropriation (special fund)....          13
    40.35   Appropriation permanently
              reduced.......................         -21
    41.00   Transferred to other accounts...         -16
    42.00   Transferred from other accounts.          18           5
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,458       1,449       1,344
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).          90          90          90
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          86
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......         176          90          90
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       1,634       1,539       1,434
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         193         169         119
    73.10 Total new obligations.............       1,561       1,554       1,434
    73.20 Total outlays (gross).............      -1,492      -1,604      -1,550
    73.45 Recoveries of prior year
            obligations.....................          -7
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -86
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         169         119           3
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,239       1,309       1,219
    86.93 Outlays from discretionary
            balances........................         253         295         331
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       1,492       1,604       1,550
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -66         -66         -66
    88.40     Non-Federal sources...........         -24         -24         -24
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -90         -90         -90
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -86
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,458       1,449       1,344
    90.00 Outlays...........................       1,402       1,514       1,460
    ---------------------------------------------------------------------------

        The 155 National Forests, 20 National Grasslands, and 6 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; the Valles Caldera National Preserve; 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 continued use of streamlined
    forest planning and authorities included in the President's Healthy
    Forests Initiative and the Healthy Forests Restoration Act, particularly
    stewardship contracting, through which the average number of acres per
    contract increases by five percent. The Budget provides for the use of
    an Environmental Monitoring System, a new streamlined process improves
    forest planning that permits the efficient revision of national

    [[Page 167]]

    forest plans, and the sustainable production of 3.5 billion board feet
    of timber offered from national forests.

        The Budget reflects a continuing emphasis on Forest Service
    performance and accountability by continuing use of two performance
    measures for the National Forest System,consisting 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.

         The Budget also 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 continue transformation 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, program administration
    and execution will continue to be enhanced through improvements in
    management accountability, reporting relationships, and oversight.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         594         625         574
    11.3      Other than full-time permanent          38          40          36
    11.5      Other personnel compensation..          36          38          35
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         668         703         645
    12.1    Civilian personnel benefits.....         205         215         198
    13.0    Benefits for former personnel...          10          10          10
    21.0    Travel and transportation of
              persons.......................          48          51          46
    22.0    Transportation of things........          11          11          10
    23.1    Rental payments to GSA..........          15          16          14
    23.2    Rental payments to others.......          33          35          32
    23.3    Communications, utilities, and
              miscellaneous charges.........          26          28          25
    24.0    Printing and reproduction.......           3           3           3
    25.1    Advisory and assistance services           4           4           4
    25.2    Other services..................         222         191         175
    25.3    Other purchases of goods and
              services from Government
              accounts......................          77          68          61
    25.4    Operation and maintenance of
              facilities....................           1           1           1
    25.5    Research and development
              contracts.....................           1                       1
    25.7    Operation and maintenance of
              equipment.....................           8           8           8
    26.0    Supplies and materials..........          52          46          42
    31.0    Equipment.......................          21          18          16
    32.0    Land and structures.............           1           1           1
    41.0    Grants, subsidies, and
              contributions.................          60          53          48
    42.0    Insurance claims and indemnities           4           3           4
    44.0    Refunds.........................          -1          -1
                                               ---------   ---------  ----------
    99.0      Direct obligations............       1,469       1,464       1,344
    99.0  Reimbursable obligations..........          92          90          90
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       1,561       1,554       1,434
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-1106-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................      10,560      10,833       9,680
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................         452         452         452
        Allocation account:
    3001  Civilian full-time equivalent
            employment......................       1,013         824         824
    ---------------------------------------------------------------------------

                       Capital Improvement and Maintenance

         For necessary expenses of the Forest Service, not otherwise
    provided for, $422,565,000, to remain available until expended, for
    construction, capital improvement, maintenance, and acquisition of
    buildings and other facilities and infrastructure; and for construction,
    capital improvement, 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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1103-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Capital improvement and
            maintenance.....................         455         480         423
    09.01 Reimbursable program..............          17          15          15
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         472         495         438
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         100         101          54
    22.00 New budget authority (gross)......         471         448         438
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           2
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         573         549         492
    23.95 Total new obligations.............        -472        -495        -438
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         101          54          54
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         448         411         423
    40.35   Appropriation permanently
              reduced.......................          -6
    41.00   Transferred to other accounts...          -4
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         438         411         423
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).          15          15          15
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          18
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......          33          15          15
          Mandatory:

    62.00   Transferred from other accounts.                      22
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         471         448         438
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         289         194         200
    73.10 Total new obligations.............         472         495         438
    73.20 Total outlays (gross).............        -547        -489        -441
    73.45 Recoveries of prior year
            obligations.....................          -2
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................         -18
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         194         200         197
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         318         319         328
    86.93 Outlays from discretionary
            balances........................         229         153         107
    86.97 Outlays from new mandatory
            authority.......................                      17
    86.98 Outlays from mandatory balances...                                   6
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         547         489         441
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............          -7          -7          -7
    88.40     Non-Federal sources...........          -8          -8          -8
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -15         -15         -15
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................         -18
    ----------------------------------------------------------------------------

    [[Page 168]]

        Net budget authority and outlays:
    89.00 Budget authority..................         438         433         423
    90.00 Outlays...........................         532         474         426
    ---------------------------------------------------------------------------

        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, recreation, fire, administrative, and other (FA&O) 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. Maintenance for FA&O projects costing less than $250,000
    are financed separately through a multi-program assessment to Research,
    National Forest System, Wildland Fire Management and the Capital
    Improvement and Maintenance appropriations along with eligible Permanent
    and Trust Funds.

        Roads.--Provides for capital improvement and maintenance of roads.
    The program also focuses on decommissioning unneeded roads and/or roads
    that are degrading the ecosystem. Capital improvement includes: new road
    construction; alteration of an existing road to change the function; and
    expansion of the road to change the capacity or to serve needs that are
    different from what was originally intended. The agency will continue to
    address the growing road system maintenance backlog. Funding priorities
    are health and safety, resource protection, and mission critical needs.
    Maintenance is divided into four primary areas: annual road maintenance,
    deferred road maintenance, road operations, and decommissioning.

        Trails.--Provides for capital improvement and maintenance of trails.
    Capital improvement includes: new trail construction; alteration of an
    existing trail to change the function; and expansion of the trail to
    change the capacity or to serve needs that are different from what was
    originally intended. Maintenance funding is used to protect capital
    investments by keeping trails open for access and protecting vegetation,
    soil, and water quality. Work includes clearing the pathway of
    encroaching vegetation and fallen trees, and repairing or improving
    trail signs, treadways, drainage facilities, and bridges. Maintenance is
    divided into four primary areas: annual trail maintenance, deferred
    trail maintenance, trail operations, and trail decommissioning.

        Infrastructure Improvement.--Ameliorates the backlog in deferred
    maintenance of National Forest System roads and trails as well as Forest
    Service fire, administrative, and recreation facilities. The funds focus
    on critical maintenance backlogs; i.e., these funds are for repair and
    rehabilitation of existing facilities and roads; funds may not be used
    for new and expanded facilities or roads. The Budget reflects Forest
    Service improvements in addressing the deferred maintenance backlog
    based upon agency implementation of PART recommendations.

        The Budget reflects the Forest Service's continued use of new
    authorities that permit the agency to apply 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 percent 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 percent of the facility
    replacement value and not to exceed $7 per square foot.

