[House Report 107-623]
[From the U.S. Government Publishing Office]




107th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     107-623

======================================================================



 
   AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND 
               RELATED AGENCIES APPROPRIATIONS BILL, 2003

                                _______
                                

 July 26, 2002.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Mr. Bonilla, from the Committee on Appropriations, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 5263]

    The Committee on Appropriations submits the following 
report in explanation of the accompanying bill making 
appropriations for Agriculture, Rural Development, Food and 
Drug Administration, and Related Agencies for fiscal year 2003.

                                                        SUMMARY OF ESTIMATES AND RECOMMENDATIONS
                                                                [In Thousands of Dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                    FY 2003 recommendation compared with
                                                                   FY 2002           FY 2003           FY 2003     -------------------------------------
                                                                appropriation     estimates \1\    recommendation        FY 2002            FY 2003
                                                                                                                      appropriation        estimates
--------------------------------------------------------------------------------------------------------------------------------------------------------
Title I--Agricultural Programs..............................       $29,227,688        25,197,007        25,373,392         -3,854,296           +176,385
Title II--Conservation Programs.............................           962,139         1,000,944         1,020,579            +58,440            +19,635
Title III--Rural Economic and Community Development Programs         2,581,924         2,587,065         2,823,288           +241,364           +236,223
Title IV--Domestic Food Programs............................        37,894,627        41,871,651        41,971,942         +4,077,315           +100,291
Title V--Foreign Assistance and Related Programs............         1,124,518         1,449,591         1,491,081           +366,563            +41,490
Title VI--FDA and Related Agencies..........................         1,456,651         1,424,269         1,464,586             +7,935            +40,317
Title VII--General Provisions...............................           107,896  ................           118,200            +10,304           +118,200
                                                             -------------------------------------------------------------------------------------------
      Total.................................................        73,355,443        73,530,527        74,263,068           +907,625           +732,541
--------------------------------------------------------------------------------------------------------------------------------------------------------
\1\ Excludes proposed discretionary accrual amounts for pension and health benefits. Includes proposed FECA surcharge.

    For discretionary programs the Committee provides 
$17,601,000,000, which is $1,048,000,000 more than the amount 
available in fiscal year 2002 and $179,541,000 more than the 
budget request.

                              Introduction

    The programs funded in this legislation improve the lives 
of every American, every day. The Department of Agriculture 
administers nutrition and feeding programs for millions of 
Americans. USDA is also responsible for the safety of our meat 
and poultry supply.
    This bill provides funding for research to strengthen our 
Nation's food supply, to make American exports competitive in 
world markets, to improve human nutrition, and to help ensure 
food safety. Funds in this bill make it possible for less than 
two percent of the population to provide a wide variety of 
safe, nutritious, and affordable food for all Americans and for 
many more people overseas.
    Food safety remains one of the Committee's highest 
priorities. The bill provides funding for the Food Safety and 
Inspection Service, the Food and Drug Administration, the 
Office of the Chief Economist, the Economic Research Service, 
the Food and Nutrition Service, the Agricultural Research 
Service and the Cooperative State Research, Education and 
Extension Service for food safety related activities.
    The rural development programs funded in this bill provide 
basic housing, safe water, and opportunities for economic 
growth in rural America. Conservation and environmental 
programs preserve lands and watersheds for use by future 
generations.
    In addition, this bill provides funding for the Food and 
Drug Administration which oversees the safety of an enormous 
range of food, drugs, and medical devices and the Commodity 
Futures Trading Commission which regulates an increasingly 
complex market in commodity trading.
    In setting program levels the Committee was constrained by 
allocations for budget authority and outlays in comparison with 
fiscal year 2002. The Committee's recommended program levels 
are based upon appropriated funds as well as limitations on 
mandatory programs.
    2002 Farm Bill.--The Committee has jurisdictional and 
budgetary concerns with the numerous mandatory spending 
programs created by the new Farm Bill (Farm Security and Rural 
Investment Act of 2002 (P.L. 107-171)) that historically and 
rightfully come under the discretionary funding jurisdiction of 
the Appropriations Committee. In some cases, the Farm Bill 
created new programs wholly or partially funded by the 
Commodity Credit Corporation (CCC) while authorizing additional 
expenditures subject to appropriations. In all, there are 
approximately 35 programs funded by the CCC, an additional 110 
programs subject to appropriations, and unfunded requirements 
for 58 new various reports, studies, and commissions.
    The Committee notes that, in addition to the roughly 80 
rules that were already on the Department's agenda for 2002, 
the new Farm Bill will require the various agencies of the 
Department to draft and implement approximately 95 new rules. 
The Committee is concerned that the Department's financial and 
personnel resources may be unduly stressed, and that program 
delivery may suffer.
    The Committee notes that while most discretionary 
activities are adequately funded, each year commodity groups, 
public advocacy organizations and Members of the House and 
Senate request more than can be prudently allocated for 
activities funded by the Agriculture Appropriations bill. In 
addition, the Committee has a history of opposing the creation 
of mandatory spending for agricultural research, rural 
development and other non-agricultural production activities, 
as it is a practice which, in the case of mandatory 
agricultural research, places a higher priority on funding for 
academia than for the Special Supplemental Nutrition Program 
for Women, Infants and Children, the Food and Drug 
Administration, or the various food safety activities funded by 
this bill.
    The Committee recognizes and supports the notion of 
additional resources for our Nation's producers and the rural 
communities in which they reside, but not at the expense of the 
budgetary discipline provided by the annual appropriations 
process. Nor can the Congress send a message to the American 
people that rural development and research, while important, 
are more important than the safety of our food supply, and the 
safety and efficacy of our prescription drugs.
    The Committee recognizes that the Administration's budget 
was developed several months before the enactment of the new 
Farm Bill. The Department is encouraged to review its new and 
revised authorities, and to submit budget amendments so that 
provisions of the new Farm Bill can be implemented during 
fiscal year 2003. The Committee also notes that previously 
existing authorities, particularly those under the Rural 
Development accounts, can be used for many of the same 
purposes, including the development of biofuels, and other 
activities. To the extent that such authorities exist, the 
Committee encourages the Department to fully utilize such 
authorities until submitting budget amendments to fully 
implement new specific authorities provided by the new Farm 
Bill.
    Department of Homeland Security.--On June 18, 2002, the 
Administration transmitted to Congress proposed legislation to 
create a new Department of Homeland Security. The only item in 
this proposal under the jurisdiction of this Appropriations Act 
is a proposal to transfer the entire Animal and Plant Health 
Inspection Service, as well as the Plum Island Animal Disease 
Center, from the Department of Agriculture to the Department of 
Homeland Security. The Committee recommendation includes no 
action to facilitate or prevent this transfer. However, the 
Committee does recommend a general provision to this Act 
(section 734), which provides that no funds may be transferred 
to any department, agency, or instrumentality of the United 
States Government, except pursuant to a transfer made by, or 
transfer authority provided in, this Act or any other 
appropriation Act.
    Pay Costs.--The Committee's recommendation includes full 
funding to cover 2.6% pay increases for fiscal year 2003, the 
level proposed in the budget request. Without this funding, 
agencies would be required to reduce the level of services 
provided in order to cover mandatory cost increases.
    Program Priorities/Loan Targeting.--The Committee will 
expect the Department to focus exclusively on economic need 
when attempting to target increased lending under various farm 
loan and rural housing loan and assistance programs.
    Proposed New User Fees.--The budget request assumes the 
establishment of new user fees in the following areas:
           Animal and Plant Health Inspection Service, 
        Animal Welfare Inspections
           Grain Inspection, Packers and Stockyards 
        Administration:
                   Grain Standardization Development
                   License Fees
           Commodity Futures Trading Commission, 
        Transaction Fees
None of these proposed user fees are currently authorized in 
law. The Committee does not recommend establishing such fees in 
annual appropriations acts, but will consider such fees should 
they achieve authorization.
    Accrual Funding of Retirement Costs and Post-Retirement 
Health Benefits.--The President's Budget included a legislative 
proposal under the jurisdiction of the House Committee on 
Government Reform to charge to individual agencies, starting in 
fiscal year 2003, the fully accrued costs related to retirement 
benefits of Civil Service Retirement System employees and 
retiree health benefits for all civilian employees. The Budget 
also requested an additional dollar amount in each affected 
discretionary account to cover these accrued costs.
    Without passing judgment on the merits of this legislative 
proposal, the Committee has reduced the dollar amounts of the 
President's request shown in the ``Comparative Statement of New 
Budget Authority'' and other tables in this report to exclude 
the accrual funding proposal. The disposition by Congress of 
the legislative proposal is unclear at this time. Should the 
proposal be passed by Congress and enacted, the Committee will 
make appropriate adjustments to the President's request to 
include accrual amounts.
    The Committee further notes that administration proposals 
requiring legislative action by the authorizing committees of 
Congress are customarily submitted in the budget as separate 
schedules apart from the regular appropriations requests. 
Should such a proposal be enacted, a budget amendment formally 
modifying the President's appropriation request for 
discretionary funding is then transmitted to the Congress.
    The Committee is concerned that this practice, which has 
always worked effectively for both Congress and past 
administrations, was not followed for the accrual funding 
proposal. In this case, the Office of Management of Budget 
(OMB) decided to include accrual amounts in the original 
discretionary appropriations language request. These amounts 
are based on legislation that has yet to be considered and 
approved by the appropriate committees of Congress. This led to 
numerous misunderstandings both inside and outside of Congress 
of what was the ``true'' President's budget request. The 
Committee believes that, in the future, OMB should follow long-
established procedures with respect to discretionary spending 
proposals that require legislative action.
    Federal Employees' Compensation Act (FECA) Administrative 
Costs.--The President's Budget included a legislative proposal 
to allow the Department of Labor (DOL) to charge agencies for 
the administrative costs related to FECA benefits paid to 
employees. DOL administers the FECA program, and it currently 
pays the benefits from the Special Benefits fund and the 
administrative costs from its discretionary budget. Benefits 
are currently billed back to agencies, while administrative 
costs are not.
    This proposal would allow DOL to add an administrative 
surcharge to the amount billed to agencies for FECA benefits. 
The rationale is that it would give agencies a greater 
incentive to monitor and reduce FECA benefit costs.
    The President's budget includes the administrative costs in 
each agency's budget. The effect on most agencies is relatively 
small. The government-wide cost is $87,000,000.
    The Committee's recommendation assumes that this proposal 
will not be enacted into law. Therefore, funding 
recommendations for the accounts within the jurisdiction of 
this bill exclude these administrative costs.
    Rental Payments to GSA.--Annual appropriations are made to 
agencies of the Federal government so that they can pay the 
General Services Administration (GSA) fees for rental of space 
and for related services. For many years, funds for such 
payments for USDA have been appropriated as part of a central 
account titled ``Agriculture Buildings and Facilities and 
Rental Payments''. The budget request proposed decentralizing 
these expenses, and requested that the related amounts be 
appropriated under the accounts that finance individual 
agencies and activities.
    There are strong arguments supporting either method of 
financing this cost. On balance, the Committee recommends 
retaining centralized funding in order to closely monitor the 
total amount of this expense. Therefore, appropriations for 
rental payments to GSA are recommended in a single account, and 
the budget requests for agencies and activities have been 
reduced accordingly.
    Unauthorized Appropriations Requests.--The Committee 
directs that budget justification materials submitted in 
support of future appropriations requests will contain tabular 
listings of any item that is not authorized by law, as well as 
items for which the budget request includes amounts in excess 
of the authorized amount, in the format contained elsewhere in 
this report under the heading ``Appropriations Not Authorized 
by Law''.

                        CONSTITUTIONAL AUTHORITY

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives states that:

          Each report of a committee on a bill or joint 
        resolution of a public character, shall include a 
        statement citing the specific powers granted to the 
        Congress in the Constitution to enact the law proposed 
        by the bill or joint resolution.

    The Committee on Appropriations bases its authority to 
report this legislation from Clause 7 of Section 9 of Article I 
of the Constitution of the United States of America which 
states:

          No money shall be drawn from the Treasury but in 
        consequence of Appropriations made by law * * *

    Appropriations contained in this Act are made pursuant to 
this specific power granted by the Constitution.

                     TITLE I--AGRICULTURAL PROGRAMS

                 Production, Processing, and Marketing

                        Office of the Secretary

2002 appropriation \1\..................................      $2,992,000
2003 budget estimate \2\................................      36,667,000
Provided in the bill....................................      31,629,000

Comparison:
    2002 appropriation..................................     +28,637,000
    2003 budget estimate................................      -5,038,000

\1\ Does not include FY 2002 supplemental of $80,919,000 For Homeland 
Security, P.L. 107-117.
\2\ Excludes $74,000 for pension and health benefits.

    The Secretary of Agriculture, assisted by the Deputy 
Secretary, Under Secretaries and Assistant Secretaries, Chief 
Information Officer, Chief Financial Officer, and members of 
their immediate staffs, directs and coordinates the work of the 
Department. This includes developing policy, maintaining 
relationships with agricultural organizations and others in the 
development of farm programs, and maintaining liaison with the 
Executive Office of the President and Members of Congress on 
all matters pertaining to agricultural policy.
    The general authority of the Secretary to supervise and 
control the work of the Department is contained in the Organic 
Act of 1944 (7 U.S.C. 2201-2202). The delegation of regulatory 
functions to Department employees and authorization of 
appropriations to carry out these functions is contained in 7 
U.S.C. 450c-450g.

                          COMMITTEE PROVISIONS

    For the Office of the Secretary, the Committee provides an 
appropriation of $31,629,000, an increase of $28,637,000 above 
the amount available for fiscal year 2002 and a decrease of 
$5,038,000 below the budget request.
    Building security and terrorism prevention.--The Committee 
recommends $28,250,000, to remain available until expended, for 
building security and other terrorism prevention costs, as 
requested.
    Community Involved in Sustaining Agriculture.--The 
Committee directs the Secretary to work with the Community 
Involved in Sustaining Agriculture (CISA) to increase and 
expand buy local initiatives including farmer's markets 
throughout Massachusetts, to expand technical assistance 
provided for sustainable farming practices, and to expand their 
media campaign to educate consumers about the importance of 
buying locally grown agriculture products.
    Organizational streamlining and restructuring activities.--
The Committee does not recommend the budget request for 
$5,000,000, to remain available until September 30, 2005, for 
workforce and organizational streamlining and restructuring 
activities related to Service Center Agencies.
    Plant and animal pest and disease emergencies.--The 
Committee is concerned about the increasing risk to our 
nation's food supply from plant and animal pests and diseases. 
Recent examples include citrus canker in Florida, glassy-winged 
sharpshooter in California, Asian longhorned beetles in 
Illinois and New York, Mediterranean and Mexican fruit flies 
throughout the southern United States, and the possibility for 
a foot and mouth disease incursion. The Committee notes that 
the Secretary of Agriculture has authority to declare 
emergencies and to use the resources of the Commodity Credit 
Corporation for the arrest and eradication of such threats to 
American agriculture. This system has served our country well 
for many years by granting the Secretary the power to make 
virtually unlimited efforts to eliminate emerging pest and 
disease problems before outbreaks expand and become 
unmanageable.
    Domestic shrimping industry.--The Committee is aware that 
the domestic shrimping industry has suffered an extraordinary 
increase in imported shrimp caused by European tariffs and 
financial problems in many Asian nations. Shrimp imports have 
increased to over 883 million pounds per year, while prices 
have plummeted. Free-falling shrimp wholesale prices are 
causing significant problems to our domestic shrimping 
industry. The Committee will expect the Secretary of 
Agriculture to review this situation and report on possible 
solutions to this predicament.
    Egg industry.--The Committee is aware of the economic 
problems facing the U.S. egg industry and expects the 
Department of Agriculture to work in developing programs to 
utilize spent hens and otherwise assist egg producers.
    Productivity of the tree fruit industry.--The Committee 
believes the U.S. tree fruit industry is a vital part of the 
economy in many regions of this country, and its economic 
viability is seriously threatened by a downturn in 
profitability. To enhance its competitiveness, the Committee 
requests that U.S. Department of Agriculture consult with the 
U.S. tree fruit industry to develop, enhance and disseminate a 
range of new approaches and technologies, including: fruit 
genomics, fruit quality, precision agriculture applications, 
sensor technology, and intelligent and automated orchard and 
fruit handling management systems that will lower costs and 
improve fruit quality. The Committee requests that USDA develop 
a plan to address the tree fruit industry's needs and report 
its progress to the Committee no later than January 1, 2003.
    State Office Collocation.--The Committee continues to 
direct that any reallocation of resources related to the 
collocation of state offices scheduled for 2002 and subsequent 
years is subject to the Committee's reprogramming procedures. 
The Committee notes that no such reprogramming requests have 
been received to date.
    Farmers' Market at USDA Headquarters.--The Committee 
continues to support the operation of the Farmers' Market 
operating at USDA headquarters in Washington DC. Given that 
this site offers a unique opportunity as a demonstration 
project viewed by visitors and government officials, the 
Committee strongly urges the Department to develop the use of 
electronic benefit technology at this location, including the 
use of credit, ATM, and EBT cards.
    Contracting.--The Committee is concerned that extensive use 
of contracting outside the Department for administrative and 
core mission activities may not yield the best cost benefit or 
the best customer benefit in terms of dealing with experienced 
career federal personnel. Customers of federal programs such as 
those administered by the Rural Development Services and the 
Farm Service Agency often have needs and circumstances that are 
not dealt with in the private sector. The Committee directs the 
Department to make cost comparisons of the use of private 
contractors with federal employee performance and to employ the 
most efficient organization process as described in OMB 
Circular A-76. The Committee also directs the Department to 
solicit input from federal employees in agencies affected by 
contracting out in order to ensure the expertise of those 
employees is a part of any decision made by management. The 
Committee also directs the Department to report on its 
contracting out policies, including the agency budgets for 
contracting out, with its annual budget submission for fiscal 
year 2004.
    Food Safety Commission.--The Committee is aware that the 
Farm Security and Rural Investment Act included a provision 
which established a `Food Safety Commission' to make specific 
recommendations to enhance the food safety system, including a 
report to the President and Congress addressing the findings, 
conclusions, and recommendations of the Commission, a summary 
of any other materials used by the Commission in the 
preparation of the report, and, if requested, a summary of the 
minority views of the Commission. Given continuing concerns 
about foodborne illness and the need to ensure the security of 
the U.S. food supply, the Committee urges the Secretary to 
commence establishment of the Food Safety Commission in fiscal 
year 2003, and to include specific funding for its operation in 
the FY 2004 Budget Request.
    Cranberry acreage reserve program.--To the extent that any 
funds are provided for the Cranberry Acreage Reserve Program 
(established in Section 10608 of the Farm Security and Rural 
Investment Act of 2002), easement purchases should: be limited 
to areas composed of both wetlands and buffer lands adjacent to 
the wetlands where the ratio of wetlands and buffer lands is 
consistent with the prevailing ratios in the cranberry 
cultivation operations in the region; prohibit cranberry 
production and development, other than that needed for 
recreational use or other non-cranberry agricultural use; 
maximize the reduction in the cranberry surplus while targeting 
smaller cranberry growing operations; be implemented in a 
manner that ensures a reasonable distribution of easement 
purchases among cranberry producing regions with higher and 
lower potential easement purchase prices. Priority should be 
given to easement purchases that include non-federal funds and 
preserve open space in environmentally sensitive areas.

                          Executive Operations

    Executive Operations was established as a result of the 
reorganization of the Department to provide a support team for 
USDA policy officials and selected department-wide services. 
Activities under Executive Operations include the Office of the 
Chief Economist, the National Appeals Division, and the Office 
of Budget and Program Analysis.

                     OFFICE OF THE CHIEF ECONOMIST




2002 appropriation....................................        $7,704,000
2003 budget estimate \1\..............................        12,117,000
Provided in the bill \2\..............................         8,566,000
Comparison:
    2002 appropriation................................          +862,000
    2003 budget estimate..............................        -3,551,000

\1\ Excludes $391,000 for pension and health benefits.
\2\ Excludes $101,000 for GSA Rent which is funded in a central account
  under Agriculture Buildings and Facilities.

    The Office of the Chief Economist advises the Secretary of 
Agriculture on the economic implications of Department policies 
and programs. The Office serves as the single focal point for 
the Nation's economic intelligence and analysis, risk 
assessment, energy and new uses, and cost-benefit analysis 
related to domestic and international food and agriculture, and 
is responsible for coordination and review of all commodity and 
aggregate agricultural and food-related data used to develop 
outlook and situation material within the Department.

                          COMMITTEE PROVISIONS

    For the Office of the Chief Economist, the Committee 
provides an appropriation of $8,566,000, an increase of 
$862,000 above the amount available for fiscal year 2002 and a 
decrease of $3,551,000 below the budget request.
    Agricultural supply and demand.--The Committee urges the 
Department to work with a qualified entity such as Columbia 
University's International Research Institute for Climate 
Prediction to obtain improved and available tools and 
mechanisms for foreign agricultural supply and demand 
estimates.

                       NATIONAL APPEALS DIVISION




2002 appropriation....................................       $12,869,000
2003 budget estimate \1\..............................        14,334,000
Provided in the bill \2\..............................        13,759,000
Comparison:
    2002 appropriation................................          +890,000
    2003 budget estimate..............................          -575,000

\1\ Excludes $928,000 for pension and health benefits.
\2\ Excludes $575,000 for GSA Rent which is funded in a central account
  under Agriculture Buildings and Facilities.

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

                          COMMITTEE PROVISIONS

    For the National Appeals Division, the Committee provides 
an appropriation of $13,759,000, an increase of $890,000 above 
the amount available for fiscal year 2002 and a decrease of 
$575,000 below the budget request.

                 OFFICE OF BUDGET AND PROGRAM ANALYSIS




2002 appropriation....................................        $7,041,000
2003 budget estimate \1\..............................         7,358,000
Provided in the bill..................................         7,358,000
Comparison:
    2002 appropriation................................          +317,000
    2003 budget estimate..............................  ................

\1\ Excludes $530,000 for pension and health benefits.

    The Office of Budget and Program Analysis provides 
direction and administration of the Department's budgetary 
functions including development, presentation, and execution of 
the budget; reviews program and legislative proposals for 
program, budget, and related implications; analyzes program and 
resource issues and alternatives, and prepares summaries of 
pertinent data to aid the Secretary and departmental policy 
officials and agency program managers in the decision-making 
process; and provides department-wide coordination for and 
participation in the presentation of budget related matters to 
the Committees of the Congress, the media, and interested 
public. The Office also provides department-wide coordination 
of the preparation and processing of regulations and 
legislative programs and reports.

                          COMMITTEE PROVISIONS

    For the Office of Budget and Program Analysis, the 
Committee provides an appropriation of $7,358,000, an increase 
of $317,000 above the amount available for fiscal year 2002 and 
the same as the budget request.

                Office of the Chief Information Officer





2002 appropriation....................................       $10,029,000
2003 budget estimate \1\..............................        31,277,000
Provided in the bill..................................        15,251,000
Comparison:
    2002 appropriation................................        +5,222,000
    2003 budget estimate..............................       -16,026,000

\1\ Excludes $455,000 for pension and health benefits.

    Section 808 of P.L. 104-208 required the establishment of a 
Chief Information Officer for major Federal agencies. Pursuant 
to this Act, the Office of the Chief Information Officer was 
established in August 1996, to provide policy guidance, 
leadership, coordination, and direction to the Department's 
information management and information technology investment 
activities in support of USDA program delivery. The Office 
provides long-range planning guidance, implements measures to 
ensure that technology investments are economical and 
effective, coordinates interagency Information Resources 
Management projects, and implements standards to promote 
information exchange and technical interoperability. The Office 
also provides telecommunications and ADP services to USDA 
agencies through the National Information Technology Center 
with locations in Ft. Collins, Colorado and Kansas City, 
Missouri. Direct ADP operational services are also provided to 
the Office of the Secretary, Office of the General Counsel, 
Office of Communications, the Office of the Chief Financial 
Officer and Executive Operations.
    Additionally, the Office of the Chief Information Officer 
is responsible for certain activities under the Department's 
Working Capital Fund (7 U.S.C. 2235).

                          COMMITTEE PROVISIONS

    For the Office of the Chief Information Officer, the 
Committee provides an appropriation of $15,251,000, an increase 
of $5,222,000 above the amount available for fiscal year 2002 
and a decrease of $16,026,000 below the budget request.

                      Common Computing Environment





2002 appropriation....................................       $59,369,000
2003 budget estimate..................................       133,155,000
Provided in the bill..................................       133,155,000
Comparison:
    2002 appropriation................................       +73,786,000
    2003 budget estimate..............................  ................



    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. Section 
808 of P.L. 104-208 requires USDA to maximize the value of 
information technology acquisitions to improve the efficiency 
and effectiveness of USDA programs. Since its beginning in 
1996, the USDA Service Center Modernization initiative has been 
working to restructure county field offices, modernize and 
integrate business approaches and replace the current, aging 
information systems with a modern Common Computing Environment 
that optimizes information sharing, customer service, and staff 
efficiencies.

                          COMMITTEE PROVISIONS

    For the Common Computing Environment, the Committee 
provides an appropriation of $133,155,000, an increase of 
$73,786,000 above the amount available in fiscal year 2002 and 
the same amount as the budget request.
    The Committee directs the Department to continue reporting 
to the Committee on Appropriations on a quarterly basis on the 
implementation of the Common Computing Environment.
    The Committee includes language prohibiting the obligation 
of funds for CCE until the appointment of the Chief Information 
Officer.

                 Office of the Chief Financial Officer





2002 appropriation....................................        $5,384,000
2003 budget estimate \1\..............................         7,918,000
Provided in the bill..................................         5,572,000
Comparison:
    2002 appropriation................................          +188,000
    2003 budget estimate..............................        -2,346,000

\1\ Excludes $481,000 for pension and health benefits.

    Under the Chief Financial Officers Act of 1990, the Chief 
Financial Officer is responsible for the continued direction 
and oversight of the Department's financial management 
operations and systems. The Office supports the Chief Financial 
Officer in carrying out the dual roles of the Chief Financial 
Management Policy Officer and the Chief Financial Management 
Advisor to the Secretary and mission area heads. The Office 
provides leadership, expertise, coordination, and evaluation in 
the development of Department and agency programs for financial 
management, accounting, travel, Federal assistance, and 
performance measurements. It is also responsible for the 
management and operation of the National Finance Center. The 
Office also provides budget, accounting, and fiscal services to 
the Office of the Secretary, departmental staff offices, Office 
of the Chief Information Officer, Office of Communications, and 
Executive Operations.

                          COMMITTEE PROVISIONS

    For the Office of the Chief Financial Officer, the 
Committee provides an appropriation of $5,572,000, an increase 
of $188,000 above the amount available for fiscal year 2002 and 
a decrease of $2,346,000 from the budget request.
    The Committee has included bill language that directs the 
Chief Financial Officer to actively market and expand the 
cross-servicing activities of the National Finance Center.
    The Committee recommends language that allows the Secretary 
to transfer funds provided in this Act and other available 
unobligated balances of the Department of Agriculture, with the 
approval of the agency administrator, 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 the National Finance Center 
in New Orleans, LA, and the National Information Technology 
Center in Kansas City, MO and Ft. Collins, CO.

                          Working Capital Fund





2002 appropriation....................................  ................
2003 budget estimate..................................       $21,000,000
Provided in the bill..................................       $41,000,000
Comparison:
    2002 appropriation................................       +41,000,000
    2003 budget estimate..............................       +20,000,000


    The Working Capital Fund was established in the 1944 
Appropriations Act. It was created for 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 ADP systems. 
The National Finance Center's expenses are also funded through 
this fund.
    The Thrift Savings Plan (TSP) is the retirement savings 
plan for all Federal employees, and members of the uniformed 
services. The Federal Retirement Thrift Investment Board 
(FRTIB) administers the TSP. The FRTIB contracts with the 
National Finance Center in New Orleans, LA, to serve as the 
record keeper for all the current 2.9 million account holders. 
The Board has an agreement with the NFC in New Orleans, 
Louisiana, to provide record keeping services for the TSP. NFC 
maintains the accounts of all TSP participants. In addition, 
the TSP Service Office at NFC processes contribution 
allocations, loans, withdrawals, and interfund transfers, as 
well as participants' designations of beneficiaries. As of 
April 30, 2002, TSP fund balances totaled approximately $102 
billion, and retirement savings accounts had been established 
for nearly 2.9 million Federal civilian employees and uniformed 
services members.

                          COMMITTEE PROVISIONS

    For the Working Capital Fund, the Committee recommends an 
appropriation of $41,000,000, an increase of $41,000,000 above 
the amount available for fiscal year 2002, and an increase of 
$20,000,000 above the budget request.
    The recommended one-time appropriation of $21,000,000 will 
provide for corporate, financial, administrative, information 
technology, or other systems of general benefit to the 
Department and its agencies, and 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 USDA.
    The Committee directs the Chief Financial Officer, in 
conjunction with the Director of the National Finance Center, 
to report to the Committees on Appropriations of the House and 
Senate on the implementation of these funds by April 1, 2003, 
and subsequently on September 30, 2003.
    The Committee has provided legislative language to allow 
the Department to transfer unobligated balances, discretionary 
and/or mandatory, to the Working Capital Fund for these same 
improvements and investments that the budget request included, 
and this appropriations bill is funding on a one-time basis. 
The Committee strongly encourages the Department to take 
advantage of this language, including the extended availability 
of funds until November 8, 2003. This extended availability 
should allow the Department and the Administration to close it 
books, identify unobligated balances, and transfer these 
balances to the Working Capital Fund in accordance with the 
provision.
    In addition, the Committee recommends a one-time, 
appropriation of $20,000,000 for the purchase of hardware and 
software, and for the implementation of remote mirroring 
technology as part of a Disaster Recovery plan.
    The Committee strongly urges the Secretary to work with the 
FRTIB to consider the annual operational costs of the data 
center as part of its costs to administer the TSP.
    The Committee directs that the Director of the NFC, in 
conjunction with the CFO, report to the Committees on 
Appropriations of the House and Senate on the implementation of 
this data-mirroring system as it occurs.

          Office of the Assistant Secretary for Administration





2002 appropriation....................................          $647,000
2003 budget estimate \1\..............................           780,000
Provided in the bill..................................           664,000
Comparison:
    2002 appropriation................................           +17,000
    2003 budget estimate..............................          -116,000

\1\ Excludes $17,000 for pension and health benefits.

    The Office of the Assistant Secretary for Administration 
directs and coordinates the work of the departmental staff in 
carrying out the laws enacted by the Congress relating to real 
and personal property management, ethics, personnel management, 
equal opportunity and civil rights programs, and other general 
administrative functions. Additionally, the Office of the 
Assistant Secretary for Administration is responsible for 
certain activities financed under the Department's Working 
Capital Fund (7 U.S.C. 2235).

                          COMMITTEE PROVISIONS

    For the Office of the Assistant Secretary for 
Administration, the Committee provides an appropriation of 
$664,000, an increase of $17,000 above the amount available for 
fiscal year 2002 and a decrease of $116,000 below the budget 
request.

        Agriculture Buildings and Facilities and Rental Payments





2002 appropriation....................................      $187,647,000
2003 budget estimate \1\..............................        70,499,000
Provided in the bill..................................       195,900,000
Comparison:
    2002 appropriation................................        +8,253,000
    2003 budget estimate..............................      +125,401,000

\1\ Excludes $493,000 for pension and health benefits.

    Rental Payments.--Annual appropriations are made to 
agencies of the Federal government so that they can pay the 
General Services Administration (GSA) fees for rental of space 
and for related services.
    The requirement that GSA charge commercial rent rates to 
agencies occupying GSA-controlled space was established by the 
Public Buildings Amendments of 1972. The methods used to 
establish commercial rent rates in GSA space follow commercial 
real estate appraisal practices. Appeal and rate review 
procedures are in place to assure that agencies have an 
opportunity to contest rates they feel are incorrect. The cost 
of newly leased space reflects current private sector market 
rates. The leases are competitively acquired in close 
coordination with USDA and other customer agencies. For FY 
2003, USDA is proposing to fund rental payments to the General 
Services Administration (GSA) in the budgets of Agencies 
occupying GSA space instead of a central account in order to 
hold USDA managers accountable for the full cost of their 
programs.
    Building Operations and Maintenance.--On October 1, 1984, 
GSA delegated the operations and maintenance functions for the 
buildings in the D.C. complex to the Department. This activity 
provides departmental staff and support services to operate, 
maintain, and repair the buildings in the D.C. complex. Since 
1989, when the GSA delegation expired, USDA has been 
responsible for managing, operating, maintaining, repairing, 
and improving the headquarters complex, which encompasses 14.1 
acres of ground and four buildings containing approximately 
three million square feet of space occupied by approximately 
8,000 employees. In fiscal year 1999, USDA began operations of 
the Beltsville Office Facility.
    Strategic Space Plan.--The Department's headquarters staff 
is presently housed in a four-building government-owned complex 
in downtown Washington, D.C. and in leased buildings in the 
metropolitan Washington area. In 1995, USDA initiated a plan to 
improve the delivery of USDA programs to the American people, 
including streamlining the USDA organization. A high priority 
goal in the Secretary's plan is to improve the operation and 
effectiveness of the USDA headquarters in Washington. To 
implement this goal, a strategy for efficient re-allocation of 
space to house the restructured headquarters agencies in modern 
and safe facilities has been proposed. This USDA Strategic 
Space Plan will correct serious problems USDA has faced in its 
facility program, including the inefficiencies of operating out 
of scattered leased facilities and serious safety hazards which 
exist in the huge Agriculture South Building. During FY 1998, 
the Beltsville Office Facility was completed. This facility was 
constructed with funds appropriated to the Department and is 
located on Government-owned land in Beltsville, Maryland. In 
fiscal year 1999, USDA began operations at the Beltsville 
Office Facility.

                          COMMITTEE PROVISIONS

    For Agriculture Buildings and Facilities and Rental 
Payments to GSA, the Committee provides an appropriation of 
$195,900,000, an increase of $8,253,000 above the amount 
available for fiscal year 2002 and an increase of $125,401,000 
above the budget request.
    Included in this amount is $130,266,000 for rental payments 
to GSA.
    The Committee includes language that allows for the 
reconfiguration and release of space back into the General 
Services Administration inventory in order to reduce space 
rental cost for space not needed for USDA programs. The 
Committee directs that the Appropriations Committees of both 
Houses of Congress shall be notified at least 15 days in 
advance of any proposal to commit or obligate funds for this 
purpose.
    The following table represents the Committee's specific 
recommendations for this account:

        Agriculture Buildings and Facilities and Rental Payments


                        [In thousands of dollars]

                                    2002     2003 budget     Committee
                                  estimate      request   recommendation

Rental Payments...............     $130,266  ...........        $130,266
Building Operations...........       31,438      $36,522          31,657
Strategic Space Plan..........       25,943       33,977          33,977
                               -----------------------------------------
      Total...................      187,647       70,499         195,900


                     Hazardous Materials Management





2002 appropriation....................................       $15,665,000
2003 budget estimate \1\..............................        15,685,000
Provided in the bill..................................        15,685,000
Comparison:
    2002 appropriation................................           +20,000
    2003 budget estimate..............................  ................

\1\ Excludes $59,000 for pension and health benefits.

    Under the Comprehensive Environmental Response, 
Compensation, and Liability Act and the Resource Conservation 
and Recovery Act, the Department has the responsibility to meet 
the same standards regarding the storage and disposition of 
hazardous materials as private businesses. The Department is 
required to contain, clean up, monitor, and inspect for 
hazardous materials in areas covered by the Department or 
within departmental jurisdiction.

                          COMMITTEE PROVISIONS

    For Hazardous Materials Management, the Committee provides 
an appropriation of $15,685,000, an increase of $20,000 above 
the amount available for fiscal year 2002 and the same amount 
as the budget request.

                      Departmental Administration





2002 appropriation....................................       $37,079,000
2003 budget estimate \1\..............................        46,398,000
Provided in the bill \2\..............................        38,095,000
Comparison:
    2002 appropriation................................        +1,016,000
    2003 budget estimate..............................        -8,303,000

\1\ Excludes $2,144,000 for pension and health benefits.
\2\ Excludes $3,898,000 for GSA Rent which is funded in a central
  account under Agriculture Buildings and Facilities.

    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 resource management, 
management improvement, occupational safety and health 
management, real and personal property management, procurement, 
contracting, motor vehicle and aircraft management, supply 
management, civil rights, equal opportunity and ethics, 
participation of small and disadvantaged businesses and 
socially disadvantaged farmers and ranchers in the Department's 
program activities, emergency preparedness, and the regulatory 
hearing and administrative proceedings conducted by the 
Administrative Law Judges and Judicial Officer. Departmental 
Administration also provides administrative support to the 
Board of Contract Appeals. Established as an independent entity 
within the Department, the Board adjudicates contract claims by 
and against the Department, and is funded as a reimbursable 
activity.
    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 Department-wide compliance with applicable 
laws, rules, and regulations pertaining to administrative 
matters for the Secretary and general officers of the 
Department.

                          COMMITTEE PROVISIONS

    For Departmental Administration, the Committee provides an 
appropriation of $38,095,000, an increase of $1,016,000 above 
the amount available for fiscal year 2002 and decrease of 
$8,303,000 below the budget request.
    Mentor Protege Program.--The Committee is aware that USDA 
does not currently have a program to assist agriculturally-
related businesses (mentors) in helping minority farmers, small 
disadvantaged businesses and women-owned small food producers 
(proteges) develop technical and business capabilities. The 
Committee expects the Department to establish within existing 
authorities a Mentor Protege Pilot program in specialty crop 
regions, including the State of Georgia, which would assist 
proteges in filling food commodity requirements. The Department 
should consider making grants to mentors--specifically fresh 
fruit and vegetable businesses which can identify markets for 
agricultural products of small, limited resource farmers--to 
assist in paying costs of technical assistance and training for 
these farmers.

              OUTREACH FOR SOCIALLY DISADVANTAGED FARMERS




2002 appropriation....................................        $3,243,000
2003 budget estimate..................................         3,243,000
Provided in the bill..................................         8,243,000
Comparison:
    2002 appropriation................................        +5,000,000
    2003 budget estimate..............................        +5,000,000


    This program is authorized under section 2501 of title XXV 
of the Food, Agriculture, Conservation, and Trade Act of 1990. 
Grants are made to eligible community-based organizations with 
demonstrated experience in providing education or other 
agriculturally related services to socially disadvantaged 
farmers and ranchers in their area of influence. Also eligible 
are the 1890 land-grant colleges, Tuskegee University, Indian 
tribal community colleges, and Hispanic serving post-secondary 
education facilities.

                          COMMITTEE PROVISIONS

    For the Outreach for Socially Disadvantaged Farmers and 
Ranchers Program, the Committee provides an appropriation of 
$8,243,000, an increase of $5,000,000 above the amount 
available for fiscal year 2002 and an increase of $5,000,000 
above the budget request.

     Office of the Assistant Secretary for Congressional Relations





2002 appropriation....................................        $3,718,000
2003 budget estimate \1\..............................         4,157,000
Provided in the bill..................................         3,821,000
Comparison:
    2002 appropriation................................          +103,000
    2003 budget estimate..............................          -336,000

\1\ Excludes $65,000 for pension and health benefits.

