Appendix - Department of Agriculture

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

THE BUDGET FOR FISCAL YEAR 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)

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

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.

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)

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)

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.

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)

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)

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)

[[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

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.

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)

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.

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)

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.)

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.

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)

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.

Program and Financing (in millions of dollars)

[[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)

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.)

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)

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.)

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)

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.)

[[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)

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.)

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)

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.)

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)

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.

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)

[[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.)

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)

Employment Summary

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.

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)

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.

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)

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.

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.

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)

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.

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)

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.)

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)

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)

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)

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.)

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)

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.)

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)

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.

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)

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

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.

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)

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

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.

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)

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)

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)

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

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).

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)

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.

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.

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

1999

Total assets

2,971

3,145

LIABILITIES:
2105

Federal liabilities: Other

Non-Federal liabilities:

2201

Accounts payable

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.

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)

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

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.

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).

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)

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)

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

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

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

1206

Non-Federal assets: Receivables, net

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

1501

Defaulted guaranteed loans receivable, gross

1502

Interest receivable

-2

1505

Allowance for subsidy cost (-)

-18

-22

1599

Net present value of assets related to defaulted guaranteed loans

1999

Total assets

565

532

LIABILITIES:
Federal liabilities:

2104

Resources payable to Treasury

102

2105

Other

213

Non-Federal liabilities:

2201

Accounts payable

313

275

2204

Liabilities for loan guarantees

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

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

1606

Foreclosed property

1699

Value of assets related to direct loans

255

1,956

1701

Defaulted guaranteed loans, gross

1999

Total assets

316

1,990

LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

313

1,980

Non-Federal liabilities:

2201

Accounts payable

2204

Liabilities for loan guarantees

2207

Other

2999

Total liabilities

316

1,990

4999

Total liabilities and net position

316

1,990

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

Object Classification (in millions of dollars)

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).

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

Non-Federal assets:

1206

Receivables, net

357

1207

Advances and prepayments

1601

Direct loans, gross

1,137

1,487

1602

Interest receivable

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

1802

Inventories and related properties

1803

Property, plant and equipment, net

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)

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''.

[[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)

[[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
---------------------------------------------------------------------------

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

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

1701

Defaulted guaranteed loans, gross

1,401

516

1702

Interest receivable

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

2104

Resources payable to Treasury

1,294

452

2207

Non-Federal liabilities: Other

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''.

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

Investments in US securities:
1106

Receivables, net

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

1401

Direct loans receivable, gross

210

248

1402

Interest receivable

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

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

Investments in US securities:
1106

Receivables, net

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

1401

Direct loans receivable, gross

1405

Allowance for subsidy cost (-)

-10

1499

Net present value of assets related to direct loans

1999

Total assets

LIABILITIES:
2103

Federal liabilities: Debt

2999

Total liabilities

4999

Total liabilities and net position

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

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.)

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)

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)

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

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

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)

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.)

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

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.)

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)

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.

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)

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

Investments in US securities:
1106

Receivables, net

1999

Total assets

LIABILITIES:
Federal liabilities:

2104

Resources payable to Treasury

2105

Other

2999

Total liabilities

4999

Negative subsidy BA total [12-2086]

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

[[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

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.

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)

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''.

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.

Program and Financing (in millions of dollars)

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.

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.

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.

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.

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

Investments in US securities:
1106

Receivables, net

-3

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

1401

Direct loans receivable, gross

1,663

1,982

1402

Interest receivable

1404

Foreclosed property

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

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

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

Investments in US securities:
1106

Receivables, net

1999

Total assets

LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

2204

Non-Federal liabilities: Liabilities for loan guarantees

2999

Total liabilities

4999

Total liabilities and net position

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

Rural Housing Insurance Fund Program Account

(including transfers of funds)

For gross obligations for the principal amount of direct and
guaranteed loans as authorized by title V of the Housing Act of 1949, to
be available from funds in the rural housing insurance fund, as follows:
$4,848,611,000 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''.

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.

Object Classification (in millions of dollars)

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)

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

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

1404

Foreclosed property

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

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

1999

Total assets

546

599

LIABILITIES:
Non-Federal liabilities:

2204

Liabilities for loan guarantees

545

2207

Other

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

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

1699

Value of assets related to direct loans

7,187

6,486

1901

Other Federal assets: Other assets

1999

Total assets

7,441

6,578

LIABILITIES:
Federal liabilities:

2102

Interest payable

2103

Debt

2104

Resources payable to Treasury

7,347

6,477

Non-Federal liabilities:

2204

Liabilities for loan guarantees

2207

Other

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).