        The Budget provides funding to the Forest Service to make data
    quality improvements to the Forest Services INFRA database and internal
    controls. Coupled with completion of a strategy to address the deferred
    maintenance backlog and to identify goals and objectives for managing
    deferred maintenance, these reforms allow the Forest Service to focus
    funds on projects that have the highest priority as measured by the
    improvement in its Facility Condition Index.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1103-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         151         138         141
    11.3      Other than full-time permanent          13          12          12
    11.5      Other personnel compensation..           7           7           7
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         171         157         160
    12.1    Civilian personnel benefits.....          44          40          41
    13.0    Benefits for former personnel...           5           5           5
    21.0    Travel and transportation of
              persons.......................           9           8           8
    22.0    Transportation of things........           3           2           2
    23.1    Rental payments to GSA..........           3           3           3
    23.2    Rental payments to others.......           8           8           8
    23.3    Communications, utilities, and
              miscellaneous charges.........           8           7           7
    25.1    Advisory and assistance services           1           1           1
    25.2    Other services..................          83         110          79
    25.3    Other purchases of goods and
              services from Government
              accounts......................          33          42          30
    25.4    Operation and maintenance of
              facilities....................           6           8           5
    25.7    Operation and maintenance of
              equipment.....................           4           4           4
    26.0    Supplies and materials..........          19          24          17
    31.0    Equipment.......................           9          11           8
    32.0    Land and structures.............          31          28          29
    41.0    Grants, subsidies, and
              contributions.................          18          22          16
                                               ---------   ---------  ----------
    99.0      Direct obligations............         455         480         423
    99.0  Reimbursable obligations..........          17          15          15
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         472         495         438
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-1103-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................       2,485       2,204       2,176
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................          85          81          81
        Allocation account:
    3001  Civilian full-time equivalent
            employment......................          37          41          41
    ---------------------------------------------------------------------------

                          Forest and Rangeland Research

         For necessary expenses of forest and rangeland research as
    authorized by law, $263,000,000, to remain available until expended.

    [[Page 169]]

         Gifts, Donations and Bequests for Forest and Rangeland Research

         For expenses authorized by 16 U.S.C. 1643(b), $56,000, to remain
    available until expended, to be derived from the fund established
    pursuant to the above Act.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1104-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.06 Forest and rangeland research.....         307         329         285
    09.01 Reimbursable program..............          33          49          49
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         340         378         334
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          41          36          10
    22.00 New budget authority (gross)......         335         352         334
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         376         388         344
    23.95 Total new obligations.............        -340        -378        -334
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          36          10          10
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         283         280         263
    40.35   Appropriation permanently
              reduced.......................          -4
    41.00   Transferred to other accounts...          -1
    42.00   Transferred from other accounts.          23          23          22
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         301         303         285
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).          49          49          49
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         -15
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......          34          49          49
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         335         352         334
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          70          84         137
    73.10 Total new obligations.............         340         378         334
    73.20 Total outlays (gross).............        -341        -325        -340
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          15
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          84         137         131
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         256         246         234
    86.93 Outlays from discretionary
            balances........................          85          79         106
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         341         325         340
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -46         -46         -46
    88.40     Non-Federal sources...........          -3          -3          -3
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -49         -49         -49
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          15
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         301         303         285
    90.00 Outlays...........................         292         276         291
    ---------------------------------------------------------------------------

        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 2008, FS R&D will continue to improve forest and rangeland
    managers' abilities to reintroduce fire to its natural role and mitigate
    losses from native insects and pathogens. FS R&D researchers answer 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. Priority
    will also be placed on making improvements in woody biomass utilization
    for energy, alternative fuels, and value-added products to help
    stimulate removal of hazardous fuels from forests at risk of wildfire.
    Tools and technologies will be modified, adapted or developed to serve
    the priorities of land managers dealing with wildland fire, invasive
    species, and other management challenges.

        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. The momentum to achieve the
    annualized inventory in all 50 States will be maintained.

        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 with innovative partnerships
    and science and technology applications. The Budget also emphasizes
    increasing the amount of research conducted on an extramural basis from
    13 percent of the current R&D budget to 20 percent over the next four
    years.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1104-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         137         139         131
    11.3      Other than full-time permanent           8           8           7
    11.5      Other personnel compensation..           6           6           6
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..         151         153         144
    12.1    Civilian personnel benefits.....          42          42          40
    13.0    Benefits for former personnel...           2           2           2
    21.0    Travel and transportation of
              persons.......................          13          14          13
    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.........           7           7           6
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          19          25          18
    25.3    Other purchases of goods and
              services from Government
              accounts......................           7           8           6
    25.4    Operation and maintenance of
              facilities....................           1
    25.5    Research and development
              contracts.....................          26          33          22
    25.7    Operation and maintenance of
              equipment.....................           1           1           1
    26.0    Supplies and materials..........           9          11           7
    31.0    Equipment.......................           6           7           5
    41.0    Grants, subsidies, and
              contributions.................          13          16          11
                                               ---------   ---------  ----------
    99.0      Direct obligations............         307         329         285
    99.0  Reimbursable obligations..........          33          49          49
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         340         378         334
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-1104-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................       2,145       2,122       1,949
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................         141         160         160
    ---------------------------------------------------------------------------

    [[Page 170]]

                            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, $202,458,000, to remain
    available until expended, as authorized by law, of which $29,311,000 is
    to be derived from the Land and Water Conservation Fund.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1105-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 State and private forestry........         341         334         240
    00.02 Forest Legacy.....................          57          11          29
    09.01 Reimbursable program..............          16          26          26
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         414         371         295
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          55          58          22
    22.00 New budget authority (gross)......         416         335         295
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         472         393         317
    23.95 Total new obligations.............        -414        -371        -295
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          58          22          22
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................         256         219         173
    40.20   Appropriation (LWCF)............          57           9          29
    40.35   Appropriation permanently
              reduced.......................          -4
    41.00   Transferred to other accounts...          -1
    42.00   Transferred from other accounts.          78          81          67
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............         386         309         269
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).          26          26          26
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -1
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......          25          26          26
          Mandatory:

    62.00   Transferred from other accounts.           5
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         416         335         295
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         587         555         482
    73.10 Total new obligations.............         414         371         295
    73.20 Total outlays (gross).............        -446        -444        -397
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         555         482         380
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................         143         252         222
    86.93 Outlays from discretionary
            balances........................         294         182         170
    86.98 Outlays from mandatory balances...           9          10           5
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         446         444         397
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............         -20         -20         -20
    88.40     Non-Federal sources...........          -6          -6          -6
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................         -26         -26         -26
          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..................         391         309         269
    90.00 Outlays...........................         420         418         371
    ---------------------------------------------------------------------------

        State and private forestry programs provide assistance to manage,
    use, and protect forest resources on State and private lands, in both
    rural and urban areas, to meet domestic and international demands for
    goods and services. Assistance is provided to a wide range of customers
    including all 50 States, Puerto Rico, U.S. Virgin Islands, Guam, the
    Northern Mariana Islands, and the Trust Territory of the Pacific.