    The Office of the Assistant Secretary for Congressional 
Relations maintains liaison with the Congress and White House 
on legislative matters. It also provides for overall direction 
and coordination in the development and implementation of 
policies and procedures applicable to the Department's intra 
and inter-governmental relations.

                          COMMITTEE PROVISIONS

    For the Office of the Assistant Secretary for Congressional 
Relations, the Committee provides an appropriation of 
$3,821,000, an increase of $103,000 above the amount available 
for fiscal year 2002 and decrease of $336,000 below the budget 
request.
    Within 30 days from the enactment of this Act, the 
Secretary shall notify the House and Senate Committees on 
Appropriations on the allocation of these funds by USDA agency, 
along with an explanation for the agency-by-agency distribution 
of the funds.
    The Committee notes that for fiscal year 2002, the 
notification on the allocation of these funds by USDA agency 
was received well beyond the ``30 days after enactment'' 
provision of the language. The Committee reminds the Secretary 
that this language was inserted in lieu of legislative language 
requiring a specific funding level to the agency accounts. The 
Committee urges the Secretary to meet the notification 
requirement set forth in this directive.

                        Office of Communications





2002 appropriation....................................        $8,894,000
2003 budget estimate \1\..............................         9,637,000
Provided in the bill..................................         9,140,000
Comparison:
    2002 appropriation................................          +246,000
    2003 budget estimate..............................          -497,000

\1\ Excludes $516,000 for pension and health benefits.

    The Office of Communications provides direction, 
leadership, and coordination in the development and delivery of 
useful information through all media to the public on USDA 
programs. The Office serves as the liaison between the 
Department and the many associations and organizations 
representing America's food, fiber, and environmental 
interests.

                          COMMITTEE PROVISIONS

    For the Office of Communications, the Committee provides an 
appropriation of $9,140,000, an increase of $246,000 above the 
amount available for fiscal year 2002 and a decrease of 
$497,000 below the budget request.
    The Committee directs the Office of Communications to 
provide to the Committee on Appropriations, upon request, 
copies of any open source news material made available to USDA 
officials that is purchased, or otherwise obtained, using 
appropriated funds.

                      Office of Inspector General





2002 appropriation....................................       $70,839,000
2003 budget estimate \1\..............................        82,231,000
Provided in the bill \2\..............................        74,097,000
Comparison:
    2002 appropriation................................        +3,258,000
    2003 budget estimate..............................        -8,134,000

\1\ Excludes $4,878,000 for pension and health benefits.
\2\ Excludes $4,034,000 for GSA Rent which is funded in a central
  account under Agriculture Buildings and Facilities.

    The Office of Inspector General was established October 12, 
1978, by the Inspector General Act of 1978. This reaffirmed and 
expanded the Office established by Secretary's Memorandum No. 
1915, dated March 23, 1977.
    The Office is administered by an Inspector General who 
reports directly to the Secretary of Agriculture. Functions and 
responsibilities of this Office include direction and control 
of audit and investigative activities within the Department, 
formulation of audit and investigative policies and procedures 
regarding Department programs and operations, analysis and 
coordination of program-related audit and investigation 
activities performed by other Department agencies, and review 
of existing and proposed legislation and regulations regarding 
the impact such initiatives will have on the economy and 
efficiency of the Department's programs and operations and the 
prevention and detection of fraud and abuse in such programs. 
The activities of this Office are designed to assure compliance 
with existing laws, policies, regulations, and programs of the 
Department's agencies, and to provide appropriate officials 
with the means for prompt corrective action where deviations 
have occurred. The scope of audit and investigative activities 
is large and includes administrative, program, and criminal 
matters. These activities are coordinated, when appropriate, 
with various audit and investigative agencies of the executive 
and legislative branches of the government.

                          COMMITTEE PROVISIONS

    For the Office of Inspector General (OIG), the Committee 
provides an appropriation of $74,097,000, an increase of 
$3,258,000 above the amount available for fiscal year 2002, and 
a decrease of $8,134,000 below the budget request.
    The Committee notes that the Office of Inspector General 
(OIG) will expend an estimated 54 staff years auditing the USDA 
2001 consolidated financial statements while the Office of the 
Chief Financial Officer (OCFO) and agencies will only expend an 
estimated 50.4 staff years preparing these same statements. The 
Committee believes that this is an excessive amount of OIG 
oversight, and it expects OIG to reduce this level of audit 
oversight and transfer resources to investigative work. The 
Committee directs OIG to use commonly accepted norms of 
financial statement oversight to develop an audit plan, and to 
provide details of how OIG will implement that oversight level 
to the Committee within 60 days of enactment.
    The Committee concurs with the OIG's decision to have 
independent auditors perform the financial statement audits for 
the Food and Nutrition Service (FNS) and Rural Development 
programs (RD). Budget increases for independent audits are 
included in the Committee recommendations for FNS and RD and 
are offset with a decrease in the OIG appropriation. Any OIG 
contract administration or oversight costs for these contract 
audits should be kept to a minimum.
    Increased funding for audit work on Forest Service programs 
is not included. The Committee believes that both OIG and 
contract audit work on Forest Service financial statements and 
the Fire Program should continue to be funded from 
appropriations provided to the Forest Service.
    The Committee understands that the OIG is requiring USDA 
agencies with user fee programs to comply with certain ``full 
cost'' provisions of the Statement of Federal Financial 
Accounting Standard No. 4, ``Managerial Cost Accounting 
Concepts and Standards.'' User fee programs are being required 
to calculate and charge for ``imputed unfunded pension and 
other retirement benefit costs'' which is in conflict with the 
respective user fee authorizing legislation. The Committee does 
not agree with this requirement and expects this requirement to 
be deleted unless the respective authorizing legislation is 
amended to specifically require those calculations and charges, 
or Congress enacts legislation that transfers these unfunded 
costs to all Federal government programs.

                     Office of the General Counsel





2002 appropriation....................................       $32,627,000
2003 budget estimate \1\..............................        37,287,000
Provided in the bill \2\..............................        34,446,000
Comparison:
    2002 appropriation................................        +1,819,000
    2003 budget estimate..............................        -2,841,000

\1\ Excludes $2,554,000 for pension and health benefits.
\2\ Excludes $1,693,000 for GSA Rent which is funded in a central
  account under Agriculture Buildings and Facilities.

    The Office of the General Counsel, originally known as the 
Office of the Solicitor, was established in 1910 as the law 
office of the Department of Agriculture, and manages all of the 
legal work arising from the activities of the Department. The 
General Counsel represents the Department on administrative 
proceedings for the promulgation of rules and regulations 
having the force and effect of law; in quasi-judicial hearings 
held in connection with the administration of various programs 
and acts; and in proceedings involving freight rates and 
practices relating to farm commodities. Counsel serves as 
General Counsel for the Commodity Credit Corporation and the 
Federal Crop Insurance Corporation and reviews criminal cases 
arising under the programs of the Department for referral to 
the Department of Justice.

                          COMMITTEE PROVISIONS

    For the Office of the General Counsel, the Committee 
provides an appropriation of $34,446,000, an increase of 
$1,819,000 above the amount available in fiscal year 2002 and a 
decrease of $2,841,000 below the budget request.

  Office of the Under Secretary for Research, Education, and Economics





2002 appropriation....................................          $573,000
2003 budget estimate \1\..............................           780,000
Provided in the bill..................................           588,000
Comparison:
    2002 appropriation................................           +15,000
    2003 budget estimate..............................          -192,000

\1\ Excludes $17,000 for pension and health benefits.

    The Office of the Under Secretary for Research, Education, 
and Economics provides direction and coordination in carrying 
out the laws enacted by the Congress for food and agricultural 
research, education, extension, and economic and statistical 
information. The Office has oversight and management 
responsibilities for the Agricultural Research Service; 
Cooperative State Research, Education, and Extension Service; 
Economic Research Service; and National Agricultural Statistics 
Service.

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Research, 
Education, and Economics, the Committee provides an 
appropriation of $588,000, an increase of $15,000 above the 
amount available for fiscal year 2002 and a decrease of 
$192,000 below the budget request.
    The Committee notes that all minority-serving institutions 
play a positive role in advancing the many educational and 
research interests of American agriculture, including related 
concerns with homeland security. Furthermore, funding across a 
wider range of post-secondary institutions is important to the 
strength and effectiveness of homeland security. The Committee 
urges the Cooperative State Research, Education and Extension 
Service and the Agricultural Research Service to take 
significant steps to increase outreach, cooperation, and 
engagement with minority-serving institutions--including 1890 
Colleges/ Universities and Tuskegee University, 1994 Tribally-
Controlled Colleges/Universities, and Hispanic Serving 
Institutions--in all areas, but especially as they develop and 
implement research programs and related defense of the nation's 
homeland and food supply.

                       Economic Research Service





2002 appropriation....................................       $67,200,000
2003 budget estimate \1\..............................        79,243,000
Provided in the bill \2\..............................        73,329,000
Comparison:
    2002 appropriation................................        +6,129,000
    2003 budget estimate..............................        -5,914,000

\1\ Excludes $2,789,000 for pension and health benefits.
\2\ Excludes $5,914,000 for GSA Rent which is funded in a central
  account under Agriculture Buildings and Facilities.

    The Economic Research Service (ERS) provides economic and 
other social science information and analysis for public and 
private decisions on agriculture, food, natural resources, and 
rural America. ERS produces such information for use by the 
general public and to help the executive and legislative 
branches develop, administer, and evaluate agricultural and 
rural policies and programs.

                          COMMITTEE PROVISIONS

    For the Economic Research Service, the Committee provides 
an appropriation of $73,329,000, an increase of $6,129,000 
above the amount available for fiscal year 2002 and a decrease 
of $5,914,000 below the budget request.
    The Committee recommendation provides the full increase for 
the ERS portion of the Agricultural Resources Management 
Survey.
    Veal.--The Committee is very concerned about the impact of 
veal imports on the domestic veal industry and the discrepancy 
in the treatment afforded milk replacer used in veal 
production, which may be imported into the United States 
tariff-free, while exports of domestically produced milk 
replacer are subject to a 205 percent tariff. The Economic 
Research Service of the Department of Agriculture is encouraged 
to complete a study within 180 days after the date of the 
enactment of this Act on these issues as well as a study of 
general trends in United States consumption of veal, domestic 
veal production and prices, and details of top veal production 
States and foreign sources of imported veal.

                National Agricultural Statistics Service





2002 appropriation....................................      $113,786,000
2003 budget estimate \1\..............................       143,659,000
Provided in the bill \2\..............................       137,858,000
Comparison:
    2002 appropriation................................       +24,072,000
    2003 budget estimate..............................        -5,801,000

\1\ Excludes $5,410,000 for pension and health benefits.
\2\ Excludes $2,801,000 for GSA Rent which is funded in a central
  account under Agriculture Buildings and Facilities.

    The National Agricultural Statistics Service (NASS) 
administers the Department's program of collecting and 
publishing current national, state, and county agricultural 
statistics, which are essential for making effective policy, 
production, and marketing decisions. These statistics provide 
accurate and timely estimates of current agricultural 
production and measures of the economic and environmental 
welfare of the agricultural sector. NASS also provides 
statistical services to other USDA and Federal agencies in 
support of their missions, and provides consulting, technical 
assistance, and training to developing countries.
    Beginning with the fiscal year 1997 appropriation, funding 
has been provided to NASS for the Census of Agriculture which 
has been transferred from the Department of Commerce to the 
Department of Agriculture to consolidate the activities of the 
two agricultural statistics programs. The Census of Agriculture 
is taken every five years and provides comprehensive data on 
the agricultural economy including: data on the number of 
farms, land use, production expenses, farm product values, 
value of land and buildings, farm size, and characteristics of 
farm operators. It provides national, state, and county data as 
well as selected data for Puerto Rico, Guam, and the United 
States Virgin Islands.

                          COMMITTEE PROVISIONS

    For the National Agricultural Statistics Service, the 
Committee provides an appropriation of $137,858,000, an 
increase of $24,072,000 above the amount available in fiscal 
year 2002 and a decrease of $5,801,000 below the budget 
request.
    Included in this amount is $41,274,000 for the Census of 
Agriculture. The Census of Agriculture collects and provides 
comprehensive data every five years on all aspects of the 
agricultural economy.
    The budget year is the fourth year in a five-year funding 
cycle for the Census of Agriculture; Census funding needs are 
cyclical and the fourth year peak is due to data collection 
activities.
    The Committee recommendation provides the full increase for 
the NASS portion of the Agricultural Resources Management 
Survey. The recommendation does not include the requested 
$3,000,000 increase for e-government activities.

                     Agricultural Research Service





2002 appropriation \1\................................      $979,464,000
2003 budget estimate \2\..............................       971,445,000
Provided in the bill \3\..............................     1,002,193,000
Comparison:
    2002 appropriation................................       +22,729,000
    2003 budget estimate..............................       +30,748,000

\1\ Does not include FY 2002 supplemental of $40,000,000 for Homeland
  Security, P.L. 107-117.
\2\ Excludes $42,641,000 for pension and health benefits.
\3\ Excludes $2,807,000 for GSA Rent which is funded in a central
  account under Agriculture Buildings and Facilities.

    The Agricultural Research Service (ARS) was established by 
the Secretary of Agriculture on November 2, 1953, under the 
authority of the Reorganization Act of 1949 (5 U.S.C. 133z-15), 
Reorganization Plan No. 2 of 1953, and other authorities. ARS 
conducts basic and applied research in the fields of animal 
sciences, plant sciences, entomology, soil, water and air 
sciences, agricultural engineering, utilization and 
development, human nutrition and consumer use, marketing, 
development of integrated farming systems, and development of 
methods to eradicate narcotic-producing plants.
    ARS is also responsible for the Abraham Lincoln National 
Agricultural Library which provides agricultural information 
and library services to agencies of the USDA, public and 
private organizations, and individuals.
    ARS also directs research beneficial to the United States 
which can be advantageously conducted in foreign countries 
through agreements with foreign research institutions and 
universities, using foreign currencies for such purposes. This 
program is carried out under the authority of sections 104(b) 
(1) and (3) of Public Law 480, and the Agricultural Trade 
Development and Assistance Act of 1954, as amended.

                          COMMITTEE PROVISIONS

    Salaries and expenses.--For salaries and expenses of the 
Agricultural Research Service, the Committee provides an 
appropriation of $1,002,193,000, an increase of $22,729,000 
above the amount available for fiscal year 2002 and an increase 
of $30,748,000 above the budget request.
    Acoustic technology.--The Committee recognizes the 
potential hazards posed by the reintroduction of sediment into 
the environment. The Committee provides an increase of $250,000 
in fiscal year 2003 for research to develop a high resolution 
acoustic sub-bottom profiling system for use in flood-control 
dams at the ARS National Sedimentation Laboratory at Oxford, 
Mississippi. This research will efficiently assess the effects 
of sediment movement on a dam's ability to regulate flood 
waters.
    Advanced animal vaccines.--The USDA estimates that the 
annual monetary loss as a result of cattle and swine diarrheal 
disease is $500 million in the U.S. alone. Food borne pathogens 
cause between 6.5 million and 33 million cases of human disease 
and 9,000 deaths annually. The Committee provides an increase 
of $375,000 in fiscal year 2003 for expanded research on 
advanced animal vaccines and diagnostic applications currently 
carried out jointly by ARS, the University of Connecticut, and 
the University of Missouri.
    Animal waste research.--The Committee supports the need for 
additional research to find solutions to reduce or eliminate 
risks to the environment and human health caused by animal 
waste. The Committee provides an increase of $1,250,000 in 
fiscal year 2003 to support this research at Florence, SC; 
Madison, WI; Fayetteville, AR; Clay Center, NE and Bushland, 
TX. In addition the Committee provides an increase of $750,000 
over fiscal year 2002 for farm and watershed research and 
monitoring of manure nutrients, pathogens, and emissions at ARS 
laboratories at Ames, IA; Athens, GA; and Kimberly, ID.
    Animal Welfare Information Center (AWIC).--AWIC is a key 
component of ARS' integrated information services program that 
enhances access to information about animal welfare. The Center 
assists researchers and others responsible for the care of 
laboratory animals with important information to enable them to 
comply with the humane standards established under the Animal 
Welfare Act. The Committee provides an increase of $80,000 in 
fiscal year 2003 to support animal welfare activities.
    Aquaculture density research.--A growing aquaculture 
venture, particularly in Florida, is clam production. The State 
of Florida promotes aquaculture and specifically clam culture 
by leasing sovereignty-submerged land. However, very little is 
known on the ecological limits of large scale clam culture. The 
Committee provides an increase of $250,000 in fiscal year 2003 
for research critical to the sustained growth of the clam 
industry.
    Barley food health.--The Committee recognizes the need to 
investigate the benefits of barley foods to human health. The 
Committee provides an increase of $60,000 in fiscal year 2003 
for investigation and documentation of the benefits of barley 
foods to human health, which are requisites to expanded 
domestic and international markets of barley.
    Bee research.--The Committee recognizes the importance of 
honey bee research carried out by ARS at Beltsville, MD; Baton 
Rouge, LA; Weslaco, TX and Tucson, AZ and directs that these 
programs and resources be continued at the FY 2002 level.
    Binational agriculture research and development.--The 
Committee recognizes the important research carried out through 
the binational agriculture research and development program and 
provides $519,120, the same level as in fiscal year 2002.
    Biobased agricultural products.--The Committee provides an 
increase of $700,000 in fiscal year 2003 to develop new 
environmentally-friendly technologies utilizing novel enzymatic 
methods and procedures for the modification of plant lipids to 
produce value-added products. This research will be carried out 
at the Peoria, IL research center.
    Bioinformatics.--The Committee provides $6,723,000 the same 
level as in fiscal year 2002 to develop bioinformatic tools and 
provide database support for ARS' plant and animal science 
programs.
    Biomass feedstock research.--To improve the quality and 
quantity of agricultural feedstock for production of energy and 
biobased products, the Committee provides additional funding of 
$250,000 for each of the following ARS laboratories: Albany, 
CA; Athens, GA; Lincoln, NE; St. Paul and Madison, WI.
    Biotechnology Research and Development Corporation 
(BRDC).--BRDC is a uniquely successful public/private 
partnership dedicated to promoting technology development and 
commercialization of agricultural technology. The success of 
this investment can be measured by the large number of patents 
and technology licenses of inventions sponsored through BRDC. 
The Committee does not agree with the budget request to 
terminate this research and directs that this program be 
maintained at the fiscal year 2002 level.
    Biotechnology risk assessment.--The Committee supports the 
need to develop technologies to provide tissue-specific 
expansion of genes for resistance to fungal pathogens and 
reduction of mycotoxins in maize. The Committee provides an 
increase of $300,000 in fiscal year 2003 to carry out this 
important research at ARS' National Center for Agricultural 
Utilization Research.
    Bovine genetics.--The Committee supports the research 
program on biotechnology and genetics in cattle jointly carried 
out by ARS, the University of Connecticut and the University of 
Illinois. This program utilizes advanced research technologies 
to improve efficiency of clones and establish cell lines from 
elite cows and bulls for cloning. The Committee provides an 
increase of $400,000 to expand these studies in fiscal year 
2003.
    Cereal disease research.--Wheat and barley research 
conducted at the ARS Cereal Disease Laboratory, St. Paul, 
Minnesota is invaluable to the economic viability of these 
industries. The Committee recognizes the importance of 
maintaining scientific expertise at this laboratory and 
provides an increase of $250,000 in fiscal year 2003 to support 
priority research at this laboratory.
    Chloroplast genetic engineering research.--The Committee 
supports the important research advances at the University of 
Central Florida (UCF) on chloroplast genetic engineering. The 
research team at UCF has internationally recognized expertise 
in this field of research. The Committee provides an increase 
of $600,000 in fiscal year 2003 for collaborative research with 
the University of Central Florida on the efficient and 
effective means of genetically-engineering chloroplast to 
increase the efficiency of photosynthesis as a key component of 
agricultural production.
    Coffee and cocoa research.--The Committee provides the same 
level of funding in fiscal year 2003 for alternative crop 
research and development with specific emphasis on coffee and 
cocoa.
    Continuing Programs.--The Committee recognizes the 
importance of ongoing research projects in addressing problems 
faced by the Nation's food and fiber producers. In this regard, 
the Committee directs the Agricultural Research Service to 
continue to fund the following areas of research in fiscal year 
2003 at the same funding level provided in fiscal year 2002: 
Biomineral Soil Amendments for Control of Nematodes, 
Beltsville, MD; Conservation Research, Pendleton, OR; Dryland 
Production Research, Akron, CO; Improved Animal Waste 
Management, Florence, SC; Improved Crop Production Practices, 
Auburn, AL; Manure Management Research, Ames, IA; Mid-West/Mid-
South Irrigation Research, Columbia, MO; National Soil Dynamics 
Laboratory, Auburn, AL; New England Plant, Soil, and Water 
Laboratory, Orono, ME; Northern Great Plains Research 
Laboratory, Mandan, ND; Pasture Systems and Watershed 
Management, University Park, PA; Quantify Basin Water Budget 
Components in the Southwest, Tucson, AZ; Seismic and Acoustic 
Technologies in Soils, Oxford, MS; Soil Tilth Research, Ames, 
IA; Source Water Protection Initiatives, Columbus, OH/West 
Lafayette, IN; Water Resources Management Research, Tifton, GA; 
Water Use Management Technology, Tifton, GA; Watershed 
Research, Columbia, MO; Western Grazinglands, Burns, OR; Aerial 
Application Research, College Station, TX; Bee Research, Logan, 
UT/Weslaco, TX; Binational Agricultural Research and 
Development Program (BARD); Center for Biological Controls--
FAMU, Tallahassee, FL; Cereal Crops Research, Madison, WI; 
Chloroplast Genetic Engineering Research, Urbana, IL; Citrus/
Horticultural Research, Ft. Pierce, FL; Coffee and Cocoa 
Research, Miami, FL/Beltsville, MD; Crop Production and Food 
Processing, Peoria, IL; Endophyte Research, Booneville, AR; 
Floriculture/Nursery Crops Research, Ft. Pierce Horticultural 
Research Lab, Ft. Pierce, FL; Golden Nematode, Ithaca, NY; 
Grain Legume Plant Pathologist Position, Pullman, WA; Grape 
Rootstock Research, Geneva, NY; Great Basin Rangelands, Reno, 
NV/Burns, OR/Boise, ID; Greenhouse and Hydroponics Research, 
Wooster, OH; Greenhouse Lettuce Germplasm Research, Salinas, 
CA; Honey Bee Research, Baton Rouge, LA; Hops Research, 
Corvallis, OR; Integ. Farming Systems/Dairy Forage, Madison, 
WI; Jornada Experimental Range Research Station, Las Cruces, 
NM; Late Blight Fungus, Orono, ME; Lettuce Geneticist/Breeder 
Position, Salinas, CA; Microbial Genomics, Pullman, WA/
Kerrville, TX; Minor Use Pesticides (IR-4); National Germplasm 
Resources Program; National Sclerotinia Initiative, Fargo, ND; 
National Wheat and Barley Scab Initiatives (Fusarium Head 
Blight), various locations; Nematology Research, Tifton, GA; 
Northwest Small Fruits Research, Corvallis, OR; Oat Virus 
(Barley/Cereal Yellow Dwarf), West Lafayette, IN; Olive Fruit 
Fly, Parlier, CA/Montpellier, France; Organic Minor Crop 
Research, Salinas, CA; Pecan Scab Research, Byron, GA; Pierce's 
Disease, Parlier, CA/Davis, CA/Ft. Pierce, FL; Plant Stress and 
Water Conservation Research, Lubbock, TX; Potato Breeding 
Research, Aberdeen, ID; Potato Research Enhancement, Prosser, 
WA; Rangeland Resources Research, Cheyenne, WY; Rangeland 
Resource Management, Las Cruces, NM; Residue Management in 
Sugarcane, Houma, LA; Rice Research, Stuttgart, AR; Risk 
Assessment for Bt. Corn, Ames, IA; Root Diseases in Wheat and 
Barley, Pullman, WA; Small Farms, Booneville, AR; Sorghum 
Research, Manhattan, KS/Bushland, TX/Stillwater, OK/Lubbock, 
TX; Southwest Pecan Research, College Station, TX; Soybean and 
Nitrogen Fixation, Raleigh, NC; Soybean Genetics, Columbia, MO; 
Sudden Oak Disease, Frederick, MD; Sugarbeet Research, 
Kimberly, ID; Sugarcane Variety Research, Canal Point, FL; 
Sustainable Vineyard Practices Position, Davis, CA; Temperate 
Fruit Flies, Wapato, WA; U.S. National Arboretum, Washington, 
DC; Vegetable Crops Research, Madison, WI; Viticulture 
Research, Corvallis, OR; Wheat Quality Research, Pullman, WA/
Wooster, OH/Manhattan, KS/Fargo, ND; Wild Rice Research, St. 
Paul, MN; Woody Genomics and Breeding for the Southeast, 
Poplarville, MS; Animal Vaccines, Greenport, NY; Aquaculture 
Initiative, Harbor Branch Oceanographic Institute, Stuttgart, 
AR; Aquaculture Initiative for Mid-Atlantic Highlands, Leetown, 
WV; Aquaculture Fisheries Research, Pine Bluff, AR; Aquaculture 
Systems (Rainbow Trout), Leetown, WV; Asian Bird Influenza, 
Athens, GA; Avian Pneumovirus, Athens, GA; Bovine Genetics, 
Beltsville, MD; Catfish Genome, Auburn, AL; Dairy Forage, 
Madison, WI; Dairy Genetics Research, Beltsville, MD; Formosan 
Subterranean Termite, New Orleans, LA; Livestock and Range 
Research, Miles City, MT; Malignant Catarrhal Fever (MCF) 
Virus, Pullman, WA; Mosquito Trapping Research/West Nile Virus, 
Gainesville, FL; Poultry Enteritis-Mortality Syndrome, Athens, 
GA; Poultry Diseases (Avian Pneumovirus/Coccidiosis) Athens, 
GA/Beltsville, MD; Poultry Diseases (Avian Coccidiosis/
Leukosis-J Virus), Beltsville, MD; Shellfish Genetics, Newport, 
OR; Stuttgart National Aquaculture Research Center, Stuttgart, 
AR; Vaccines and Microbe Control for Fish Health, Auburn, AL; 
Aflatoxin in Cotton, Phoenix, AZ; Biotechnology Research and 
Development Corporation, Peoria, IL; Cotton Ginning Research, 
Las Cruces, NM; Food Safety for Listeria and E. Coli; Foundry 
Sand By-Products Utilization, Beltsville, MD; Postharvest and 
Controlled Atmosphere Chamber Research (Lettuce), Salinas, CA; 
Barley Food Health Benefits Research, Beltsville, MD; Diet and 
Immune Function, Little Rock, AR; Nutritional Requirements 
Research, Houston, TX; Animal Welfare Information Center, 
Beltsville, MD.
    Accomplishments.--The Committee strongly objects to the 
Department's budget recommendations to terminate important 
research programs funded by the Congress. As stipulated in this 
report, certain research programs directed by this Committee 
proposed for reduction are fully restored. The Committee will 
continue to exercise its constitutionally-derived 
responsibility to fund critical and priority research programs 
important to the food and agriculture industry. The Congress is 
uniquely capable of making prudent decisions on program and 
resources based upon the information and justification 
expressed by the industry, consumers, and environmental and 
other stakeholders. The Committee recognizes the many and 
diverse issues confronting farmers, ranchers, consumers, and 
other interest groups. The research funded by this Committee is 
directed toward solving problems, both short- and long-term, to 
enhance the growth of the U.S. economy and international trade, 
preserve the environment, and promote the health and well-being 
of our citizenry. The following selected examples reflect the 
merit and successes of projects recently funded by Congress, as 
detailed justification for the Committee's Recommendation to 
continue these research programs:

Pullman, WA--Malignant Catarrhal Fever

    Malignant catarrhal fever (MCF) is a severe disease of 
certain domestic and wild ruminants such as cattle, bison and 
deer. ARS, in collaboration with Washington State University 
(WSU), has developed the first monoclonal antibody-based 
serological test for MCF antibody. ARS has assisted the United 
Nations in establishment of MCF diagnostic testing capability. 
ARS has identified a new herpesvirus causing classic MCF in 
white-tailed deer and is investigating MCF in bison, a recently 
emerging, and serious obstacle for bison producers of North 
America.

Cheyenne, WY--Rangeland Resources Research

    More than 800 million acres of rangelands located in the 
western United States have contributed to the environmental, 
economic, and social well being of the Nation. A series of 
field studies, conducted in cooperation with Colorado State 
University, has quantified parameters and features that affect 
infiltration and runoff on rangelands. An analysis of the 
carbon and nitrogen compounds of a sagebrush-grass range site 
has revealed that soil nitrate-nitrogen is significantly higher 
in heavily grazed ``poor'' condition pastures than in 
moderately grazed ``good'' condition pastures.

Phoenix, AZ--Aflatoxin in Cotton

    This project has developed the manufacturing process 
carried out by the Arizona Cotton Research and Protection 
Council to increase from laboratory scale to production of 
1,200 lb batches of fungal spores from non-toxin producing 
strains. This enabled the treatment of 20,000 acres of cotton 
in AZ in 2001 which prevents the contamination of cottonseed 
with aflatoxin. As the manufacturing process is optimized it is 
planned to address previously intractable problems on the 
biology and ecology of aflatoxin producing fungi.

Auburn, AL--Vaccines for Control of Fish Diseases

    ARS scientists at Auburn, Alabama, lead the world in the 
development of vaccines to prevent fish diseases, as follows:
     Invented, patented, and transferred (licensed) the 
first modified live-fish vaccine. This vaccine, marketed as 
AQUAVAC-ESC, prevents a major bacterial disease that causes 
enteric septicemia (ESC) in channel catfish. Intervet, Inc., 
Millsboro, Delaware, sold out their ESC vaccine in 2001 at 200 
million doses.
     Developed and patented a killed vaccine for 
control of the bacterium, Streptococcus iniae, a major disease 
of wild and cultured fish species worldwide. Intervet, Inc., 
plans to distribute the streptococcal vaccine formulation in 
Asia.
     Developed a modified live vaccine against 
Flavobacterium columnare, another major bacterial pathogen of 
catfish and other fish.

New Orleans, LA--Formosan Subterranean Termites--A One Billion Dollar 
        Home Wrecker

    ARS scientists at the Southern Regional Research Center in 
New Orleans, Louisiana, lead the National Formosan Subterranean 
Termite (FST) Program, in cooperation with State scientists at 
Louisiana State University (Louisiana Agricultural Center), 
Mississippi State University, Texas A&M University, University 
of Florida, and University of Hawaii. ARS scientists, along 
with Louisiana Ag Center scientists and the New Orleans 
Mosquito and Termite Control Board, proved in a worst-case 
scenario-a 15-block area of the New Orleans French Quarter-that 
the FST can be reduced to non-pest status (only one building of 
323 contained active termites 2 years after testing began) by 
using baiting technology in an area-wide approach. The key to 
this approach is using toxic baits to eliminate subterranean 
termite populations rather than the conventional approach of 
defending structures by encircling them with an underground 
pesticide barrier. Based on this success, the area-wide baiting 
technique is being expanded to include the entire 108-block 
French Quarter, as well as other parts of Louisiana, 
Mississippi, Florida, and Hawaii. ARS scientists invented 
(patent pending) a new bait that increases (10-fold) termite 
feeding of the toxicant-impregnated matrix, allowing reduction 
of toxicant concentration. Ensystex of Fayetteville, North 
Carolina, has been granted an exclusive license for use of the 
ARS-invented bait.

Gainesville, FL--Mosquito Trapping Research/West Nile Virus

    Effective response by public health officials to epidemics 
of native or introduced vector-borne disease depends on knowing 
what the problem is and where it is. ARS scientists at the 
Mosquito and Fly Research Unit, Gainesville, Florida worked 
with commercial partners to invent two new traps, one of which, 
the MosquitoMagnet(r), is already being extensively tested in 
the Northeast for its ability to sample mosquitos that carry 
West Nile Virus.

Athens, GA--Asian Bird Influenza

    In 1997, the H5N1 strain of the highly pathogenic avian 
influenza virus of poultry resulted in depopulation of all 
chickens in Hong Kong because of fear concerning its potential 
for killing humans. In 1999, the H5N1 avian influenza virus 
reappeared in Hong Kong. ARS scientists in Athens, Georgia, 
determined this virus was lethal to poultry but did not cause 
disease or death in a mouse model that predicted human 
infectivity.

Athens, GA--Poult Enteritis-Mortality Syndrome

    ARS scientists identified a novel strain of astrovirus 
isolated from the thymus of turkeys with poult enteritis and 
mortality syndrome (PEMS) and sequenced the entire genome. ARS 
researchers then verified that this purified astrovirus caused 
PEMS-like disease in native turkey poults as characterized by 
growth depression, mortality, enteritis, and immunosuppression. 
A new diagnostic test was developed to identify conserved and 
divergent regions of the astrovirus genome and this test kit 
was used to detect astrovirus in commercial turkey flocks.

Ames, IA--Manure Management Research

    Research was initiated to define the key compounds in swine 
manure that are objectionable by the general public. More than 
20 organic compounds in manure have been identified by a human 
panel as being malodorous. Identification of these key 
compounds is the first step to determine diet modification and 
treatment of waste to reduce the odor from swine production 
facilities.

Beltsville, MD--Dairy Genetics

    This project has continued to work with U.S. dairy 
producers who need information on genetic merit of animals and 
germplasm regardless of the country of origin. The improved 
accuracy of U.S. evaluations and genetic indexes for economic 
merit include global information and enhanced competitiveness 
of U.S. dairy products, dairy animals, embryos, and semen.

Parlier, CA and Davis, CA--Pierce's Disease

    Pierce's Disease is a major threat to the California wine 
industry, and this program has developed promising strategies 
to halt the spread of the disease by removing riparian 
vegetation near vineyards that harbors the disease and the 
insect that spreads the disease while replacing those plants 
with native, nonhost vegetation. ARS scientists developed a 
same-day on-site portable molecular assay for the Pierce's 
disease bacterium. Field tests demonstrate that infected 
grapestock can be diagnosed within 1-2 hours. ARS researchers 
at Parlier are determining the epidemiology and developing 
control measures for the disease and its sharpshooter vector. 
Researchers at Davis are testing substances that boost the 
grapevine's defenses against the bacterium.

Baton Rouge, LA--Russian Honey Bees Save U.S. Beekeeping Industry

    Parasitic mites, particularly the ectoparasitic Varroa 
mite, are the most important factor limiting beekeeping in the 
United States. The exotic Varroa and tracheal mites have 
combined to virtually eliminate the presence of wild honey bees 
in the U.S., yet pollination by honey bees and other insects is 
valued at $6 billion per year. ARS scientists at Baton Rouge, 
Louisiana, identified and imported honey bees from northeast 
Russia that have proven to be strongly resistant to the Varroa 
mite, as well as the tracheal mite. Through cooperation with a 
commercial honey bee breeder and the American Honey Producers 
Association, the mite-resistant honey bee is being distributed 
to beekeepers throughout the U.S. Losses of honey bees to 
winter kill in 2000-2001 were 50-70% in some areas, but 
survival of the ARS-imported Russian honey bee in the same 
areas was over 99%. Consequently, demand for Russian honey bee 
queens is greater than supply.

Fargo, ND--Hard Red Spring and Durum Wheat Quality Lab

    This laboratory evaluates approximately 2,000 samples of 
hard red spring wheat and 1,000 samples of durum annually to 
assure that newly released cultivars meet industry standards 
for milling, baking, and pasta. This work has led to the 
release of more than 30 commercial cultivars of hard red spring 
wheat and 10 cultivars of durum wheat in the last five years. 
Research from this lab demonstrated that flour components from 
strong gluten wheats had a highly positive effect, whereas weak 
gluten wheats had a negative effect on frozen dough quality. 
Research relating effects of enzyme combinations to shorten 
proof times, produce loaves with improved crumb 
characteristics, and extend shelf life of the baked product 
addresses major concerns of the frozen dough industry.

Frederick, MD--Sudden Oak Disease

    ARS researchers have initiated varietal host range testing 
of related species of oak to determine the range of 
pathogenicity of the pathogen causing sudden oak death. Studies 
are underway to elucidate the disease cycle.

Raleigh, NC--Soybean and Nitrogen Fixation

    ARS scientists developed and released the novel soybean 
cultivar, Satellite, which is a first step toward a soybean oil 
that meets FDA rules for food product labeling for both 
saturated fat and trans-isomer content. In conjunction with the 
United Soybean Board, 5,000 gallons of refined Satellite oil 
was prepared for product testing by major companies in the food 
industry.

Minor Use Pesticides

    The ARS segment of the IR-4 program worked cooperatively 
with the CSREES/States portion to increase pest management 
options for producers of minor crops. The regulations governing 
the registration and use of pest management chemicals have 
increasingly discouraged registrations for use on minor crops, 
a problem related to a lack of economic incentives for chemical 
companies to generate the necessary data. ARS scientists in 
nine States and the District of Columbia, in close coordination 
with State scientists, contributed data in FY 2001 that will be 
used in future registration petitions on 117 food, 265 
ornamental and 59 residue projects to the IR-4 program. 
Adequate pest management tools are essential in maintaining a 
strong U.S. agricultural production system for minor crops, 
which account for almost half of U.S. crop sales.

Pullman, WA--Western Wheat Quality Laboratory

    Each year ARS scientists evaluate milling and applications 
in traditional soft wheat uses (e.g. cookies and cakes) and 
unique products such as alkaline Chinese noodles and Japanese 
sponge cake over 8,000 breading lines submitted by wheat 
breeding programs in the Western States (Arizona, California, 
Idaho, Montana, Oregon, Utah and Washington). Researchers in 
the lab identified puroindoline proteins as the molecular 
genetic effectors of wheat grain softness, and the 
characterization of specific mutations that cause grain to 
become hard and filed a patent that covers the use of 
puroindolines in the modification of kernel texture in all 
cereals. The lab also developed D null partial waxy wheat 
germplasm and hard and soft completely waxy wheat and 
cooperated in the commercialization of waxy wheat food uses 
with a CRADA partner. They also developed an improved, 
nondestructive, small scale assay for polyphenol oxidase 
activity to predict alkaline noodle darkening, resulting in the 
development of a small scale alkaline noodle color test for 
evaluating the color potential of wheat breeding lines for 
Asian noodles. The method has been very broadly distributed and 
is used by nearly all wheat breeding programs west of the 
Mississippi.

Geneva, NY--Grape Rootstock (and Plant Pathology)

    The U.S. grape crop, now grown in over 40 states, has more 
than tripled in fifteen years from $955 million in 1985 to $3.1 
billion in 2000. This program has developed grape rootstocks 
with pest and disease resistance and stress tolerance for use 
in vineyards in the United States. In addition, outside of the 
Far West (CA), much of the nation's grape acreage is cultivated 
in areas of relatively high humidity where a range of disease 
organisms thrive and threaten the productivity and 
sustainability of grapes for fresh and processed consumption. 
This program developed a basic understanding of how these 
diseases actually infect the plant and make it sick, thus 
providing new approaches for control and management of these 
diseases.

Miami, FL and Beltsville, MD--Coffee and Cocoa

    ARS scientists have identified and mapped genetic markers 
of resistance to the three most common diseases (witches broom, 
frosty pod, black pod), of cocoa that cause devastating 
economic loss worldwide. Using these markers to screen major 
collections in the Western Hemisphere, important sources of 
potential genetic resistance are being developed. Also, the 
establishment of genetic markers of quality and flavanoid 
characteristics point to promising phytopharmaceuticals from 
cocoa with important implications for improved human health and 
post-harvest product quality.

