[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.

                                