        Forest Health Management.--Includes funding for Federal and
    cooperative lands to maintain healthy, productive ecosystems by
    preventing, detecting and suppressing damaging native and invasive
    forest and tree insects and diseases across all land ownerships and
    invasive plants on cooperative lands. Through the use of a newly updated
    science-based forest health risk map, the Budget reflects Forest Service
    allocations of program funding that address national priorities and
    reduce risk in the most effective and efficient manner.

        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. The Forest Service will change the method
    of funding allocation to include community-based hazard mitigation
    practices that are included in community wildfire protection plans or
    equivalent as a condition of eligibility for grants.

        Cooperative Forestry.--Includes the forest stewardship, forest
    legacy, and urban and community forestry programs. The budget for this
    suite of complementary programs helps maintain the integrity of our
    nation's valuable forested landscapes and supports the Federal interest
    in obtaining social, economic, and environmental benefits from these
    landscapes. The forest legacy program is a Federal program that partners
    with States to protect environmentally sensitive forest lands. The
    forest stewardship program provides professional forestry assistance to
    non-industrial private forest (NIPF) landowners to encourage sound
    environmental management of NIPF lands. The urban and community forestry
    program provides technical, financial, and educational assistance to
    cities, suburbs and towns nationwide so they can improve the condition
    and extent of their trees and forests to achieve the full range of
    benefits and services from these resources. The Forest Service will
    explore methods that promote cooperative conservation through peer-to-
    peer, citizen-centric forestry assistance.

        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. The Forest
    Service will develop performance measures for this program.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1105-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          48          52          51
    11.3      Other than full-time permanent           3           3           3
    11.5      Other personnel compensation..           2           2           2
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          53          57          56
    12.1    Civilian personnel benefits.....          14          15          15
    13.0    Benefits for former personnel...           1           1
    21.0    Travel and transportation of
              persons.......................           6           7           7
    22.0    Transportation of things........           1           1           1
    23.1    Rental payments to GSA..........           1           1           1
    23.2    Rental payments to others.......           2           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           2           2
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          18          15          10

    [[Page 171]]

    25.3    Other purchases of goods and
              services from Government
              accounts......................           3           2           2
    25.5    Research and development
              contracts.....................           1           1
    26.0    Supplies and materials..........           2           1           1
    31.0    Equipment.......................           2           2           1
    41.0    Grants, subsidies, and
              contributions.................         291         237         170
                                               ---------   ---------  ----------
    99.0      Direct obligations............         398         345         269
    99.0  Reimbursable obligations..........          16          26          26
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         414         371         295
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-1105-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         701         734         695
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................          43          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),
    $5,053,000, to remain available until expended.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1119-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Management of national forest
            lands for subsistence uses......           5           6           5
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           5           6           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........           1           1
    22.00 New budget authority (gross)......           5           5           5
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           6           6           5
    23.95 Total new obligations.............          -5          -6          -5
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

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

        Change in obligated balances:
    72.40 Obligated balance, start of year..           2           2           1
    73.10 Total new obligations.............           5           6           5
    73.20 Total outlays (gross).............          -5          -7          -5
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           2           1           1
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................           3           5           5
    86.93 Outlays from discretionary
            balances........................           2           2
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........           5           7           5
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................           5           5           5
    90.00 Outlays...........................           5           7           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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    11.1  Personnel compensation: Full-time
            permanent.......................           1           1           1
    12.1  Civilian personnel benefits.......           1           1           1
    25.2  Other services....................           2           3           2
    25.3  Other purchases of goods and
            services from Government
            accounts........................           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           5           6           5
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-1119-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................          23          25          25
    ---------------------------------------------------------------------------

                             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, $1,648,917,000, 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 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 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 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 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 the Secretary of Agriculture may use
    the amounts appropriated under this heading for 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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1115-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Wildland fire management..........       2,435       1,794       1,559
    09.01 Reimbursable program..............         322         175         175
                                               ---------   ---------  ----------
    10.00   Total new obligations...........       2,757       1,969       1,734
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         769         211         119
    22.00 New budget authority (gross)......       2,132       1,877       1,735
    22.10 Resources available from
            recoveries of prior year
            obligations.....................          67
                                               ---------   ---------  ----------

    [[Page 172]]

    23.90   Total budgetary resources
              available for obligation......       2,968       2,088       1,854
    23.95 Total new obligations.............      -2,757      -1,969      -1,734
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         211         119         120
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................       1,879       1,811       1,649
    40.35   Appropriation permanently
              reduced.......................         -26
    41.00   Transferred to other accounts...        -115        -109         -89
    42.00   Transferred from other accounts.          41
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............       1,779       1,702       1,560
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).         407         175         175
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         -54
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......         353         175         175
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................       2,132       1,877       1,735
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..         303         757         667
    73.10 Total new obligations.............       2,757       1,969       1,734
    73.20 Total outlays (gross).............      -2,290      -2,059      -1,750
    73.45 Recoveries of prior year
            obligations.....................         -67
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          54
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..         757         667         651
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................       1,834       1,690       1,562
    86.93 Outlays from discretionary
            balances........................         456         369         188
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........       2,290       2,059       1,750
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -368        -136        -136
    88.40     Non-Federal sources...........         -39         -39         -39
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -407        -175        -175
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          54
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................       1,779       1,702       1,560
    90.00 Outlays...........................       1,883       1,884       1,575
    ---------------------------------------------------------------------------

        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.

        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 and includes establishment of a separate
    account for wildland firefighters. It also reflects deployment of a
    system that allocates fire preparedness resources (e.g., firefighters
    and equipment) effectively across geographic areas.

        Fire Operations.--Risk-informed suppression of wildland fires on or
    threatening NFS lands, Department of the Interior lands, or other lands
    under fire protection agreement. The Budget provides full funding of the
    ten-year average of suppression costs, adjusted for inflation and
    indirect charges. To improve the management of wildland fire resources,
    the Forest Service will:

        --Utilize a Comptroller and support group to provide executive level
    oversight monitoring of Suppression expenditures.

        --Implement key findings from 2006 and prior year large fire cost
    reviews and the 2007 management efficiency analysis.

        --Continue implementation of Program Assessment Rating Tool (PART)
    performance measures including monitoring and analyzing large fire
    suppression expenditures with the stratified cost index and reducing the
    number of human caused ignitions.

        --Utilize a risk-informed management response strategy for unplanned
    ignitions to manage risk, maximize resource utilization, manage loss and
    contain costs.

        --Examine the feasibility of and implement as appropriate, a process
    to account for wildfires that contribute to attainment of desired
    ecological and natural resource conditions.

        --Expand the use of the Wildland Fire Decision Support System
    (WFDSS) to support managers in analyzing risk relative to strategic
    suppression decisions which affect suppression costs, firefighter and
    public safety, and impacts to property and resources.

        --Expand use of the suppression allocation model for initial
    response based on the analysis of a ``mock up'' allocation model and
    process under development in 2007.

        --Place priority on those projects associated with a community
    wildfire protection plan, or equivalent.