Auburn, AL--Conservation Tillage Production System Helps Profits and 
        the Environment

    ARS scientists at Auburn, Alabama, lead in the development 
of agricultural tillage systems in the Southeast and Mid-South 
U.S. that use cover crops and non-inversion tillage to build 
soil quality, manage soil compaction, and reduce the risk of 
short-term drought. ARS scientists partner with action agencies 
like the USDA Natural Resources Conservation Service and 
Cooperative Extension Systems in the Southeast, as well as 
private agribusiness and farmer groups like the Alabama Farmers 
Federation, Georgia Conservation Tillage Alliance, and Cotton 
Incorporated. Seventy-five percent of cotton growers in some 
regions of the Southeast have adopted ARS-developed 
conservation practices. State examples include a four-fold 
increase in conservation tillage practices in Alabama and two-
fold in Georgia, where cotton alone in 2000 was valued at $141 
million and $453 million, respectively.

Tifton, GA--Nematology Research

    ARS researchers at Tifton, Georgia have maximized the use 
of non-chemical methods of nematode management in vegetable and 
agronomic crops. Control measures utilizing resistance, 
biological control, cropping sequences, and cultural practices 
have been developed. Interactions of nematodes with other pests 
have also been measured.

Orono, ME--Late Blight Fungus

    ARS researchers at Orono, Maine have characterized the late 
blight pathogen from tomato and potato plots and gardens in 
Maine; unique genotypes of the pathogen have been identified. 
Variable mating types of the fungus suggest that a shift in 
population structure is occurring to a more virulent strain.

Food Safety for Listeria and E. Coli

    Listeria and E. coli research were added to new programs 
aimed at: sequencing the genome of various Listeria 
monocytogenes species to provide insight into the mechanisms of 
disease and evolution of the pathogen; developing strategies to 
rapidly identify and differentiate Listeria species and strains 
in conducting a prevalence study of Listeria in ready-to-eat 
foods, and for the development of FSIS and FDA regulatory 
policy on ready-to-eat foods; and determining if the prevalence 
and numbers of E. coli O157 in ``downer'' cattle sent to 
slaughter is higher than found in normal cattle.

East Lansing, MI--Avian Disease & Oncology Res. Lab

    Avian myelocytomatosis, a tumor of chickens is induced by a 
novel subgroup-J of avian leukosis virus (ALV-J). ALV-J is a 
serious cause of mortality and other production problems in 
meat-type chickens in the United States. ARS developed a 
convenient diagnostic test for the presence of the virus and 
provided research that lead to another disease commercial test. 
This research to detect and eradicate this disease has been 
very successful.

Manhattan, KS--Hard Winter Wheat Quality Laboratory

    Scientists in this laboratory evaluate the milling and 
baking quality of hard winter wheat breeding lines from three 
federal regional breeding nurseries for the best quality and 
maximum yields. The information obtained and provided to 
breeders ultimately helps U.S. farmers grow good quality, 
breadmaking wheats for domestic and export markets. The lab 
developed a simple, user-friendly relational database system 
that summarizes and interprets end use quality data to allow 
breeders to more rapidly and accurately assess the quality 
potential of experimental breeding lines, and ultimately 
facilitate the increased utilization of U.S. wheat flour for 
new and unique commercial products.

Wooster, OH--Soft Wheat Quality Laboratory

    ARS scientists evaluated cultivars and about five thousand 
breeders' test lines for protein qualities that may be 
beneficial for domestic cracker production. New soft wheat 
lines were identified with sufficient gluten strength for 
cracker production without having to blend them with hard 
wheats.

Salinas, CA--Greenhouse Lettuce/LettuceBreeder

    This program has provided disease resistant lettuce 
germplasm to the public that allows farmers to produce a high 
quality, disease-free and nutritious crop at a reasonable cost 
to the consumer.

Bushland, TX--Sorghum Research

    Long-term dryland and furrow irrigation studies have been 
initiated at Bushland, Texas, on cotton-sorghum and sorghum-
cotton rotations and continuous sorghum cropping to evaluate 
effects on water use, water use efficiency, tillage practices 
and crop production. Sensor technologies for the measurement of 
daily plant water stress can provide a useful tool for sorghum 
growers to improve water management practices.

Columbus, OH--Source Water Protection Initiative

    New and innovative best management practices (BMPs) are 
being installed in the Upper Big Walnut Creek watershed to 
improve the quality of the drinking water supply for Columbus, 
Ohio. Alternative BMPs will be installed in FY 2003 which 
include improved drainage management practices, advanced 
integrated pest management methods, enhanced cropping systems, 
installation of constructed wetlands and riparian areas, etc.

National Germplasm Resource Program--(Multi-location)

    This program supported the acquisition, maintenance, and 
evaluation of plant germplasm that supplies the nation's food 
and fiber and insures homeland security.

College Station, TX--Southwest Pecan Research

    The pecan program at College Station is the largest, and 
essentially the only, pecan breeding program in the world. ARS 
scientists have developed, tested and released superior pecan 
scion cultivars and rootstocks for all pecan growing areas of 
the United States. About 0.5 million acres of pecans are grown 
in the United States by some 20,000 small farmers that have an 
orchard size of about 25 acres.

Boise, ID--Great Basins Rangeland Research

    Post-fire establishment of desirable rangeland grasses is 
hampered by the high variability in seasonal and annual 
precipitation on western rangelands. Scientists are using 
models to characterize the annual variability in seedbed 
conditions in order to predict the potential success level for 
the establishment of different grass species.

Ames, IA--National Soil Tilth Research

    The National Soil Tilth Laboratory has established one of 
the largest, fully instrumented field-scale projects in the 
United States for quantifying the crop productivity, soil 
quality, water quality, and economic benefits of conventional 
and organic farming practices. Soil and crop management 
practices are also being developed for improved carbon 
sequestration and other soil quality factors. Basic properties 
associated with clay mineralogy and organic matter are 
providing the bases for improving soil water retention and a 
better understanding of the carbon cycle.

West Lafayette, IN--Oat Virus (Barley/Cereal Yellow Dwarf) with 
        University of Illinois

    Wheat lines were identified having wheatgrass DNA segments 
that confer complete resistance to cereal yellow dwarf virus. 
U.S. wheat breeders can exploit these new lines to develop 
virus-resistant wheat.

Ames, IA--Risk Assessment for Bt Corn

    ARS scientists have found the impact of Bt corn on monarch 
butterfly populations to be negligible. Their results were 
published in a series of five articles in the October 9, 2001 
issue of Proceedings of the National Academy of Sciences 
(PNAS).

Columbia, MO--Midwest/Mid-South Irrigation

    Soil electrical conductivity (EC) sensing has been found to 
be a useful method for estimating differences in yields seen 
across Missouri fields. Using this technology, a cooperative 
irrigation research that includes precision applications of 
water and nutrients have been initiated at the Delta Center, 
University of Missouri, near Portageville.

Lubbock, TX--Plant Stress & Water Conservation Lab

    Project has developed new diagnostic tests to identify 
plant lines that are more tolerant of high temperatures and 
identified genes involved in drought tolerance.

Pullman, WA--Grain Legume Plant Pathologist

    Project has located chickpea genes for resistance to 
ascochyta blight and mapped these genes on a genetic map.

Root Diseases in Wheat and Barley

    Project has recently identified eleven species of pythium 
that cause root rot in wheat and barley, an economically 
devastating disease of U.S. grain crops.

National Wheat and Barley Scab Initiative

    Fusarium head blight (scab) has caused over a $3 billion 
cumulative loss to U.S. wheat and barley producers. More than 
100 research projects from 27 states were funded in 2002 as 
part of this coordinated national effort to reduce scab losses. 
Plant breeding, biotechnology, chemical and biological control, 
disease management and food safety projects will all be 
affected by the budget cut. Scientists have identified 
resistant germplasm and are racing to incorporate this 
resistance into publicly available varieties.

Beltsville, MD--Barley Food Health Benefits

    Human studies have been conducted that increasing the 
barley fiber content of the diet lowers serum cholesterol 
levels and provides health benefits. This work was done in men 
and new studies using women are underway.

Aberdeen, ID--Potato Breeding Research

    A late blight resistant breeding selection has been 
released from the ARS program at Aberdeen, Idaho. Two new 
potato varieties, Bannock Russet, a French fry and fresh market 
russet with resistance to early dying disease and potato virus 
Y, and Ida Rose, a fresh market red type, were also introduced.
    Corn germplasm.--Corn is a key resource in this country and 
throughout the world, providing food, industrial uses, 
livestock feed, and export. It is important to broaden the 
germplasm base of corn hybrids grown by American farmers to 
promote genetic diversity and stability in corn production. The 
Committee provides an increase of $400,000 in fiscal year 2003 
to the ARS Corn Insects and Crop Genetics Research Laboratory 
at Ames, Iowa for expanded research on the impact of insects on 
corn production in the Midwest.
    Dairy genetics research.--The Committee provides an 
increase of $400,000 in fiscal year 2003 to the Animal 
Improvement Research Laboratory, Beltsville, Maryland for 
increased research on dairy cattle genetics and to undertake 
research related to their reproductive health. This research 
will include the maintenance of a national database for genetic 
research on milk yield, composition, and fitness traits; 
improved methods of comparing genetic evaluations across 
countries; and determining economic values of health and 
reproductive traits.
    Emerging animal diseases.--The Committee provides an 
increase of $500,000 in fiscal year 2003 to establish 
collaborations with other countries to address emerging animal 
diseases and to characterize disease threats in their native 
areas. The Agricultural Research Service will validate 
diagnostics and vaccines in host countries to reduce threats to 
the United States.
    Endophyte research.--There are over 35 million acres of 
endophyte infected tall fescue pastures in the United States 
responsible for annual losses to the beef cattle industry. This 
fescue toxicity problem plagues the cattle industry in 
Arkansas, Oklahoma, Missouri, Kansas, Tennessee, Alabama, 
Georgia, North Carolina, Indiana, Virginia, and Oregon. The 
Committee provides an increase of $300,000 in 2003 to the ARS 
Research Center at Booneville, Arkansas for expanded 
collaborative research with the University of Arkansas, 
University of Missouri and the Oregon State University.
    Exotic diseases of plants.--The Committee supports research 
proposed to identify and characterize plant diseases at 
laboratories in Wooster, OH; Frederick, MD; and Prosser, WA. An 
increase of $250,000 is provided for fiscal year 2003 for each 
of these laboratories to study plant viruses and bacterial and 
fungal pathogens.
    Floriculture and nursery research.--Floriculture and 
nursery crops represent more than 10% of the total U.S. crop 
cash receipts while environmental horticulture is the third 
largest value crop in the U.S. The Committee restores funding 
recommended for termination in the President's budget and 
continues funding at the fiscal year 2002 level for this 
research.
    Food safety for Listeria and E. coli and other pathogens.--
The Committee provides an increase of $400,000 in fiscal year 
2003 for research on the control and prevention of Listeria 
monocytogenes in ready-to-eat meat and poultry products; E. 
coli 0157:H7 in raw beef products; and other agents of 
importance that contaminate the U.S. food supply.
    Formosan subterranean termite.--The exotic Formosan 
Subterranean termite costs the U.S. one billion dollars each 
year. It is particularly damaging in the Greater New Orleans 
area, along the Gulf Coast, and Hawaii. ARS scientists, in 
cooperation with scientists from Louisiana State University 
Agricultural Center and the City of New Orleans Mosquito and 
Termite Control Board successfully demonstrated in a 15-block 
New Orleans French Quarter test that populations of the termite 
can be dramatically reduced on an area-wide basis by the use of 
detection and baiting technologies. The Committee provides an 
increase of $200,000 in fiscal year 2003 to the Southern 
Regional Research Center at New Orleans, Louisiana to continue 
current efforts and to expand the 15-block test to encompass 
the entire 108-block area of the historically and economically 
important French Quarter.
    Ft. Pierce horticultural research laboratory.--The 
Committee understands that the horticultural research 
laboratory continues to operate below scientific capacity. This 
laboratory carries out critical research on citrus, fruits, and 
vegetables and nursery crops. The Committee provides an 
increase of $600,000 in fiscal year 2003 for the U.S. 
Horticultural Research Laboratory at Ft. Pierce, Florida for a 
molecular biologist and bacteriologist.
    Genetic resources.--The Committee recognizes the importance 
of acquiring, characterizing and evaluating germplasm resources 
and provides an increase of $2,750,000 for this program. The 
Committee directs funding of $250,000 for each of the programs 
and laboratories requested. Acquisition: Riverside, CA; and 
Parlier, CA. Characterization: Ft. Collins, CO; Corvallis, OR; 
Ames, IA: Davis, CA; and Raleigh, NC. Evaluation: Madison, WI; 
Pullman, WA; Hilo, HI; and Mayaguez, PR.
    Genetically modified crops and plants.--The National 
Academy of Sciences report on ``Genetically Modified Pest-
Protected Plants'' affirmed that genetically engineered 
organisms are not inherently more dangerous than conventionally 
bred organisms. ARS is at the forefront in determining the 
consequences of any genetically modified organism (GMO). These 
include the development of strategies to prevent the buildup of 
resistance in crop pest populations, the assessment on effects 
on non-target organisms, such as Monarch butterfly, and the 
reduction of pesticides run off from GMO fields. The Committee 
provides an increase in fiscal year 2003 for expanded research 
at four ARS research locations as follows: Corvallis, Oregon, 
$300,000; Ames, Iowa, $300,000; Phoenix, Arizona, $300,000; and 
Wapato, Washington, $300,000.
    Ginning technologies.--The Committee directs that the 
important research carried out by ARS in cotton ginning 
harvesting and the development of ginning technologies be 
maintained at fiscal year 2002 funding levels.
    Grape genetics.--Grapes are the 6th largest crop in the 
United States and one of the most important cash crops world 
wide. The U.S. is the 4th largest producer of wine, responsible 
for about 10% of all world wine. The Committee provides an 
increase of $300,000 in fiscal year 2003 for the grape genetics 
research program at the ARS facility in Geneva, New York. These 
funds will be used to hire a grape geneticist who will begin 
mapping the grape genome.
    Grapefruit juice/drug interaction.--The Committee provides 
an increase of $400,000 in fiscal year 2003 to examine and 
obtain more precise data on the effect of grapefruit juice 
consumption on the absorption rates of certain medications. 
Research is needed to characterize the components of grapefruit 
juice responsible for enzyme suppression and to understand the 
dosage affected and determine the rate of consumption for 
safety and efficacy. Research will be conducted by ARS at the 
USDA Citrus Research Laboratory at Winterhaven, Florida. The 
research will be in collaboration with the University of 
Florida-IFAS and Tufts University.
    Great Basin rangelands.--The Agricultural Research Service 
carries out important investigations to control infestations 
such as medusahead, Canadian thistle, Russian knapweed, and 
many other existing and invasive weeds affecting the Great 
Basin. Research is conducted on management of rangelands, 
including conservation, restoration, and sustainable 
utilization. Research is also carried out to develop predictive 
models of basin-scale hydrologic systems. The Committee directs 
that this research be continued at the fiscal year 2002 funding 
level.
    Greenhouse lettuce germplasm.--The Committee provides an 
increase of $50,000 in fiscal year 2003 for additional costs 
associated with the preservation, maintenance, and evaluation 
of greenhouse lettuce germplasm.
    Harvesting research for sugarcane.--The Committee 
understands the need for research investigations to improve 
harvesting and processing efficiency for sugarcane. 
Environmental concerns for current ``burning'' practices 
require expanded research to develop new varieties that allow 
farmers to utilize ``green cane'' harvesting methods 
efficiently. In addition, to offset increased costs involved 
with residue, studies must be pursued to develop technologies 
and useful products from sugarcane biomass. The Committee 
provides an increase of $300,000 for this research in fiscal 
year 2003 to be carried out at the ARS research location in 
Houma, Louisiana.
    Invasive weeds and insects.--The Committee continues to be 
supportive of Agency's research program to control and 
eradicate weeds and insects and the need to develop safe 
biological controls for invasive pests. The Committee provides 
an increase of $1,250,000 as requested for fiscal year 2003. 
These funds are to be implemented at the following 
laboratories: Davis, CA; Frederick, MD; Wooster, OH; Ft. 
Collins, CO; and Newark, DE.
    Livestock genes of economic importance.--The Committee is 
aware of the need to identify the genes that influence disease 
resistance, reproduction, nutrition and other economically 
important traits in livestock. The Committee provides an 
increase of $750,000 for beef and swine research at Clay 
Center, Nebraska.
    Malignant Catarrhal Fever (MCF) Virus.--The Committee 
provides an increase of $250,000 in fiscal year 2003 for this 
sheep-associated virus infecting small ruminants. This 
additional funding will be used for research on the development 
of vaccines critical to the systematic eradication of MCF virus 
in small ruminants at the ARS laboratory at Pullman, WA, and in 
cooperation with the ARS sheep station at Dubois, ID, and 
Washington State University.
    Marek's Disease.--Marek's Disease, a herpes virus induced 
cancer like disease is one of the most devastating diseases of 
chickens. The Committee recognizes ARS' significant achievement 
in the development of vaccines currently used world wide to 
counter Marek's Disease. While the use of current vaccines have 
substantially reduced condemnation losses, the current vaccines 
are not 100% effective due to continuing emergence of new and 
more pathogenic wild strains. The Committee provides an 
increase of $500,000 in fiscal year 2003 for expanded research 
on development of more effective vaccines.
    Microbial genomics initiative.--Analysis of the complete 
genome of microbial pathogens is revolutionizing our 
understanding of emerging and food-boorne diseases such as 
tuberculosis, salmonellosis, and E. coli 0157:H7, and 
bioterrorists threats such as anthrax. The ARS Animal Disease 
Research Unit at Pullman, Washington in collaboration with the 
Washington State University and the ARS Tick Research Unit at 
Kerrville, Texas is conducting research to address tick-
transmitted bacterial agents in cattle as well as identifying 
additional genomic projects on diseases which pose trade 
barriers to our livestock industry. The Committee provides an 
increase of $400,000 in fiscal year 2003 for this collaborative 
research initiative.
    Mid-West/Mid-South Irrigation.--While irrigation is 
normally associated with the arid, western part of the U.S., 
the fastest growing irrigation states are found in the Mid-West 
and the Mid-South. The need for irrigation in these areas is 
critical in reducing production risks, increase producer 
yields, promote good land management practices, and reduce 
input costs. The Committee provides an increase of $400,000 in 
fiscal year 2003 for cooperative research into irrigation 
methods and technologies with the Delta Center, University of 
Missouri at Portageville, Missouri.
    Minor use pesticides (IR-4).--Pest management for minor 
crops continues to be a major problem in rural America. Pest 
control product registrations are critical to minor crop 
agriculture. However, the crop production industry has little 
incentive to pursue such registrations because of small acreage 
and low return of investment. This program produces research 
data for clearances for pest control products on minor food and 
ornamental crops and supports the FQPA. The Committee provides 
an increase of $200,000 in fiscal year 2003 to expand this 
research.
    Nutrient management in the Northeastern United States.--The 
Committee provides an increase of $300,000 in fiscal year 2003 
for research to measure and predict the farm and watershed 
scale in the Northeastern United States, as well as to measure 
input of manure nutrients and pathogens to sensitive bodies of 
water as a function of management practices and treatment 
technologies.
    Nutritional requirements research.--The Children's Human 
Nutrition Center at the Baylor college of Medicine, Houston 
Texas is dedicated to investigating the nutritional needs of 
pregnant and nursing women and children from conception through 
adolescence. This Center has helped define the role of 
nutrition in children's health, growth, and development. The 
Committee provides an increase of $375,000 in fiscal year 2003 
to the Center to develop better understanding of how dietary 
factors affect the growth and development of children and the 
onset of chronic diseases.
    Olive fruitfly research.--The olive fruitfly is the world's 
number one pest of olives, causing devastating effects on the 
$66 million olive industry in California. The Committee 
provides an increase of $250,000 in fiscal year 2003 to expand 
the integrated pest management research program to control the 
olive fruitfly at ARS' Horticultural Research Laboratory and 
European Biological Control Laboratory.
    Pay act costs.--The Committee provides funding for 
increased costs associated with Federal employees salaries and 
benefits.
    Phytoestrogen research.--Phytoestrogens are compounds in 
plant food that are metabolized by the human body to resemble 
naturally occurring estrogens and which may retard some of the 
adverse effects of estrogens. The Committee recognizes the 
importance of phytoestrogen research at the Southern Regional 
Research Center (SRRC) in collaboration with the Tulane/Xavier 
Center for Bioenvironmental Research. This research is also 
being expanded to integrate the expertise of the Laboratory for 
Soy Products and Health at the University of Toledo. The 
Committee provides an increase of $900,000 in fiscal year 2003 
for cooperative research with SRRC and Tulane, Xavier and the 
University of Toledo.
    Pierce's disease.--Pierce's Disease and its vector the 
Glassy-winged Sharpshooter (PD-GWSS) continue to devastate 
vineyards in Southern California and established strongholds in 
several other premium growing areas threatening the entire 
grape and wine industry. Several other commodities have been 
impacted because they serve as hosts of the glassy-winged sharp 
shooters. Citrus and nursery stock growers now have costly 
requirements for inspection and treatment regimens to curb the 
spread of PD-GWSS. International trade has also been restricted 
as Australia recently banned imports of California grapes over 
fears of Pierce's Disease. The Committee provides an increase 
of $600,000 in fiscal year 2003 to enable the ARS center at 
Parlier to move aggressively and effectively against this 
serious pest/disease combination threat to the economic 
viability of many crops in California. The Committee directs 
that $120,000 of the increase be implemented to supplement 
ongoing research at Davis, California, and Ft. Pierce, Florida.
    Plant/Crop genome sequencing.--Genomics is critical for 
developing improved crops that enable producers to maximize 
yields of high quality products, while minimizing environmental 
degradation and improving efficiency of production. The 
Committee supports the ARS research effort to expedite gene 
discovery and the development of physical maps and markers for 
maize, cereals, legumes, and insects, and provides an increase 
in fiscal year 2003 to the following ARS locations: Weslaco, 
Texas, $300,000; Ithaca, New York, $500,000; and Albany, 
California, $500,000.
    Plant stress and water conservation research.--The 
Committee is aware of the staffing needs at the new U.S. Plant 
Stress and Water Conservation Laboratory in Lubbock, TX. 
Increased research is required to develop strategies to 
alleviate the impacts of temperature stress and water deficits 
on plant performance, improve the efficient use of available 
water supplies for dryland and irrigated production systems, 
and research production strategies to enhance the entire soil-
plant-water relationship. An increase of $300,000 is provided 
in fiscal year 2003 for staffing needs at the U.S. Plant Stress 
and Water Conservation Laboratory.
    Porcine Respiratory Disease Complex (PRDC).--With annual 
losses in the United States estimated in excess of $210 
million, this newly emerging respiratory disease in pigs is the 
most important health concern of U.S. swine producers. The 
origin of the disease is still unknown and research initiatives 
are needed to develop methods for diagnosing and controlling 
PRDC. The Committee provides an increase of $600,000 in fiscal 
year 2003 to the ARS Respiratory Diseases Laboratory, Ames, 
Iowa to control this emerging swine disease.
    Poultry diseases.--The Committee is aware that research on 
poultry diseases is critical to national and international 
competitiveness of animal agriculture and is a limiting factor 
to the expansion of U.S. poultry exports. Diagnostic tests and 
vaccines are critically needed to prevent outbreaks and the 
spread of exotic poultry diseases such as Avian Influenza, 
Newcastle disease and new variants of known viral diseases. The 
Committee provides an increase of $1,000,000 for fiscal year 
2003 for increased research on poultry diseases at the 
Southeast Poultry Research Laboratory, Athens, Georgia.
    Rangeland resources research.--The Committee continues to 
support the important research program at the ARS High Plains 
Grassland Research Station at Cheyenne, Wyoming. The Committee 
restores funding to the fiscal year 2002 level.
    Regional grains genotyping research.--The Committee 
recognizes the need for research investigations to identify and 
deploy important genes for grain quality and pest resistance of 
cereals grown in the Southeast, including wheat, oats, and 
corn. The Committee provides an increase of $325,000 in fiscal 
year 2003 for this research to be carried out by ARS' Plant 
Science Laboratory, at Raleigh, NC.
    Restoration of proposed base reductions and laboratory 
closures.--The Committee does not concur with the President's 
budget proposal to close selected research laboratories and 
terminate related ongoing research programs. The Committee 
directs the continuation of these important research 
laboratories and fully restores funding of $15,000,000 
identified for reduction in the President's budget as ``ongoing 
research programs and laboratory closures''. The laboratories 
and base programs to be continued and restored by this 
Committee include: the Avian Disease and Oncology Laboratory, 
East Lansing, Michigan; Water Management Research Laboratory, 
Brawley, California; New England Plant, Soil, and Water 
Research Laboratory, Orono, Maine; the Honey Bee Research 
Laboratories located at Beltsville, Maryland; Baton Rouge, 
Louisiana; and Tucson, Arizona; the Cereal Crops Quality 
Research Laboratories located at Fargo, North Dakota; Madison, 
Wisconsin; and Wooster, Ohio; Biotechnology Research and 
Development Corporation, Peoria, Illinois; Animal Health 
Consortium, Peoria, Illinois; and the Western Regional Research 
Center, Albany, California.
    Sorghum research.--Grain sorghum has long been an important 
crop in the U.S. and the world. The estimated value of the U.S. 
sorghum crops was over $2.1 billion in 1999, placing it fourth 
on the list of economically important grains, behind corn, 
soybeans, and wheat. However, little basic information exists 
on new and industrial uses of sorghum, including use of sorghum 
distiller dry grain as livestock feed or its many unique health 
properties. Also, as more and more U.S. producers implement new 
crop rotation schemes that include sorghum, new pest problems 
threaten farmer livelihoods. The Committee provides an increase 
of $712,000 for expanded sorghum research at the following ARS 
locations: $200,000 to the Cereal Grain Quality Laboratory, 
Manhattan, Kansas to develop new and industrial uses of 
sorghum; $212,000 to the Energy Soil, & Animal Waste Research 
Unit, Bushland, Texas to evaluate the feed value of sorghum 
distiller dry grain; $200,000 to Arkansas Children's Nutrition 
Center, Little Rock, Arkansas for research on white, food-grade 
sorghum and other specialty sorghum high on anti-oxidants and 
other health benefits; and $100,000 to Stillwater, Oklahoma for 
developing new insect resistance lines of sorghum.
    Source Water Protection Initiatives.--The Committee 
continues to be concerned with the agricultural and 
environmental water quality issues resulting from water 
movement through agricultural drainage systems serving as 
conduits for movement of pollutants into surface water systems. 
The management of subsurface or groundwater flow can have a 
major effect on pesticides and soil erosion. The Committee 
provides $360,000 in FY 2003 to the Soil Drainage Research Unit 
in Columbus, Ohio to continue the source water protection 
initiative started last year in the Upper Big Walnut Creek 
Watershed. The Committee also provides an increase of $360,000 
in fiscal year 2003 to the National Soil Erosion Laboratory, 
West Lafayette, Indiana to continue the source water initiative 
started last year in the St. Joseph River Watershed. Additional 
funds will provide for additional research scientist positions 
and for required research equipment at both ARS locations.
    Sudden Oak disease.--Since 1995, oak trees have been dying 
in large numbers along the California and Oregon coasts. The 
disease has spread to other plants including rhododendron and 
huckleberry. There is great potential for this disease to 
spread throughout the country. The Committee provides an 
increase of $300,000 to conduct research to identify causative 
agents and diagnostic tools. This research is carried out at 
the ARS Ft. Detrick research laboratory.
    Sugarcane variety research.--The Committee provides an 
increase of $300,000 in fiscal year 2003 for the ARS Sugarcane 
Research Station at Canal Point, Florida. These funds will be 
used toward strengthening and expanding the breeding, 
pathology, and soil conservation projects currently in 
progress.
    Sustainable olive production.--Olive oil production is a 
new value added farm industry of interest to many farmers in 
the south and southwest. The Committee is aware of research 
studies currently underway to develop sustainable methods for 
improved olive production and olive oil quality for Texas and 
other production areas in the United States. The Committee 
provides an increase of $150,000 at the ARS Weslaco, Texas 
laboratory for expanded research on sustainable olive 
production in the south and southwest.
    Sustainable viticulture research.--The development of 
sustainable, biologically, and environmentally sound grape 
growing practices which enhances compatibility with soil, 
water, air, and biotic resources is important to the grape 
industry, since grape is a major U.S. farm product competing in 
a very competitive world market place. The Committee provides 
an increase of $300,000 in fiscal year 2003 for expanded 
sustainable viticulture practices research at the ARS research 
laboratory at Davis, CA.
    Transgene activity research.--The issue of gene flow from 
crops to surrounding vegetation is urgent in light of legal 
questions of responsibility when proprietary genes are 
transferred from one farm to another by pollen dispersal. 
Technologies are needed for crops in which gene transfer is 
considered most likely and potentially most dangerous, 
including biotechnology approaches that inhibit pollen or seed 
variability and ecological approaches such as safe buffer zones 
between crops and other management practices to reduce risk. 
The Committee provides an increase in fiscal year 2003 for 
expanded research at the following ARS locations: Albany, 
California, $500,000; Ames, Iowa, $500,000; Raleigh, North 
Carolina, $250,000; and Ithaca, New York, $300,000.
    Transmissible Spongiform Encephalopathies (TSE).--TSE are 
fatal diseases that can affect both animals and humans. Scrapie 
of sheep and goats, bovine spongiform encephalopathy (BSE), and 
chronic wasting disease (CWD) of deer and elk are classified as 
TSE of ruminant animals. In order to reduce livestock losses 
and to improve efficiency of production it is important to 
eradicate TSE's in domestic animals. The Committee provides an 
increase of $1,500,000 in fiscal year 2003 to be allocated 
$500,000 each to the Animal Disease Research Laboratory, 
Pullman, Washington; National Animal Disease Center, Ames, 
Iowa; and the Western Regional Research Center, Albany, 
California.
    United States National Arboretum (USNA).--The Committee 
recognizes the important work of the USNA and the additional 
resources required to accommodate the continuing growth of 
visitors to the Arboretum. The Committee provides an increase 
of $300,000 in fiscal year 2003 to meet the expanded workload 
at the USNA.
    Utilization of agricultural commodities.--The Committee is 
aware of the need to develop technologies to produce biobased 
products from agricultural commodities and byproducts and 
provides an increase of $1,600,000 for fiscal year 2003 as 
follows: Albany, CA, $500,000; Athens, GA, $250,000; New 
Orleans, $250,000; Peoria, IL $300,000; and Wyndmoor, PA, 
$300,000. In addition, The Committee provides an increase of 
$1,000,000 to improve conversion of agricultural materials and 
wastes to biofuels to be carried out at Bushland, TX; Peoria, 
IL; Wyndmoor, PA; and Albany, CA.
    Verticillum Wilt.--The Committee is aware of the extensive 
damages caused by ``Verticillum Wilt'' to lettuce and vegetable 
producers in California. The Committee directs ARS to utilize 
existing funds available to the ARS research station at 
Salinas, California to address this serious vegetable 
production problem in California.
    Water use reduction/producer enhancement research.--A vital 
factor in the viability of rural economies is a quality natural 
resource base to sustain agricultural productivity. Available 
water supply is being stretched by rapidly growing demands for 
water by urban populations, irrigated agriculture, industry/
energy sectors, and in-stream flow requirements. The dilemma 
for producers and local economies is finding solutions to 
reduce irrigation and natural resource consumption while at the 
same time maintaining and or enhancing producer net returns. 
The Committee provides an increase of $650,000 in fiscal year 
2003 to the National Peanut Research Laboratory at Dawson, 
Georgia for research to enhance, in a sustainable manner, 
irrigated agriculture and associated rural economies in 
Southwest, Georgia.
    Weather variability research.--Agricultural production is 
vulnerable to the extreme variability in weather patterns. 
Agricultural water supplies is likewise facing increasing 
competition from urban and industrial uses, due to variability 
in weather extremes. Expanded research is needed to assess and 
manage risks of agricultural production and water supplies 
arising from weather variability. The Committee provides fiscal 
year 2003 increases of: $250,000 to the ARS research station at 
Boise, Idaho for research to develop hydrological and rangeland 
models; $250,000 to ARS research station at El Reno, Oklahoma 
for research to develop methods for prediction and early 
detection of drought; and $250,000 to ARS research station at 
Coshocton, Ohio for research on weather risk assessments as it 
relates to crop production.
    West Nile Virus.--The Committee recognizes the continuing 
threat of mosquito-borne West Nile Virus to humans and domestic 
animals in northern New England and other parts of the United 
States. The Committee provides an increase of $350,000 in 
fiscal year 2003 for expanded cooperative research with the 
Connecticut State Agricultural Experiment Station to develop 
methods of efficiently controlling mosquitoes, to evaluate 
available anti-viral drugs to cure infected humans and to 
determine if the virus is mutating to more virulent forms.
    Wheat quality research.--The Committee supports ARS' 
ongoing wheat research program carried out at Wooster, Ohio; 
Fargo, North Dakota; Manhattan, Kansas; Madison, Wisconsin; and 
Pullman, Washington. The research conducted at these 
laboratories is unique and funding is to be continued at the FY 
2002 level.
    Winegrape plant virus.--The Pacific Northwest is an 
increasingly important grape growing region of the United 
States. There are 25,000 acres of juice grapes planted in 
Washington and another 12,000 combined acres of wine grapes in 
Oregon and Idaho, creating a crop industry quickly becoming one 
of the most profitable to the region. However, plant viruses 
pose a significant danger to the grape and wine industries of 
the Pacific Northwest and farmers must be assured that the 
materials used to plant new vineyards are certified ``clean'' 
rootstock. The Committee provides an increase of $250,000 in 
fiscal year 2003 to the ARS research station at Prosser, 
Washington for collaborative winegrape plant virus research 
with the Washington State University's Irrigated Agriculture 
Research and Extension Center (AREC).
    Woody ornamental genomics and breeding for the Southeast.--
Ornamental horticulture is valued at $11 billion annually in 
farm gate receipts. Expansion of this industry in Tennessee and 
other Appalachian States would help offset the declining value 
of other traditional agricultural products such as tobacco, 
dairying, and feed grain. However, profitable expansion of 
ornamental horticulture is impeded by insect, disease, and 
nematode pests, which also cause extensive chemical usage. The 
Committee directs that funding for this collaborative program 
be restored at the FY 2002 level to continue the important 
cooperative research between ARS and the University of 
Tennessee, Knoxville, Tennessee.
    Stephen F. Austin State University.--The Committee is aware 
of the proposed Stephen F. Austin State University project 
that, through the combined efforts of the Forest Resources 
Institute and the Center for Medicinal Plants Research in 
Nacogdoches, Texas, will study poultry science, animal 
nutrition, and plant biotechnology. The Committee expects the 
Agricultural Research Service to give this proposal serious 
consideration for research funding in fiscal year 2003.

                        BUILDINGS AND FACILITIES




2002 appropriation\1\.................................      $118,987,000
2003 budget estimate..................................        16,580,000
Provided in the bill..................................        95,280,000
Comparison:
    2002 appropriation................................       -23,707,000
    2003 budget estimate..............................       +78,700,000

\1\ Does not include FY2002 supplemental of $73,000,000 for Homeland
  Security, P.L. 107-117.

    The ARS Buildings and Facilities account was established 
for the acquisition of land, construction, repair, improvement, 
extension, alteration, and purchase of fixed equipment or 
facilities of or used by the Agricultural Research Service. 
Routine facilities maintenance, construction or replacement 
items would continue to be funded under the limitations 
contained in the regular account.

                          COMMITTEE PROVISIONS

    For Agricultural Research Service, Buildings and 
Facilities, the Committee provides an appropriation of 
$95,280,000, a decrease of $23,707,000 below the amount 
available for fiscal year 2002 and an increase of $78,700,000 
above the budget request.
    The following table summarizes the Committee's provisions:

         AGRICULTURAL RESEARCH SERVICE, BUILDINGS AND FACILITIES
                        [In thousands of dollars]
------------------------------------------------------------------------
                                                  FY 2003     Committee
                                                  estimate    provisions
------------------------------------------------------------------------
Arizona:
    U.S. Water Conservation and Western Cotton            0      $12,300
     Laboratories, Maricopa...................
District of Columbia:
    U.S. National Arboretum...................       $3,000        3,000
Iowa:
    USDA Facility Consolidation and                       0       58,000
     Modernization, Ames......................
Maryland:
    Abraham Lincoln National Agricultural             7,400        7,400
     Library, Beltsville......................
    Beltsville Agricultural Research Center...        4,180        4,180
New York:
    Plum Island Animal Disease Center,                2,000        2,000
     Greenport................................
Wisconsin:
    Cereal Crops Research Laboratory, Madison.            0        8,400
                                               -------------------------
      Total, Buildings and Facilities.........       16,580       95,280
------------------------------------------------------------------------

                        BUILDINGS AND FACILITIES

    USDA Facility Consolidation and Modernization.--The 
Department has developed a master plan to construct new animal 
facilities to replace and modernize the National Animal Disease 
Center (NADC), the National Veterinary Service Laboratories 
(NVSL), and the Center for Veterinary Biologics (CVB), which 
are all located in Ames, Iowa.
    The Committee recommends $58,000,000 to support the 
accelerated master plan to consolidate and modernize existing 
animal research and diagnostic facilities. It is the 
Committee's view that this project is crucial to fulfilling 
USDA's mission to ensure a safe food supply and to expand 
global markets for agricultural products and services. This 
multi-year construction effort is a cost-effective approach 
including utility infrastructure replacement, new facility 
construction, renovation of existing facilities, elimination of 
the need for rental space, and demolition of totally obsolete 
facilities.
    As part of its recommendation, the Committee directs the 
Secretary of Agriculture to continue to submit quarterly 
reports on the execution status of this project, on the scope 
and schedule of remaining construction increments, and on cost 
reduction initiatives taken to assure that this project will 
remain within program requirements.
    U.S. Water Conservation and Western Cotton Research 
Laboratories.--The U.S. Water Conservation Laboratory (USWCL) 
was constructed in 1959. The USWCL conducts research to 
increase water use efficiency in agricultural production for 
the irrigated West and to conserve and improve the quantity and 
quality of our Nation's water supplies. The Western Cotton 
Research Laboratory (WCRL) was constructed in 1971. The WCRL 
conducts research to increase the efficiency of producing 
cotton in the irrigated West to ensure that U.S. cotton will be 
competitive in both price and quality in the world market. The 
ARS laboratories in Phoenix utilized an adjacent University of 
Arizona research farm to conduct large scale field plot 
experiments essential to support the water conservation and 
cotton production research programs. The University established 
a new large farming and research facility near Maricopa. Due to 
the unavailability of field plot land near the Phoenix 
location, the ARS researchers must now travel about 28 miles to 
the Maricopa Agricultural Center (MAC) to conduct their field 
experiments. Existing facilities require extensive renovation 
and repair to meet safety and health codes and to provide 
modernized research facilities. To date $15,685,000 has been 
appropriated for new facilities. The Committee provides an 
additional $12,300,000 toward full construction requirements of 
the replacement facilities to be constructed at the Maricopa 
Agricultural Center.
    Cereal Crops Research Laboratory.--The Committee provides 
$8,400,000 for the balance of funds required to complete 
construction of the Cereal Crops Research Laboratory located at 
Madison, Wisconsin. This laboratory will replace existing 
facilities which are inadequate to house the research 
requirements of the Agency. To date $3,000,000 has been 
appropriated for planning and construction of this facility.
    Grape Genetics Research Center.--The Committee directs the 
Agency to submit a feasibility study on the establishment of a 
Grape Genetics Research Center at Geneva, New York. The 
Committee has been advised that a state-of-the-art facility can 
be constructed at the available site of the new Cornell 
Agriculture and Food Technology Park, adjacent to the New York 
State Agricultural Experiment Station. The feasibility study 
should be submitted to the Committee by March 1, 2003.
    U.S. National Arboretum.--The Committee encourages the 
Department of Agriculture (USDA) to include, in their fiscal 
year 2004 budget request, adequate funding for the construction 
of the new Bladensburg Gate, road repairs and a new tram kiosk. 
Construction of this new gate will help enhance security at the 
facility, as well as decrease traffic on nearby streets and 
intersections.
    Plum Island Animal Disease Center.--Division B of the 
fiscal year 2002 appropriations bill for the Department of 
Defense (Public Law 107-117) included legislation regarding 
transfers from the Emergency Response Fund established under 
Public Law 107-38. One provision of this legislation 
appropriated funds for planning and design at the Plum Island 
Animal Disease Center. However, due to an ongoing review of 
security issues at Plum Island, obligation of these funds was 
prohibited, pending the Secretary's report to the 
Appropriations Committees of the House and the Senate on the 
conclusions of that review. A contract for this review was 
signed in May, and a final report is anticipated in August, 
2002. Therefore, the Committee recommends continuation of the 
prohibition on obligation, pending the Secretary's report.
    Agricultural Research Service (ARS)/Washington State 
University (WSU) Research Facilities, Pullman, Washington.--The 
Committee recognizes the strong partnership between ARS and WSU 
at Pullman, Washington. The Committee is aware of the need for 
additional space and modernized facilities to accommodate the 
agricultural research program at WSU. The Committee directs the 
Agency to undertake a feasibility study to review the existing 
and future space requirements at the Pullman Station, as well 
as technologies and systems essential to maximize quality 
research. The Committee expects the study to be developed in 
consultation with both institutions and should be submitted to 
the Committee no later than March 1, 2003.
    Agriculture Research Technology Center.--The Committee is 
aware of the need for additional facilities to accommodate 
research and extension programs at the ARS research location in 
Salinas, California. Expanded research is essential to meet 
growing demands for sustainable agricultural technologies and 
the efficient production of specialty crops in the Central 
Coast region. The Committee directs the ARS to carry out a 
feasibility study to be submitted by March 1, 2003 on the 
building requirements at the Salinas research station including 
laboratory, office, greenhouse and support facility space as 
well as the estimated design and construction costs.
    ARS Center for Health-Based Crop Genomics.--The Committee 
encourages the Agency to conduct a feasibility study on the 
establishment of a Center for Health-Based Crop Genomics at 
Ithaca, New York. The Committee has been advised that this 
facility can be constructed by expanding and upgrading the 
Agency's Plant, Soil & Nutrition Laboratory on the campus of 
Cornell University.