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.

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.

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

Investments in US securities:
1106

Receivables, net

-6

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

1401

Direct loans receivable, gross

1402

Interest receivable

1405

Allowance for subsidy cost (-)

-75

-66

1499

Net present value of assets related to direct loans

1999

Total assets

LIABILITIES:
Federal liabilities:

2104

Resources payable to Treasury

2105

Other

2999

Total liabilities

4999

Total liabilities and net position

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

Rural Business and Industry Guaranteed Loans Financing Account

Program and Financing (in millions of dollars)

----------------------------------------------------------------------------
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)

[[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
---------------------------------------------------------------------------

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

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''.

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)

[[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)

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

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

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

1401

Direct loans receivable, gross

379

399

1402

Interest receivable

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)

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

1601

Direct loans, gross

1602

Interest receivable

1603

Allowance for estimated uncollectible loans and interest (-)

-25

-22

1604

Direct loans and interest receivable, net

1699

Value of assets related to direct loans

1999

Total assets

LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

2999

Total liabilities

4999

Total liabilities and net position

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

Rural Economic Development Loans Program Account

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

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

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

1401

Direct loans receivable, gross

1405

Allowance for subsidy cost (-)

-5

-2

1499

Net present value of assets related to direct loans

1999

Total assets

LIABILITIES:
Federal liabilities:

2104

Resources payable to Treasury

2105

Other

2999

Total liabilities

4999

Total liabilities and net position

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

Rural Business 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

LIABILITIES:
2204

Non-Federal liabilities: Liabilities for loan guarantees

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

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.

Program and Financing (in millions of dollars)

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

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

1401

Direct loans receivable, gross

1405

Allowance for subsidy cost (-)

-1

1499

Net present value of assets related to direct loans

1999

Total assets

LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

2999

Total liabilities

4999

Negative subsidy BA total [12-1908]

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

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.

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)

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

[[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

Investments in US securities:
1106

Receivables, net

-1

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

1401

Direct loans receivable, gross

6,639

7,104

1402

Interest receivable

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

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

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''.

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)

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

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

1401

Direct loans receivable, gross

17,858

22,226

1402

Interest receivable

-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

Investments in US securities:
1106

Receivables, net

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

1401

Direct loans receivable, gross

1,987

2,102

1402

Interest receivable

1405

Allowance for subsidy cost (-)

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

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

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.

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

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

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

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

2999

Total liabilities

3,561

1,502

NET POSITION:
3300

Cumulative results of operations

420

3999

Total net position

420

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

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

Investments in US securities:
1106

Receivables, net

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

1401

Direct loans receivable, gross

356

377

1405

Allowance for subsidy cost (-)

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

[[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.

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

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

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

1401

Direct loans receivable, gross

190

239

1402

Interest receivable

1405

Allowance for subsidy cost (-)

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

1201

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

1601

Direct loans, gross

1,931

1,769

1602

Interest receivable

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

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

2207

Other

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

1602

Interest receivable

1603

Allowance for estimated uncollectible loans and interest (-)

-1

1604

Direct loans and interest receivable, net

1699

Value of assets related to direct loans

1999

Total assets

LIABILITIES:
2104

Federal liabilities: Resources payable to Treasury

2999

Total liabilities

4999

Total liabilities and net position

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

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.

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)

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.

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.)

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''.

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)

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

Investments in US securities:
1106

Receivables, net

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

1401

Direct loans receivable, gross

2,273

2,166

1402

Interest receivable

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

2102

Interest payable

2103

Debt

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

Investments in US securities:
1106

Receivables, net

134

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

1401

Direct loans receivable, gross

521

382

1402

Interest receivable

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

2102

Interest payable

2104

Resources payable to Treasury

246

166

2105

Other

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

1601

Direct loans, gross

5,909

5,600

1602

Interest receivable

715

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

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.

Program and Financing (in millions of dollars)

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)

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)

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

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.

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)

[[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

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.

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.

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)

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)).

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)

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.

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)

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.

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)

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.

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)

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.

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

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.

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)

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.

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)

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

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.

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.)

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)

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)

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)

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)

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.