        These actions highlight important refinements within the Forest
    Services wildland fire management program that strengthen oversight of
    suppression spending and use risk management principles to guide
    decision-making at the strategic, program, and operational levels. By
    identifying and analyzing risk in a systematic fashion, the Forest
    Service is better equipped to assess wildfire intensity and associated
    threats posed to lives, improved property, or the environment. This
    risk-informed fire protection system allows agency administrators the
    ability to choose from a full spectrum of wildfire management actions
    and appropriately scale their responses to the risks posed. For example,
    many backcountry wildfires pose less risk than those that occur near
    communities and do not always require full-scale suppression efforts.
    These reforms, in concert with the establishment of wildland firefighter
    account, improve agency performance while minimizing costs.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1115-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........         372         357         279
    11.3      Other than full-time permanent          60          58          45
    11.5      Other personnel compensation..         266         256         200
    11.8      Special personal services
                payments....................          47          45          35
                                               ---------   ---------  ----------

    [[Page 173]]

    11.9      Total personnel compensation..         745         716         559
    12.1    Civilian personnel benefits.....         197         189         148
    13.0    Benefits for former personnel...          24          23          18
    21.0    Travel and transportation of
              persons.......................          72          69          63
    22.0    Transportation of things........           8           7           7
    23.1    Rental payments to GSA..........          12          12          12
    23.2    Rental payments to others.......          36          35          35
    23.3    Communications, utilities, and
              miscellaneous charges.........          32          30          30
    24.0    Printing and reproduction.......           1           1           1
    25.1    Advisory and assistance services           4           4           4
    25.2    Other services..................         779         420         399
    25.3    Other purchases of goods and
              services from Government
              accounts......................         130          70          69
    25.4    Operation and maintenance of
              facilities....................           1           1
    25.5    Research and development
              contracts.....................           3           1           1
    25.7    Operation and maintenance of
              equipment.....................           9           9           9
    26.0    Supplies and materials..........          67          36          36
    31.0    Equipment.......................          33          18          18
    41.0    Grants, subsidies, and
              contributions.................         280         151         148
    42.0    Insurance claims and indemnities           1           1           1
    43.0    Interest and dividends..........           1           1           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............       2,435       1,794       1,559
    99.0  Reimbursable obligations..........         322         175         175
                                               ---------   ---------  ----------
    99.9    Total new obligations...........       2,757       1,969       1,734
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-1115-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................      13,373      12,542       8,950
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................         129          33          33
    ---------------------------------------------------------------------------

                              Wildland firefighters

         For necessary expenses for wildland firefighters on National Forest
    System lands, for emergency fire suppression on or adjacent to such
    lands or other lands under fire protection agreement, $219,710,000, to
    remain available until expended.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1113-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Wildland firefighters.............                                 220
                                               ---------   ---------  ----------
    01.00   Direct Program by Activities--
              Subtotal (running)............                                 220
                                               ---------   ---------  ----------
    10.00   Total new obligations...........                                 220
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    22.00 New budget authority (gross)......                                 220
    23.95 Total new obligations.............                                -220
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.00   Appropriation...................                                 220
    ----------------------------------------------------------------------------

        Change in obligated balances:
    73.10 Total new obligations.............                                 220
    73.20 Total outlays (gross).............                                -220
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................                                 220
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................                                 220
    90.00 Outlays...........................                                 220
    ---------------------------------------------------------------------------

        Wildland Firefighters.-- This appropriation provides funding for
    base salary, training and travel for up to 10,010 firefighters and 67
    Type I crews.

        The Budget addresses the complexity associated with wildland fire
    and other hazards by providing funding for professional wildland
    firefighters. It reflects an important refinement in the Forest Services
    management of wildland fire that improves implementation of the
    Presidents Healthy Forests Initiative (HFI) and reduces the risk of
    catastrophic wildfire to communities and the environment. By
    establishing a single account for professional wildland firefighters,
    the Budget enhances performance, improves accountability, and provides
    the Forest Service greater efficiency and flexibility in managing
    wildland fires and in supporting all-hazard responses through the
    National Incident Management System.

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-1113-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
          Personnel compensation:

    11.1    Full-time permanent.............                                  77
    11.3    Other than full-time permanent..                                  12
    11.5    Other personnel compensation....                                  55
    11.8    Special personal services
              payments......................                                  10
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..                                 154
    12.1  Civilian personnel benefits.......                                  41
    13.0  Benefits for former personnel.....                                   5
    21.0  Travel and transportation of
            persons.........................                                   5
    25.2  Other services....................                                  15
                                               ---------   ---------  ----------
    99.9    Total new obligations...........                                 220
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-1113-0-1-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................                               3,200
    ---------------------------------------------------------------------------

                              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.

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.00 Balance, start of year............           5           6           6
                                               ---------   ---------  ----------
    01.99 Balance, start of year............           5           6           6
        Receipts:
    02.20 Receipts, Cooperative range
            improvements....................           4           3           4
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...           9           9          10
        Appropriations:
    05.00 Range betterment fund.............          -3          -3          -4
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           6           6           6
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Range betterment fund.............           3           4           4
                                               ---------   ---------  ----------
    10.00   Total new obligations...........           3           4           4
    ----------------------------------------------------------------------------

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

    [[Page 174]]

    23.95 Total new obligations.............          -3          -4          -4
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           1
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (special fund)....           3           3           4
    ----------------------------------------------------------------------------

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

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

        Net budget authority and outlays:
    89.00 Budget authority..................           3           3           4
    90.00 Outlays...........................           3           3           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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct obligations:
    11.1  Personnel compensation: Full-time
            permanent.......................           1           1           1
    26.0  Supplies and materials............           2           3           3
                                               ---------   ---------  ----------
    99.9    Total new obligations...........           3           4           4
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-5207-0-2-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................          15          14          18
    ---------------------------------------------------------------------------

                      Stewardship Contracting Product Sales

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-5540-0-2-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Stewardship contracting...........           1           4           5
                                               ---------   ---------  ----------
    10.00   Total new obligations (object
              class 25.2)...................           1           4           5
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........                       3           5
    22.00 New budget authority (gross)......           4           6           6
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......           4           9          11
    23.95 Total new obligations.............          -1          -4          -5
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........           3           5           6
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.20   Appropriation (special fund)....           4           6           6
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..                       1          -1
    73.10 Total new obligations.............           1           4           5
    73.20 Total outlays (gross).............                      -6          -6
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..           1          -1          -2
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................                       5           5
    86.98 Outlays from mandatory balances...                       1           1
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........                       6           6
    ----------------------------------------------------------------------------

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

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-5540-0-2-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................           2
    ---------------------------------------------------------------------------

                                 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, $15,703,000, to be derived
    from the Land and Water Conservation Fund and to remain available until
    expended.

             acquisition of lands for national forests special acts

         For acquisition of lands within the exterior boundaries of the
    Cache, Uinta, and Wasatch National Forests, Utah; the Toiyabe National
    Forest, Nevada; and the Angeles, San Bernardino, Sequoia, and Cleveland
    National Forests, California, as authorized by law, $1,053,000, 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 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.)

        Note.--A regular 2007 appropriation for this account had not been
    enacted at the time the budget was prepared; therefore, this account is
    operating under a continuing resolution (P.L. 109-289, Division B, as
    amended). The amounts included for 2007 in this budget reflect the
    levels provided by the continuing resolution.