      Cooperative State Research, Education, and Extension Service

    The Cooperative State Research, Education, and Extension 
Service (CSREES) was established by the Secretary of 
Agriculture on October 1, 1994, under the authority of the 
Department of Agriculture Reorganization Act of 1994 (7 U.S.C. 
6912). The Service was created by the merger of the Cooperative 
State Research Service and the Extension Service. The mission 
of CSREES is to work with university partners to advance 
research, extension, and higher education in the food and 
agricultural sciences and related environmental and human 
sciences to benefit people, communities, and the Nation.

                   RESEARCH AND EDUCATION ACTIVITIES




2002 appropriation....................................      $542,062,000
2003 budget estimate \1\..............................       552,549,000
Provided in the bill \2\..............................       572,616,000
Comparison:
    2002 appropriation................................       +30,554,000
    2003 budget estimate..............................       +20,067,000

\1\ Excludes $1,084,000 for pension and health benefits.
\2\ Excludes $1,837,000 for GSA Rent which is funded in a central
  account under Agriculture Buildings and Facilities.

    The research and education programs administered by the 
Cooperative State Research, Education, and Extension Service 
were established by Secretary's Memorandum No. 1462, dated July 
19, 1961 and Supplement 1, dated August 31, 1961, and under 
Reorganization Plan No. 2 of 1953. The primary function of 
research and education activities is to administer Acts of 
Congress that authorize Federal appropriations for agricultural 
research and higher education carried out by the State 
Agricultural Experiment Stations of the 50 States, District of 
Columbia, Puerto Rico, Guam, the Virgin Islands, American 
Samoa, Micronesia, and Northern Mariana Islands, and by 
approved schools of forestry, the 1890 land-grant colleges and 
Tuskegee University, the 1994 Native American land-grant 
institutions, and other eligible institutions. Administration 
of payments and grants involves the approval of each research 
proposal to be financed in whole or in part from Federal grant 
funds; the continuous review and evaluation of research and 
higher education programs and expenditures thereunder; and the 
encouragement of cooperation within and between the states and 
with the research programs of the Department of Agriculture.

                          COMMITTEE PROVISIONS

    For payments under the Hatch Act, the Committee provides an 
appropriation of $182,000,000, an increase of $1,852,000 above 
the amount available for fiscal year 2002 and an increase of 
$1,852,000 above the budget request.
    For cooperative forestry research, the Committee provides 
an appropriation of $23,000,000, an increase of $1,116,000 
above the amount available for fiscal year 2002 and an increase 
of $1,116,000 above the budget request.
    For payments to the 1890 land-grant colleges and Tuskegee 
University, the Committee provides an appropriation of 
$36,000,000, an increase of $1,396,000 above the amount 
available for fiscal year 2002 and an increase of $1,396,000 
above the budget request.

         COOPERATIVE STATE RESEARCH, EDUCATION, AND EXTENSION SERVICE  RESEARCH AND EDUCATION ACTIVITIES
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                      FY 2002         FY 2003        Committee
                                                                      enacted        estimate       provisions
----------------------------------------------------------------------------------------------------------------
Research Activities:
    Payments under the Hatch Act................................        $180,148        $180,148        $182,000
    Cooperative Forestry Research (McIntire-Stennis)............          21,884          21,884          23,000
    Payments to 1890 Colleges and Tuskegee University...........          34,604          34,604          36,000
                                                                 -----------------------------------------------
Special Research Grants (P.L. 89-106):
    Advanced genetic technologies (KY)..........................             600               0             600
    Advanced spatial technologies (MS)..........................             978               0             978
    Aegilops cylindrica (jointed goatgrass) (WA)................             367               0             400
    Agricultural diversification (HI)...........................             128               0             128
    Agricultural diversity/Red River Corridor (MN, ND)..........             400               0             600
    Agriculture water usage (GA)................................             293               0               0
    Agroecology (MD)............................................             400               0             400
    Air quality (TX)............................................             640               0           1,000
    Alliance for food protection (GA, NE).......................             293               0             300
    Alternative crops for arid lands (TX).......................             100               0               0
    Alternative nutrient management (VT)........................             186               0               0
    Alternative salmon products (AK)............................             631               0               0
    Alternative uses for tobacco (MD)...........................             360               0               0
    Animal science food safety consortium (AR, IA, KS)..........           1,598               0           1,630
    Apple fireblight (MI, NY)...................................             489               0             500
    Aquaculture (AR)............................................             232               0             232
    Aquaculture (FL)............................................             490               0               0
    Aquaculture (ID, WA)........................................             600               0             750
    Aquaculture (LA)............................................             322               0             330
    Aquaculture (MS)............................................             579               0             579
    Aquaculture (NC)............................................             293               0             300
    Aquaculture (VA)............................................             100               0             100
    Aquaculture product and marketing development (WV)..........             733               0               0
    Armilliaria root rot (MI)...................................             160               0               0
    Asparagus technology and production (WA)....................             260               0             300
    Babcock Institute (WI)......................................             588               0             600
    Beef technology transfer (MO)...............................             294               0               0
    Biomass-based energy research (OK, MS)......................             960               0           1,050
    Biotechnology (NC)..........................................             306               0               0
    Blocking Anhydrous Methamphetamine Production (IA)..........             242               0               0
    Bovine Tuberculosis (MI)....................................             318               0             318
    Brucellosis vaccine (MT)....................................             485               0             500
    Center for rural studies (VT)...............................             240               0               0
    Chesapeake Bay agroecology (MD).............................             280               0             280
    Citrus Canker (FL)..........................................             490               0             500
    Citrus Tristeza.............................................             725               0             750
    Competitiveness of agriculture products (WA)................             665               0             700
    Computational agriculture (NY)..............................               0               0             500
    Cool season legume research (ID, WA)........................             321               0             350
    Cotton fiber quality (GA)...................................             400               0             500
    Cranberry/blueberry (MA)....................................             172               0             175
    Cranberry/blueberry disease and breeding (NJ)...............             216               0             260
    Crop diversification center (MO/ND).........................             800               0               0
    Crop genomes (MS)...........................................             640               0             640
    Crop integration and production (SD)........................             200               0             250
    Dairy and meat goat research (TX)...........................              63               0              63
    Dairy farm profitability (PA)...............................             294               0             500
    Delta rural revitalization (MS).............................             201               0             201
    Designing foods for health (TX).............................             690               0             900
    Diaprepes/Root Weevil (FL)..................................             400               0             500
    Drought mitigation (NE).....................................             196               0             250
    Ecosystems (AL).............................................             489               0             500
    Efficient irrigation (NM/TX)................................           1,176               0           1,550
    Environmental biotechnology (RI)............................             400               0             500
    Environmental horticulture (FL).............................             400               0               0
    Environmental research (NY).................................             391               0             400
    Environmental risk factors/cancer (NY)......................             222               0             222
    Environmentally safe products (VT)..........................             240               0               0
    Exotic pest diseases (CA)...................................           1,600               0           2,000
    Expanded wheat pasture (OK).................................             286               0             350
    Farm injuries and illnesses (NC)............................             278               0             350
    Feed barley for rangeland cattle (MT).......................             833               0             833
    Feed efficiency in cattle (FL)..............................               0               0             500
    Feedstock conversion (SD)...................................             560               0               0
    Fish and shellfish technologies (VA)........................             465               0             465
    Floriculture (HI)...........................................             400               0             400
    Food and Agriculture Policy Research Institute (IA, MO).....           1,000               0           1,250
    Food irradiation (IA).......................................             245               0             245
    Food Marketing Policy Center (CT)...........................             484               0             495
    Food processing center (NE).................................              42               0              42
    Food quality (AK)...........................................             342               0               0
    Food safety (AL)............................................             608               0             650
    Food safety (OK)............................................             400               0             450
    Food safety research consortium (NY)........................             800               0           1,000
    Food safety assessment (ND).................................             800               0           1,200
    Food security (WA)..........................................             400               0             500
    Food Systems Research Group (WI)............................             490               0             600
    Forages for advancing livestock production (KY).............             367               0             367
    Forestry (AR)...............................................             512               0             512
    Future foods (IL)...........................................               0               0             500
    Generic commodity promotions, research and evaluation (NY)..             194               0             200
    Global Change/ultraviolet radiation.........................           1,404           2,500           2,000
    Grain sorghum (KS)..........................................             104               0             104
    Grapefruit juice/drug interaction (FL)......................               0               0             500
    Grass seed cropping for sustainable agriculture (ID, OR, WA)             414               0             500
    Hispanic leadership in agriculture (TX).....................               0               0             500
    Hoop barns (IA).............................................             200               0               0
    Human nutrition (IA)........................................             463               0           1,000
    Human nutrition (LA)........................................             800               0             800
    Human nutrition (NY)........................................             609               0             622
    Hydroponic tomato production (OH)...........................             100               0             100
    Illinois-Missouri Alliance for Biotechnology................           1,214               0           1,214
    Improved dairy management practices (PA)....................             389               0             400
    Improved early detection of crop diseases (NC)..............             194               0               0
    Improved fruit practices (MI)...............................             239               0             239
    Increasing shelf life of agricultural commodities (ID)......             640               0             640
    Infectious disease research (CO)............................             640               0             700
    Institute for Food Science & Engineering (AR)...............           1,222               0           1,222
    Integrated production systems (OK)..........................             176               0             290
    Intelligent quality sensor for food safety (ND).............             360               0               0
    International arid lands consortium.........................             484               0             550
    Iowa Biotechnology Consortium...............................           1,530               0           2,000
    Livestock and Dairy Policy (NY, TX).........................             558               0             650
    Livestock genome sequencing (IL)............................             400               0             500
    Lowbush blueberry research (ME).............................             254               0             265
    Maple research (VT).........................................             120               0               0
    Meadow foam (OR)............................................             293               0             300
    Michigan Biotechnology Consortium...........................             481               0             775
    Midwest Advanced Food Manufacturing Alliance................             452               0             500
    Midwest agricultural products (IA)..........................             632               0             632
    Midwest poultry consortium (IA).............................             400               0           1,000
    Milk safety (PA)............................................             600               0             750
    Minor use animal drugs (IR-4)...............................             588             588             588
    Molluscan shellfish (OR)....................................             391               0             400
    Montana Sheep Institute.....................................             400               0               0
    Multi-commodity research (OR)...............................             356               0             450
    Multi-cropping strategies for aquaculture (HI)..............             124               0             124
    National beef cattle genetic evaluation consortium (NY).....             343               0           1,000
    National Biological Impact Assessment.......................             248             253             253
    Nematode resistance genetic engineering (NM)................             147               0             147
    Nevada Arid Rangelands Initiative (NV)......................             400               0             450
    New crop opportunities (AK).................................             485               0               0
    New crop opportunities (KY).................................             735               0             735
    Non-food uses of agricultural products (NE).................              64               0              64
    Nursery, greenhouse, turf specialties (AL)..................             320               0             300
    Oil resources from desert plants (NM).......................             196               0             250
    Olive fly (CA)..............................................               0               0              40
    Organic waste utilization (NM)..............................             100               0             100
    Oyster post harvest treatment (FL)..........................             400               0             500
    Ozone air quality (CA)......................................             400               0             475
    Pasture and forage research (UT)............................             244               0               0
    Peach tree short life (SC)..................................             175               0             300
    Perennial wheat (WA)........................................               0               0             150
    Pest control alternatives (SC)..............................             280               0             325
    Phytophthora root rot (NM)..................................             135               0             250
    Phytoremediation plant research (OH)........................             280               0               0
    Pierce's disease (CA).......................................           1,960               0           2,000
    Plant biotechnology (IA)....................................               0               0             500
    Plant, drought, and disease resistance gene cataloging (NM).             244               0             250
    Potato research.............................................           1,568               0           1,600
    Precision agriculture (KY)..................................             733               0             733
    Preharvest food safety (KS).................................             208               0             208
    Preservation and processing research (OK)...................             221               0             226
    Protein utilization (IA)....................................             186               0               0
    Rangeland ecosystems (NM)...................................             320               0               0
    Red snapper research (AL)...................................             960               0           1,500
    Regional barley gene mapping project........................             760               0             760
    Regionalized implications of farm programs (MO, TX).........             287               0             350
    Rice agronomy (MO)..........................................               0               0             200
    Ruminant nutrition (MT, ND, SD, WY).........................             400               0             400
    Rural Development Centers (PA, IA, ND, MS, OR, LA) \1\......             560               0               0
    Rural policies institute (NE, IA, MO).......................           1,040               0           1,500
    Russian wheat aphid (CO)....................................             320               0             320
    Satsuma orange research (AL)................................             800               0           1,000
    Seafood havesting, processing and marketing (AK)............           1,142               0               0
    Seafood and aquaculture harvesting, processing and marketing             298               0             298
     (MS).......................................................
    Seafood safety (MA).........................................             400               0             450
    Small fruit research (OR, WA, ID)...........................             392               0             400
    Soil and environmental quality (DE).........................             120               0               0
    Southwest consortium for plant genetics and water resources.             392               0             392
    Soybean cyst nematode (MO)..................................             686               0             700
    Soybean research (IL).......................................             800               0             900
    STEEP water quality in Northwest............................             588               0             750
    Sustainable agriculture (CA)................................             400               0             600
    Sustainable agriculture (MI)................................             435               0             435
    Sustainable agriculture and natural resources (PA)..........             123               0             175
    Sustainable agriculture systems (NE)........................              59               0              59
    Sustainable beef supply (MT)................................           1,000               0           1,000
    Sustainable engineered materials from renewable sources (VA)             400               0             400
    Sustainable pest management for dryland wheat (MT)..........             452               0             452
    Swine and other animal waste management (NC)................             489               0             500
    Synthetic gene technology (OH)..............................             168               0             168
    Technological development of renewable resources (MO).......             294               0             300
    Tillage, silviculture, waste management (LA)................             400               0             450
    Tomato wilt virus (GA)......................................             244               0               0
    Tri-state joint peanut research (AL)........................             600               0             600
    Tropical aquaculture (FL)...................................             194               0             250
    Tropical and subtropical research/T STAR....................           8,000               0          10,000
    Uniform farm management program (MN)........................               0               0             500
    Value-added product development from agricultural resources              324               0             324
     (MT).......................................................
    Value-added products (IL)...................................             120               0             175
    Viticulture consortium (NY, CA, PA).........................           1,600               0           2,000
    Water conservation (KS).....................................              79               0              79
    Water use efficiency and water quality enhancements (GA)....             480               0             600
    Weed control (ND)...........................................             426               0             435
    Wetland plants (LA).........................................             587               0             600
    Wheat genetic research (KS).................................             255               0             275
    Wheat sawfly research (MT)..................................             505               0             505
    Wood utilization (AK, ID, ME, MI, MN, MS, NC, OR, TN).......           5,670               0           5,786
    Wool research (TX, MT, WY)..................................             294               0               0
                                                                 -----------------------------------------------
      Subtotal, Special Grants..................................          97,008           3,341         102,754
                                                                 ===============================================
Improved pest control:
    Emerging pest/critical issues \1\...........................             200               0               0
    Expert IPM Decision Support System..........................             177             177             177
    Integrated pest management..................................           2,725           2,725           2,725
    IR-4 minor crop pest management.............................          10,485          10,485          11,000
    Pest Management Alternatives................................           1,619           1,619           1,619
                                                                 -----------------------------------------------
      Subtotal, Improved pest control...........................          15,206          15,006          15,521
                                                                 ===============================================
National Research Initiative....................................         120,452         240,000         130,000
Animal health and disease (Sec. 1433)...........................           5,098           5,098           5,098
Alternative crops:
    Canola......................................................             693               0             693
    Hesperaloe and other natural products from desert plants....             231               0             350
Critical Agricultural Materials Act.............................             720               0               0
1994 Institutions research program..............................             998             998           1,200
Joe Skeen Institute for Rangeland Restoration (NM, TX, MT)......               0               0           2,250
Institution challenge grants....................................           4,340           5,500           5,500
Graduate fellowships grants.....................................           2,993           3,500           3,500
Multicultural scholars program..................................             998             998             998
Hispanic education partnership grants...........................           3,492           3,492           4,500
Capacity building grants (1890 institutions)....................           9,479           9,479          10,000
Payments to the 1994 Institutions...............................           1,549           1,549           1,700
Alaska Native-serving and Native Hawaiian-serving Institutions             2,997           2,997           2,997
 education grants...............................................
Secondary/agriculture education.................................           1,000           1,000           1,000
Sustainable agriculture research and education/SARE.............          12,500           9,230          12,500
Aquaculture Centers (Sec. 1475).................................           3,996           3,996           3,996
Federal Administration:
    Agriculture-based industrial lubricants (IA)................             360               0             500
    Agriculture development in the American Pacific.............             552               0             552
    Agriculture Waste Utilization (WV)..........................             600               0               0
    Agriculture Water Policy (GA)...............................             600               0             750
    Alternative fuels characterization laboratory (ND)..........             294               0             294
    Animal Waste Management (OK)................................             320               0             350
    Aquaculture (OH)............................................             400               0             500
    Biotechnology research (MS).................................             680               0               0
    Botanical research (UT).....................................             640               0               0
    Center for Agricultural and Rural Development (IA)..........             600               0             750
    Center for Food Industry Excellence (TX)....................               0               0             500
    Center for innovative food technology (OH)..................             765               0             765
    Center for North American Studies (TX)......................             200               0             200
    Climate forecasting (FL)....................................               0               0           1,750
    Cotton research (TX)........................................             880               0           1,500
    Electronic Grants Administration System.....................               0           2,250           2,250
    Feed efficiency (WV)........................................             160               0               0
    Fruit/vegetable market analysis (AZ, MO)....................             340               0             340
    Geographic information system...............................           1,199               0           1,199
    Germplasm development in forage grasses (OH)................             100               0             100
    High value horticultural crops (VA).........................               0               0             500
    Information Technology (GA).................................               0               0             500
    Livestock marketing information center (CO).................             196               0             196
    Mariculture (NC)............................................             360               0             360
    Mississippi Valley State University.........................             633               0               0
    National Center for Peanut Competitiveness (GA).............             391               0               0
    Office of Extramural Programs...............................             439             448             448
    Pay costs and FERS..........................................           1,385           2,095           2,095
    Peer Panels.................................................             342             349             349
    Phytoremediation plant research (OH)........................               0               0           1,000
    PM-10 air quality study (WA)................................             426               0             450
    Precision Agriculture/Tennessee valley research center (AL).             480               0             450
    Produce pricing (AZ)........................................              76               0              80
    REE Information System......................................           2,078           2,750           2,750
    Rental Payments to GSA......................................               0           1,837               0
    Salmon quality standards (AK)...............................             120               0               0
    Shrimp aquaculture (AZ, HI, LA, MA, MS, SC, TX).............           4,214               0           4,214
    Sustainable agriculture development (OH)....................             490               0             500
    Urban silviculture (NY).....................................             232               0             250
    Water pollutants (WV).......................................             206               0               0
    Water Quality (IL)..........................................             341               0               0
    Water Quality (ND)..........................................             417               0             417
    Wetland Plants (WV).........................................             160               0             200
                                                                 -----------------------------------------------
      Total, Federal Administration.............................          21,676           9,729          27,059
                                                                 ===============================================
      Total, Research and Education Activities..................         542,062         552,549         572,616
----------------------------------------------------------------------------------------------------------------
\1\ FY 2003 funding budgeted under Integrated Activities.

    Indirect costs.--The Committee has recommended a general 
provision to this bill which limits indirect costs charged 
against competitively awarded grants to 19 percent of total 
direct costs, except for grants available under the Small 
Business Innovation and Development Act. By statute, indirect 
costs are not an allowable expense under Special Research 
Grants, but this limitation does not apply to Federal 
Administration grants. The Committee is interested in the level 
of indirect costs associated with Federal Administration grants 
and therefore directs the Administrator to report to the 
Committee by January 15, 2003, on the percentage of indirect 
costs charged to each Federal Administration Grant (under 
Research and Education Activities, as well as Extension 
Activities) during fiscal year 2002.
    National Research Initiative.--The Committee recommends 
that grants made available through the National Research 
Initiative (NRI) include Genetically Modified Agriculture 
Products (GMAP) research grants. Such grants should be made for 
the purpose of evaluating the risks and benefits, to humans, of 
genetically modified plant and animal products. Overall, 
research may include, but not be limited to, initiatives that 
encompass scientific, social and economic evaluations, 
fundamental health and environment studies of GMAP's, related 
gene flow studies and quantitative risk assessments. The 
Committee recommends that all risks and benefits derived from 
GMAP research be communicated through extension and education 
programs that engage the public and industry.
    Dietary intervention (OH).--From within available funds, 
the Committee recommends $400,000 for the conduct of human 
clinical trials to determine the effects of dietary 
intervention on polyp development.
    Facilities.--The Committee strongly encourages the 
Cooperative State Research, Education, and Extension Service to 
give careful consideration for bioterrorism laboratory facility 
upgrade funding to land-grant colleges and universities already 
engaged in research funded by the Department of Agriculture in 
the bioterrorism area. Specifically, research should be focused 
on animal and plant bioterrorism detection, containment and 
remediation.

              NATIVE AMERICAN INSTITUTIONS ENDOWMENT FUND




2002 appropriation....................................        $7,100,000
2003 budget estimate..................................         7,100,000
Provided in the bill..................................         9,000,000
Comparison:
    2002 appropriation................................        +1,900,000
    2003 budget estimate..............................        +1,900,000


    The Native American Institutions Endowment Fund authorized 
by Public Law 103-382 provides authority to establish an 
endowment for the 1994 land-grant institutions (31 tribal 
controlled colleges). This program will enhance educational 
opportunities for Native Americans by building educational 
capacity at these institutions in the areas of student 
recruitment and retention, curricula development, faculty 
preparation, instruction delivery systems, and scientific 
instrumentation for teaching. Funds also are available for 
facility renovation, repair, construction, and maintenance. On 
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 endowment fund, distribute the adjusted 
income as follows: sixty percent of the adjusted income from 
these funds shall be distributed among the 1994 land-grant 
institutions on a pro-rata basis, the proportionate share being 
based on the Indian student count; and forty percent of the 
adjusted income shall be distributed in equal shares to the 
1994 land-grant institutions.

                          COMMITTEE PROVISIONS

    For the Native American Institutions Endowment Fund, the 
Committee provides $9,000,000, an increase of $1,900,000 above 
the amount available in fiscal year 2002 and an increase of 
$1,900,000 above the budget request.

                          EXTENSION ACTIVITIES




2002 appropriation....................................      $439,473,000
2003 budget estimate \1\..............................       419,989,000
Provided in the bill \2\..............................       441,821,000
Comparison:
    2002 appropriation................................        +2,348,000
    2003 budget estimate..............................       +21,832,000

\1\ Excludes $1,046,000 for pension and health benefits.
\2\ Excludes $1,629,000 for GSA Rent which is funded in a central
  account under Agriculture Buildings and Facilities.

    Cooperative agricultural extension work was established by 
the Smith-Lever Act of May 8, 1914, as amended. The legislation 
authorizes the Department of Agriculture to give, through the 
land-grant institutions, instruction and practical 
demonstrations in agricultural and home economics and related 
subjects, and to encourage the application of such information 
by means of demonstrations, publications, and otherwise to 
persons not attending or a resident in the colleges. In 
addition, the Service provides nutrition training to low-income 
families, 4-H Club work, and educational assistance such as 
community resource development.

                          COMMITTEE PROVISIONS

    For Extension Activities, the Committee provides an 
appropriation of $441,821,000, an increase of $2,348,000 above 
the amount available for fiscal year 2002 and an increase of 
$21,832,000 above the budget request.
    The following table reflects the amount provided by the 
Committee:

                          EXTENSION ACTIVITIES
                        [In thousands of dollars]
------------------------------------------------------------------------
                                         FY 2002    FY 2003    Committee
                                         enacted    estimate  provisions
------------------------------------------------------------------------
Smith-Lever sections 3(b) and 3(c)....   $275,940   $275,940    $277,000
Smith-Lever section 3(d):
    Farm safety.......................      5,250          0       5,800
    Food and nutrition education......     58,566     58,566      58,566
    Indian reservation agents.........      1,996      1,996       1,996
    Pest management...................     10,759     10,759      10,759
    Rural development centers \1\.....        953          0           0
    Sustainable agriculture...........      4,750      3,792       4,750
    Youth at risk.....................      8,481      8,481       8,481
    Youth farm safety education and           499        499         499
     certification....................
Renewable Resources Extension Act.....      4,093      4,093       5,000
1890 Colleges and Tuskegee University.     31,181     31,181      32,000
1890 facilities grants................     13,500     13,500      14,000
Rural health and safety education.....      2,622          0       2,622
Extension services at the 1994              3,273      3,273       3,273
 institutions.........................
                                       ---------------------------------
      Subtotal........................    421,863    412,080     424,746
                                       =================================
Federal Administration:
    Ag in the classroom...............        600        600         700
    Agricultural telecommunications           339          0         425
     (NY).............................
    Avian Conservation (PA)...........        320          0           0
    Beef producers improvement (AR)...        193          0         193
    Botanical garden initiative (IL)..        232          0         250
    Conservation technology transfer          490          0         500
     (WI).............................
    Dairy education (IA)..............        232          0           0
    Diabetes detection, prevention            906          0         924
     (WA).............................
    Efficient irrigation (NM/TX)......      1,960          0       2,050
    Entrepreneurial alternatives (PA).          0          0         500
    Extension specialist (MS).........        100          0           0
    Family farm industry network (OH).      1,372          0       1,400
    Food Animal Residue Avoidance             800          0         800
     Database/FARAD...................
    Food product development (AK).....        280          0           0
    Health education leadership (KY)..        800          0         800
    Income enhancement demonstration          241          0         241
     (OH).............................
    Integrated cow/calf management            294          0           0
     (IA).............................
    Iowa Vitality Center..............        280          0           0
    National Center for Agriculture           196          0         200
     Safety (IA)......................
    Nursery Production (RI)...........          0          0         500
    Pilot technology transfer (WI)....        160          0         165
    Pilot technology transfer (OK, MS)        319          0         350
    Potato pest management (WI).......        396          0         200
    Range improvement (NM)............        240          0           0
    Rental payments to GSA............          0      1,629           0
    Resilient communities (NY)........          0          0         250
    Rural development (AK)............        637          0           0
    Rural development (NM)............        363          0         500
    Rural rehabilitation (GA).........        240          0           0
    Urban horticulture (WI)...........        200          0           0
    Urban market development (NY).....          0          0         250
    Wood biomass as an alternative            193          0         197
     farm product (NY)................
    General administration and pay....      5,227      5,680       5,680
                                       ---------------------------------
      Total, Federal Administration...     17,610      7,909      17,075
                                       =================================
      Total, Extension Activities.....    439,473    419,989     441,821
------------------------------------------------------------------------
\1\ FY 2003 funding budgeted under Integrated Activities.

    Farm Safety: AgrAbility.--Within the funds provided for 
Smith-Lever 3(d) for Farm Safety, the Committee recommends 
$4,600,000 for the AgrAbility program, which helps people with 
disabilities to be able to farm safely, efficiently, and 
profitably through on-the-farm education and assistance.
    Family farm industry network (OH).--The Committee expects 
that this project will identify and enhance opportunities to 
maximize sales by area producers in local markets, including 
school and other institutional feeding programs, farmers and 
other specialty markets, and new product development, while 
enhancing urban recognition of local farm production.
    Income enhancement demonstration (OH).--The Committee 
expects that funds for this project will be used for a 
demonstration project regarding the sale of locally produced 
foods to school food service programs.
    Indirect costs.--This matter is addressed under Research 
and Education Activities.

                         INTEGRATED ACTIVITIES




2002 appropriation....................................       $42,853,000
2003 budget estimates.................................        44,865,000
Provided in the bill..................................        47,868,000
Comparison:
    2002 appropriation................................        +5,015,000
    2003 budget estimate..............................        +3,003,000


    Section 406 of the Agricultural Research, Extension, and 
Education Reform Act of 1998 authorizes an integrated research, 
education, and extension competitive grants program. Programs 
included support multifunctional projects that integrate 
research, education and extension components. Additional 
programs that may support integrated projects and are 
authorized under other authorities are also included under this 
account.

                                              INTEGRATED ACTIVITIES
                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                      FY 2002         FY 2003        Committee
                                                                      enacted        estimate       provisions
----------------------------------------------------------------------------------------------------------------
Integrated Research, Education, and Extension Competitive Grants
 Program:
    Critical Issues \1\.........................................               0            $500            $500
    Rural Development Centers \2\...............................               0           1,513           1,513
    International Science and Education Grants..................               0           1,000           1,000
    Water Quality...............................................         $12,971          12,971          12,971
    Food Safety.................................................          14,967          14,967          14,967
    Regional Pest Management Centers............................           4,531           4,531           4,531
    Crops at Risk from FQPA Implementation......................           1,497           1,497           1,497
    FQPA Risk Mitigation Program for Major Food Crop Systems....           4,889           4,889           4,889
    Methyl Bromide Transition Program...........................           2,498           2,498           3,500
    Organic Transition Program..................................           1,500             499           2,500
                                                                 -----------------------------------------------
      Total, Integrated Activities..............................          42,853          44,865          47,868
----------------------------------------------------------------------------------------------------------------
\1\ FY 2002 funding provided under Research and Education Activities/Improved Pest Control.
\2\ FY 2002 funding provided under Research and Education Activities/Special Research Grants, and Extension
  Activities/Smith-Lever section 3(d).

                          COMMITTEE PROVISIONS

    For Integrated Activities, the Committee provides an 
appropriation of $47,868,000, an increase of $5,015,000 above 
the amount available for fiscal year 2002 and an increase of 
$3,003,000 above the budget request.
    International Science and Education Grants.--The Committee 
will expect that funding for this program should be 
concentrated in those countries where a multi-agency U.S. 
Government strategy has been developed.

  Office of the Under Secretary for Marketing and Regulatory Programs





2002 appropriation....................................          $654,000
2003 budget estimate \1\..............................           780,000
Provided in the bill..................................           730,000
Comparison:
    2002 appropriation................................           +76,000
    2003 budget estimate..............................           -50,000

\1\ Excludes $17,000 for pension and health benefits.


    The Office of the Under Secretary for Marketing and 
Regulatory Programs provides direction and coordination in 
carrying out laws enacted by the Congress with respect to the 
Department's marketing, grading, and standardization activities 
related to grain; competitive marketing practices of livestock, 
marketing orders and various programs; veterinary services; and 
plant protection and quarantine. The Office has oversight and 
management responsibilities for the Animal and Plant Health 
Inspection Service; Agricultural Marketing Service; and Grain 
Inspection, Packers and Stockyards Administration.

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Marketing and 
Regulatory Programs, the Committee provides an appropriation of 
$730,000, an increase of $76,000 above the amount available for 
fiscal year 2002 and a decrease of $50,000 below the budget 
request.

               Animal and Plant Health Inspection Service


                         SALARIES AND EXPENSES


                                                                                                  Total, APHIS
                                                             Appropriations     User Fees \1\    Appropriations

2002 appropriation \2\....................................      $535,677,000       $84,813,000      $620,490,000
2003 budget estimate \3\..................................       767,119,000     (275,000,000)       767,119,000
Provided in the bill \4\..................................       735,937,000     (275,000,000)       735,937,000
Comparison:
    2002 appropriation....................................      +200,260,000       -84,813,000      +115,447,000
    2003 budget estimate..................................       -31,182,000  ................       -31,182,000

\1\ Excludes additional resources from the Federal Agriculture Improvement and Reform (FAIR) Act of 1996 direct
  appropriations.
\2\ Does not include FY 2002 supplemental of $105,000,000 for Homeland Security, P.L. 107-117.
\3\ Excludes $15,108,000 for pension and health benefits.
\4\ Excludes $26,709,000 for GSA Rent which is funded in a central account under Agriculture Buildings and
  Facilities.

    The Animal and Plant Health Inspection Service (APHIS) was 
established by the Secretary of Agriculture on April 2, 1972 
under the authority of Reorganization Plan No. 2 of 1953 and 
other authorities. The major objectives of APHIS are to protect 
the animal and plant resources of the nation from diseases and 
pests. These objectives are carried out under the major areas 
of activity, as follows:
    Pest and Disease Exclusion.--The agency conducts inspection 
and quarantine activities at U.S. ports-of-entry to prevent the 
introduction of exotic animal and plant diseases and pests. The 
agency also participates in inspection, survey, and control 
activities in foreign countries to reinforce its domestic 
activities.
    Plant and Animal Health Monitoring.--The agency conducts 
programs to assess animal and plant health and to detect 
endemic and exotic diseases and pests.
    Pest and Disease Management Programs.--The agency carries 
out programs to control and eradicate pest infestations and 
animal diseases that threaten the United States; reduce 
agricultural losses caused by predatory animals, birds, and 
rodents; provide technical assistance to cooperators such as 
states, counties, farmer or rancher groups, and foundations; 
and ensure compliance with interstate movement and other 
disease control regulations within the jurisdiction of the 
agency.
     Animal Care.--The agency conducts regulatory activities 
which ensure the humane care and treatment of animals as 
required by the Animal Welfare and Horse Protection Acts. These 
activities include inspection of certain establishments that 
handle animals intended for research, exhibition, and as pets, 
and monitoring of certain horse shows.
    Scientific and Technical Services.--The agency performs 
other regulatory activities, including the development of 
standards for the licensing and testing of veterinary 
biologicals to ensure their safety and effectiveness; 
diagnostic activities in support of the control and eradication 
programs in other functional components; applied research aimed 
at reducing economic damage from vertebrate animals; 
development of new pest and animal damage control methods and 
tools; and regulatory oversight of genetically engineered 
products.
    Agricultural Quarantine Inspection.--User fees are 
collected to cover the cost of inspection and quarantine 
activities at U.S. ports of entry to prevent the introduction 
of exotic animal and plant diseases and pests. The 1996 farm 
bill provides that beginning in 2003, all AQI user fee 
collections will become available without the need for annual 
appropriations, and the program will operate like typical user 
fee programs, with spending determined by the demand for AQI 
services.

                          COMMITTEE PROVISIONS

    The following table reflects the amounts provided by the 
Committee:

               ANIMAL AND PLANT HEALTH INSPECTION SERVICE
                        [In thousands of dollars]
------------------------------------------------------------------------
                                     FY 2002      FY 2003     Committee
             Program                 enacted      request     provisions
------------------------------------------------------------------------
1. Pest and Disease Exclusion:
    AQI appropriated.............      $47,254      $61,235      $59,835
    AQI user fees \1\............       84,813            0            0
    Cattle ticks.................        6,232        6,361        6,361
    Foreign animal diseases/FMD..        3,839        7,990        7,990
    Fruit fly exclusion and             36,818       61,760       47,600
     detection...................
    Import-export inspection.....        8,132        9,565        9,565
    Screwworm....................       30,557       30,681       30,681
    Trade issues resolution             11,367       11,530       11,530
     management..................
    Tropical bont tick...........          415          422          422
                                  --------------------------------------
      Total, Pest and Disease          229,427      189,544      173,984
       Exclusion.................
                                  ======================================
2. Plant and Animal Health
 Monitoring:
    Animal health monitoring and        70,931       92,223       92,973
     surveillance................
    Animal and plant health              8,101        8,385        8,385
     regulatory enforcement......
    Emergency management systems.        4,044       11,044        9,044
    Pest detection...............        6,844       26,707       16,707
                                  --------------------------------------
      Total, Plant and Animal           89,920      138,359      127,109
       Health Monitoring.........
                                  ======================================
3. Pest and Disease Management:
    Aquaculture..................        1,130          956        1,164
    Biological control...........        8,759        9,125        9,125
    Boll weevil..................       77,355       33,926       53,000
    Brucellosis..................        9,800        8,639        8,639
    Chronic wasting disease......            0        7,233       14,933
    Emerging plant pests.........       43,130      127,468      105,788
    Golden nematode..............          810          630          630
    Grasshopper..................            0        4,219        3,219
    Gypsy moth...................        4,559        4,679        4,679
    Imported fire ant............        2,868        2,132        2,177
    Johnes disease...............        3,000        3,056       20,356
    Noxious weeds................        1,255        1,138        1,438
    Pink bollworm................        1,866        1,667        6,000
    Plum pox.....................            0        5,551        2,551
    Pseudorabies.................        4,151        4,288        4,288
    Scrapie......................        3,119       22,474       20,474
    Tuberculosis.................        8,694       19,624       18,124
    Wildlife services operations.       49,071       63,659       65,709
    Witchweed....................        1,520        1,530        1,530
                                  --------------------------------------
      Total, Pest and Disease          221,087      321,994      343,824
       Management................
                                  ======================================
4. Animal Care:
    Animal welfare...............       15,167       14,392       15,619
    Horse protection.............          415          493          493
                                  --------------------------------------
      Total, Animal Care.........       15,582       14,885       16,112
                                  ======================================
5. Scientific and Technical
 Services:
    AITI.........................        1,748        4,602        3,882
    Biotechnology/environmental         10,516       11,006       11,006
     protection..................
    Plant methods development            5,118        5,378        5,378
     labs........................
    Veterinary biologics.........       11,763       13,177       13,177
    Veterinary diagnostics.......       18,278       23,933       23,933
    Wildlife services methods           12,955       13,429       13,429
     development.................
                                  --------------------------------------
      Total, Scientific and             60,378       71,525       70,805
       Technical Services........
                                  ======================================
GSA Rent.........................  ...........       26,709  ...........
6. Contingency fund..............        4,096        4,103        4,103
      Total, Salaries and              620,490      767,119      735,937
       Expenses..................
                                  ======================================
Recap (Salaries and Expenses):
    Appropriated.................      535,677      767,119      735,937
    AQI user fees................       84,813    (275,000)    (275,000)
                                  --------------------------------------
      Total, Salaries and              620,490      767,119      735,937
       Expenses..................
------------------------------------------------------------------------
\1\ Does not include additional AQI resources provided in the Federal
  Agricultural Improvement and Reform (FAIR) Act of 1996 direct
  appropriation.

    U.S./Mexico Border Inspection.--The Committee is concerned 
with the risk of invasive species introduction and rates of 
inspection along the U.S/Mexico border, particularly in the 
counties of Webb, Presidio, Maverick and Val Verde, TX. The 
Committee strongly encourages APHIS to allocate additional 
resources to inspection activities along the U.S./Mexico 
border. The Committee also directs the Department to provide a 
report to the Committees on Appropriations of the House and 
Senate by March 1, 2003, detailing the feasibility and need for 
additional inspectors and facilities along the U.S./Mexico 
border, with particular emphasis on the aforementioned 
counties.
    Fruit fly.--The Committee provides $47,600,000 for the 
fruit fly program, an increase of $10,782,000 above the amount 
appropriated in fiscal year 2002. The Committee includes 
$150,000 for olive fly trapping efforts.
    Chiapas, Mexico.--The Committee is concerned that repeated 
inquiries into how the facility in Chiapas, Mexico, may be used 
to provide additional benefit to producers in that region have 
been unsatisfactorily answered. The Committee directs the 
Department to provide a report detailing the use of the 
facility and what options may exist for additional uses in 
support of local producers prior to the fiscal year 2004 
hearings.
    Animal Health Monitoring and Surveillance (AHM&S).--The 
Committee provides $92,973,000 for AHM&S, an increase of 
$22,042,000 above the amount appropriated in fiscal year 2002.
    The Committee provides $1,000,000, an increase of $250,000, 
for a cooperative agreement with the Wisconsin Animal Health 
Consortium for a pilot project to aid in creating a universal 
identification and database retrieval system for tracking the 
movement of animal and animal-based food products.
    The Committee provides $300,000 to assist in creating a 
data base of North Carolina's agricultural industry to enable a 
rapid response to acts of terrorism.
    The Committee provides $500,000 for the continuation of the 
National Farm Animal Identification and Records Program. This 
will allow the Holstein Association, through a cooperative 
agreement with APHIS, to complete a pilot phase of an 
identification system that will qualify as a national system.
    Within the amount provided for AHM&S, $4,000,000 is 
available for pseudorabies monitoring and surveillance.
    Avian influenza.--The Committee encourages APHIS to develop 
an avian influenza control and eradication program, and expects 
the Agency to include such a program as part of its fiscal year 
2004 budget request.
    Greater Yellowstone Interagency Brucellosis Committee 
(GYIBC).--The Committee provides the fiscal year 2002 level of 
funding for the GYIBC and encourages the coordination of 
Federal, State, and private actions aimed at eliminating 
brucellosis from wildlife in the Greater Yellowstone area.
    Emerging Plant Pests.--The Committee expects the Secretary 
of Agriculture to continue to use the authority provided in 
this bill to transfer funds from the Commodity Credit 
Corporation for the arrest and eradication of animal and plant 
pests and diseases that threaten American agriculture. By 
providing funds in this account, the Committee is enhancing the 
work that has begun to combat emergency outbreaks.
    The Committee recommendation includes $17.5 million for 
glassy-winged sharpshooter containment and control. The 
Committee encourages APHIS to work with nursery growers for 
actions taken that help protect agricultural production from 
the glassy-winged sharpshooter.
    The Committee recommendation includes $2,000,000 for Sudden 
Oak Death Syndrome.
    The Committee provides $320,000 to establish a program to 
provide pest management assistance to olive growers.
    The Committee provides $1,000,000 for a cooperative 
agreement with Miami-Dade County to assist in mosquito control 
efforts.
    The Committee includes $100,000 to control and eradicate 
hydrilla in the lower Rio Grande of Texas, and Smith Mountain 
Lake and Lake Gaston (VA).
    Johne's Disease.--The Committee provides $20,356,000 for 
Johne's Disease. This amount is $17,300,000 above the budget 
request. The Committee encourages the Department to develop a 
national, comprehensive herd-testing program, and to support 
infrastructure in the states that have established Johne's 
Disease Advisory Committees.
    The Committee understands that there may be a rapid and 
specific molecular diagnostic test for Johne's Disease. The 
Committee urges APHIS to determine the efficacy and feasibility 
of this test as part of an overall Johne's Disease program.
    Noxious weeds.--The Committee provides an increase of 
$300,000 above the budget request for the Kiski Basin 
Initiative (PA).
    Wildlife Services.--The Committee provides $65,459,000 for 
Wildlife Services-Operations, an increase of $16,638,000 above 
the fiscal year 2002 appropriated level. The Committee does not 
concur with the proposed budget reduction of $9,960,000 to 
allow cooperators to assume a larger share of wildlife 
management programs.
    The Committee recommendation includes an increase of 
$1,636,000 to fully implement the recommendations of the 
Aviation Safety Review Committee; an increase of $8,000,000 for 
a cooperative oral rabies vaccination program, for a total of 
$16,250,000; and $3,967,000 to provide an effective response to 
control FMD and other animal disease in wild animal populations 
in the United States.
    The Committee provides an additional $1,000,000 through 
APHIS's Wildlife Services Programs for hazing programs to 
manage the growth of cormorants in central New York watersheds.
    The Committee provides an increase of $750,000 for wolf 
predation in Wisconsin, Minnesota, and Michigan.
    The Committee provides $50,000 to be used to assist the 
State of Missouri in eradicating feral hogs.
    The Committee provides an additional $250,000 to assist 
North Carolina's Beaver Management Assistance Program.
    The Committee directs the continuation of the following 
programs that were included in fiscal year 2002: $250,000 for 
wildlife services to contain crop and aquaculture losses in 
southeastern Missouri; $625,000 for a cooperative agreement 
with Georgia Wildlife Services and the University of Georgia to 
conduct research on and control of game bird predation in 
Georgia; $100,000 for trapping in Virginia to combat increased 
predation by coyotes; $100,000 for wildlife biologist to serve 
North Florida, southeast Louisiana, and southwest Georgia; 
$150,000 for blackbird control efforts for reduction in 
blackbird damage to rice; $240,000 for rodent control in 
Hawaii; $1,500,000 for predator control programs for livestock 
operators in Montana, Idaho, and Wyoming; $1,000,000 for 
Wildlife Services in the State of Texas; and $240,000 for 
Wildlife Services in South Dakota.
    Veterinary Diagnostic Laboratory.--The Committee encourages 
the agency to determine the feasibility of establishing a 
regional veterinary diagnostic laboratory to be located in New 
York to identify and provide diagnostic services in response to 
disease threats from infectious agents.
    Wildlife Services Methods Development.--The Committee 
directs APHIS to continue a $500,000 project to develop a 
reproductive inhibitor for Canadian geese at the National 
Wildlife Research Center.
    Imported Fire Ant.--The Committee supports a program for 
the control, management, and eradication of the imported fire 
ant and provides $2,177,000 for this program, of which $45,000 
is for New Mexico.
    Mexican Avocados.--The Committee urges APHIS to continue 
working closely with U.S. avocado growers in implementing 
procedures for the importation of Mexican avocados. The 
Committee directs APHIS to report on the status of Mexican 
avocado imports, including problems in pest surveys, and 
oversight by APHIS personnel and including the diversion of 
Mexican avocados to other than approved destinations. The 
Committee directs APHIS to include independent, third party 
scientists in the development of any Pest Risk Assessment for 
Mexican avocados, prior to publication of any such Pest Risk 
Assessment in the Federal Register. The Committee also directs 
APHIS to report to Congress prior to publishing any rules 
expanding the approved areas or lengthening time periods for 
importation of Mexican avocados.
    Avian influenza.--The Committee notes with concern that 
subsequent to submission of the President's FY 2003 budget to 
Congress, significant outbreaks of Avian Influenza have 
occurred apparently due to poor sanitation practices at live 
bird markets. The Committee expects the department to 
aggressively exercise its regulatory authority to assure that 
Avian Influenza is controlled. The Committee directs the 
Secretary, within thirty days of enactment, to provide to the 
Committees on Appropriations of the House and Senate a 
statement of assurance that adequate control activities are in 
place at live bird markets to protect against further Avian 
Influenza outbreaks. Minus that assurance, the Secretary shall 
provide the Committees a statement of activities that will be 
undertaken, including utilization of the APHIS contingency fund 
and/or emergency utilization of Commodity Credit Corporation 
monies, to assure control of Avian Influenza at live bird 
markets.

                        BUILDINGS AND FACILITIES




2002 appropriation \1\................................        $7,189,000
2003 budget estimate..................................        13,189,000
Provided in the bill..................................        13,189,000
Comparison:
    2002 appropriation................................        +6,000,000
    2003 budget estimate..............................  ................

\1\ Does not include FY 2002 supplemental of $14,081,000 for Homeland
  Security, P.L. 107-117.

    The APHIS Buildings and Facilities account funds major 
nonrecurring construction projects in support of specific 
program activities and recurring construction, alterations, 
preventive maintenance, and repairs of existing APHIS 
facilities.

                          COMMITTEE PROVISIONS

    For Animal and Plant Health Inspection Service, Buildings 
and Facilities, the Committee provides an appropriation of 
$13,189,000, an increase of $6,000,000 above the amount 
available for fiscal year 2002 and the same as the budget 
request.
    The following table summarizes the committee's provisions:

               ANIMAL AND PLANT HEALTH INSPECTION SERVICE
                        [In thousands of dollars]
------------------------------------------------------------------------
                                         FY 2002    FY 2003    Committee
                                         enacted    request   provisions
------------------------------------------------------------------------
Buildings and Facilities:
    Plum Island, NY...................     $3,193     $3,193      $3,193
    Miami Animal Import Center, FL....      2,000      5,000       5,000
    Basic buildings and facilities          1,996      4,996       4,996
     repair, alterations, and
     preventative maintenance.........
                                       ---------------------------------
      Total, Buildings & Facilities...      7,189     13,189      13,189
------------------------------------------------------------------------

                     Agricultural Marketing Service


                           MARKETING SERVICES




2002 appropriation....................................       $71,430,000
2003 budget estimate \1\..............................        75,411,000
Provided in the bill \2\..............................        75,702,000
Comparison:
    2002 appropriation................................        +4,272,000
    2003 budget estimate..............................          +291,000

\1\ Excludes $2,278,000 for pension and health benefits.
\2\ Excludes $709,000 for GSA Rent which is funded in a central account
  under Agriculture Buildings and Facilities.

    The Agricultural Marketing Service (AMS) was established by 
the Secretary of Agriculture on April 2, 1972, under the 
authority of Reorganization Plan No. 2 of 1953, and other 
authorities. Through its marketing, consumer, and regulatory 
programs, AMS aids in advancing orderly and efficient marketing 
and effective distribution and transportation of products from 
the Nation's farms.
    Programs administered by this agency include market news 
activities, payments to states for marketing activities, the 
Plant Variety Protection Act, the Federal administration of 
marketing agreements and orders, standardization, grading, 
classing, and shell egg surveillance services, transportation 
services, and market protection and promotion.

                          COMMITTEE PROVISIONS

    For Marketing Services of the Agricultural Marketing 
Service, the Committee provides an appropriation of 
$75,702,000, an increase of $4,272,000 above the amount 
available for fiscal year 2002 and an increase of $291,000 
above the budget request.
    Pesticide Data Program.--The Committee provides $15,759,000 
for the Pesticide Data Program (PDP), an increase of 
$1,500,000, of which not less than $1,000,000 of the increase, 
shall be added to the existing funding for the drinking water 
initiative. The PDP is responsible for collecting data on 
current pesticides for the Environmental Protection Agency, and 
providing input into the need for research on safer 
alternatives to existing pesticides. It is vital that the PDP 
provide data on real world usage. Lack of reliable scientific 
data is the single biggest fault of the registration process. 
Currently, only minimal collection occurs in the area of 
drinking water, yet its impact on consumers and the 
registration process is significant.
    Microbiological Data Program.--The Committee is aware of 
continued concerns that have been raised by interested 
stakeholders regarding scientific and policy issues surrounding 
the implementation of Microbiological Data Program. The 
Committee encourages USDA, prior to the implementation of the 
current funding provided for this program, to work with 
stakeholders such as the newly appointed Department of 
Agriculture Fruit and Vegetable Advisory Committee to ensure 
that an appropriate framework is established for addressing the 
scientific and policy concerns that have been raised. The 
Committee strongly encourages the Department to certify that 
microbiological data can be produced that will be helpful in 
reducing the occurrence of harmful pathogens on fresh produce 
prior to further implementation of the program.
    Farmers' Market Feasibility.--The Committee strongly 
encourages AMS to provide financial or technical assistance to 
study the feasibility of and develop plans for a regional 
farmers market in Loudoun County, Virginia, as well as a 
Portland, Oregon, Public Market.
    Multi-State Farmers' Market Demonstration.--The Committee 
strongly encourages the USDA to establish a multi-state 
Farmers' Market Demonstration Program linking markets in Toledo 
and Cleveland (OH), and Detroit, Michigan, with specialty crop 
producers in southern states, including Mississippi, and North 
Carolina, and South Carolina.

                 LIMITATION ON ADMINISTRATIVE EXPENSES




2002 limitation.......................................     ($60,596,000)
2003 budget limitation \1\............................      (61,619,000)
Provided in the bill..................................      (61,619,000)
Comparison:
    2002 limitation...................................        +1,023,000
    2003 budget limitation............................  ................

\1\ Excludes $1,836,000 for pension and health benefits.

    The Agricultural Marketing Service provides inspection, 
grading, and classing services to the cotton and tobacco 
industries on a user funded basis. The legislative authorities 
to carry out these programs are: the U.S. Cotton Standards Act; 
the Cotton Statistics and Estimates Act of 1927, as amended; 
the Tobacco Inspection Act; the Omnibus Budget Reconciliation 
Act of 1981; the Dairy and Tobacco Adjustment Act of 1985; and 
the Uniform Cotton Classing Fees Act of 1987. These programs 
facilitate the interstate and foreign commerce of these 
products. This is accomplished by inspecting, identifying, and 
certifying the quality of these products in accordance with 
official standards. Grades serve as a basis for prices and 
reflect the value of the products to the producer as well as 
the buyer. These programs facilitate the movement of 
commodities through marketing channels in a quick, efficient, 
and equitable manner.

                          COMMITTEE PROVISIONS

    For a Limitation on Administrative Expenses of the 
Agricultural Marketing Service, the Committee provides 
$61,619,000, an increase of $1,023,000 above the amount 
available for fiscal year 2002 and the same as the budget 
request.

          FUNDS FOR STRENGTHENING MARKETS, INCOME, AND SUPPLY

                              (SECTION 32)

                     MARKETING AGREEMENT AND ORDERS

2002 appropriation......................................   ($13,995,000)
2003 budget estimate \1\................................    (14,910,000)
Provided in the bill....................................    (14,910,000)
Comparison:
    2002 appropriation..................................      (+915,000)
    2003 budget estimate................................................

\1\ Excludes $575,000 for pension and health benefits.


    The Act of August 24, 1935, appropriates 30 percent of all 
customs receipts for: (a) encouraging exports of agricultural 
commodities; (b) encouraging domestic consumption of 
agricultural commodities by diversion to alternative outlets or 
by increasing their utilization; and (c) reestablishing the 
farmers' purchasing power.
    The primary purpose of section 32 is to strengthen markets 
by purchasing surplus perishable agricultural commodities to 
encourage continued adequate production.
    The following table reflects the status of this fund for 
fiscal years 2001 through 2003:

               ESTIMATED TOTAL FUNDS AVAILABLE AND BALANCE CARRIED FORWARD, FISCAL YEARS 2001-2003
----------------------------------------------------------------------------------------------------------------
                                                                            FY 2002 current     FY 2003 budget
                                                        FY 2001 actual         estimate            estimate
----------------------------------------------------------------------------------------------------------------
Appropriation (30 percent of Customs Receipts)......      $5,738,448,921      $6,139,942,369      $5,798,093,321
Agricultural Risk Protection Act (P.L. 106-224).....         200,000,000  ..................  ..................
Less Transfers:
    Food and Nutrition Service......................      -5,127,579,000      -5,172,458,000      -4,745,663,000
    Commerce Department.............................         -72,827,819         -79,126,813         -75,223,977
                                                     -----------------------------------------------------------
      Total, Transfers..............................      -5,200,406,819      -5,251,584,813      -4,820,886,977
                                                     ===========================================================
Budget Authority....................................         738,042,102         888,357,556         977,206,344
Unobligated Balance Available, Start of Year........         241,269,708         107,824,527         164,011,656
Recoveries of Prior Year Obligations................           3,254,060                   0                   0
                                                     -----------------------------------------------------------
      Available for Obligation......................         982,565,870         996,182,083       1,141,218,000
                                                     ===========================================================
Less Obligations:
    Commodity Procurement:
        Child Nutrition Purchases...................         400,000,000         400,000,000         400,000,000
        State Option contract.......................  ..................           5,000,000  ..................
        Removal of Defective Commodities............  ..................           1,000,000  ..................
        Emergency Surplus Removal...................         200,234,102         206,851,437  ..................
        Diversion Payments..........................          11,900,000  ..................  ..................
        Direct Payments.............................          39,700,000          17,867,307  ..................
        Lamb Grading and Certification Support......             957,317           1,542,683  ..................
        Specialty Crop Purchases....................         199,990,628  ..................  ..................
        Estimated Future Purchases..................                   0         176,000,000         415,575,000
                                                     -----------------------------------------------------------
          Total, Commodity Procurement..............         852,782,047         808,261,427         815,575,000
                                                     ===========================================================
    Administrative Funds:
        Commodity Purchase Service..................           8,964,131           9,914,000          10,733,000
    Marketing Agreements & Orders...................          12,995,165          13,995,000          14,910,000
                                                     -----------------------------------------------------------
          Total, Administrative Funds...............          21,959,296          23,909,000          25,643,000
                                                     ===========================================================
          Total, Obligations........................         874,741,343         832,170,427         841,218,000
                                                     -----------------------------------------------------------
Unobligated Balance Available, End Of Year..........         107,824,527         164,011,656         300,000,000
----------------------------------------------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Marketing Agreements and Orders Program, the 
Committee provides a transfer from section 32 funds of 
$14,910,000, an increase of $915,000 above the amount available 
for fiscal year 2002 and the same as the budget request.
    The Committee urges the Department to pay closer attention 
to problems of oversupply and low prices caused by imports, and 
to use its purchasing power under Section 32 to even out the 
markets. In addition, the Committee encourages the Department 
to purchase at least as many fresh and processed apples, and as 
much apple juice this year as it did in calendar year 2001.
    The Committee notes that Section 10603 of the 2002 Farm 
Bill requires USDA to purchase not less than $200 million of 
fruits, vegetables, and other specialty crops, and encourages 
the Secretary to exceed historical Section 32 purchase levels 
during implementation of Section 10603.
    Juice Blends.--The Committee recognizes the important role 
fruit juice and juice blends plays in children's diets. In the 
past the Agricultural Marketing Service has conducted pilot 
programs where a grapefruit and cranberry juice blend was 
offered through the food and nutrition program. The Committee 
urges the Department to continue its work with the Texas 
Department of Agriculture, the Florida Department of Citrus, 
and cranberry producers in developing and testing juice blends 
for use in Food and Nutrition Programs, and other commodity 
procurement programs. The Committee requests a report from the 
Department by April 1, 2003, on the progress of these efforts.

                   PAYMENTS TO STATES AND POSSESSIONS




2002 appropriation....................................        $1,347,000
2003 budget estimate..................................         1,347,000
Provided in the bill..................................         1,347,000
Comparison:
    2002 appropriation................................  ................
    2003 budget estimate..............................  ................


    The Federal-State Marketing Improvement Program is 
authorized by section 204(b) of the Agricultural Marketing Act 
of 1946 and is also funded from appropriations. Payments are 
made to state marketing agencies to: identify and test market 
alternative farm commodities; determine methods of providing 
more reliable market information; and develop better commodity 
grading standards. This program has made possible many types of 
projects, such as electronic marketing and agricultural product 
diversification. Current projects are focused on the 
improvement of marketing efficiency and effectiveness, and 
seeking new outlets for existing farm produced commodities. The 
legislation grants the U.S. Department of Agriculture authority 
to establish cooperative agreements with State Departments of 
Agriculture or similar state agencies to improve the efficiency 
of the agricultural marketing chain. The states perform the 
work or contract it to others, and must contribute at least 
one-half of the cost of the projects.

                          COMMITTEE PROVISIONS

    For Payments to States and Possessions, the Committee 
provides an appropriation of $1,347,000, the same amount 
available for fiscal year 2002, and the same as the budget 
request.

        Grain Inspection, Packers and Stockyards Administration


                         SALARIES AND EXPENSES




2002 appropriation....................................       $33,117,000
2003 budget estimate \1\..............................        41,164,000
Provided in the bill \2\..............................        44,746,000
Comparison:
    2002 appropriation................................       +11,629,000
    2003 budget estimate..............................        +3,582,000

\1\ Excludes $1,744,000 for pension and health benefits.
\2\ Excludes $1,418,000 for GSA Rent which is funded in a central
  account under Agriculture Buildings and Facilities.

    The Grain Inspection, Packers and Stockyards Administration 
(GIPSA) was established pursuant to the Secretary's 1994 
reorganization. Grain inspection and weighing programs are 
carried out under the U.S. Grain Standards Act and other 
programs under the authority of the Agricultural Marketing Act 
of 1946, including the inspection and grading of rice and 
grain-related products; conducting official weighing and grain 
inspection activities; and grading dry beans and peas, and 
processed grain products. Under the Packers and Stockyards Act, 
assurance of the financial integrity of the livestock, meat, 
and poultry markets is provided. The Administration monitors 
competition in order to protect producers, consumers, and 
industry from deceptive and fraudulent practices which affect 
meat and poultry prices.

                          COMMITTEE PROVISIONS

    For Grain Inspection, Packers and Stockyards 
Administration, the Committee provides $44,746,000, an increase 
of $11,629,000 above the amount available for fiscal year 2002, 
and an increase of $3,582,000 above the budget request.
    Production Verification Protocols Pilot.--The Committee 
understands that the Secretary intends to implement a process 
verification program for grain production and handling for the 
purposes of establishing controls for regulated seed varieties, 
and to augment traditional grain marketing. The Committee 
encourages the Department to establish a cooperative 
relationship with the Missouri, Iowa, and Illinois Corn Growers 
Associations, and provides $500,000 to conduct a pilot program 
for development of production protocols.
    Packer Ownership.--The Committee is very concerned about 
the economic impacts of Meat Packer Control, Feeding or 
Ownership of Livestock, and other captive supply issues, on 
local communities. The potential for shifts in livestock 
production, and the related shifts in live grain markets, for 
example, can impact local tax bases, as well as livestock and 
grain prices under Packer Ownership of Livestock. These types 
of swings can be significant to communities, and to independent 
producer viability.
    The Committee is persuaded that the time has come for an 
earnest and objective study of the market and economic 
implications of laws that would prohibit meat packers from 
owning, feeding or substantially controlling livestock. The 
study should utilize expertise beyond traditional agricultural 
economics, including, but not limited to, industrial 
organization expertise and business school or business 
consulting expertise.
    Accordingly, the Committee directs the Secretary to conduct 
a study of the issues surrounding a ban on Packer Ownership, 
particularly as to the economic impacts on the United States as 
a whole, and on individual states. The study shall include, but 
not be limited to, examination of alternative procurement and 
transfer methods for livestock in the farm to retail chain, 
including producers that participate with packers in 
vertically-integrated livestock or meat production; 
agricultural credit for livestock producers; livestock and 
grain prices and the quality and consistency of meat products 
and livestock under a ban. The Committee provides a total of 
$4,500,000, to remain available until expended, for this study. 
The Secretary shall report the findings of the study to the 
House and Senate Committees on Appropriations within twenty-
four months of enactment of this Act.

        LIMITATION ON INSPECTION AND WEIGHING SERVICES EXPENSES




2002 limitation.......................................     ($42,463,000)
2003 budget limitation................................      (42,463,000)
Provided in the bill..................................      (42,463,000)
Comparison:
    2002 limitation...................................  ................
    2003 budget limitation............................  ................


    The U.S. Grain Standards Act requires, with minor 
exceptions, that all grain exported by grade must be officially 
inspected and weighed. The agency's employees or delegated 
state agencies perform original inspection and weighing 
services at export port locations in the United States and 
Canada. Grain which is not being exported may be inspected at 
interior locations, upon request, by licensed employees of 
designated state and private agencies. The agency's employees, 
upon request, perform domestic original inspection and weighing 
services on grain, oilseeds, pulses, rice, and related grain 
commodities. The agency's employees supervise and provide 
oversight for inspectors performing official services.

                          COMMITTEE PROVISIONS

    The Committee includes a limitation on inspection and 
weighing services expenses of $42,463,000, the same as the 
amount available for fiscal year 2002 and the same as the 
budget request. The bill includes authority to exceed by 10 
percent the limitation on inspection and weighing services with 
notification to the Appropriations Committees. This allows for 
flexibility if export activities require additional supervision 
and oversight or other uncontrollable factors occur.

             Office of the Under Secretary for Food Safety





2002 appropriation....................................          $476,000
2003 budget estimate \1\..............................           780,000
Provided in the bill..................................           603,000
Comparison:
    2002 appropriation................................          +127,000
    2003 budget estimate..............................          -177,000



\1\ Excludes $17,000 for pension and health benefits.

    The Office of the Under Secretary for Food Safety provides 
direction and coordination in carrying out the laws enacted by 
the Congress with respect to the Department's inspection of 
meat, poultry, and egg products. The Office has oversight and 
management responsibilities for the Food Safety and Inspection 
Service.

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Food Safety, the 
Committee provides an appropriation of $603,000, an increase of 
$127,000 above the amount provided for fiscal year 2002 and a 
decrease of $177,000 below the budget request.
    Foodborne Illness Information.-- The Committee supports 
efforts of the Food Safety and Inspection Service (FSIS), the 
Food and Drug Administration (FDA) and the Centers for Disease 
Control (CDC) to work together through FoodNet to improve 
national data on the incidence of foodborne illness. The 
Committee is particularly interested in studies that would 
determine the proportion of cases of bacterial pathogens, such 
as E. coli O157:H7, Salmonella, Listeria, and Campylobacter, 
attributable to meat, poultry, eggs, seafood, fruits and 
vegetables. The Committee requests a summary of planned, 
ongoing, or completed case-control studies before the fiscal 
year 2004 appropriations hearings.

                   Food Safety and Inspection Service





2002 appropriation \1\................................      $715,642,000
2003 budget estimate \2\..............................       763,049,000
Provided in the bill \3\..............................       755,793,000
Comparison:
    2002 appropriation................................       +40,151,000
    2003 budget estimate..............................        -7,256,000

\1\ Does not include FY 2002 supplemental of $15,000,000 for Homeland
  Security, P.L. 107-117.
\2\ Excludes $40,549,000 for pension and health benefits.
\3\ Excludes $7,256,000 for GSA Rent which is funded in a central
  account under Agriculture Buildings and Facilities.


    The Food Safety and Inspection Service was established on 
June 17, 1981, by Secretary's Memorandum No. 1000-1, issued 
pursuant to Reorganization Plan No. 2 of 1953.
    The major objectives of the Service are to assure that meat 
and poultry products are wholesome, unadulterated, and properly 
labeled and packaged, as required by the Federal Meat 
Inspection Act and the Poultry Products Inspection Act; provide 
continuous in-plant inspection to egg processing plants under 
the Egg Products Inspection Act; and administer the pathogen 
reduction program.
    The inspection program of the Food Safety and Inspection 
Service provides continuous in-plant inspection of all domestic 
plants preparing meat, poultry, or egg products for sale or 
distribution; reviews foreign inspection systems and 
establishments that prepare meat or poultry products for export 
to the United States; and provides technical and financial 
assistance to states which maintain meat and poultry inspection 
programs.

                          COMMITTEE PROVISIONS

    For the Food Safety and Inspection Service, the Committee 
provides an appropriation of $755,793,000, an increase of 
$40,151,000 above the amount available for fiscal year 2002 and 
a decrease of $7,256,000 below the budget request.
    The Committee provides the full amount requested for 
inspection costs, humane slaughter enforcement, and for 
activities related to the Codex Alimentarius.
    The Committee continues to encourage the agency to 
outsource microbiological testing, and other activities which 
serve to increase budgetary efficiencies, expedite test turn 
around time and increase food safety, to private American 
Association for Laboratory Accreditation (A2LA) International 
Standards Organization (ISO) approved laboratories.
    Listeria Risk Assessment.--The Committee is encouraged by 
the progress FDA and USDA have made in evaluating the risk of 
listeriosis in ready to eat products and in developing a plan 
for the reduction of risk through science-based policy. The 
Committee strongly urges the FDA and USDA to complete the 
listeria risk assessment and begin work on revising the 
listeria action plan. The Committee directs the FDA and USDA to 
rely solely on scientific data in their policy development 
process.
    Pending Changes to Regulations on Labeling of Fresh Meat 
and Poultry.--The Committee commends the Food Safety and 
Inspection Service (FSIS) for having proposed in January 2001 
to amend its current regulations dealing with the nutrition 
labeling of fresh meat and poultry. The public comment period 
on this proposal closed on July 17, 2001. The Committee 
strongly urges FSIS to issue final regulations in this matter 
by April 30, 2003.

                        FARM ASSISTANCE PROGRAMS


    Office of the Under Secretary for Farm and Foreign Agricultural 
                                Services





2002 appropriation....................................          $606,000
2003 budget estimate \1\..............................           899,000
Provided in the bill..................................           622,000
Comparison:
    2002 appropriation................................           +16,000
    2003 budget estimate..............................          -277,000


\1\ Excludes $24,000 for pension and health benefits.


    The Office of the Under Secretary for Farm and Foreign 
Agricultural Services provides direction and coordination in 
carrying out the laws enacted by the Congress with respect to 
the Department's international affairs (except for foreign 
economic development) and commodity programs. The Office has 
oversight and management responsibilities for the Farm Service 
Agency (which includes the Commodity Credit Corporation), the 
Risk Management Agency, and the Foreign Agricultural Service.

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Farm and Foreign 
Agricultural Services, the Committee provides an appropriation 
of $622,000, an increase of $16,000 above the amount available 
for fiscal year 2002 and a decrease of $277,000 below the 
budget request.

                          Farm Service Agency

    The Farm Service Agency (FSA), established by the 
Department of Agriculture Reorganization Act of 1994, (P.L. 
103-354), administers the agricultural commodity programs 
financed by the Commodity Credit Corporation (CCC); the 
warehouse examination function; the Conservation Reserve 
Program (CRP); several other conservation cost-share programs; 
the Noninsured Crop Disaster Assistance Program (NAP); and farm 
ownership, operating, emergency disaster, and other loan 
programs.
    Direct and Counter-Cyclical Payments.--The Farm Security 
and Rural Investment Act of 2002, P.L. 107-171 (2002 Act) 
mandates that the Secretary offer individuals with eligible 
cropland the opportunity to sign up for a multi-year contract 
for direct and counter-cyclical payments. Participants will 
receive annual fixed direct payments at a specified rate on 
contract base acres and program yields. Participants may update 
their program base acres based on historical acreage planted. 
Participants will also receive counter-cyclical payments when 
market prices fall below specified target prices adjusted for 
direct payment rates. For purposes of counter-cyclical 
payments, producers will be able to update program yields based 
on recent production. Participants must comply with certain 
requirements regarding land conservation, wetland protection, 
planting flexibility, and agriculture use. Contract crops 
include soybeans, wheat, corn, grain sorghum, barley, oats, 
upland cotton, rice, other oilseeds, and peanuts. This program 
does not include any production adjustment requirements except 
for restrictions on planting fruits and vegetables.
    Marketing Assistance Loans and Loan Deficiency Payments 
(LDPs).--Nonrecourse commodity loans with marketing loan 
provisions are extended by the 2002 Act. Marketing loan 
provisions are extended to also include peanuts, wool, mohair, 
honey, small chickpeas, lentils, and dry peas in addition to 
the contract commodities. The 2002 Act provides fixed loan 
rates for covered commodities. Loan repayment rates may be 
determined to be less than the principal plus accrued interest 
per unit of commodity. Producers may have the option of taking 
a loan deficiency payment in lieu of the marketing assistance 
loan.
    Other Programs.--The price support, quota, and allotment 
programs for tobacco are provided for by the Agricultural Act 
of 1949 and the 1938 Act. However, the quota program for 
peanuts is eliminated by the 2002 Act, which provides for 
payments to be made to peanut quota holders to compensate for 
the loss of the quota.
    Payment Limitations.--Limitations are continued in the 2002 
Act at $40,000 per person for direct payments, plus a limit of 
$65,000 for the new counter-cyclical payments, and separate 
limits are placed on the new direct and countercyclical 
payments for peanuts. A limit of $75,000 is placed on marketing 
loan benefits. Producers with adjustment gross income over $2.5 
million averaged over 3 years are not eligible for payments, 
unless more than 75 percent of adjusted gross income is from 
agriculture. The 3-entity rule and the authority to use 
commodity certificates is retained.
    Dairy Program.--The 2002 Act established a national Dairy 
Market Loss Payment (DMLP) program where producers enter into 
contracts ending on September 30, 2005. A monthly direct 
payment is to be made to qualifying dairy farm operations when 
the monthly class I price in Boston is less that $16.94 per 
hundredweight on the quantity of eligible production marketed 
by the producer during the month. A milk price support program 
is also provided to support the price of milk via purchases of 
butter, cheese, and nonfat dry milk. The rate of support is 
$9.90 per hundredweight.
    Sugar Program.--The Secretary is directed by the 2002 Act 
to operate the sugar program at no cost to the U.S. Treasury by 
avoiding sugar loan forfeitures in the nonrecourse loan 
program. The nonrecourse loan program is reauthorized through 
FY 2007 at 18 cents per pound for raw cane sugar and 22.9 per 
pound for refined beet sugar. Loan rates can be reduced at the 
Secretary's discretion, if foreign producers reduce export 
subsidies and support levels below their WTO commitments. 
Tariff Rate Quotas (TRQs) are retained. Inventory management is 
introduced by providing further authority to the Secretary to 
impose marketing allotments to balance markets, avoid 
forfeitures and comply with U.S. sugar import commitments under 
WTO and NAFTA. The program also extends to sugar processors the 
type of storage facility loan program available to grain and 
other crop production and will facilitate orderly marketing of 
sugar.
    CCC Program Activities.--Various price support and related 
programs have been authorized in numerous legislative 
enactments since the early 1930's. Operations under these 
programs are financed through the CCC. Personnel and facilities 
of the FSA are utilized in the administration of the CCC, and 
the Administrator of the FSA is also Executive Vice President 
of the Corporation.
    The 2002 Act continued and expanded existing conservation 
programs and created new conservation programs to address high 
priority environmental protection goals and authorized CCC 
funding for many of the existing and new conservation programs. 
The Natural Resources Conservation Service administers many of 
the programs financed through the CCC.
    Foreign Assistance Programs and Other Special Activities.--
Various surplus disposal programs and other special activities 
are conducted pursuant to the specific statutory authorizations 
and directives. These laws authorize the use of CCC funds and 
facilities to implement the programs. Appropriations for these 
programs are transferred or paid to the Corporation for its 
costs incurred in connection with these activities, such as 
Public Law 480.
    Farm Credit Programs.--The Department's farm credit 
programs are administered by FSA to facilitate improved 
coordination between the credit programs and FSA's risk 
management, conservation, and commodity support programs. FSA 
reviews applications, makes and collects loans, and provides 
technical assistance and guidance to borrowers. Under credit 
reform, administrative costs associated with Agricultural 
Credit Insurance Fund (ACIF) loans are appropriated to the ACIF 
Program Account and transferred to FSA salaries and expenses.

                         SALARIES AND EXPENSES


                                                                              Transfer from
                                                            Appropriation    program accts.     Total, FSA, S&E

2002 appropriation......................................      $939,030,000    ($274,357,000)    ($1,213,387,000)
2003 budget estimate \1\................................       993,620,000     (281,036,000)     (1,274,656,000)
Provided in the bill \2\................................       976,738,000     (281,036,000)     (1,257,774,000)
Comparison:
    2002 appropriation..................................       +37,708,000        +6,679,000         +44,387,000
    2003 budget estimate................................       -16,882,000  ................         -16,882,000


\1\ Excludes $69,092,000 for pension and health benefits.
\2\ Excludes $16,882,000 for GSA Rent which is funded in a central account under Agriculture Buildings and
  Facilities.