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.00 Balance, start of year............          11           5           6
                                               ---------   ---------  ----------
    01.99 Balance, start of year............          11           5           6
        Receipts:
    02.20 Deposits, Acquisitions of lands
            for national forests, special
            acts............................           1           1           1
    02.21 Land acquisition proceeds for
            exchanges, acquisition of lands
            to complete land exchanges......          29           1           1
    02.22 Facility realignment and
            enhancement receipts,
            Acquisition of lands to complete
            land exchanges..................           4          48          50
    02.23 Proceeds of land sales, Forest
            Service--legislative proposal
            subject to PAYGO................                                 200
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..          34          50         252
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...          45          55         258
        Appropriations:
    05.00 Land acquisition..................          -1          -1          -1
    05.01 Land acquisition..................         -39         -48         -50
                                               ---------   ---------  ----------
    05.99   Total appropriations............         -40         -49         -51
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............           5           6         207
    ---------------------------------------------------------------------------

    [[Page 175]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Land Acquisitions.................          89          37          17
    00.02 Land and Facility Enhancement
            Program.........................          22          38          49
    09.01 Land Acquisition--Reimbursable
            Program.........................           1
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         112          75          66
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........          82          48          30
    22.00 New budget authority (gross)......          78          57          67
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         160         105          97
    23.95 Total new obligations.............        -112         -75         -66
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          48          30          31
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    40.20   Appropriation (LWCF)............          43           8          16
    40.20   Appropriation (special act).....           1           1           1
    40.35   Appropriation permanently
              reduced.......................          -1
    41.00 Transferred to other accounts.....          -5
                                               ---------   ---------  ----------
    43.00     Appropriation (total
                discretionary)..............          38           9          17
            Spending authority from
                offsetting collections:
    58.00     Offsetting collections (cash).          19
    58.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........         -18
                                               ---------   ---------  ----------
    58.90     Spending authority from
                offsetting collections
                (total discretionary).......           1
          Mandatory:

    60.20   Appropriation (special fund)....          39          48          50
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................          78          57          67
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          -7          29          35
    73.10 Total new obligations.............         112          75          66
    73.20 Total outlays (gross).............         -94         -69         -73
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................          18
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          29          35          28
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.90 Outlays from new discretionary
            authority.......................          29           6          11
    86.93 Outlays from discretionary
            balances........................          56          10           3
    86.97 Outlays from new mandatory
            authority.......................           8          32          33
    86.98 Outlays from mandatory balances...           1          21          26
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........          94          69          73
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.00   Offsetting collections (cash)
              from: Federal sources.........         -19
          Against gross budget authority only:

    88.95   Change in uncollected customer
              payments from Federal sources
              (unexpired)...................          18
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................          77          57          67
    90.00 Outlays...........................          75          69          73
    ---------------------------------------------------------------------------

        This appropriation consolidates land acquisition authorities for
    acquisition of lands, waters, or interest therein, as authorized by law.

        Land and Water Conservation Fund.--Lands and other interests are
    acquired within areas of the National Forest System for public access
    for outdoor recreation, wilderness management, wildlife and fisheries
    habitat management areas, conservation of endangered species, and other
    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 are made
    by State, county, or municipal governments, public school authorities,
    or non-Federal parties for cash equalization of certain land exchanges
    and 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

    11.1    Personnel compensation: Full-
              time permanent................           7           5           5
    12.1    Civilian personnel benefits.....           2           2           1
    21.0    Travel and transportation of
              persons.......................           1
    25.2    Other services..................          10           7           6
    25.3    Other purchases of goods and
              services from Government
              accounts......................           6           4           3
    32.0    Land and structures.............          83          55          51
    41.0    Grants, subsidies, and
              contributions.................           2           2
                                               ---------   ---------  ----------
    99.0      Direct obligations............         111          75          66
    99.0  Reimbursable obligations..........           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         112          75          66
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-9923-0-2-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................         122          82          86
    ---------------------------------------------------------------------------

                     Forest Service Permanent Appropriations

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.00 Balance, start of year............         294         221         244
                                               ---------   ---------  ----------
    01.99 Balance, start of year............         294         221         244
        Receipts:
    02.20 National forests fund.............         -19
    02.21 National forests fund, Payments to
            States..........................         273         113         116
    02.22 National forests fund, Payments to
            States--legislative proposal
            subject to PAYGO................                                  67
    02.23 Timber roads, Purchaser elections.           7           4           4
    02.24 National forests fund, Roads and
            trails for States...............          15          15          15
    02.25 Timber salvage sales..............          67          66          67
    02.26 Deposits, Brush disposal..........          12          11          11
    02.27 Rents and charges for quarters,
            Forest Service..................           8           8           8
    02.28 Timber sales pipeline restoration
            fund............................           4           7           7
    02.29 Recreational fee demonstration
            program, Forest Service.........          53          55          55
    02.30 Midewin national tallgrass prairie
            rental fees.....................                       1           1
    02.31 Charges, user fees, and natural
            resource utilization, Land
            between the lakes, Forest
            Service.........................           4           4           4
    02.32 Administration of rights-of-way
            and other land uses.............           1           4           5
    02.33 Miscellaneous collections, Valles
            Caldera fund....................                       1           1
    02.34 Proceeds from sales, Forest county
            safety net payments--legislative
            proposal subject to PAYGO.......                                 200
    02.35 Funds retained, stewardship
            contracting product sales.......           4           6           6
    02.36 National grasslands...............         -41          14          14
    02.37 Miscellaneous special funds,
            Forest Service..................           3           8           3
    02.38 National forest fund..............                      19          20
                                               ---------   ---------  ----------
    02.99   Total receipts and collections..         391         336         604
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         685         557         848
        Appropriations:
    05.00 Stewardship contracting product
            sales...........................          -4          -6          -6
    05.01 Forest Service permanent
            appropriations..................        -460        -307        -307
                                               ---------   ---------  ----------
    05.99   Total appropriations............        -464        -313        -313
                                               ---------   ---------  ----------

    [[Page 176]]

    07.99 Balance, end of year..............         221         244         535
    ---------------------------------------------------------------------------

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Brush disposal....................          14          18          15
    00.02 Restoration of forest lands and
            improvements....................           1           9           1
    00.03 Recreation fee demonstration /
            enhancement programs............          50          57          55
    00.04 Timber roads--purchaser election
            program.........................           2           4           4
    00.05 Timber salvage sale program.......          76          75          74
    00.06 Timber pipeline restoration fund
            (includes forest botanical
            products).......................           7           6           6
    00.07 Roads and trails (10 % Fund)......          15          15          15
    00.08 Midewin Tallgrass Prairie funds...                       1           1
    00.09 Operation and maintenance of
            quarters........................           7           9           8
    00.10 Land between the lakes management
            fund............................           3           4           4
    00.11 Valles Caldera fund...............                       1           1
    00.12 Administration of rights-of-way
            and other land uses.............           1           2           2
    00.13 Payment to states--national forest
            fund............................         117         179         111
    00.14 Payment to states--transfers from
            Treasury........................         296         237
    00.15 Payments to Minnesota.............           2           2           2
    00.16 Payments to counties--national
            grasslands......................          14          14          14
    09.01 Admin rights of way--Reimbursable
            program.........................                       2           2
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         605         635         315
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         566         707         618
    22.00 New budget authority (gross)......         746         546         309
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......       1,312       1,253         927
    23.95 Total new obligations.............        -605        -635        -315
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         707         618         612
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    41.00 Transferred to other accounts.....         -10
          Mandatory:

    60.00   Appropriation...................         296         237
    60.20   Appropriation (special fund)....         460         307         307
                                               ---------   ---------  ----------
    62.50     Appropriation (total
                mandatory)..................         756         544         307
    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).                       2           2
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         746         546         309
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          49          59         126
    73.10 Total new obligations.............         605         635         315
    73.20 Total outlays (gross).............        -595        -568        -310
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          59         126         131
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         550         510         274
    86.98 Outlays from mandatory balances...          45          58          36
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         595         568         310
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

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

        Net budget authority and outlays:
    89.00 Budget authority..................         746         544         307
    90.00 Outlays...........................         595         566         308
    ---------------------------------------------------------------------------

        Operation and Maintenance of Quarters.--Quarters rental deductions
    are collected from employees occupying Forest Service facilities.
    Amounts are deposited into a special fund and are available for the
    maintenance and operation of employee-occupied quarters. (5 U.S.C. 5911)

        Resource Management, Timber Receipts.--Funds in this special account
    are available for trail maintenance, reconstruction, and construction;
    wildlife and fisheries habitat management; soil, water, and air
    management; cultural/heritage resource management; wilderness
    management; reforestation; and timber sale administration and
    management.