                          COMMITTEE PROVISIONS

    For Salaries and Expenses of the Farm Service Agency (FSA), 
the Committee provides an appropriation of $976,738,000 and 
transfers from other accounts of $281,036,000, for a total 
program level of $1,257,774,000. This is an increase of 
$44,387,000 above the amount available for fiscal year 2002 
(excluding supplementals) and a decrease of $16,882,000 below 
the budget request.
    County Offices.--The Committee is concerned about any 
Departmental plans to close FSA county offices at a time when 
the FSA office network is essential to helping farmers address 
critical economic and environmental issues. The Committee 
reiterates its strong view that no county office closure or 
consolidation should occur except in those locations for which 
closures and relocations are supported by rigorous analysis to 
ensure actions are cost effective, and that services available 
to the public will not be reduced.
    Farm bill implementation costs.--The Committee does not 
recommend additional funding for implementation costs of the 
recently enacted farm bill (Public Law 107-171), because no 
formal budget request for such costs has been submitted.
    Location of Commodity Sales to the Commodity Credit 
Corporation (CCC).--The Committee continues last year's 
directive to the Department to increase its outreach to 
producers and grain traders so as to increase the pool of CCC-
eligible vendors for any commodity sale. In particular, the 
Committee expects the Department to make special efforts in 
Ohio and other Great Lakes States to increase sales and 
shipments from these areas.
    Wisconsin ginseng industry.--The Committee notes that 
Wisconsin ginseng growers have suffered four successive years 
of excessive rain which has severely damaged the crop and the 
ability of growers to continue to operate. In addition, 
government subsidies to Canadian ginseng growers have made it 
increasingly difficult for American ginseng growers to compete 
in international markets. The Committee urges the Department to 
work closely with the Wisconsin ginseng industry and ensure 
that the industry is receiving all the assistance to which it 
is entitled under federal farm programs.
    Wisconsin windbreaks.--Counties in Central Wisconsin have 
requested that the Farm Service Agency allow cost-sharing on 
the plastic mulch that is utilized in the planting of field 
windbreaks. At the present time under the Conservation Reserve 
Program (CRP) windbreaks are cost-shared, but the plastic mulch 
is not. This plastic mulch increases survival rates to 95% or 
more compared to survival rates of 50%-60% without the mulch. A 
request to change the rules through the State Technical 
Advisory Committee was denied on grounds that an area with 25 
inches of rainfall or more per year does not require mulch. 
However, moisture conservation is only part of the need. The 
major benefit of this mulch is that it eliminates competition 
by weeds and other unwanted species for moisture and nutrients, 
which provides the optimum conditions for windbreak 
establishment and growth. FSA has indicated that it will 
evaluate expanding its cost-share policies to include plastic 
mulch. In light of the benefits associated with the use of 
plastic mulch that is utilized in the planting of field 
windbreaks, the Committee urges FSA to expand its cost-share 
policies to allow CRP participants to receive cost-share for 
plastic mulch when used for weed control purposes.
    Soft red wheat.--The Committee is aware that farmers all 
over the country may have been financially disadvantaged by the 
Secretary's decision to make the new county loan rates 
effective for this year's winter wheat crop. The timing of the 
Secretary's decision has had significant impacts on soft red 
wheat procedures in the United States. The Committee urges the 
Secretary to postpone the effective date of these changes until 
the next crop year as it applies to soft red wheat.
    Tree Assistance Program.--The Committee recognizes that 
beginning in January 2000, fruit growers throughout Michigan 
and several other states have incurred substantial economic and 
tree losses due to fireblight. These growers are in need for 
assistance to defray costs of replanting trees destroyed by 
fireblight. The Committee further notes that the Tree 
Assistance Program, which reimburses growers for costs for 
replacing destroyed trees, was reauthorized in the Farm 
Security Act of 2002, and urges the Secretary to consider 
obligating funds to the Tree Assistance Program in the amount 
necessary to reimburse for costs, going back to January 2000, 
of farmers who had replanted trees as a result of fireblight.

                     EMERGENCY CONSERVATION PROGRAM

2002 appropriation......................................               0
2003 budget estimate....................................     $48,700,000
Provided in the bill....................................               0
Comparison:
    2002 appropriation..................................               0
    2003 budget estimate................................     -48,700,000

    The Emergency Conservation Program provides cost-share 
assistant to farmers and ranchers to rehabilitate farmlands and 
rangelands damaged by wind erosion, floods, hurricanes, or 
other natural disasters, and to carry out emergency water 
conservation measures during periods of severe drought.

                          COMMITTEE PROVISIONS

    The Committee does not recommend funding the Emergency 
Conservation Program in the annual appropriations bill, as 
requested. The Committee will expect this program to be funded 
as it has been in the past, as the need arises.

                         STATE MEDIATION GRANTS

2002 appropriation......................................      $3,493,000
2003 budget estimate....................................       4,000,000
Provided in the bill....................................       4,000,000
Comparison:
    2002 appropriation..................................        +507,000
    2003 budget estimate................................................

    This program is authorized under title V of the 
Agricultural Credit Act of 1987. 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 to include other agricultural issues 
such as wetland determinations, conservation compliance, rural 
water loan programs, grazing on national forest system lands, 
and pesticides. Grants are made to states whose mediation 
programs have been certified by FSA. Grants will be solely for 
operation and administration of the state's agricultural 
mediation program.

                          COMMITTEE PROVISIONS

    For State Mediation Grants, the Committee provides an 
appropriation of $4,000,000, an increase of $507,000 over the 
amount available in fiscal year 2002 and the same as the budget 
request.

                        DAIRY INDEMNITY PROGRAM

2002 appropriation......................................        $100,000
2003 budget estimate....................................         100,000
Provided in the bill....................................         100,000
Comparison:
    2002 appropriation..................................................
    2003 budget estimate................................................

    Under the program, the Department makes indemnification 
payments to dairy farmers and manufacturers of dairy products 
who, through no fault of their own, suffer losses because they 
are directed to remove their milk from commercial markets due 
to contamination of their products by registered pesticides. 
The program also authorizes indemnity payments to dairy farmers 
for losses resulting from the removal of cows or dairy products 
from the market due to nuclear radiation or fallout.

                          COMMITTEE PROVISIONS

    For the Dairy Indemnity Program, the Committee provides an 
appropriation of $100,000 the same as the amount available for 
fiscal year 2002 and the same as the budget request.

           AGRICULTURAL CREDIT INSURANCE FUND PROGRAM ACCOUNT

    Farm Ownership Loans.--Makes loans to farmers and ranchers 
for acquiring, enlarging, or improving farms, including farm 
buildings, land development, use, and conservation, refinancing 
indebtedness, and for loan closing costs.
    Operating Loans.--Makes loans to farmers and ranchers for 
costs incident to reorganizing a farming system for more 
profitable operations, for a variety of essential farm 
operating expenses such as purchase of livestock, farm 
equipment, feed, seed, fertilizer, and farm supplies; for 
refinancing land and water development, use, and conservation; 
for refinancing indebtedness; for other farm and home needs; 
and for loan closing costs.
    Emergency Loans.--Makes loans in designated areas where a 
natural disaster has caused a general need for agricultural 
credit which cannot be met for limited periods of time by 
private cooperatives or other responsible sources.
    Indian Tribe Land Acquisition Loans.--Makes loans to any 
Indian tribe recognized by the Secretary of the Interior or 
tribal corporation established pursuant to the Indian 
Reorganization Act, which does not have adequate uncommitted 
funds, to acquire lands or interest in lands within the tribe's 
reservation or Alaskan Indian community, as determined by the 
Secretary of the Interior, for use of the tribe or the 
corporation or the members thereof.
    Credit Sales of Acquired Property.--Makes loans in 
conjunction with the sale of security properties previously 
acquired during the servicing of its loan portfolio.
    Boll Weevil Eradication Loans.--Makes loans to assist 
foundations in financing the operation of boll weevil 
eradication programs provided to farmers.

                         ESTIMATED LOAN LEVELS

2002 loan level.........................................  $3,890,725,000
2003 budget estimate....................................   3,802,000,000
Provided in the bill....................................   3,802,000,000
Comparison:
    2002 loan level.....................................     -88,725,000
    2003 budget estimate................................................

    This fund makes the following loans to individuals: farm 
ownership, farm operating, and emergency. In addition, the fund 
makes loans to associations for Indian tribe land acquisition, 
and boll weevil eradication.

                          COMMITTEE PROVISIONS

    Approximate loan levels provided by the Committee for 
fiscal year 2003 for the agricultural credit insurance fund 
programs are: $1,100,000,000 for farm ownership loans, of which 
$100,000,000 is for direct loans and $1,000,000,000 for 
guaranteed loans; $2,600,000,000 for farm operating loans, of 
which $600,000,000 is for direct loans, $300,000,000 is for 
guaranteed subsidized loans, and $1,700,000,000 is for 
guaranteed unsubsidized loans; $2,000,000 for Indian tribe land 
acquisition loans; $0 for emergency disaster loans; and 
$100,000,000 for boll weevil eradication loans.

                      AGRICULTURE CREDIT PROGRAMS

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                      FY 2003        Committee
                                                                  FY 2002  level     estimate       provisions
----------------------------------------------------------------------------------------------------------------
Farm loan programs:
Farm ownership:
    Direct......................................................        $146,996        $100,000        $100,000
    Guaranteed..................................................       1,000,000       1,000,000       1,000,000
Farm operating:
    Direct......................................................         611,198         600,000         600,000
    Unsubsidized guaranteed.....................................       1,500,000       1,700,000       1,700,000
    Subsidized guaranteed.......................................         505,531         300,000         300,000
Indian tribe land acquisition...................................           2,000           2,000           2,000
Emergency disaster..............................................          25,000               0               0
Boll Weevil Eradication.........................................         100,000         100,000         100,000
                                                                 -----------------------------------------------
      Total, farm loans.........................................       3,890,725       3,802,000       3,802,000
----------------------------------------------------------------------------------------------------------------

       ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS


                                                                 Direct loan    Guaranteed loan   Administrative
                                                                   subsidy          subsidy          expenses

2002 appropriation...........................................      $61,927,000     $125,700,000     $280,595,000
2003 budget estimate.........................................      115,349,000       96,790,000      287,176,000
Provided in the bill.........................................      115,349,000       96,790,000      287,176,000
Comparison:
    2002 appropriation.......................................      +53,422,000      -28,910,000       +6,581,000
    2003 budget estimate.....................................  ...............  ...............  ...............



    The Federal Credit Reform Act of 1990 established the 
Program Account. Appropriations to this account will be used to 
cover the lifetime subsidy costs associated with the direct 
loans obligated and loan guarantees committed in 2003, as well 
as for administrative expenses.
    The following table reflects the costs of loan programs 
under credit reform:

----------------------------------------------------------------------------------------------------------------
                                                                 FY 2002           FY 2003          Committee
                                                                estimate          estimate         provisions
----------------------------------------------------------------------------------------------------------------
Loan subsidies:
  Farm ownership:
    Direct................................................        $3,866,000       $11,610,000        11,610,000
    Guaranteed............................................         4,500,000         7,500,000         7,500,000
                                                           -----------------------------------------------------
      Subtotal............................................         8,366,000        19,110,000        19,110,000
                                                           =====================================================
  Farm operating:
    Direct................................................        54,580,000       103,560,000       103,560,000
    Guaranteed unsubsidized...............................        52,650,000        53,890,000        53,890,000
    Guaranteed subsidized.................................        68,550,000        35,400,000        35,400,000
                                                           -----------------------------------------------------
      Subtotal............................................       175,780,000       192,850,000       192,850,000
                                                           =====================================================
Indian tribe land acquisition.............................           118,000           179,000           179,000
Emergency disaster........................................         3,363,000                 0                 0
                                                           -----------------------------------------------------
    Total, Loan subsidies.................................       187,627,000       212,139,000       212,139,000
                                                           =====================================================
ACIF expenses:
  Salaries and expenses...................................       272,595,000       279,176,000       279,176,000
  Administrative expenses.................................         8,000,000         8,000,000         8,000,000
                                                           -----------------------------------------------------
    Total, ACIF expenses..................................       280,595,000       287,176,000       287,176,000
----------------------------------------------------------------------------------------------------------------

                         Risk Management Agency

2002 appropriation......................................     $74,752,000
2003 budget estimate \1\................................      72,771,000
Provided in the bill \2\................................      70,726,000
Comparison:
    2002 appropriation..................................      -4,026,000
    2003 budget estimate................................      -2,045,000

    \1\ Excludes $3,291,000 for pension and health benefits.
    \2\ Excludes $2,045,000 for GSA Rent which is funded in a central 
account under Agriculture Buildings and Facilities.

    Under the Federal Agriculture Improvement and Reform (FAIR) 
Act of 1996, Risk Management became an agency of the Department 
of Agriculture, known as the Risk Management Agency (RMA), 
reporting to the Under Secretary for Farm and Foreign 
Agricultural Services.
    RMA manages program activities in support of the Federal 
crop insurance program as authorized by the Federal Crop 
Insurance Reform and Department of Agriculture Reorganization 
Act of 1994 and the FAIR Act of 1996. Functional areas of RMA 
are research and development, insurance services, and 
compliance whose functions include policy formulation and 
procedures and regulations development. Reviews and evaluations 
are conducted for overall performance to ensure the actuarial 
soundness of the insurance program.

                          COMMITTEE PROVISIONS

    For the Risk Management Agency, the Committee provides an 
appropriation of $70,726,000, a decrease of $4,026,000 below 
the amount available for fiscal year 2002 and a decrease of 
$2,045,000 below the budget request.

                              Corporations


                FEDERAL CROP INSURANCE CORPORATION FUND

2002 appropriation...........................1 $2,900,000,000
2003 budget estimate..........................1 2,886,000,000
Provided in the bill..........................1 2,886,000,000
Comparison:
    2002 appropriation..................................     -14,000,000
    2003 budget estimate................................................
---------------------------------------------------------------------------
\1\ Current indefinite appropriation.

    The Federal Crop Insurance Reform and Department of 
Agriculture Reorganization Act of 1994 was designed to replace 
the combination of crop insurance and ad hoc disaster payment 
programs with a strengthened crop insurance program.
    Producers of insurable crops are eligible to receive a 
basic level of protection against catastrophic losses, which 
cover 50 percent of the normal yield at 55 percent of the 
expected price. The only cost to the producer is an 
administrative fee of $60 per crop per policy, or $200 for all 
crops grown by the producer in a county, with a cap of $600 
regardless of the number of crops and counties involved. At 
least catastrophic (CAT) coverage was required for producers 
who participate in the commodity support, farm credit, and 
certain other farm programs. This coverage was available either 
through FSA local offices or private insurance companies. Under 
the Federal Agriculture Improvement and Reform (FAIR) Act of 
1996, producers have the option of waiving their eligibility 
for emergency crop loss assistance instead of obtaining CAT 
coverage required to meet program requirements. Emergency loss 
assistance does not include emergency loans or payment under 
the noninsured assistance program (NAP), which is administered 
by FSA. Beginning with the 1997 crop, the Secretary began 
phasing out delivery of CAT coverage through the FSA offices, 
except in those areas where there are insufficient private 
insurance providers. The private companies serve as the sole 
source for CAT coverage.
    The Reform Act of 1994 also provided increased subsidies 
for additional ``buy-up'' coverage levels which producers may 
obtain from private insurance companies. The amount of subsidy 
is equivalent to the amount of premium established for 
catastrophic risk protection coverage and an amount for 
operating and administrative expenses for coverage up to 65 
percent at 100 percent price. For coverage equal to or greater 
than 65 percent at 100 percent of the price, the amount is 
equivalent to an amount equal to the premium established for 50 
percent loss in yield indemnified at 75 percent of the expected 
market price and an amount of operating and administrative 
expenses.
    The reform legislation included the NAP program for 
producers of crops for which there is currently no insurance 
available. NAP was established to ensure that most producers of 
crops not yet insurable will have protection against crop 
catastrophes comparable to protection previously provided by ad 
hoc disaster assistance programs. While the NAP program was 
established as part of the Risk Management Agency, under the 
FAIR Act of 1996, the NAP program was shifted to FSA and has 
been incorporated into the Commodity Credit Corporation program 
activities.
    The Agricultural Risk Protection Act of 2000 (ARPA) amended 
the Federal Crop Insurance Act to strengthen the safety net for 
agricultural producers by providing greater access to more 
affordable risk management tools and improved protection from 
production and income loss, and to improve the efficiency and 
integrity of the Federal crop insurance program. ARPA allows 
for the improvement of basic crop insurance products by 
implementing higher premium subsidies to make buy-up coverage 
more affordable for producers; make adjustments in actual 
production history guarantees; and revise the administrative 
fees for catastrophic (CAT) coverage. More crops and 
commodities will become insurable through pilot programs 
effective with the 2002 crop year. ARPA provides for an 
investment of over $8.2 billion in five years to further 
improve Federal crop insurance.

                          COMMITTEE PROVISIONS

    For the Federal Crop Insurance Corporation Fund, the 
Committee provides an appropriation of such sums as may be 
necessary (estimated to be $2,886,000,000 in the President's 
fiscal year 2003 Budget Request), a decrease of $14,000,000 
below the amount provided in fiscal year 2002 and the same as 
the budget request.

                   Commodity Credit Corporation Fund

     The Corporation was organized on October 17, 1933, under 
the laws of the State of Delaware, as an agency of the United 
States, and was managed and operated in close affiliation with 
the Reconstruction Finance Corporation. On July 1, 1939, it was 
transferred to the Department of Agriculture by the President's 
Reorganization Plan No. 1. On July 1, 1948, it was established 
as an agency and instrumentality of the United States under a 
permanent Federal charter by Public Law 80-806, as amended. Its 
operations are conducted pursuant to this charter and other 
specific legislation.
    The Commodity Credit Corporation engages in buying, 
selling, lending, and other activities with respect to 
agricultural commodities, their products, food, feed, and 
fibers. Its purposes include stabilizing, supporting, and 
protecting farm income and prices; maintaining the balance and 
adequate supplies of selected commodities; and facilitating the 
orderly distribution of such commodities. In addition, the 
Corporation also makes available materials and facilities 
required in connection with the storage and distribution of 
such commodities. The Corporation also disburses funds for 
sharing of costs with producers for the establishment of 
approved conservation practices on environmentally sensitive 
land and subsequent rental payments for such land for the 
duration of conservation reserve program contracts.
    Activities of the Corporation are primarily governed by the 
following statutes: the Commodity Credit Corporation Charter 
Act, as amended; the Farm Security and Rural Investment Act of 
2002 (2002 Act), enacted May 13, 2002; the Agricultural Act of 
1949, as amended (1949 Act); the Agricultural Adjustment Act of 
1938, as amended (1938 Act); and the Food Security Act of 1985, 
as amended (1985 Act).
    The 2002 Act requires that the Secretary offer a program of 
direct and counter-cyclical payments and extends nonrecourse 
marketing assistance loans and loan deficiency payments for 
contract commodities (soybeans, wheat, corn, grain sorghum, 
barley, oats upland cotton, rice, other oilseeds and peanuts). 
The 2002 Act also provides for marketing loans for wool, 
mohair, honey, small chickenpeas, lentils and dry peas. The 
2002 Act established a national Dairy Market Loss Payment 
(DMLP) program where producers enter into contracts ending on 
September 30, 2005. A milk price support program is also 
provided to support the price of milk via purchases of butter, 
cheese, and nonfat dry milk. The rate of support is $9.90 per 
hundredweight.
    The Secretary is directed by the 2002 Act to operate the 
sugar program at no cost to the U.S. Treasury by avoiding sugar 
loan forfeitures in the nonrecourse loan program. The 
nonrecourse loan program is reauthorized through FY 2007 at 18 
cents per pound for raw cane sugar and 22.9 cents per pound for 
refined beet sugar.
    The 2002 Act extends and expands the conservation reserve 
program (CRP), the wetlands reserve program (WRP), the 
environmental quality incentives program (EQIP), the farmland 
protection program (FPP), and the wildlife habitat incentives 
program (WHIP). Each of these programs is funded through the 
Corporation.
    The 2002 Act also authorizes and provides CCC funding for 
other conservation programs, including the conservation 
security program and the grassland reserve program.
    The Corporation is managed by a board of directors 
appointed by the President and confirmed by the Senate, subject 
to the general supervision and direction of the Secretary of 
Agriculture, who is ex officio, a director, and chairman of the 
board. The board consists of six members, in addition to the 
Secretary, who are designated according to their positions in 
the Department of Agriculture.
    Personnel and facilities of the Farm Service Agency, FSA 
state and county committees, and other USDA agencies are used 
to carry out Corporation activities.
    The Corporation has an authorized capital stock of $100 
million held by the United States and authority to borrow up to 
$30 billion. Funds are borrowed from the Federal Treasury and 
may also be borrowed from private lending agencies.
    The specific powers (15 U.S.C. 714c) of the Commodity 
Credit Corporation are as follows:
    In the fulfillment of its purposes and in carrying out its 
annual budget programs submitted to and approved by the 
Congress pursuant to chapter 91 of title 31, the Corporation is 
authorized to use its general powers only to--
          (a) Support the prices of agricultural commodities 
        through loans, purchases, payments, and other 
        operations.
          (b) Make available materials and facilities required 
        in connection with the production and marketing of 
        agricultural commodities.
          (c) Procure agricultural commodities for sale to 
        other government agencies, foreign governments, and 
        domestic, foreign or international relief or 
        rehabilitation agencies, and to meet domestic 
        requirements.
          (d) Remove and dispose of or aid in the removal or 
        disposition of surplus agricultural commodities.
          (e) Increase the domestic consumption of agricultural 
        commodities by expanding or aiding in the expansion of 
        domestic markets or by developing or aiding in the 
        development of new and additional markets, marketing 
        facilities, and uses for such commodities.
          (f) Export or cause to be exported, or aid in the 
        development of foreign markets for agricultural 
        commodities.
          (g) Carry out conservation or environmental programs 
        authorized by law.
          (h) Carry out such other operations as the Congress 
        may specifically authorize or provide.

                 REIMBURSEMENT FOR NET REALIZED LOSSES




2002 appropriation.............................        1 $20,279,000,000
2003 budget estimate...........................         1 16,285,000,000
Provided in the bill...........................       \1\ 16,285,000,000
Comparison:
    2002 appropriation.........................           -3,994,000,000
    2003 budget estimate.......................  .......................


1 Current indefinite appropriation.

    If necessary to perform the functions, duties, obligations, 
or commitments of the Commodity Credit Corporation, 
administrative personnel and others serving the Corporation 
shall be paid from funds on hand or from those funds received 
from the redemption or sale of commodities. Such funds shall 
also be available to meet program payments, commodity loans, or 
other obligations of the Corporation.

                          COMMITTEE PROVISIONS

    For Reimbursement for Net Realized Losses to the Commodity 
Credit Corporation, the Committee provides such sums as may be 
necessary to reimburse for net realized losses sustained, but 
not previously reimbursed (estimated to be $16,285,000,000 in 
the President's fiscal year 2003 Budget Request), a decrease of 
$3,994,000,000 below the amount provided in fiscal year 2002 
and the same as the budget request.

                       HAZARDOUS WASTE MANAGEMENT




2002 limitation................................               $5,000,000
2003 budget estimate...........................                5,000,000
Provided in the bill...........................                5,000,000
Comparison:
    2002 limitation............................  .......................
    2003 budget estimate.......................  .......................


    The Commodity Credit Corporation's (CCC) hazardous waste 
management program is intended to ensure compliance with the 
Comprehensive Environmental Response, Compensation, and 
Liability Act, as amended, and the Resource Conservation and 
Recovery Act, as amended.
    CCC funds operations and maintenance costs as well as site 
investigation and cleanup expenses. Investigative and cleanup 
costs associated with the management of CCC hazardous waste are 
also paid from USDA's hazardous waste management appropriation.

                          COMMITTEE PROVISIONS

    For CCC Hazardous Waste Management, the Committee provides 
a limitation of $5,000,000, the same as the amount available 
for fiscal year 2002 and the same as the budget request.

                    TITLE II--CONSERVATION PROGRAMS

  Office of the Under Secretary for Natural Resources and Environment

2002 appropriation......................................        $730,000
2003 budget estimate\1\.................................         902,000
Provided in the bill....................................         750,000
Comparison:
    2002 appropriation..................................         +20,000
    2003 budget estimate................................        -152,000

\1\ Excludes $21,000 for pension and health benefits.

    The Office of the Under Secretary for Natural Resources and 
Environment provides direction and coordination in carrying out 
the laws enacted by the Congress with respect to natural 
resources and the environment. The Office has oversight and 
management responsibilities for the Natural Resources 
Conservation Service and the Forest Service.

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Natural Resources 
and Environment, the Committee provides an appropriation of 
$750,000, an increase of $20,000 above the amount available for 
fiscal year 2002 and a decrease of $152,000 below the budget 
request.
    The Committee strongly encourages the Department to 
establish cooperative relationships with nationally accredited 
universities that offer baccalaureate degrees in Natural 
Resources Management and Environmental Science.
    Technical assistance for newly authorized and reauthorized 
conservation programs--The Committee expects that the agency's 
cost of providing technical assistance will be fully funded 
within the program, as provided by law for the following 
programs: conservation reserve; wetlands reserve; conservation 
security; ground water conservation; farmland protection; 
wildlife habitat incentives; environmental quality incentives; 
and grasslands reserve, as authorized in the Farm Security and 
Rural Investment Act of 2002 (P.L. 107-171).
    The Committee is aware revised regulations are being 
drafted to implement changes to EQIP made in the Farm Security 
and Rural Investment Act of 2002. The Committee is concerned 
the program retains its focus on improving environmental 
quality. The Committee encourages the Department to retain and 
strengthen current program guidelines to place highest priority 
on the most significant natural resource concerns.

                 Natural Resources Conservation Service

    NRCS, formerly the Soil Conservation Service (SCS), is the 
lead Federal conservation agency for private land. SCS was 
established in 1935 to carry out a continuing program of soil 
and water conservation on the Nation's private and non-Federal 
land. NRCS was established by the Department of Agriculture 
Reorganization Act of 1994 (7 U.S.C. 6962). The agency combines 
the authorities of the former SCS and directs financial or 
technical assistance programs for natural resource 
conservation.
    NRCS provides America's private land conservation through 
local conservation districts to individuals, communities, 
watershed groups, tribal governments, Federal, state, and local 
agencies, and others. The NRCS staff at the local level work 
with state and local conservation staff and volunteers in a 
partnership to assist individuals and communities to care for 
natural resources. NRCS also develops technical guidance for 
conservation planning and assistance. This technical guidance 
is tailored to local conditions and is widely used by NRCS 
staff and governmental and nongovernmental organizations to 
ensure that conservation is based on sound science.
    The benefits of these activities are multifaceted, 
including sustained and improved agricultural productivity; 
cleaner, safer, and more dependable water supplies; reduced 
damages caused by floods and other natural disasters; and an 
enhanced natural resource base to support continued economic 
development, recreation, and the environment.

                        CONSERVATION OPERATIONS




2002 appropriation....................................      $779,000,000
2003 budget estimate \1\..............................       840,963,000
Provided in the bill \2\..............................       843,553,000
Comparison:
    2002 appropriation................................       +64,553,000
    2003 budget estimate..............................        +2,590,000

\1\ Excludes $56,227,000 for pension and health benefits.
\2\ Excludes $18,289,000 for GSA Rent which is funded in a central
  account under Agriculture Buildings and Facilities.

    The purpose of conservation operations is to sustain 
agricultural productivity and protect and enhance the natural 
resource base. This is done through providing America's private 
land conservation to land users, communities, units of state 
and local government, and other Federal agencies in planning 
and implementing natural resources solutions to reduce erosion, 
improve soil and water quantity and quality, improve and 
conserve wetlands, enhance fish and wildlife habitat, improve 
air quality, improve pasture and range conditions, reduce 
upstream flooding, and improve woodlands. Assistance is also 
provided to implement the wetlands reserve program (WRP), the 
conservation reserve program (CRP), and other CCC-funded 
conservation programs

                          COMMITTEE PROVISIONS

    For Conservation Operations, the Committee provides an 
appropriation of $843,553,000, an increase of $64,553,000 above 
the amount available for fiscal year 2002 and an increase of 
$2,590,000 above the budget request.
    Pay cost.--The Committee has included $18,864,000 for 
fiscal year 2003 pay costs.
    State funding allocations.--The Committee is concerned that 
funding allocations to the States are being reduced in 
proportion to Congressional earmarks funded in the Conservation 
Operations account. The Committee directs the Chief of the 
NRCS, in making the fiscal year 2003 Conservation Operations 
funding allocations to the States, to treat Congressional 
earmarks as additions to the States' funding allocation. The 
Committee directs the NRCS to provide a report to the Committee 
on Appropriations, not later than 45 days after the enactment 
of this Act, including the following: fiscal year 2002 
Conservation Operations allocation by State, fiscal year 2003 
Conservation Operations allocation by State, the fiscal year 
2003 Congressional earmarks by State, and the total 
conservation operations allocation by State.
    Grazing Lands Conservation Initiative.--The Committee 
includes legislative language that provides $21,500,000 for the 
Grazing Lands Conservation Initiative.
    Animal Feeding Operations Pilot Projects.--The Committee 
provides $3,000,000 for the continued implementation and 
acceleration of pilot projects for innovative technology 
systems resulting in a 75 percent reduction in nutrients of 
wastewater discharged by animal feeding operations to be 
managed by Farm Pilot Project Coordination, Inc. The Secretary 
is directed to release these funds after submitting a report to 
the Committees on Appropriations that a satisfactory 
cooperative agreement between the NRCS and Farm Pilot Project 
Coordination, Inc. has been consummated.
    Assistance to Puerto Rico.--The Committee encourages the 
NRCS to provide assistance for the preservation and improvement 
of water and soil resources in Juana Diaz and Santa Isabel, 
Puerto Rico.
    Congressional initiatives.--The Committee recommends that 
the following items be carried out in fiscal year 2003, many of 
which are continuations from fiscal year 2002: $200,000 to the 
State of Alabama Soil and Water Conservation Committee for the 
Sand Mountain Water Quality Conservation Project; $150,000 for 
the Central Alabama/Birmingham Water Quality Initiative; 
$375,000 for Contra Costa County (CA) Watershed Inventories; 
$1,000,000 in cooperation with the East Valley Conservation 
District (CA) and the Santa Ana Watershed Authority plant 
removal project; $355,000 to establish an Upper White River 
Water Quality Project office in Southern, MO; $1,250,000 for 
the Great Lakes Basin Program for soil and erosion; $84,000 to 
address agricultural non-point source water quality problems in 
conjunction with the San Luis Obispo (CA) County Farm Bureau; 
$2,100,000 for the Georgia Soil and Water Conservation 
Commission Cooperative Agreement; $1,500,000 to continue a 
field office telecommunications and field technology program 
and to implement new advanced soil survey methods in west 
Texas; $1,000,000 for the Maumee Watershed Hydrological Study 
and Flood Mitigation Plan in northwest Ohio; $500,000 to 
facilitate water conservation and efficient irrigation 
activities in the Bear, Medina, Uvalde Counties (TX) area of 
the Edwards Aquifer; $100,000 for the Trees Forever Program in 
Iowa; $500,000 for the Audobon at Home Pilot program; 
$2,000,000 for a cooperative agreement Manatee Agricultural 
Reuse System project (FL); $100,000 for the Trees Forever 
Program in Illinois; $290,000 to for cooperative efforts with 
Delaware State University; $500,000 to promote pastureland 
management and rotational grazing in Central New York; $600,000 
to establish an innovative, collaborative approach to 
protecting the resources of the Monterey Bay Sanctuary (CA); 
$300,000 for the Beaver Swamp Brook project (NY); $250,000 to 
establish best management practices to individual farmers to 
reduce the impact of agriculture-related non-point sources of 
pollution in the Skaneateles and Owasso, New York watersheds; 
$250,000 to address agriculture non-point source pollution in 
the Onondaga Lake (NY) Watershed; $350,000 for technical 
assistance to the Westchester Soil and Conservation District to 
address land use and water quality issues affecting the Long 
Island Sound (NY); $300,000 for the Certified Environmental 
Management Systems for Agriculture (CEMSA) devoted to the Iowa 
Soybean Association's project in Northwest Iowa; GIS-based 
model (SC) $700,000; $250,000 to update and digitize soil 
surveys in north Alabama; $50,000 for a cooperative agreement 
with Marion County, Oregon, for a native seed project; $200,000 
for technical assistance to the Lake Tahoe Basin Soil 
Conservation Project; $200,000 for completion of the Lake Tahoe 
Basin Area Soil Survey; $500,000 for the Leon River Restoration 
Project (TX); $650,000 for a study to characterize land use 
change-Clemson University (SC); $500,000 for a cooperative 
agreement with the Texas Water Resources Institute; $200,000 
for the Weed It Now initiative in the southern Taconic 
Mountains of Massachusetts, New York, and Connecticut; $500,000 
to design and implement natural stream restoration initiatives 
in the Mid-Atlantic Highlands (WV) in coordination with the 
Highlands Action Plan; $200,000 for the soil survey geographic 
database to conduct digitized soil surveys in the Mid-Atlantic 
Highlands (WV) in conjunction with the Canaan Valley Institute; 
$500,000 to provide technical assistance to North Carolina's 
livestock and poultry industry to address land use and water 
quality concerns regarding the application of phosphorus on 
agricultural lands; $200,000 to conduct an environmental 
investigation study and geological investigation of Rockhouse 
Creek, Leslie, KY; $500,000 for the Range Vegetation Pilot 
project at Ft. Hood, TX; $650,000 for technical assistance to 
implement the next phase of a multi-year agreement between NRCS 
and the Watershed Agricultural Council (WAC) in Walton, NY, of 
which $60,000 should be designated for perpetual stewardship 
funding for easements purchased by the WAC's Whole Farm 
Easement Program; the fiscal year 2002 funding level for 
Chesapeake Bay activities; $550,000 for the Wisconsin Grazing 
Lands Conservation initiative, of which $250,000 is for 
technical assistance, $150,000 competitive grants for education 
and demonstrations, and $150,000 is for competitive grants for 
applied on-farm research; $2,000,000 for a cooperative 
agreement with the Global Environment Management Education 
Center land use program at Stevens Point, WI; and $100,000 for 
dairy waste remediation in the Lake Ponchartrain Basin (LA).
    Hawaii Plant Materials Center.--The Committee provides the 
fiscal year 2002 level of funding for the Hawaii Plant 
Materials Center.
    Watershed Management and Demonstration.--The Committee 
continues the fiscal year 2002 level of funding for a 
cooperative agreement with the Texas Institute of Applied 
Environmental Research (TIAER) for watershed management and 
demonstration projects coordinated jointly by the National Pork 
Producers Council, Iowa Soybean Association and TIAER. The 
project will utilize water quality research, demonstrating a 
voluntary and incentive driven certification program that will 
help row crop and livestock agricultural producers comply with 
national environmental water quality regulations. The Committee 
encourages NRCS to work with these groups to identify 
additional federal resources available for the demonstration 
program and provide necessary technical assistance.
    Assistance to livestock producers.--The Committee urges 
NRCS to target assistance to assist livestock producers comply 
with the National Pollutant Discharge Elimination System Permit 
Regulation and Effluent Limitations Guidelines and Standards 
for Concentrated Feeding Operations issued by the Environmental 
Protection Agency. Small and mid-sized producers are facing 
extreme financial hardships that will possibly result in the 
closure of operations throughout the country.
    National Water Management Center.--The Committee encourages 
the NRCS to provide adequate funding to the National Water 
Management Center in Lonoke, AR.
    Illinois River Basin.--The Committee directs the NRCS to 
use up to $600,000 in EQIP funds for conservation measures in 
the Illinois River Basin.
    Source Water Protection Initiative.--NRCS is strongly 
encouraged to provide support and assistance to the local 
watershed associations in Ohio, Indiana and Missouri working on 
the Source Water Protection Initiative.
    Northwesst Ohio.--The Committee directs the Department to 
undertake efforts to establish a coordinated Northwest Ohio 
Land Conservancy Program.
    Embarras River/Shad Lake.--The Committee encourages the 
NRCS to provide technical assistance for the Embarras River 
watershed and Shad Lake in Illinois.

                     WATERSHED SURVEYS AND PLANNING




2002 appropriation....................................       $10,960,000
2003 budget estimate..................................  ................
Provided in the bill..................................        11,197,000
Comparison:
    2002 appropriation................................          +237,000
    2003 budget estimate..............................       +11,197,000


    The Watershed Protection and Flood Prevention Act, Public 
Law 83-566, August 4, 1954, provided for the establishment of 
the Small Watershed Program (16 U.S.C. 1001-1008), and section 
6 of the Act provided for the establishment of the River Basin 
Surveys and Investigations Program (16 U.S.C. 1006-1009). A 
separate appropriation funded the two programs until fiscal 
year 1997 when they were combined into a single appropriation, 
Watershed Surveys and Planning.
    River Basin activities provide for cooperation with other 
Federal, state, and local agencies in making investigations and 
surveys of the watersheds of rivers and other waterways as a 
basis for the development of coordinated programs. Reports of 
the investigations and surveys are prepared to serve as a guide 
for the development of agricultural, rural, and upstream 
watershed aspects of water and related land resources, and as a 
basis of coordination of this development with downstream and 
other phases of water development.
    Watershed planning activities provide for cooperation 
between the Federal government and the states and their 
political subdivisions in a program of watershed planning. 
Watershed plans form the basis for installing works of 
improvement of floodwater retardation, erosion control, and 
reduction of sedimentation in the watershed of rivers and 
streams and to further the conservation, development, 
utilization, and disposal of water. Watershed planning consists 
of assisting local organizations to develop their watershed 
work plan by making investigations and surveys in response to 
requests made by sponsoring local organizations. These plans 
describe the soil erosion, water management, and sedimentation 
problems in a watershed and works of improvement proposed to 
alleviate these problems. Plans also include estimated benefits 
and costs, cost sharing and operating and maintenance 
arrangements, and other appropriate information necessary to 
justify Federal assistance for carrying out the plan.

                          COMMITTEE PROVISIONS

    For Watershed Surveys and Planning, the Committee provides 
an appropriation of $11,197,000, an increase of $237,000 above 
the amount available for fiscal year 2002 and an increase of 
$11,197,000 above the budget request.

               WATERSHED AND FLOOD PREVENTION OPERATIONS




2002 appropriation....................................      $106,590,000
2003 budget estimate..................................  ................
Provided in the bill..................................       110,000,000
Comparison:
    2002 appropriation................................        +3,410,000
    2003 budget estimate..............................      +110,000,000




    The Watershed Protection and Flood Prevention Act (Public 
Law 566, 83d Cong.), as amended (16 U.S.C. 1001-1005, 1007-
1009), provides for cooperation among the Federal government, 
the states, and local political subdivisions in a program to 
prevent erosion, floodwater, and sediment damages in the 
watersheds or rivers and streams, and to further the 
conservation, development, utilization, and disposal of water.
    The work of the Department under this item includes 
financial assistance for the installation of works of 
improvement specified in approved watershed work plans 
including structural measures, land treatment measures, and 
program evaluation studies in selected watershed projects to 
determine the effectiveness of structural and land treatment 
measures installed. In addition, NRCS has made loans to local 
organizations to finance the local share of the costs of 
installing planned works of improvement.

                          COMMITTEE PROVISIONS

    For Watershed and Flood Prevention Operations, the 
Committee provides an appropriation of $110,000,000, an 
increase of $3,410,000 above the amount available for fiscal 
year 2002 and an increase of $110,000,000 above the budget 
request. Language is included which limits the amount spent on 
technical assistance to not more than $45,514,000.
    The Committee is aware of and expects progress to continue 
on the following projects: the four pilot projects in North 
Florida related to dairy and poultry cleanup efforts; Little 
Red River, Poinsett, and the Big Slough Watersheds in Arkansas; 
Squirrel Branch (MS) drainage project; and the Upper Cahaba 
Watershed (AL).
    The Committee expects the Department to provide financial 
and/or technical assistance for the following: Martinez 5 flood 
detention dam in Bexar County, TX; southwest VA waterways of 
Clinch, Powell, Holston, Pound and Bluestone Rivers and 
tributaries; Marrowbee Creek Dam (VA); Pine Barren Watershed 
extension (AL); False River Sedimentation Project, Pointe 
Coupee Parish (LA); Sumter County (SC) to complete flood 
mitigation projects with Sumter County Soil and Water 
Conservation District; Elm Creek Watershed-Site number 34 
construction (TX); Whitewater East and Whitewater West (KS); 
Big Cypress Reservation watershed (FL) as part of Everglades 
Restoration; Little Minnesota River/Big Stone Lake (SD); St. 
John the Baptist Parish Lake Bank Retention Project, Lincoln 
Parish (LA); Big Creek and Hurricane Creek, East Fork of Grand 
River, and East Locust Creek, MO; Bayou Bourbeux Watershed 
Project, Opelousas (LA); Swan Quarter (NC); Mill Creek 
Watershed and Little Toby Watershed (PA); Sugar Creek (OK) 
watershed project; Big Sandy Creek (TX); and the Lincoln Parish 
(LA) drainage project.
    Cayuga Lake Watershed.--The Committee directs the NRCS to 
provide financial assistance to the Cayuga Lake Watershed, NY. 
The watershed recently completed a comprehensive restoration 
and protection plan that involved extensive input from all five 
counties in the watershed (Tompkins, Cayuga, Seneca, Schuyler, 
and Cortland).
    DuPage County, IL.--The Committee includes funds for DuPage 
County, Illinois for financial and technical assistance.
    Beardsley Wash Watershed.--The Committee urges the NRCS to 
complete the Beardsley Wash Watershed Project in Ventura 
County, CA.
    Devils Lake.--The Committee is aware of continued flooding 
in the Devils Lake basin in North Dakota, and notes that the 
lake has risen 25 feet over the last several years. The 
Committee encourages, the NRCS in cooperation with the FSA to 
assist in the locally coordinated flood response and water 
management activities being developed with the Federal 
Emergency Management Agency. NRCS and FSA utilize conservation 
programs in providing water holding and storage areas on 
private land as necessary intermediate measures in watershed 
management.
    Lake Waco Watershed.--The Committee is aware of continued 
water quality problems in the Lake Waco Watershed of Texas, 
particularly in the North Bosque River. The Committee 
encourages the NRCS, in cooperation with the Texas Natural 
Resource Conservation Commission, local communities and dairy 
producers, to assist in a locally coordinated program targeted 
at improving watershed management activities that address 
residential, commercial, and agricultural runoff.

                     EMERGENCY WATERSHED PROTECTION




2002 appropriation....................................  ................
2003 budget estimate \1\..............................      $110,000,000
Provided in the bill..................................  ................
Comparison:
    2002 appropriation................................  ................
    2003 budget estimate..............................      -110,000,000

\1\ Excludes $1,389,000 for pension and health benefits.

    The emergency watershed protection program provides 
assistance to reduce hazards to life and property in watersheds 
damaged by severe natural events. An emergency is considered to 
exist when a watershed is suddenly impaired by flood, fire, 
drought, or other natural causes which results in life and 
property being endangered by flooding, erosion, sediment 
discharge, or other associated hazards.

                          COMMITTEE PROVISIONS

    The Committee does not include funding for the Emergency 
Watershed Program as proposed by the budget.

                    WATERSHED REHABILITATION PROGRAM




2002 appropriation....................................       $10,000,000
2003 budget estimate..................................  ................
Provided in the bill..................................  ................
Comparison:
    2002 appropriation................................       -10,000,000
    2003 budget estimate..............................  ................


    The watershed rehabilitation program is for technical and 
financial assistance to carry out rehabilitation of structural 
measures, in accordance with section 14 of the Watershed 
Protection and Flood Prevention Act, approved August 4, 1954 
(U.S.C. 1001 et seq.), as amended by Section 313 of Public law 
106-472, November 9, 2000 (16 U.S.C. 1012).

                          COMMITTEE PROVISIONS

    The Committee concurs with the budget request and does not 
include funding for the Watershed Rehabilitation Program. The 
Committee notes that the 2002 Farm Bill provided $45,000,000 
for this program for fiscal year 2003.

                 RESOURCE CONSERVATION AND DEVELOPMENT




2002 appropriation....................................       $48,048,000
2003 budget estimate \1\..............................        49,079,000
Provided in the bill..................................        55,079,000
Comparison:
    2002 appropriation................................        +7,031,000
    2003 budget estimate..............................        +6,000,000

\1\ Excludes $2,952,000 for pension and health benefits.

    The Natural Resources Conservation Service has general 
responsibility under provisions of section 102, title I of the 
Food and Agriculture Act of 1962, for developing overall work 
plans for resource conservation and development projects in 
cooperation with local sponsors; to help develop local programs 
of land conservation and utilization; to assist local groups 
and individuals in carrying out such plans and programs; to 
conduct surveys and investigations relating to the conditions 
and factors affecting such work on private lands; and to make 
loans to project sponsors for conservation and development 
purposes and to individual operators for establishing soil and 
water conservation practices.

                          COMMITTEE PROVISIONS

    For Resource Conservation and Development, the Committee 
provides an appropriation of $55,079,000, an increase of 
$7,031,000 above the amount available for fiscal year 2002 and 
an increase of $6,000,000 above the budget request.

                      FORESTRY INCENTIVES PROGRAM

2002 appropriation......................................      $6,811,000
2003 budget estimate....................................................
Provided in the bill....................................................
Comparison:
    2002 appropriation..................................      -6,811,000
    2003 budget estimate................................................

    The purpose of the Forestry Incentives Program is to 
encourage the development, management, and protection of 
nonindustrial private forest lands. The program is carried out 
by providing technical assistance and long-term cost sharing 
agreements with private landowners. The Farm Security and Rural 
Investment Act of 2002 (P.L. 107-171) repealed the 
authorization for this program.

                          COMMITTEE PROVISIONS

    The Committee concurs with the President's budget and does 
not provide funding for the Forestry Incentives Program.

                 TITLE III--RURAL DEVELOPMENT PROGRAMS

    The Federal Crop Insurance Reform and Department of 
Agriculture Reorganization Act of 1994 (Public Law 103-354) 
abolished the Farmers Home Administration, Rural Development 
Administration, and Rural Electrification Administration and 
replaced those agencies with the Rural Housing Service, Rural 
Business-Cooperative Service, and Rural Utilities Service and 
placed them under the oversight of the Under Secretary for 
Rural Development. These agencies deliver a variety of programs 
through a network of state, district, and county offices.
    In the 1930's and 1940's these agencies were primarily 
involved in making small loans to farmers; however, today these 
agencies have a multi-billion dollar loan program throughout 
all America providing loan and grant assistance for single 
family, multi-family, housing, and special housing needs, as 
well as a variety of community facilities, infrastructure, and 
business development programs.

          Office of the Under Secretary for Rural Development

2002 appropriation......................................        $623,000
2003 budget estimate \1\................................         898,000
Provided in the bill....................................         640,000
Comparison:
    2002 appropriation..................................         +17,000
    2003 budget estimate................................        -258,000

\1\ Excludes $25,000 for pension and health benefits.

    The Office of the Under Secretary for Rural Development 
provides direction and coordination in carrying out the laws 
enacted by the Congress with respect to the Department's rural 
economic and community development activities. The Office has 
oversight and management responsibilities for the Rural Housing 
Service, Rural Business-Cooperative Service, and Rural 
Utilities Service.

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Rural 
Development, the Committee provides an appropriation of 
$640,000, an increase of $17,000 above the amount available for 
fiscal year 2002 and a decrease of $258,000 below the budget 
request.
    The Committee expects the Department to give consideration 
to the following organizations or projects requesting 
assistance under the Rural Community Advancement Program and 
other rural development programs only when such applications 
are judged to be meritorious when subject to established review 
procedures:
    Automated Collateral Management System.--The Committee 
encourages the Department to strongly consider and implement an 
automated collateral management system capable of providing 
loan origination, pre-funding fraudulent practices avoidance, 
loss mitigation, regulatory compliance, appraisal-review-
examination of suspicious properties, affiliated individuals 
and firms, and Extensible Markup Language facilitated data 
warehousing, with database integration of properties, 
appraisers, and lenders.
    Committee recommendations.--The Committee recommends that 
the following items be considered for financial assistance, 
technical assistance, loans and/or grants made available under 
the Rural Community Advancement Program: Horizon City (TX) 
economic development project for water/sewer systems and roads; 
Eagle Pass and Maverick County (TX) Regional water and 
wastewater facilities plan; T-L Rural Water District, Peoria 
County (IL) for expanding water treatment plant facilities; 
City of Petersburg (IL) for construction of a water treatment 
plant; City of Virginia (IL) for construction of a water 
treatment plant; development and implementation of the Mobile 
Agribusiness Center, Macon County (IL); water and sewer 
projects in the Village of Saugerties (NY); water and 
wastewater projects in the Town of Nichols (NY); Sam's Point 
Conservation/Visitors Center in Ellenville (NY); Fayette County 
(AL) for an agribusiness center; Lewiston (ME) strategic plan 
implementation; industrial shell buildings in Craig, Floyd, and 
Grayson Counties (VA); Clinch Mountain farmers market expansion 
in Duffield (VA); a multi-purpose facility in Alexander (AR); 
Shannon Hills (AR) city hall/community center/senior center; 
municipal aqueduct system in Carolina (PR); Fox Islands 
Electric Cooperative (ME); R-TAP in Ames (IA); Bucks Springs 
Regional Leadership center (NC); Salkehatchie Leadership Center 
in Allendale (SC); Menifee (AR) sewer improvements; sewer 
improvements Lake Conway (AR); Cesar E. Chavez Education and 
Retreat Center (CA); improvements to Jamestown 4-H Center (VA); 
Berkeley Springs water line replacement (WV); Roane Co. Rural 
Development (WV); Jubilee Housing/Habitat for Humanity (WV); 
City of Hurricane Storm Drainage/Sewer Separation (WV); Buffalo 
(WV) Storm Sewer; water line repair Prairie du Rocher (IL); 
sewer extension project in Philomath (OR); wastewater treatment 
in Monroe (OR); internal agri-center in Tulare (CA); rural 
communities collaborative of Fresno (CA); public address system 
at Big Butler Fair (PA); streetscape program Borough of 
Greenville (PA); rural water system improvements Mau'a (AS); 
industrial park in Perry County (PA); construction of distance 
learning room at Worth County (MO) library; rural technical and 
manufacturing development system Beaver County (PA); Middlesex 
Township/Butler County (PA) expansion of sewer system; upgrade 
and repair water line in Bessemer Borough, Lawrence County 
(PA); Rhea County (TN) economic development; Oneida (TN) water 
pipeline; Holland Regional Water System (IL); Ballona Creek 
Trail (CA); Gateway Regional Water (IL); Dunn Richmond Park 
(IL); drinking water treatment facility in Lenoir County (NC); 
Lummi Nation wastewater treatment expansion (WA); install and 
complete sewer line in Jefferson County (NY); municipal water 
system in redwood (NY); Vandalia Heritage Foundation (WV); 
outdoor athletics/recreation complex at St. Francis University 
(PA); Point Stadium facilities (PA); Kiski Basin economic 
development (PA); ICMSA sewage renovation (PA); feasibility 
study of indoor public market in Springfield (MA); Noble County 
(OH) water extension; sewer service connection Morristown (OH); 
Bernheim Arboretum and Research Forest (KY); Quinebaug-
Shetucket Heritage Corridor, Inc. (CT); Neuse River drinking 
water treatment facility (NC); DeSoto County (FL) wastewater 
facility; equestrian center construction Erie (NY); water line 
extension to Las Colonias (TX); Smiths Station community 
facility (AL); indoor farmers market Winooski (VT); Longleaf 
Trace (MS) bike trail; industrial building improvements-New 
Hebron (MS); sewage system repair Gloster (MS); Magnolia (MS) 
water tank improvements; Franklin County (PA) agriculture 
service center; water/wastewater improvements White County 
(AR); Higginson (AR) improvements; Chesterfield County (SC) 
industrial park; Chester County (SC) industrial park; Warren 
Township (OH) public water service; Rutland (OH) water/sewer 
projects; L'Anse Township (MI) water/sewer; Keweenaw Industrial 
Council (MI); St. Martin Parish (LA) water/wastewater; St. 
James and St. John Parishes (LA) water/wastewater; Chitimacha 
Tribe (LA) drainage canal improvements; Iberia Parish (LA) 
conference center; Geyersville (CA) fire station; Laytonville 
(CA) wastewater treatment; interpretive center and public 
terminal in Vicksburg (MS); biomass combustion system (SD); 
aquaculture facility (SD); Long Lake (SD) Eureka Extension 
Project; South Dunnellon (FL) water association; Purdue 
University (IN) Regional Technical Center; Tangipahoa (LA) 
wastewater improvements; Washington Parish (LA) water treatment 
facility repairs; Sparta (LA) aquifer; West Baton Rouge Parish 
(LA) agriculture community facility; La Pine (OR) wastewater 
collection and treatment center; Klamath County (OR) economic 
development association for geothermal heat projects; 
Commonwealth Agri-Energy Ethanol Production Plant (KY); 
Purchase Area (KY) Regional Industrial Park; feasibility study 
for Center for Rural Innovation in Loudon County (VA); Camp 
Meeker wastewater reclamation (CA); Springdale (NY) farm 
expansion; Kenmoore (NY) tree enhancement program; community 
facilities in Washington County (WA); economic development and 
incubator program, Rural Enterprises Inc., (OK); Biofuels 
Consortium, northwest OH; Plant and Animal Agro-Security 
Research Facility at the Ohio Agriculture Research and 
Development Center in Wooster (OH); and National Trail Ag 
Coalition (IL) study to establish new business enterprise.
    The Committee has included $200,000 to fund the completion 
of a study underway by the National Ground Water Association.
    Value Added Agricultural Product Market Development 
Grants.--The Committee is aware the Department will develop 
application and evaluation guidelines for the Value Added 
Agricultural Product Market Development Grant Program. The 
Committee expects the Department to develop ranking criteria to 
reward projects that help increase self-employment and 
entrepreneurial opportunities in farming and ranching, enhance 
the profitability and viability of small and medium-sized farms 
and ranches, and contribute to conserving and enhancing the 
quality of land, water and other natural resources.

                RURAL DEVELOPMENT SALARIES AND EXPENSES


                                                                                                    Committee
                                                            FY 2002 estimate  FY 2003 estimate     provisions

Appropriations............................................      $133,722,000      $145,736,000      $145,736,000
Transfer from:
    Rural Housing Insurance Fund Loan Program Account.....       422,241,000       455,630,000       434,980,000
    Rural Electrification and Telecommunications Loans            36,000,000        38,035,000        37,833,000
     Program Account......................................
    Rural Telephone Bank Program Account..................         3,082,000         3,082,000         3,082,000
    Rural Local Television Program Account................         2,000,000                 0                 0
    Rural Development Loan Fund Program Account...........         3,733,000         4,290,000         4,190,000
                                                           -----------------------------------------------------
      Total, RD Salaries and Expenses.....................       600,778,000   \1\ 646,773,000   \2\ 625,821,000


\1\ Excludes $38,603,000 for pension and health benefits.
\2\ Excludes $17,065,000 for GSA Rent which is funded in a central account under Agriculture Buildings and
  Facilities.

    These funds are used to administer the loan and grant 
programs of the Rural Utilities Service, the Rural Housing 
Service and the Rural Business-Cooperative Service, including 
reviewing applications, making and collecting loans and 
providing technical assistance and guidance to borrowers; and 
to assist in extending other Federal programs to people in 
rural areas.
    Under credit reform, administrative costs associated with 
loan programs are appropriated to the program accounts. 
Appropriations to the salaries and expenses account will be for 
costs associated with grant programs.

                          COMMITTEE PROVISIONS

    For Salaries and Expenses of the Rural Development mission 
areas, the Committee provides an appropriation of $145,736,000, 
an increase of $12,014,000 above the amount available for 
fiscal year 2002 and the same as the budget request.

                  RURAL COMMUNITY ADVANCEMENT PROGRAM

2002 appropriation......................................    $806,557,000
2003 budget estimate....................................     791,499,000
Provided in the bill....................................     950,298,000
Comparison:
    2002 appropriation..................................    +143,741,000
    2003 budget estimate................................    +158,799,000

    The Rural Community Advancement Program [RCAP], authorized 
by the Federal Agriculture Improvement and Reform Act of 1996 
(Public Law 104-127), consolidates funding for the following 
programs: 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 proposal is in accordance with the provisions set 
forth in the Federal Agriculture Improvement and Reform Act of 
1996, Public Law 104-127. Consolidating funding for these 12 
rural development loan and grant programs under RCAP will 
provide greater flexibility to tailor financial assistance to 
applicant needs.
    With the exception of the 10 percent in the ``National 
Office Reserve'' account, funding will be allocated to rural 
development State directors for their priority setting on a 
State-by-State basis. State directors are authorized to 
transfer not more than 25 percent of the amount in the account 
that is allocated for the State for the fiscal year to any 
other account in which amounts are allocated for the State for 
the fiscal year, with up to 10 percent of funds allowed to be 
reallocated nationwide.
    Community facility loans were created by the Rural 
Development Act of 1972 and finance a variety of rural 
community facilities. Loans are made to organizations, 
including certain Indian tribes and corporations not operated 
for profit and public and quasipublic agencies, to construct, 
enlarge, extend, or otherwise improve community facilities 
providing essential services to rural residents. Such 
facilities include those providing or supporting overall 
community development such as fire and rescue services, health 
care, transportation, traffic control, and community, social, 
cultural, and recreational benefits. Loans are made for 
facilities which primarily serve rural residents of open 
country and rural towns and villages of not more than 20,000 
people. Health care and fire and rescue facilities are the 
priorities of the program and receive the majority of available 
funds.
    The Community Facility Grant program authorized in the 
Federal Agriculture Improvement and Reform Act of 1996 (Public 
Law 104-127), would be used in conjunction with the existing 
direct and guaranteed loan programs for the development of 
community facilities, such as hospitals, fire stations, and 
community centers. Grants will be targeted to the lowest income 
communities. Communities that have lower population and income 
levels would receive a higher cost-share contribution through 
these grants, to a maximum contribution of 75 percent of the 
cost of developing the facility.
    The Rural Business and Industry Loans program was created 
by the Rural Development Act of 1972, and finances a variety of 
rural industrial development loans. Loans are made for rural 
industrialization and rural community facilities under Rural 
Development Act amendments to the Consolidated Farm and Rural 
Development Act authorities. Business and industrial loans are 
made to public, private, or cooperative organizations organized 
for profit, to certain Indian tribes, or to individuals for the 
purpose of improving, developing or financing business, 
industry, and employment or improving the economic and 
environmental climate in rural areas. Such purposes include 
financing business and industrial acquisition, construction, 
enlargement, repair or modernization, financing the purchase 
and development of land, easements, rights-of-way, buildings, 
payment of startup costs, and supplying working capital. 
Industrial development loans may be made in any area that is 
not within the outer boundary of any city having a population 
of 50,000 or more and its immediately adjacent urbanized and 
urbanizing areas with a population density of more than 100 
persons per square mile. Special consideration for such loans 
is given to rural areas and cities having a population of less 
than 25,000.
    Rural business enterprise grants were authorized by the 
Rural Development Act of 1972. Grants are made to public bodies 
and nonprofit organizations to facilitate development of small 
and emerging business enterprises in rural areas, including the 
acquisition and development of land; the construction of 
buildings, plants, equipment, access streets and roads, parking 
areas, and utility extensions; refinancing fees; technical 
assistance; and startup operating costs and working capital.
    Rural business opportunity grants are authorized under 
section 306(a)(11) of the Consolidated Farm and Rural 
Development Act, as amended. Grants may be made not to exceed 
$1,500,000 annually to public bodies and private nonprofit 
community development corporations or entities. Grants are made 
to identify and analyze business opportunities that will use 
local rural economic and human resources; to identify, train, 
and provide technical assistance to rural entrepreneurs and 
managers; to establish business support centers; to conduct 
economic development planning and coordination, and leadership 
development; and to establish centers for training, technology, 
and trade that will provide training to rural businesses in the 
utilization of interactive communications technologies.
    The water and waste disposal program is authorized by 
several actions, including sections 306, 306A, 306C, 306D, 
309A, and 310B of the Consolidated Farm and Rural Development 
Act (7 U.S.C. 1921 et seq., as amended). This program makes 
loans for water and waste development costs. Development loans 
are made to associations, including corporations operating on a 
nonprofit basis, municipalities and similar organizations, 
generally designated as public or quasipublic agencies that 
propose projects for the development, storage, treatment, 
purification, and distribution of domestic water or the 
collection, treatment, or disposal of waste in rural areas. 
Such grants may not exceed 75 percent of the development cost 
of the projects and can supplement other funds borrowed or 
furnished by applicants to pay development costs.
    The solid waste grant program is authorized under section 
310B(b) of the Consolidated Farm and Rural Development Act, as 
amended. Grants are made to public bodies and private nonprofit 
organizations to provide technical assistance to local and 
regional governments for the purpose of reducing or eliminating 
pollution of water resources and for improving the planning and 
management of solid waste disposal facilities.

                          COMMITTEE PROVISIONS

    The following table provides the Committee's 
recommendations as compared to the budget request:

                   RURAL COMMUNITY ADVANCEMENT PROGRAM
               [Budget authority in thousands of dollars]
------------------------------------------------------------------------
                                     FY 2002      FY 2003     Committee
                                      level       estimate    provisions
------------------------------------------------------------------------
Housing:
    Community facility loans:
        Guaranteed...............            0            0            0
        Direct...................      $13,545      $15,600      $20,000
    Community facility grants....       70,000       17,000       22,000
                                  --------------------------------------
          Subtotal, housing......       83,545       32,600       42,000
                                  ======================================
Business:
    Business and industry loans:
        Guaranteed...............      $27,400      $29,085      $35,688
        Direct...................            0            0            0
    Rural business enterprise           41,000       44,000       51,329
     grants......................
    Rural business opportunity           5,100        3,000        6,346
     grants......................
    Department of Energy matching        3,000            0            0
     grants......................
                                  --------------------------------------
          Subtotal, business.....       76,500       76,085       93,363
                                  ======================================
Utilities:
    Water and waste disposal
     loans:
        Direct...................      $60,497      $92,302      $93,441
    Water and waste disposal           582,515      587,012      717,994
     grants......................
    Solid waste management grants        3,500        3,500        3,500
                                  --------------------------------------
          Subtotal, utilities....      646,512      682,814      814,935
                                  ======================================
          Total, loans and grants      806,557      791,499      950,298
------------------------------------------------------------------------

    The following earmarks are included in bill language for 
the Rural Community Advancement Program: $24,000,000 for 
Federally recognized Native American Tribes, of which 
$4,000,000 is for community facilities grants to tribal 
colleges, and of which $250,000 is for transportation technical 
assistance; $6,000,000 for the Rural Community Development 
Initiative; $500,000 for rural transportation technical 
assistance; $2,000,000 for grants to Mississippi Delta Region 
counties; $25,000,000 for water and waste disposal systems in 
the Colonias; $17,465,000 for technical assistance for rural 
water and waste systems; $12,100,000 for a circuit rider 
program; and $37,648,000 for empowerment zones and enterprise 
communities (EZ/EC) and communities designated by the Secretary 
of Agriculture as Rural Economic Area Partnership Zones, of 
which $1,187,000 is for community facilities, of which 
$27,431,000 shall be for rural utilities programs, and of which 
$9,030,000 shall be for the rural business and cooperative 
development programs.
    Rural Community Assistance Programs.--The Committee directs 
that, of the funds provided for rural waste systems, $5,250,000 
is designated for the Rural Community Assistance Programs.

                         Rural Housing Service

    The Rural Housing Service (RHS) was established under 
Federal Crop Insurance Reform and Department of Agriculture 
Reorganization Act of 1994, dated October 13, 1994.
    The mission of the Service is to improve the quality of 
life in rural America by assisting rural residents and 
communities in obtaining adequate and affordable housing and 
access to needed community facilities. The goals and objectives 
of the Service are: (1) facilitate the economic revitalization 
of rural areas by providing direct and indirect economic 
benefits to individual borrowers, families, and rural 
communities; (2) assure that benefits are communicated to all 
program eligible customers with special outreach efforts to 
target resources to underserved, impoverished, or economically 
declining rural areas; (3) lower the cost of programs while 
retaining the benefits by redesigning more effective programs 
that work in partnership with state and local governments and 
the private sector; and (4) leverage the economic benefits 
through the use of low-cost credit programs, especially 
guaranteed loans.

              RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT

                    ESTIMATED LOAN AND GRANT LEVELS




2002 loan and grant levels............................    $4,485,846,000
2003 budget estimate..................................     3,924,311,000
Provided in the bill..................................     4,551,457,000
Comparison:
    2002 loan level...................................       +65,611,000
    2003 budget estimate..............................      +627,146,000


    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. This fund may be used to insure or guarantee rural 
housing loans for single family homes, rental and cooperative 
housing, and rural housing sites. Rural housing loans are made 
to construct, improve, alter, repair or replace dwellings and 
essential farm service buildings that are modest in size, 
design, and cost. Rental housing insured loans are made to 
individuals, corporations, associations, trusts, or 
partnerships to provide moderate-cost rental housing and 
related facilities for elderly persons in rural areas. These 
loans, are repayable in not to exceed 30 years. Farm labor 
housing insured loans are made either to a farm owner or to a 
public or private nonprofit organization to provide modest 
living quarters and related facilities for domestic farm labor. 
Loan programs are limited to rural areas which include towns, 
villages, and other places of not more than 10,000 population, 
which are not part of an urban area. Loans may also be made in 
areas with a population in excess of 10,000, but less than 
20,000, if the area is not included in a standard metropolitan 
statistical area and has a serious lack of mortgage credit for 
low- and moderate-income borrowers.

                          COMMITTEE PROVISIONS

    The following table reflects the loan levels for the Rural 
Housing Insurance Fund program account:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                           FY 2002 level     FY 2003 estimate      provisions
----------------------------------------------------------------------------------------------------------------
Rural Housing Insurance Fund Loans and Grant:
    Single family housing (sec. 502):
        Direct.........................................         $1,079,848           $957,300         $1,084,151
        Unsubsidized guaranteed........................          3,137,968          2,750,000          3,194,444
    Rental housing (sec. 515)..........................            114,068             60,000            115,805
    Multi-family guaranteed (sec. 538).................             99,770            100,000            100,000
    Housing repair (sec. 504)..........................             32,324             35,000             35,000
    Credit sales of acquired property..................             11,778             12,000             12,000
    Housing site development (sec. 524)................              5,090              5,000              5,046
    Self-help housing land development fund............              5,000              5,011              5,011
                                                        --------------------------------------------------------
      Total, Loan authorization........................          4,485,846          3,924,311          4,551,457
----------------------------------------------------------------------------------------------------------------

   ESTIMATED LOAN SUBSIDY, GRANTS, AND ADMINISTRATIVE EXPENSES LEVELS

----------------------------------------------------------------------------------------------------------------
                                                                 Direct loan    Guaranteed loan   Administrative
                                                                   subsidy           subsidy         expenses
----------------------------------------------------------------------------------------------------------------
2002 appropriation...........................................     $201,800,000      $44,087,000     $422,241,000
2003 budget estimate.........................................      225,474,000       24,300,000      455,630,000
Provided in the bill.........................................      276,067,000       27,500,000      434,980,000
Comparison:
  2002 appropriation.........................................      +74,267,000      -25,587,000      +12,739,000
  2003 budget estimate.......................................      +50,593,000       +3,200,000      -20,650,000
----------------------------------------------------------------------------------------------------------------

    The Federal Credit Reform Act of 1990 established the 
Program Account. Appropriations to this account will be used to 
cover the lifetime subsidy costs associated with the direct 
loans obligated and loan guarantees committed in 2003, as well 
as for administrative expenses.
    The following table reflects the costs of the loan programs 
under credit reform. In many cases, changes from the fiscal 
year 2002 amounts reflect changes in the loan subsidy rates as 
set by the Office of Management and Budget.

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                           FY 2002 level     FY 2003 estimate      provisions
----------------------------------------------------------------------------------------------------------------
Rural Housing Insurance Fund Program Account (loan
 subsidies):
    Single family housing (sec. 502):
        Direct.........................................           $142,108           $185,429           $210,000
        Unsubsidized guaranteed........................             40,166             19,800             23,000
    Rental housing (sec. 515)..........................             48,274             27,978             54,000
    Multi-family guaranteed (sec. 538).................              3,921              4,500              4,500
    Housing repair (sec. 504)..........................             10,386             10,857             10,857
    Credit sales of acquired property..................                750                934                934
    Housing site development (sec. 524)................                 28                 55                 55
    Self-help housing land development fund............                254                221                221
      Total, Loan subsidies............................            245,887            249,774            303,567
RHIF expenses:
    Administrative expenses............................            422,241            455,630            434,980
----------------------------------------------------------------------------------------------------------------

                       RENTAL ASSISTANCE PROGRAM




2002 appropriation....................................      $701,004,000
2003 budget estimate..................................       712,000,000
Provided in the bill..................................       722,000,000
Comparison:
    2002 appropriation................................       +20,996,000
    2003 budget estimate..............................       +10,000,000


    The Housing and Community Development Act of 1974 
established a rural rental assistance program to be 
administered through the rural housing loans programs.
    The objective of the program is to reduce rents paid by 
low-income families living in Rural Housing Service financed 
rental projects and farm labor housing projects. Under this 
program, low-income tenants will contribute the higher of: (1) 
30 percent of monthly adjusted income; (2) 10 percent of 
monthly income; or (3) designated housing payments from a 
welfare agency.
    Payments from the fund are made to the project owner for 
the difference between the tenant's payment and the approved 
rental rate established for the unit.
    The program is administered in tandem with Rural Housing 
Service Section 515 rural rental and cooperative housing 
programs and the farm labor loan and grant programs. Priority 
is given to existing projects for units occupied by low-income 
families to extend expiring contracts or provide full amounts 
authority to existing contracts; any remaining authority will 
be used for projects receiving new construction commitments 
under Sections 514, 515, or 516 for very low-income families 
with certain limitations.

                          COMMITTEE PROVISIONS

    For the Rental Assistance Program, the Committee provides a 
program level of $722,000,000, an increase of $20,966,000 above 
the amount available in fiscal year 2002 and an increase of 
$10,000,000 above the budget request.

                  MUTUAL AND SELF-HELP HOUSING GRANTS

2002 appropriation......................................     $35,000,000
2003 budget estimate....................................      34,000,000
Provided in the bill....................................      35,000,000
Comparison:
    2002 appropriation..................................................
    2003 budget estimate................................      +1,000,000

    This grant program is authorized by title V of the Housing 
Act of 1949, as amended. Grants are made to local organizations 
to promote the development of mutual or self-help programs 
under which groups of usually six to ten families build their 
own homes by mutually exchanging labor. Funds may be used to 
pay the cost of construction supervisors who will work with 
families in the construction of their homes and for 
administrative expenses of the organizations providing the 
self-help assistance.

                          COMMITTEE PROVISIONS

    For Mutual and Self-Help Housing Grants, the Committee 
provides an appropriation of $35,000,000, the same as the 
amount available in fiscal year 2002 and an increase of 
$1,000,000 above the budget request.

                       FARM LABOR PROGRAM ACCOUNT

----------------------------------------------------------------------------------------------------------------
                                                               Loan level       Subsidy level        Grants
----------------------------------------------------------------------------------------------------------------
2002 appropriation........................................       $28,459,000       $13,464,000       $17,967,000
2003 budget estimate......................................        35,999,592        17,647,000        16,968,000
Provided in the bill......................................        35,999,592        17,647,000        20,353,000
Comparison:
    2002 appropriation....................................        +7,540,592        +4,183,000        +2,386,000
    2003 budget estimate..................................  ................  ................        +3,385,000
----------------------------------------------------------------------------------------------------------------

    The direct farm labor housing loan program is authorized 
under section 514, and the rural housing for domestic farm 
labor housing 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. Grant 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.

                          COMMITTEE PROVISIONS

    For the Farm Labor program account, the Committee provides 
a loan subsidy of $17,647,000 which supports a loan level of 
$35,999,592, an increase of $4,183,000 in loan subsidy and an 
increase of $7,540,592 in loan level above the amount available 
in fiscal year 2002 and the same as the budget request. The 
Committee also provides an additional $20,353,000 in grants, an 
increase of $2,386,000 above the amount available in fiscal 
year 2002 and an increase of $3,385,000 above the budget 
request. Of the $20,353,000 in grants, $16,991,900 is for farm 
labor housing grants and $3,361,100 is for grants for migrant 
and seasonal farmworkers.

                    RURAL HOUSING ASSISTANCE GRANTS

2002 appropriation......................................     $38,914,000
2003 budget estimate....................................      42,498,000
Provided in the bill....................................      42,498,000
Comparison:
    2002 appropriation..................................      +3,584,000
    2003 budget estimate................................     ...........

    The following programs are consolidated under the Rural 
Housing Assistance Grants: very low-income housing repair 
grants, rural housing preservation grants, compensation for 
construction defects, and supervisory and technical assistance 
grants.
    The Very Low-Income Housing Repair Grants program is 
authorized under Section 504 of Title V of the Housing Act of 
1949, as amended. The program makes grants to very low-income 
families to make necessary repairs to their homes in order to 
make such dwellings safe and sanitary, and remove hazards to 
the health of the occupants, their families, or the community. 
A grant can be made in combination with a Section 504 very low-
income housing repair loan.
    Rural Housing Preservation Grants are used for home repair 
for low- and very low-income people. The purpose of the 
preservation program is to improve the delivery of 
rehabilitation assistance by employing the expertise of housing 
organizations at the local level. Eligible applicants will 
compete on a state-by-state basis for grants funds. These funds 
may be administered as loans, loan write-downs, or grants to 
finance home repair. The program is administered by local 
grantees.
    Compensation for Construction Defects provides funds for 
grants to eligible section 502 borrowers to correct structural 
defects, or to pay claims of owners arising from such defects 
on a newly constructed dwelling purchased with RHS financial 
assistance.
    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 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.

                          COMMITTEE PROVISIONS

    For the Rural Housing Assistance Grants program, the 
Committee provides an appropriation of $42,498,000, an increase 
of $3,584,000 above the amount provided for fiscal year 2002 
and the same as the budget request.

                   Rural Business-Cooperative Service

    The Rural Business-Cooperative Service (RBS) was 
established by Public Law 103-354, Federal Crop Insurance 
Reform and Department of Agriculture Reorganization Act of 
1994, dated October 13, 1994. Its programs were previously 
administered by the Rural Development Administration, the Rural 
Electrification Administration, and the Agricultural 
Cooperative Service.
    The mission of the Rural Business-Cooperative Service is to 
enhance the quality of life for all rural residents by 
assisting new and existing cooperatives and other businesses 
through partnership with rural communities. The goals and 
objectives are to: (1) promote a stable business environment in 
rural America through financial assistance, sound business 
planning, technical assistance, appropriate research, 
education, and information; (2) support environmentally-
sensitive economic growth that meets the needs of the entire 
community; and (3) assure that the Service benefits are 
available to all segments of the rural community, with emphasis 
on those most in need.

                          COMMITTEE PROVISIONS

    Current economic conditions, together with the rapid 
changes taking place throughout the global economy, underscore 
the need for policies and programs to strengthen the ability of 
farmers to join together in cooperative self-help efforts to 
improve their income, manage their risk, move more into value-
added production and processing, and capture a larger share of 
the consumer dollar. Programs carried out by Cooperative 
Services within the Rural Business and Cooperative Service as 
authorized under the Cooperative Marketing Act of 1926 (7 
U.S.C. 453 (a) and (b)), including those related to research, 
education and technical assistance, play an important role in 
helping promote such cooperative self-help efforts for the 
benefit of farmers. Accordingly, the Committee believes such 
programs should be given a high priority to ensure the levels 
of funding and staffing necessary to meet their objectives.

              RURAL DEVELOPMENT LOAN FUND PROGRAM ACCOUNT

                          ESTIMATED LOAN LEVEL

2002 loan level.........................................     $38,171,000
2003 budget estimate....................................      40,000,000
Provided in the bill....................................      40,000,000
Comparison:
    2002 loan level.....................................      +1,829,000
    2003 budget estimate................................    ............

    The rural development (intermediary relending) loan program 
was originally authorized by the Economic Opportunity Act of 
1964 (Public Law 88-452). The making of rural development loans 
by the Department of Agriculture was reauthorized by Public Law 
99-425, the Human Services Reauthorization Act of 1986.
    Loans are made to intermediary borrowers (small investment 
groups) who in turn will reloan the funds to rural businesses, 
community development corporations, private nonprofit 
organizations, public agencies, et cetera, for the purpose of 
improving business, industry, community facilities, and 
employment opportunities and diversification of the economy in 
rural areas.
    The Federal Credit Reform Act of 1990 established the 
Program Account. Appropriations to this account will be used to 
cover the lifetime subsidy costs associated with the direct 
loans obligated in 2003, as well as for administrative 
expenses.

                          COMMITTEE PROVISIONS

    For the Rural Development Loan Fund program account, the 
Committee provides for a loan level of $40,000,000, an increase 
of $1,829,000 above the amount provided in fiscal year 2002 and 
the same as the budget request.

       ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS


                                         Direct loan     Administrative
                                           subsidy          expenses

2002 appropriation..................       $16,494,000        $3,733,000
2003 budget estimate................        19,304,000         4,290,000
Provided in the bill................        19,304,000         4,190,000
Comparison:
    2002 appropriation..............        +2,810,000          +457,000
    2003 budget estimates...........  ................          -100,000


            RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM ACCOUNT

                          ESTIMATED LOAN LEVEL

2002 loan level.........................................     $14,966,000
2003 budget estimate....................................      14,967,000
Provided in the bill....................................      14,967,000
Comparison:
    2002 loan level.....................................          +1,000
    2003 budget estimate................................    ............

    The rural economic development loans program was 
established by the Reconciliation Act of December 1987 (P.L. 
100-203), which amended the Rural Electrification Act of 1936, 
by establishing a new section 313. This section of the Rural 
Electrification Act (7 U.S.C. 901) established a cushion of 
credits payment program and created the rural economic 
development subaccount. The Administrator of RUS is authorized 
under the Act to utilize funds in this program to provide zero 
interest loans to electric and telecommunications borrowers for 
the purpose of promoting rural economic development and job 
creation projects, including funding for feasibility studies, 
start-up costs, and other reasonable expenses for the purpose 
of fostering rural economic development.

                          COMMITTEE PROVISIONS

    For the Rural Economic Development Loans program account, 
the Committee provides for a loan level of $14,967,000, an 
increase of $1,000 above the amount provided for fiscal year 
2002 and the same as the budget request.

                         ESTIMATED LOAN SUBSIDY

                                                     Direct loan subsidy
2002 appropriation......................................  \1\ $3,616,000
2003 budget estimate....................................   \1\ 3,197,000
Provided in the bill....................................   \1\ 3,197,000
Comparison:
    2002 appropriation..................................        -419,000
    2003 budget estimate................................................

\1\ Offset by a rescission from interest on the cushion of credit 
payments, as authorized by section 313 of the Rural Electrification Act 
of 1936.
---------------------------------------------------------------------------

                  RURAL COOPERATIVE DEVELOPMENT GRANTS




2002 appropriation....................................        $7,750,000
2003 budget estimate..................................         9,000,000
Provided in the bill..................................         9,000,000
Comparison:
    2002 appropriation................................        +1,250,000
    2003 budget estimate..............................  ................