        Recreation Fee Program.--Pursuant to Sec. 8 of Division J--
    Consolidated Appropriations Act, 2005, Title VII--Federal Lands
    Recreation Enhancement Act, 2005, Public Law 108-447 of December 8,
    2004, the Secretary may establish, modify, charge, and collect
    recreation fees at Federal recreational lands and waters, including
    specific recreation sites or areas, for expanded recreation amenities,
    and special recreation permits. Amounts collected shall be used for
    repair, maintenance, interpretation, visitor information, limited
    habitat restoration, and direct operating or capital costs and other
    identified appropriate expenses.

        Midewin National Tallgrass Prairie Rental Fees.--Monies received
    under a special use authorization (issued under subsection (b) of Public
    Law 104-106, Title XXIX, Subtitle A, Section 2915, after distribution to
    the State of Illinois and affected counties pursuant to the Act of May
    23, 1908) are available to cover the cost to the United States of
    prairie improvement work at the Midewin National Tallgrass Prairie.

        Midewin National Tallgrass Prairie Restoration Fund.--Monies
    received from user fees and the salvage value proceeds from sale of any
    facilities and improvements pursuant to Section 2915(d) and (e) of
    Public Law 104-106, as amended by Public Law 105-83, are available to
    cover the costs of restoration and administrative activities.

        Payment to Minnesota.--At the close of each fiscal year, the State
    of Minnesota is paid 0.75 percent of the appraised value of certain
    Superior National Forest lands in the counties of Cook Lake and St.
    Louis for distribution to these counties (16 U.S.C. 577g).

        Payments to Counties, National Grasslands.--This program provides an
    annual payment to counties in which Title III--Bankhead-Jones Acquired
    Lands are located for funding public schools and roads. Of the net
    revenues for use of Title III--Bankhead-Jones Farm Tenant Act lands, 25
    percent is paid to the counties in which such lands are located for
    public school and road purposes (7 U.S.C. 1012).

        Payments to States.--The Secure Rural Schools and Community Self-
    Determination Act of 2000 (P.L. 106-393 dated October 30, 2000) provides
    stabilized education and road maintenance funding through predictable
    payments to counties, job creation in those counties and other
    opportunities associated with the restoration, maintenance and
    stewardship of Federal lands. Under P.L. 106-393, counties may elect one
    of two methods to calculate Payments to States funding they receive.
    Counties can either choose to continue receiving funds established by
    the 25 percent fund or they can receive their share of the State's
    ``full payment amount.'' Full payment amount is the average of the
    highest three years of payments to the State under the 25 percent fund
    through the years 1986-1999. A county's share of that amount is
    generally determined by the State in cooperation with the affected
    counties.

        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.

        Expenses, Brush Disposal.--Funds from payments by purchasers of
    National Forest timber to dispose of or treat slash

    [[Page 177]]

    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.--Funds authorized under the Valles Caldera
    Preservation Act (Public Law 106-248) are available without further
    appropriation for any purpose consistent with the purposes of the Act.
    Notwithstanding sections 1341 and 3302 of title 31 of the United States
    Code, all monies received from donations under subsection (g) or from
    the management of the Preserve shall be retained and shall be available,
    without further appropriation, for the administration, preservation,
    restoration, operation and maintenance, improvement, repair, and related
    expenses incurred with respect to properties under its management
    jurisdiction.

        Forest Botanical Products.--This pilot program established by
    Section 339 of the Consolidated Appropriations Act of FY 2000 (P.L. 106-
    113) provides for the recovery of fair market value for the sale of
    forest botanical products; the collection of fees to cover the costs of
    analyzing, granting, modifying, and monitoring the harvest of these
    products; the determination of sustainable harvest levels; and the
    establishment of personal use levels for which fees would not be
    collected.

        Administration of Rights-of-Way and Other Land Uses.--Fees collected
    from applicants and holders of special use authorizations are available
    to recover costs for processing applications and monitoring compliance
    with special use authorizations (31 U.S.C. 9701; 43 U.S.C. 1764(g); 30
    U.S.C. 815(1)).

                   Object Classification (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          60          60          58
    11.3      Other than full-time permanent          13          13          12
    11.5      Other personnel compensation..           7           8           7
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          80          81          77
    12.1    Civilian personnel benefits.....          21          22          20
    13.0    Benefits for former personnel...           1           1           1
    21.0    Travel and transportation of
              persons.......................           4           4           3
    22.0    Transportation of things........           1           1           1
    23.1    Rental payments to GSA..........           1           1           1
    23.2    Rental payments to others.......           2           2           2
    23.3    Communications, utilities, and
              miscellaneous charges.........           5           5           5
    24.0    Printing and reproduction.......           1           1           1
    25.2    Other services..................          52          53          19
    25.3    Other purchases of goods and
              services from Government
              accounts......................           9           9           4
    25.7    Operation and maintenance of
              equipment.....................           1           1           1
    26.0    Supplies and materials..........          11          12           5
    31.0    Equipment.......................           3           3           1
    32.0    Land and structures.............           2           2           2
    41.0    Grants, subsidies, and
              contributions.................         411         435         170
                                               ---------   ---------  ----------
    99.0      Direct obligations............         605         633         313
    99.0  Reimbursable obligations..........                       2           2
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         605         635         315
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-9921-0-2-999      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................       1,489       1,474       1,357
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................                       5           5
    ---------------------------------------------------------------------------

                     Forest Service Permanent Appropriations

                    (Legislative proposal, subject to PAYGO)

        The Budget includes a legislative proposal that would authorize the
    Secretary of Agriculture to dispose of certain lands, up to $800
    million, identified in National Forest plans as suitable for exchange
    since they are isolated or inefficient to manage. This proposal provides
    $400 million above the current baseline for a four-year extension of
    USDA and Department of the Interior forest county safety net payments,
    which will be targeted to the most affected areas, capped, adjusted
    downward each year, and eventually phased out. For administrative
    convenience, USDA will make the payments on behalf of both agencies. In
    addition, this proposal provides $400 million for acquisition of land
    for the NFS system, conservation education, access to public lands,
    habitat improvement, and to cover administrative costs of disposal. For
    the 2007 payment (to be made in 2008), the Administration will continue
    to work with Congress to identify mutually agreeable offsets.

                               Working Capital Fund

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-4605-0-4-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    09.01 Working capital fund..............         200         200         196
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         200         200         196
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         103          94          90
    22.00 New budget authority (gross)......         190         196         194
    22.10 Resources available from
            recoveries of prior year
            obligations.....................           1
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         294         290         284
    23.95 Total new obligations.............        -200        -200        -196
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........          94          90          88
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Discretionary:

    41.00   Transferred to other accounts...         -10
          Mandatory:

            Spending authority from
                offsetting collections:
    69.00     Offsetting collections (cash).         201         196         194

    [[Page 178]]

    69.10     Change in uncollected customer
                payments from Federal
                sources (unexpired).........          -1
                                               ---------   ---------  ----------
    69.90     Spending authority from
                offsetting collections
                (total mandatory)...........         200         196         194
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         190         196         194
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          25          29          33
    73.10 Total new obligations.............         200         200         196
    73.20 Total outlays (gross).............        -196        -196        -195
    73.45 Recoveries of prior year
            obligations.....................          -1
    74.00 Change in uncollected customer
            payments from Federal sources
            (unexpired).....................           1
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          29          33          34
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         163         176         175
    86.98 Outlays from mandatory balances...          33          20          20
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         196         196         195
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

            Offsetting collections (cash)
                from:
    88.00     Federal sources...............        -188        -183        -181
    88.40     Non-Federal sources...........         -13         -13         -13
                                               ---------   ---------  ----------
    88.90     Total, offsetting collections
                (cash)......................        -201        -196        -194
          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..................         -10
    90.00 Outlays...........................          -5                       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.

        Nurseries.--Seed supply services that provide tree seed for direct
    seeding or sowing in nurseries for the production of trees. Includes
    purchase or collection of cones, extraction of seeds, cleaning and
    testing, and storage and delivery. Operates in conjunction with tree
    nurseries; that is, forest tree nurseries and cold storage facilities
    for storage of tree seedlings. Tree seedlings are sold to national
    forests, State foresters, and other cooperators at cost.

        The Budget includes Forest Service implementation, 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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Reimbursable obligations:
          Personnel compensation:

    11.1    Full-time permanent.............          28          29          29
    11.3    Other than full-time permanent..           2           2           2
    11.5    Other personnel compensation....           3           3           2
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          33          34          33
    12.1  Civilian personnel benefits.......           9           9           9
    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
    23.2  Rental payments to others.........           1           1           1
    23.3  Communications, utilities, and
            miscellaneous charges...........           1           1           1
    24.0  Printing and reproduction.........           1           1           1
    25.2  Other services....................          23          23          22
    25.3  Other purchases of goods and
            services from Government
            accounts........................           3           3           3
    25.7  Operation and maintenance of
            equipment.......................          20          20          20
    26.0  Supplies and materials............          49          49          48
    31.0  Equipment.........................          54          53          52
    41.0  Grants, subsidies, and
            contributions...................           1           1           1
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         200         200         196
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-4605-0-4-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................         529         525         500
    ---------------------------------------------------------------------------

                                   Trust Funds

                            Forest Service Trust Funds

              Special and Trust Fund Receipts (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9974-0-7-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    01.00 Balance, start of year............         156         156         156
                                               ---------   ---------  ----------
    01.99 Balance, start of year............         156         156         156
        Receipts:
    02.20 Forest Service cooperative fund...          84          82          83
    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..         114         112         113
                                               ---------   ---------  ----------
    04.00 Total: Balances and collections...         270         268         269
        Appropriations:
    05.00 Forest Service trust funds........        -114        -112        -113
                                               ---------   ---------  ----------
    07.99 Balance, end of year..............         156         156         156
    ---------------------------------------------------------------------------

    [[Page 179]]

                   Program and Financing (in millions of dollars)

    ----------------------------------------------------------------------------
    Identification code 12-9974-0-7-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Obligations by program activity:
    00.01 Cooperative work trust fund.......         319         156         102
    00.02 Cooperative work advance payments.                       6           7
    00.03 Reforestation trust fund..........          31          30          30
    00.04 Land Between the Lakes Trust Fund.                       1           1
    09.01 Reimbursable program-coop work
            other...........................          39          38          45
                                               ---------   ---------  ----------
    10.00   Total new obligations...........         389         231         185
    ----------------------------------------------------------------------------

        Budgetary resources available for obligation:
    21.40 Unobligated balance carried
            forward, start of year..........         611         373         295
    22.00 New budget authority (gross)......         151         153         160
                                               ---------   ---------  ----------
    23.90   Total budgetary resources
              available for obligation......         762         526         455
    23.95 Total new obligations.............        -389        -231        -185
                                               ---------   ---------  ----------
    24.40   Unobligated balance carried
              forward, end of year..........         373         295         270
    ----------------------------------------------------------------------------

        New budget authority (gross), detail:
          Mandatory:

    60.26   Appropriation (trust fund)......         114         112         113
    69.00   Spending authority from
              offsetting collections:
              Offsetting collections (cash).          37          41          47
                                               ---------   ---------  ----------
    70.00   Total new budget authority
              (gross).......................         151         153         160
    ----------------------------------------------------------------------------

        Change in obligated balances:
    72.40 Obligated balance, start of year..          43          69         107
    73.10 Total new obligations.............         389         231         185
    73.20 Total outlays (gross).............        -363        -193        -158
                                               ---------   ---------  ----------
    74.40   Obligated balance, end of year..          69         107         134
    ----------------------------------------------------------------------------

        Outlays (gross), detail:
    86.97 Outlays from new mandatory
            authority.......................         116         123         128
    86.98 Outlays from mandatory balances...         247          70          30
                                               ---------   ---------  ----------
    87.00   Total outlays (gross)...........         363         193         158
    ----------------------------------------------------------------------------

        Offsets:
          Against gross budget authority and outlays:

    88.40   Offsetting collections (cash)
              from: Non-Federal sources.....         -37         -41         -47
    ----------------------------------------------------------------------------

        Net budget authority and outlays:
    89.00 Budget authority..................         114         112         113
    90.00 Outlays...........................         326         152         111
    ----------------------------------------------------------------------------

        Memorandum (non-add) entries:
    92.01 Total investments, start of year:
            Federal securities: Par value...           5           5           5
    92.02 Total investments, end of year:
            Federal securities: Par value...           5           5           5
    ---------------------------------------------------------------------------

        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      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
          Direct obligations:

            Personnel compensation:
    11.1      Full-time permanent...........          65          53          43
    11.3      Other than full-time permanent           7           6           5
    11.5      Other personnel compensation..           7           6           5
                                               ---------   ---------  ----------
    11.9      Total personnel compensation..          79          65          53
    12.1    Civilian personnel benefits.....          22          18          15
    13.0    Benefits for former personnel...           1           1           1
    21.0    Travel and transportation of
              persons.......................           4           3           3
    22.0    Transportation of things........           1           1
    23.1    Rental payments to GSA..........           1           1           1
    23.2    Rental payments to others.......           1           1           1
    23.3    Communications, utilities, and
              miscellaneous charges.........           2           2           1
    25.2    Other services..................         211          89          57
    25.3    Other purchases of goods and
              services from Government
              accounts......................           7           3           2
    25.7    Operation and maintenance of
              equipment.....................           1           1           1
    26.0    Supplies and materials..........          13           5           3
    31.0    Equipment.......................           3           1           1
    41.0    Grants, subsidies, and
              contributions.................           4           2           1
                                               ---------   ---------  ----------
    99.0      Direct obligations............         350         193         140
    99.0  Reimbursable obligations..........          39          38          45
                                               ---------   ---------  ----------
    99.9    Total new obligations...........         389         231         185
    ---------------------------------------------------------------------------

                                 Employment Summary

    ----------------------------------------------------------------------------
    Identification code 12-9974-0-7-302      2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
        Direct:
    1001  Civilian full-time equivalent
            employment......................       1,349       1,084         862
        Reimbursable:
    2001  Civilian full-time equivalent
            employment......................         214         236         251
    ---------------------------------------------------------------------------

                    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).
         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.
         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.
         Funds available to the Forest Service shall be available to conduct
    a program of 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, 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
    $200,000 shall be available for administrative expenses: Provided
    further, That the Foundation shall obtain, by the end of the period

    [[Page 180]]

    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: Provided further,
    That the Foundation may transfer Federal funds to a Federal or non-
    Federal recipient for a project at the same rate that the recipient has
    obtained the non-Federal matching funds.
         Funds appropriated to the Forest Service shall be available for
    interactions with and providing technical assistance to rural
    communities 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), Department of
    Agriculture, for travel and related expenses incurred as a result of OGC
    assistance or participation requested by the Forest Service at meetings,
    training sessions, management reviews, land purchase negotiations and
    similar non-litigation related matters. Future budget justifications for
    both the Forest Service and the Department of Agriculture should clearly
    display the sums previously transferred and the requested funding
    transfers.
         Any appropriations or funds available to the Forest Service may be
    used for necessary expenses in the event of law enforcement emergencies
    as necessary to protect natural resources and public or employee safety:
    Provided, That such amounts shall not exceed $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)).
         Funds available to the Forest Service, not to exceed $45,000,000,
    shall be transferred to the Capital Improvement and Maintenance account
    for the purpose of performing facilities maintenance as authorized by 7
    U.S.C. 2250. Such transfers 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.

             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.

                         GENERAL FUND RECEIPT ACCOUNTS

                               (in millions of dollars)

    ----------------------------------------------------------------------------
                                             2006 actual   2007 est.   2008 est.
    ----------------------------------------------------------------------------
    Offsetting receipts from the public:
      12-143500  General fund proprietary
        interest receipts, not otherwise
        classified..........................           1           1           1
      12-270110  Agriculture credit
        insurance, Negative subsidies.......           3           1
      12-270130  Agriculture credit
        insurance, Downward reestimates of
        subsidies...........................         392          88
      12-270210  Rural electrification and
        telephone loans, Negative subsidies.          58          42          40
      12-270230  Rural electrification and
        telephone loans, Downward
        reestimates of subsidies............         287
      12-270330  Rural water and waste
        disposal, Downward reestimates of
        subsidies...........................          78
      12-270510  Rural community facility,
        Negative subsidies..................           1           1
      12-270530  Rural community facility,
        Downward reestimates of subsidies...          24
      12-270630  Rural housing insurance,
        Downward reestimates of subsidies...         188
      12-270730  Rural business and
        industry, Downward reestimates of
        subsidies...........................          14
      12-270830  P.L. 480 loan program,
        Downward reestimates of subsidies...         415          66
      12-271030  Rural development loans,
        Downward reestimates of subsidies...           3
      12-271130  Rural telephone bank loans,
        Downward reestimates of subsidies...          27
      12-271330  Economic development loans,
        Downward reestimates of subsidies...           1
      12-271430  Agricultural resource
        conservation, Downward reestimates
        of subsidies........................           1
      12-275610  Negative subsidies, farm
        storage facility loans..............           1
      12-275630  Farm storage facility
        loans, Downward reestimate of
        subsidies...........................           4
      12-275730  Commodity Credit
        Corporation export guarantee
        financing, Downward reestimate of
        subsidies...........................         551         390
      12-322000  All other general fund
        proprietary receipts including
        budget clearing accounts............          11           7           7
    General Fund Offsetting receipts from
     the public.............................       2,060         596          48
    ----------------------------------------------------------------------------

    Intragovernmental payments:.............
      12-388500  Undistributed
        intragovernmental payments and
        receivables from cancelled accounts.         -82           1           1
                                               ---------   ---------  ----------
    General Fund Intragovernmental payments.         -82           1           1
    ---------------------------------------------------------------------------

                          TITLE VII--GENERAL PROVISIONS

                (including cancellations 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 182 passenger motor vehicles, of which 142 shall be for
    replacement only, and for the hire of such vehicles.
        Sec. 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
    $4,505,000 in the pest and disease management program to control
    grasshoppers and Mormon cricket, up to $33,125,000 in animal health
    monitoring and surveillance for the animal identification system, up to
    $1,500,000 in the scrapie program for indemnities, up to $8,141,000 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
    the Native American Institutions Endowment Fund; Farm Service Agency,
    salaries and expenses funds made available to county committees; Foreign
    Agricultural Serv

    [[Page 181]]

    ice, 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. 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 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 notification of the
    Committees on Appropriations of both Houses of Congress.
        Sec. 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. 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. 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 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. 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. 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 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 unless prior notification has been transmitted to
    the Committees on Appropriations of both Houses of Congress.
        Sec. 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 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. 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 disburse obligations made in
    the current fiscal year, and are not available for new 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, 2006, 2007 and 2008
    shall remain available until expended to disburse obligations made in
    fiscal years 2004, 2005, 2006, 2007 and 2008 respectively, and except
    for fiscal year 2008 funds, are not available for new obligations.
        Sec. 711.  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 2008 are hereby permanently cancelled;
        (b) a Conservation Security Program authorized by 16 U.S.C. 3838 et
    seq., in excess of $316,212,000. Funds exceeding this amount for fiscal
    year 2008 are hereby permanently cancelled. In addition, not
    withstanding any other provision of law, section 1241(a)(3)(B) of the
    Food Security Act of 1985 (16 U.S.C. 3841(a)(3)(B)) is amended by
    striking ``$5,650,000,000'' and inserting the following:
    ``$5,570,000,000'';
        (c) an Agricultural Management Assistance Program as authorized by
    section 524 of the Federal Crop Insurance Act (7 U.S.C. 1524).
    $10,000,000 of the funds available for fiscal year 2008 are hereby
    permanently cancelled; and
        (d) a Marketing Assistance Loan Program to provide storage credits
    for upland cotton, implemented by 7 CFR part 1427. Funds otherwise
    available for fiscal year 2008 are hereby permanently cancelled.
        Sec. 712.  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.''.
        Sec. 713. 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. 714.  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. 715.  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. 716. Of the funds available under section 32 of the Act of
    August 24, 1935, $65,452,000 are hereby permanently cancelled.
        Sec. 717.  Not more than $11,166,000 of the funds made available
    under section 522(e) of the Federal Crop Insurance Act (7 U.S.C.
    1522(e)) may be used for program compliance and integrity purposes,
    including the data mining project, and for the Common Information
    Management System.
        Sec. 718. Not withstanding any other provision of law, the time
    period for the Secretary of Agriculture to enroll not to exceed
    2,275,000 acres in the Wetlands Reserve Program shall be extended
    through fiscal year 2008. For fiscal year 2008, the Secretary shall use
    the funds, facilities, and authorities of the Commodity Credit
    Corporation to carry out this program.