    Rural Cooperative Development Grants are authorized under 
section 310B(e) of the Consolidated Farm and Rural Development 
Act, as amended. Grants are made to fund the establishment and 
operation centers for rural cooperative development with their 
primary purpose being the improvement of economic conditions in 
rural areas. Grants may be made to nonprofit institutions or 
institutions of higher education. Grants may be used to pay up 
to 75 percent of the cost of the project and associated 
administrative costs. The applicant must contribute at least 25 
percent from non-federal sources except 1994 Institutions which 
only need to provide 5 percent. Grants are competitive and are 
awarded based on specific selection criteria.
    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.
    Cooperative agreements are authorized under 7 U.S.C. 2201 
to any qualified State department of agriculture, university, 
and other State entity to conduct research that will strengthen 
and enhance the operations of agricultural marketing 
cooperatives in rural areas.
    Cooperative Research Agreements are authorized by 7 U.S.C. 
2204(b). The funds are used for Cooperative Research 
Agreements, primarily with colleges and universities to address 
critical operational, organizational and structural issues 
facing cooperatives.

                          COMMITTEE PROVISIONS

    For Rural Cooperative Development Grants, the Committee 
provides an appropriation of $9,000,000, an increase of 
$1,250,000 above the amount available in fiscal year 2002 and 
the same as the budget request.
    Of the funds provided, not to exceed $2,500,000 is provided 
for a cooperative agreement for the Appropriate Technology 
Transfer for Rural Areas (ATTRA) program.
    The Committee notes that Agricultural Marketing Resource 
Center (AgMRC), a joint endeavor between Iowa State University, 
the University of California, Kansas State University, and 
Oklahoma State University, was initially funded in fiscal year 
2002 for three years through a USDA Rural Business, Cooperative 
Service grant. The Committee urges additional funding to expand 
the work of the AgMRC in the area of value-added agriculture.
    The Committee recommends consideration for the Northern 
Initiatives in Marquette (MI).
    The Committee directs that the cooperative agreement for 
$2.5 million with the Appropriate Technology Transfer for Rural 
Areas program be implemented through a cooperative agreement 
with the National Center for Appropriate Technology.

       RURAL EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES GRANTS




2002 appropriation....................................       $14,967,000
2003 budget estimate..................................                 0
Provided in the bill..................................        14,967,000
Comparison:
    2002 appropriation................................  ................
    2003 budget estimate..............................       +14,967,000


    The Taxpayer Relief Act of 1997 authorized five new 
empowerment zones, and 20 new enterprise communities were 
authorized by the 1999 Appropriations Act. These 25 designated 
EZ/ECs make up Round II. The goal of the Empowerment Zone/
Enterprise Community Initiative is to revitalize rural 
communities in a manner that attracts private sector investment 
and thereby provides self-sustaining community and economic 
development. The first four years of the ten years authorized 
for Round II EZ/ECs has been funded through the 1999, 2000, 
2001, and 2002 Appropriations Acts.

                          COMMITTEE PROVISIONS

    For Rural Empowerment Zones and Enterprise Communities 
Grants, the Committee provides an appropriation of $14,967,000, 
the same as the amount available in fiscal year 2002 and an 
increase of $14,967,000 above the budget request.

                        Rural Utilities Service

    The Rural Utilities Service (RUS) was established under the 
Federal Crop Insurance Reform and Department of Agriculture 
Reorganization Act of 1994 (Public Law 103-354), October 13, 
1994. RUS administers the electric and telephone programs of 
the former Rural Electrification Administration and the water 
and waste programs of the former Rural Development 
Administration.
    The mission of the RUS is to serve a leading role in 
improving the quality of life in rural America by administering 
its electric, telecommunications, and water and waste programs 
in a service oriented, forward looking, and financially 
responsible manner. All three programs have the common goal of 
modernizing and revitalizing rural communities. RUS provides 
funding and support service for utilities serving rural areas. 
The public-private partnerships established by RUS and local 
utilities assist rural communities in modernizing local 
infrastructure. RUS programs are also characterized by the 
substantial amount of private investment which is leveraged by 
the public funds invested into infrastructure and technology, 
resulting in the creation of new sources of employment.

   RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LOANS PROGRAM ACCOUNT

                          ESTIMATED LOAN LEVEL

2002 loan level.........................................  $4,565,934,000
2003 budget estimate....................................   3,116,132,000
Provided in the bill....................................   4,516,136,000
Comparison:
    2002 loan level.....................................     -49,798,000
    2003 budget estimate................................  +1,400,004,000

    The Rural Electrification Act of 1936 (7 U.S.C. 901 et 
seq.), as amended provides the statutory authority for the 
electric and telecommunications programs.

                          COMMITTEE PROVISIONS

    The Committee includes a general provision that provides 
for the continuation that waives population limits for RUS 
borrowers within 100 miles of New York City to respond to the 
consequences of the September 11 terrorist attacks. This 
provision does not authorize RUS to make loans or grants in New 
York City, but enables RUS borrowers in small communities near 
the City to provide back-up, off-site, redundant data 
processing and broadband services to companies with operations 
in the City to ensure that projects that are underway may be 
completed without interruption of their financing.
    The Committee encourages the Department to consider the 
construction of fiber optic cable in cooperation with the 
Development Authority of the North Country (NY).
    The following table reflects the loan levels for the Rural 
Electrification and Telecommunications Loans Program account:

                                             [Dollars in thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                    Committee
                                                             FY 2002 enacted  FY 2003 estimate     provisions
----------------------------------------------------------------------------------------------------------------
Loan authorizations:
    Electric:
        Direct, 5%........................................          $121,107          $121,103          $121,107
        Direct, Municipal rate............................           500,000           100,000           100,000
        Direct, FFB.......................................         2,600,000         1,600,000         2,600,000
        Direct, Treasury Rate.............................           750,000           700,000         1,100,000
        Guaranteed electric...............................           100,000           100,000           100,000
                                                           -----------------------------------------------------
            Subtotal......................................         4,071,107         2,621,103         4,021,107
                                                           =====================================================
    Telecommunications:
        Direct, 5%........................................            74,827            75,029            75,029
        Direct, Treasury rate.............................           300,000           300,000           300,000
        Direct, FFB.......................................           120,000           120,000           120,000
                                                           -----------------------------------------------------
            Subtotal......................................           494,827           495,029           495,029
                                                           =====================================================
            Total, Loan authorizations....................         4,565,934         3,116,132         4,516,136
----------------------------------------------------------------------------------------------------------------

       ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS


                                                               Direct loan     Guaranteed loan   Administrative
                                                                 subsidy           subsidy          expenses

2002 appropriation........................................        $5,645,000           $80,000       $36,000,000
2003 budget estimate......................................        12,378,000            80,000        38,035,000
Provided in the bill......................................        12,378,000            80,000        37,833,000
Comparison:
    2002 appropriation....................................        +6,733,000  ................        +1,833,000
    2003 budget estimate..................................  ................  ................          -202,000


    The Federal Credit Reform Act of 1990 established the 
Program Account. An appropriation to this account will be used 
to cover the lifetime subsidy costs associated with the direct 
loans obligated and loan guarantees committed in 2003, as well 
as for administrative expenses.
    The following table reflects the costs of the loan programs 
under credit reform. In many cases, changes from the fiscal 
year 2002 amounts reflect changes in the loan subsidy rates as 
set by the Office of Management and Budget.

       ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS

                                             [Dollars in thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                    Committee
                                                             FY 2002 enacted  FY 2003 estimate     provisions
----------------------------------------------------------------------------------------------------------------
Loan subsidies:
    Electric:
        Direct, 5%........................................            $3,609            $6,915            $6,915
        Direct, Municipal rate............................                 0             4,030             4,030
        Private Sector Guarantee..........................                80                80                80
                                                           -----------------------------------------------------
            Subtotal......................................             3,689            11,025            11,025
                                                           =====================================================
    Telecommunications:
        Direct, 5%........................................             1,736             1,283             1,283
        Direct, Treasury rate.............................               300               150               150
                                                           -----------------------------------------------------
            Subtotal......................................             2,036             1,433             1,433
            Total, Loan subsidies.........................             5,725            12,458            12,458
                                                           =====================================================
    E & T expenses:
        Administrative expenses...........................            36,000            38,035            37,833
----------------------------------------------------------------------------------------------------------------

                  RURAL TELEPHONE BANK PROGRAM ACCOUNT

                          ESTIMATED LOAN LEVEL

2002 loan level.........................................    $174,615,000
2003 budget estimate....................................               0
Provided in the bill....................................     174,638,000
Comparison:
    2002 loan level.....................................         +23,000
    2003 budget estimate................................    +174,638,000

    The Rural Telephone Bank (RTB) was required by law to begin 
privatization (repurchase of Federally owned stock) in fiscal 
year 1996. RTB borrowers are able to borrow at private market 
rates and no longer require Federal assistance.
    The Rural Telephone Bank is managed by a 13-member board of 
directors. The Administrator of RUS serves as Governor of the 
Bank until conversion to private ownership, control, and 
operation. This will take place when 51 percent of the Class A 
stock issued to the United States and outstanding at any time 
after September 30, 1996, has been fully redeemed and retired. 
Activities of the Bank are carried out by RUS employees and the 
Office of the General Counsel of the U.S. Department of 
Agriculture.

                          COMMITTEE PROVISIONS

    For the Rural Telephone Bank, the Committee provides for a 
loan level of $174,638,000, an increase of $23,000 above the 
amount available in fiscal year 2002 and an increase of 
$174,638,000 above the budget request.
    The Committee includes the same provision from the fiscal 
year 2002 bill which limits the retirement of the Class A stock 
of the Rural Telephone Bank.
    The Committee does not concur with proposed bill language 
using unobligated balances of the Rural Telephone Bank 
Liquidating Account to pay for administrative expenses of the 
Rural Telephone Bank.

       ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS


                                         Direct loan     Administrative
                                           subsidy          expenses

2002 appropriation..................        $3,737,000        $3,082,000
2003 budget estimate................                 0         3,082,000
Provided in the bill................         2,410,000         3,082,000
Comparison:
    2002 appropriation..............        -1,327,000  ................
    2003 budget estimate............        +2,410,000  ................


    The Federal Credit Reform Act of 1990 established the 
Program Account. Appropriations to this account will be used to 
cover the lifetime subsidy costs associated with the direct 
loans obligated in 2003, as well as for administrative 
expenses.

               DISTANCE LEARNING AND TELEMEDICINE PROGRAM


                                                                   Loan level      Subsidy level      Grants

2002 appropriation............................................      $380,000,000               0     $49,441,000
2003 budget estimate..........................................       129,535,000       4,104,000      26,945,000
Provided in the bill..........................................       380,000,000       4,128,000      40,000,000
Comparison:
    2002 appropriation........................................  ................      +4,128,000      -9,441,000
    2003 budget estimates.....................................      +250,465,000         +24,000     +13,055,000



    The Distance Learning and Telemedicine Program was 
authorized by the Food Agriculture, Conservation and Trade Act 
of 1990, as amended by the Federal Agriculture Improvement and 
Reform Act of 1996. This program provides incentives to improve 
the quality of phone services, provide access to advanced 
telecommunications services and computer networks, and to 
improve rural opportunities.
    This program provides the facilities and equipment to link 
rural education and medical facilities with more urban centers 
and other facilities providing rural residents access to better 
health care through technology and increasing educational 
opportunities for rural students. These funds are available for 
loans and grants.

                          COMMITTEE PROVISIONS

    For the Distance Learning and Telemedicine Program, the 
Committee provides an appropriation of $44,128,000, a decrease 
of $5,313,000 below the amount available for fiscal year 2002 
and an increase of $13,079,000 above the budget request.
    The Committee expects the Department to give consideration 
to the following projects or organizations requesting 
assistance under the Distance Learning and Telemedicine 
Program: the First Book Rural Outreach Initiative (DC); Jameson 
Hospital visiting nurse association (PA); Ed District 105 
distance learning program (WA); Huntingdon College distance 
learning/telemedicine program (AL); Hi-Desert Neonatal Medical 
Center (CA); establish rural high-ed network Excelsior College 
(NY); Central Valley Applied Agriculture/technical center (CA); 
Online Louisiana; Western North Carolina-Ed Research Consortium 
Health Data Link; Chipola (FL) Junior College Distance Learning 
Program; University of Southern Maine's Healthy Rural 
Communities; distance learning sites in Bland, Craig, and 
Grayson Counties (VA); Imperial Valley Telecommunications 
authority (CA) to connect 58 county schools to technology 
infrastructure; rural Lane County (OR) telecommunication 
services; financial assistance including loan guarantees to 
enable broadband access to rural counties in West Tennessee; 
the University of the Virgin Islands to develop and support a 
research and telecommunications park and broadband 
applications; and the University of Florida to increase 
capacity and effectiveness of rural health community centers in 
Florida.
    The Committee expects the Department to consider only those 
applications judged meritorious when subjected to established 
review procedures.

            LOCAL TELEVISION LOAN GUARANTEE PROGRAM ACCOUNT


                                                                                                  Administrative
                                                                   Loan level      Subsidy level      expenses

2002 appropriation............................................      $258,065,000     $20,000,000      $2,000,000
2003 budget estimate..........................................                 0               0               0
Provided in the bill..........................................                 0               0               0
Comparison:
    2002 appropriation........................................      -258,065,000     -20,000,000      -2,000,000
    2003 budget estimate......................................  ................  ..............  ..............


    The local television loan guarantee program is authorized 
by Public Law 106-533, Title X, Local TV Act. The purpose of 
this Act is to facilitate access, on a technologically neutral 
basis and by December 31, 2006, to signals of local television 
stations for households located in nonserved areas and 
underserved areas. The Federal Credit Reform Act of 1990 
established the program account. Appropriations to this account 
will be used to cover the lifetime subsidy costs associated 
with the servicing of guaranteed loans, as well as 
administrative expenses.

                          COMMITTEE PROVISIONS

    The Committee concurs with the budget request, and does not 
recommend funds for the Local Television Loan Guarantee 
Program.

                    TITLE IV--DOMESTIC FOOD PROGRAMS

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

2002 appropriation......................................        $587,000
2003 budget estimate \1\................................         774,000
Provided in the bill....................................         603,000
Comparison:
    2002 appropriation..................................         +16,000
    2003 budget estimate................................        -171,000

\1\ Excludes $23,000 for pension and health benefits.

    The Office of the Under Secretary for Food, Nutrition and 
Consumer Services provides direction and coordination in 
carrying out the laws enacted by the Congress with respect to 
the Department's food, nutrition and consumer activities. The 
Office has oversight and management responsibilities for the 
Food and Nutrition Service.

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Food, Nutrition 
and Consumer Services the Committee provides $603,000, an 
increase of $16,000 over the amount provided in fiscal year 
2002 and a decrease of $171,000 below the budget request.
    WIC Reserve Fund.--The Committee recommendation for the 
Special Supplemental Nutrition Program for Women, Infants, and 
Children (WIC) includes $150,000,000 for a contingency fund, as 
proposed in the budget request. As described in documents 
provided to the Committee, the funds are to be placed in 
reserve to meet participation needs if those needs exceed the 
projected level in the budget request. However, no further 
details were provided to the Committee as to how and when these 
funds would be utilized. The Committee directs the Under 
Secretary to provide additional information by January 31, 
2003, describing the decision making process that USDA will use 
to release these contingency funds. This report to the 
Committee should include a detailed discussion of data that 
will be considered, the factors that will trigger spending, and 
the potential impact on WIC administrative functions. The 
Committee is concerned about the difficulty of making such 
decisions in a non-mandatory program.
    Wireless Pilot Program.--The Committee directs the 
Department to continue its efforts in conducting a pilot 
program with the state of New York to provide wireless 
equipment and services capable of supporting Food Stamp 
electronic benefit transfer transactions in farmers markets' 
authorized by the Department and operating in the state of New 
York.
    Youth Nutrition.--The Committee notes that the state of 
children's health is of national concern. The Food and 
Nutrition Service is urged to explore the feasibility of 
creating a Youth Nutrition Education Media Campaign. The 
campaign would use the principles of the Food Guide Pyramid and 
the Dietary Guidelines, and use in-school educational networks 
and school lunch menus to improve children's eating habits and 
physical activity. The Committee requests that FNS report to 
the Committee on the feasibility and costs of such a campaign 
by February 28, 2003.

                       Food and Nutrition Service

    The Food and Nutrition Service (FNS) represents an 
organizational effort to eliminate hunger and malnutrition in 
this country. Nutrition assistance programs are intended to 
provide access to a nutritionally adequate diet for families 
and persons with low-incomes, and encourage better eating 
patterns among the Nation's children. These programs include:
    Child Nutrition Programs.--Federal assistance is provided 
to the 50 States, the District of Columbia, Puerto Rico, Virgin 
Islands, and Guam for use in serving nutritious lunches, 
snacks, and breakfasts to children attending schools of high 
school grades or under, to children of preschool age in child 
care centers and homes, and to children in other institutions 
in order to improve the health and well-being of the Nation's 
children, and broaden the markets for agricultural food 
commodities. Through the Special Milk Program, assistance is 
provided to the States for making reimbursement payments to 
eligible schools and child care institutions which institute or 
expand milk service in order to increase the consumption of 
fluid milk by children.
    Food Stamp Program.--This program is aimed at making more 
effective use of the Nation's food supply and at improving 
nutritional standards of needy persons and families, in most 
cases, through the issuance of electronic cards which may be 
used in retail stores for the purchase of food. The program 
also includes Nutrition Assistance for Puerto Rico. The Omnibus 
Budget Reconciliation Act of 1981 (Public Law 97-35) authorized 
a block grant for Nutrition Assistance for Puerto Rico which 
gives the Commonwealth broad flexibility in establishing a 
nutrition assistance program that is specifically tailored to 
the needs of its low-income households.
    The program includes the Food Distribution Program on 
Indian Reservations which provides nutritious agricultural 
commodities to low-income persons living on or near Indian 
reservations who choose not to participate in the Food Stamp 
Program. The program also includes $140,000,000 for commodity 
purchases under The Emergency Food Assistance Program.
    Special Supplemental Nutrition Program for Women, Infants, 
and Children (WIC).--This program helps to safeguard the health 
of pregnant, postpartum, and breastfeeding women, and infants, 
and children up to age five who are at nutritional risk by 
providing food packages designed to supplement each 
participant's diet with foods that are typically lacking. 
Delivery of supplemental foods may be done through health 
clinics, vouchers redeemable at retail food stores, or other 
approved methods which a cooperating State health agency may 
select.
    The Farmers' Market Nutrition Program provides WIC or WIC-
eligible participants with coupons to purchase fresh, 
nutritious, unprepared food, such as fruits and vegetables, 
from farmers' markets. The program is designed to accomplish 
two major goals: (1) improve the diets of WIC or WIC-eligible 
participants and (2) increase the awareness and use of farmers' 
markets by low-income households.
    The Commodity Assistance Program (CAP).--This program 
combines funding for the Commodity Supplemental Food Program 
(CSFP) and storage and distribution expenses for The Emergency 
Food Assistance Program (TEFAP).
    CSFP provides supplemental foods to infants and children up 
to age six, and to pregnant, postpartum, and breastfeeding 
women with low-incomes who reside in approved project areas. In 
addition, this program operates commodity distribution projects 
directed at low-income elderly persons.
    TEFAP provides grant funds to State agencies to assist in 
the cost of storage and distribution of donated commodities for 
needy individuals.
    Food Donations Programs.--Nutritious agricultural 
commodities are provided to residents of the Federated States 
of Micronesia and the Marshall Islands. Cash assistance is 
provided to distributing agencies to assist them in meeting 
administrative expenses incurred. Funding is provided for use 
in non-Presidentially declared disasters and for FNS 
administrative costs in connection with readiness activities 
and disaster relief for all disasters. Commodities or cash-in-
lieu of commodities are provided to assist the Nutrition 
Services Incentive Program (NSIP), formally the nutrition 
program for the elderly. The 2003 budget request proposes to 
move the commodities or cash in lieu of commodities to the 
Department of Health and Human Services, Administration on 
Aging.
    Food Program Administration.--This account represents most 
salaries and Federal operating expenses of the Food and 
Nutrition Service and the Center for Nutrition Policy and 
Promotion (CNPP). The Center oversees improvements in and 
revisions to the nutrition guidance systems. CNPP is the focal 
point for advancing and coordinating nutrition promotion and 
education policy to improve the health of all Americans.
    Funds for Strengthening Markets, Income, and Supply 
(Section 32).--This program includes the donation of 
commodities purchased under the surplus removal activities of 
the Agricultural Marketing Service. Special programs provide 
food to needy children and adults who are suffering from 
general and continued hunger.

                        CHILD NUTRITION PROGRAMS


                                                               Direct         Transfer from      Total program
                                                           appropriation        section 32           level

2002 appropriation.....................................     $4,914,788,000     $5,172,458,000    $10,087,246,000
2003 budget estimate...................................      5,382,179,000      5,193,990,000  10,576,169,000 \1
                                                                                                               \
Provided in the bill...................................      5,830,506,000      4,745,663,000     10,576,169,000
Comparison:
    2002 appropriation.................................       +915,718,000       -426,795,000       +488,923,000
    2003 budget estimate...............................       +448,327,000       -448,327,000  .................


\1\ Excludes $553,000 for Pension and Health Benefits.

    Working through State agencies, the Food and Nutrition 
Service (FNS) provides Federal assistance in cash and 
commodities for use in preparing and serving nutritious meals 
to children while they are attending school, residing in 
service institutions, or participating in other organized 
activities away from home. The purpose of this program is to 
help maintain the health and proper physical development of 
America's children. The child nutrition account includes the 
School Lunch Program; the School Breakfast Program; the Summer 
Food Service Program; and Child and Adult Care Food Programs. 
In addition, the Special Milk Program provides funding for milk 
service in some kindergartens, as well as in schools, nonprofit 
child care centers, and camps which have no other Federally 
assisted food programs. Milk is provided to children either 
free or at a low cost depending on their family income level. 
FNS provides cash subsidies to State administered programs and 
directly administers the program in the States which have 
chosen not to do so. Funds for this program are provided by 
direct appropriation and transfer from section 32. Grants are 
also made for nutritional education and for State 
administrative expenses. Under current legislation, most of 
these payments are made on the basis of reimbursement rates 
established by law and applied to lunches, snacks, and 
breakfasts actually served by the States.
    Special Milk Program.--Through the Special Milk Program, 
funds are provided to State agencies to reimburse eligible 
participants for all or part of the cost of fluid milk 
consumed. Under Public Law 97-35, participation in the Special 
Milk Program is restricted to schools and institutions that do 
not participate in another meal service program authorized by 
the Child Nutrition or School Lunch Acts. Effective October 1, 
1986, based on authority in Public Law 99-661, children in 
split session kindergarten programs in non-profit schools who 
do not have access to the meal service programs operating in 
those schools may participate in the program.

                          COMMITTEE PROVISIONS

    For the Child Nutrition Programs, the Committee provides a 
total of $10,576,169,000, an increase of $488,923,000 above the 
amount available for fiscal year 2002 and the same amount as 
included in the budget request. Of the total amount provided, 
$5,830,506,000 is by direct appropriation and $4,745,663,000 is 
by transfer from Section 32.

Child Nutrition Programs:
    School lunch program................................  $6,074,648,000
    School breakfast program............................   1,660,870,000
    Child and adult care food program...................   1,904,494,000
    Summer food service program.........................     334,686,000
    Special milk program................................      16,449,000
    State administrative expenses.......................     133,583,000
    Commodity procurement...............................     425,961,000
    School meals initiative.............................      10,025,000
    Food safety education...............................       1,000,000
    Coordinated review effort...........................       5,080,000
    Computer support....................................       9,373,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total........................................... $10,576,169,000

SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN, INFANTS, AND CHILDREN 
                                 (WIC)

2002 appropriation....................................\1\ $4,348,000,000
2003 budget estimate....................................   4,751,000,000
Provided in the bill....................................   4,776,000,000
Comparison:
    2002 appropriation..................................    +428,000,000
    2003 budget estimate................................     +25,000,000

\1\ Does not include FY 2002 supplemental of $39,000,000 for Homeland 
Security, P.L. 107-117.

    The Special Supplemental Nutrition Program for Women, 
Infants, and Children (WIC) safeguards the health of pregnant, 
breastfeeding, and postpartum women and infants, and children 
up to age five who are at nutritional risk because of 
inadequate nutrition and income.
    The William F. Goodling Child Nutrition Reauthorization Act 
of 1998, Public Law 105-336, reauthorized the program through 
2003 and added several provisions to the program. The act 
requires that an individual seeking certification or 
recertification in the program must provide documentation of 
family income.
    Infant Formula Rebate Contracts.--The Act permits State 
agencies to award infant formula rebate contracts to the bidder 
offering the lowest net wholesale price, unless the State 
agency demonstrates to the satisfaction of the Secretary that 
the weighted average retail price for different brands of 
formula in that State does not vary by more than 5 percent.
    The Farmers' Market Nutrition Program (FMNP) is designed to 
accomplish two major goals: (1) to improve the diets of WIC 
participants by providing them with coupons to purchase fresh, 
nutritious, unprepared food, such as fruits and vegetables, 
from farmers' markets; and (2) to increase the awareness and 
use of farmers' markets by low-income households.

                          COMMITTEE PROVISIONS

    For the Special Supplemental Nutrition Program for Women, 
Infants, and Children (WIC) the Committee provides an 
appropriation of $4,776,000,000, an increase of $428,000,000 
above the amount available in fiscal year 2002 and $25,000,000 
over the budget request.
    The Committee recommendation includes funding a 
$150,000,000 reserve, as proposed in the budget request, to 
support caseload if participation or food costs exceed budget 
estimates. The Committee requests additional information 
regarding this reserve under the account of the Under Secretary 
for Food, Nutrition, and Consumer Services.
    Electronic Benefit Transfer.--The Committee recommendation 
includes language to allow funds to be used for WIC electronic 
benefit transfer (EBT) systems and sets the authorized level of 
infrastructure funding at $14,000,000, which includes funding 
to develop EBT systems.
    Farmers' Market Nutrition Program.--The Committee 
recommendation includes $25,000,000 for the Farmers' Market 
Nutrition Program; the budget request included no funding for 
this purpose. The Committee strongly urges the Secretary to 
make these funds available as soon as possible after enactment, 
as farmers' markets are seasonal and the Committee wants WIC 
participants and farmers to fully benefit. The Committee notes 
that, in addition to the recommended amount, funds made 
available in fiscal year 2002 by P.L. 107-171, Section 4307, 
and not spent in that year, are available for this program.
    Infant Formula.--The Committee notes that Federal 
regulations set a maximum monthly amount for infant formula to 
be issued to WIC participants for ready-to-feed formula, liquid 
concentrate and powder. For powder, the maximum is 8 pounds, or 
128 dry ounces. However, because of the available can sizes, a 
WIC client cannot reach that maximum. The Committee is 
concerned that infants in the WIC program receive proper 
nutrition, and directs the Department to provide a report to 
the Committee within 60 days of enactment that includes the 
Department's recommendation concerning providing flexibility to 
state WIC agencies, by allowing rounding up to the next whole 
can, or by other means, so that clients can receive the full 
authorized amount of formula.
    WIC Food Prescription Package.--The Committee notes that 
the WIC food prescription package has changed little since 
1974. The Committee is concerned that the food package reflect 
current nutrition research, be consistent with the Dietary 
Guidelines, include fruits and vegetables, and allow for food 
substitutions to accommodate cultural eating patterns or 
allergies. At the FNS appropriations hearing, the Department 
stated that the proposed rule to revise the WIC food package 
was in Department clearance and publication was expected in 
early fall 2002. The Committee expects this deadline to be met, 
and requests quarterly updates on the status of the rule until 
a final rule is published.
    WIC Vendor Practices.--The Committee supports efforts to 
reduce fraud in the WIC program, and its funding recommendation 
includes $2,000,000 for the evaluation of WIC vendor practices.
    Blended fruit juices.--The Secretary is directed to clarify 
to all WIC state and regional directors that blended 100 
percent fruit juices are eligible WIC food products; further, 
the Secretary should emphasize that blended 100 percent fruit 
juices should be objectively evaluated by the states, on an 
equal basis to other eligible products, for inclusion in the 
approved WIC food lists.

                           FOOD STAMP PROGRAM

2002 appropriation...................................... $22,991,986,000
2003 budget estimate..................................\1\ 26,249,692,000
Provided in the bill....................................  26,313,692,000
Comparison:
    2002 appropriation..................................  +3,321,706,000
    2003 budget estimate................................     +64,000,000

\1\ Excludes $281,000 for pension and health benefits.


    The Food Stamp Program, authorized by the Food Stamp Act of 
1964, attempts to alleviate hunger and malnutrition among low-
income persons by increasing their food purchasing power. 
Eligible households receive electronic cards or food stamps 
with which they can purchase food through regular retail 
stores. They are thus enabled to obtain a more nutritious diet 
than would be possible without food stamp assistance.
    Participating households receive free food stamps in 
amounts determined by household size and income. Since March 
1975, food stamp projects have been established throughout the 
country. State social service agencies assume responsibility 
for certifying eligible households and issuing the stamps 
through suitable outlets. The Food and Nutrition Service 
establishes a range of household food stamp allotments which 
are updated annually.
    Electronic Benefit Transfer (EBT) is the predominant method 
of providing program participants with the benefits to make 
food purchases. Under this system, each recipient household is 
issued an electronic benefit card. At the authorized retail 
store, the recipient presents his/her card and enters a unique 
personal identification number into a terminal that debits the 
household's account for the amount of purchases. Federal funds 
are shifted from the Federal Reserve to the EBT processor's 
financial institution so that it may reimburse the grocer's 
account for the amount of purchases. The grocer's account at a 
designated bank is credited for the amount of purchases.
    Over 82 percent of all households receive their benefits 
electronically. As of September 30, 2001, 40 EBT projects were 
operating statewide in: Alabama, Alaska, Arizona, Arkansas, 
Colorado, Connecticut, District of Columbia, Florida, Georgia, 
Hawaii, Idaho, Illinois, Kansas, Kentucky, Louisiana, Maryland, 
Massachusetts, Michigan, Minnesota, Missouri, New Hampshire, 
New Jersey, New Mexico, New York, North Carolina, North Dakota, 
Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South 
Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, 
Washington, Wisconsin and Wyoming. EBT is also operating in 
parts of California, Indiana, and Iowa. All other States are in 
some stage of planning EBT implementation. Puerto Rico has 
implemented an EBT system that operates island-wide.
    The program also includes the Food Distribution Program on 
Indian Reservations which provides nutritious agricultural 
commodities to low-income persons living on or near Indian 
reservations who choose not to participate in the Food Stamp 
Program.

                          ADMINISTRATIVE COSTS

    All direct and indirect administrative costs incurred for 
certification of households, issuance of food coupons, quality 
control, outreach, and fair hearing efforts are shared by the 
Federal Government and the States on a 50-50 basis.
    State agencies are paid up to 100 percent of the costs of 
administering the program on Indian reservations. The Food 
Stamp Program is in operation in all 50 States, the Virgin 
Islands, Guam, and the District of Columbia.
    The Farm Security and Rural Investment Act of 2002, P.L. 
107-171, substantially revised the performance requirements for 
States under the Quality Control (QC) System. States with poor 
performance over two years will face sanctions. States that 
demonstrate a high degree of accuracy or substantial 
improvement in their degree of accuracy under the QC system 
will be eligible for a bonus. The QC performance measurement 
commences in fiscal year 2003. However, bonus payments or 
sanctions based on fiscal year 2003 performance will not be 
implemented until fiscal year 2004.
    Consolidated Block Grants for Puerto Rico and American 
Samoa.--The Farm Security And Rural Investment Act of 2002, 
Public Law 107-171, authorized a block grant for nutrition 
assistance to Puerto Rico and American Samoa.

                          COMMITTEE PROVISIONS

    For the Food Stamp Program, the Committee provides 
$26,313,692,000, an increase of $3,321,706,000 above the amount 
available in fiscal year 2002 and $64,000,000 above the budget 
request. The total amount includes $2,000,000,000 for a 
contingency reserve in fiscal year 2003; $1,401,000,000 for 
nutrition assistance for Puerto Rico and American Samoa; and 
$140,000,000 for The Emergency Food Assistance Program (TEFAP).
    The Committee recommendation is above the budget request 
due to an additional $64,000,000 in mandatory spending for 
TEFAP and block grants for Puerto Rico and American Samoa as 
directed in P.L. 107-171, Sections 4126 and 4124.
    Food Stamp Quality Assurance.--The Secretary has broad 
authority to adjust quality control claims against States. The 
interest of this Committee is to see that this authority is 
used in a manner that is fair, while protecting the integrity 
of the Food Stamp Program. The Committee is aware that the 
Secretary of Agriculture has exercised this authority to adjust 
fiscal year 2001 quality control claims, taking into account 
disproportionate numbers of earners and immigrants when making 
adjustments to the State liabilities. The Committee appreciates 
the Secretary using her authority in this manner and encourages 
her to make appropriate use of this authority in the future.

                      COMMODITY ASSISTANCE PROGRAM

2002 appropriation......................................\1\ $149,513,000
2003 budget estimate....................................     144,991,000
Provided in the bill....................................     170,000,000
Comparison:
    2002 appropriation..................................     +20,487,000
    2003 budget estimate................................     +25,009,000

\1\ Includes rescission of $3,300,000.

    The Commodity Assistance Program provides funding for the 
Commodity Supplemental Food Program (CSFP) and administrative 
expenses for The Emergency Food Assistance Program (TEFAP).
    Commodity Supplemental Food Program.--The CSFP provides 
supplemental food to infants and children up to age six, and to 
pregnant, postpartum, and breast-feeding women who have low-
incomes, and reside in approved project areas. In addition, 
this program operates commodity distribution projects directed 
at low-income elderly persons 60 years of age or older.
    The Farm Security and Rural Investment Act of 2002 (P.L. 
107-171) reauthorized CSFP through fiscal year 2007. This act 
continued the requirement that CCC donate 4 million pounds of 
nonfat dry milk and 9 million pounds of cheese to the program 
annually, subject to availability.
    The Emergency Food Assistance Program.--TEFAP provides 
grant funds to State agencies to assist in the cost of storage 
and distribution of donated commodities for needy individuals.

                          COMMITTEE PROVISIONS

    The Committee provides an appropriation of $170,000,000 for 
the commodity assistance program, an increase of $20,487,000 
above the amount available for fiscal year 2002 and $25,009,000 
above the budget request.
    The recommended funding level for the Commodity 
Supplemental Food Program (CSFP) is $120,000,000. This level 
will fund administrative costs at the level authorized in P.L. 
107-171, allow CSFP to rebuild its depleted food inventory, and 
allow caseload to expand to meet state demands. It is the 
Committee's understanding that no funds will carry over from 
fiscal year 2002 into fiscal year 2003.
    The Committee has included $50,000,000 for administration 
of TEFAP, the same amount available in fiscal year 2002 and the 
same amount as the budget request. These funds may be used for 
administration purposes or for food costs at the discretion of 
the states.
    Seniors Farmers' Market Program.--The Committee notes that 
it funded the Seniors Farmers' Market Nutrition Program from 
this account in fiscal year 2002. However, Public Law 107-171, 
Section 4402, directs mandatory funding for this program from 
funds available to the Commodity Credit Corporation. The 
funding level is $15,000,000 for fiscal year 2003.
    Food Distribution and Preservation.--The Committee believes 
that there is an abundant and affordable supply of surplus 
foods, but the lack of distribution and transportation capacity 
can limit the program's effectiveness. The Committee urges the 
Department to support programs that can expand food 
distribution, particularly for perishable produce that may 
require special equipment. The Department is encouraged to work 
with and support community service organizations for this 
purpose.

                        FOOD DONATIONS PROGRAMS

2002 appropriation......................................    $150,749,000
2003 budget estimate....................................       1,081,000
Provided in the bill....................................       1,081,000
Comparison:
    2002 appropriation..................................    -149,668,000
    2003 budget estimate................................    ............

    Nutrition Services Incentive Program.--The Nutrition 
Program for the Elderly (NPE) provides cash and commodities to 
States for distribution to local organizations that prepare 
meals served to elderly persons in congregate settings or 
delivered to their homes. The program promotes good health 
through nutrition assistance by reducing the isolation 
experienced by the elderly. This program is a supplement to the 
Department of Health and Human Services' (DHHS) funding for 
programs for the elderly with cash commodities on a per meal 
basis for each meal served to an elderly person. The FY 2003 
Budget proposed to move this program to the Department of 
Health and Human Services, Administration on Aging.
    Pacific Island and Disaster Assistance.--This program 
provides for a directly funded food distribution program for 
low-income individuals in the nuclear-affected islands. This 
program attempts to alleviate hunger and malnutrition in low-
income households by providing nutritious agricultural 
commodities to eligible persons. It also provides funding for 
use in non-presidentially declared disasters and for FNS' 
administrative costs in connection with disaster relief.

                          COMMITTEE PROVISIONS

    For the Food Donations Programs the Committee provides an 
appropriation of $1,081,000 for Pacific Island Assistance, a 
decrease of $149,668,000 below the amount available for fiscal 
year 2002, and the same amount as the budget request.
    The Committee recommendation accepts the budget proposal to 
transfer the Nutrition Services Incentive Program to the 
Department of Health and Human Services, Administration on 
Aging. This will consolidate existing elderly feeding programs, 
allowing for more efficient management. The Committee expects 
that the Administration on Aging would continue to purchase 
agricultural commodities for elderly feeding programs through 
the Department of Agriculture at or above the current funding 
level, benefiting both the feeding programs and producers.
    Nutrition Program for the Elderly.--The Committee also 
specifically notes that in the past, nearly $150,000,000 per 
year has been provided in this bill for the Nutrition Program 
for the Elderly. As the move to the Department of Health and 
Human Services, Administration on Aging, is carried out, the 
Committee expects that these funds be used solely for meals and 
that none of it be transferred to fund any other services, nor 
should state matching requirements be applied to the program. 
Finally, the Committee expects that the ability of states to 
request commodities in lieu of cash be retained, even once 
funding is transferred to the Administration on Aging.

                      food program administration

2002 appropriation \1\..................................    $127,546,000
2003 budget estimate \2\................................     147,944,000
Provided in the bill \3\................................     134,397,000
Comparison:
    2002 appropriation..................................      +6,851,000
    2003 budget estimate................................     -13,547,000

\1\ Excludes $2,496,000 transferred to the Congressional Hunger Center 
Foundation provided by P.L. 107-76.
\2\ Excludes $7,911,000 in pension and health benefits.
\3\ Excludes $11,047,000 for GSA Rent which is funded in a central 
account under Agriculture Buildings and Facilities.

    The Food Program Administration appropriation provides for 
most of the Federal operating expenses of the Food and 
Nutrition Service, which includes the Child Nutrition Programs; 
Special Supplemental Nutrition Program for Women, Infants, and 
Children (WIC); the Commodity Assistance Program, including the 
Commodity Supplemental Food Program, administrative expenses of 
The Emergency Food Assistance Program and the Seniors Farmers' 
Market Nutrition Program; Pacific Island Assistance and 
Disaster Feeding; the Food Stamp Program and the Center for 
Nutrition Policy and Promotion.
    The major objective of food program administration is to 
efficiently and effectively carry out the nutrition assistance 
programs mandated by law. This is to be accomplished by the 
following: (1) giving clear and consistent guidance and 
supervision to State agencies and other cooperators; (2) 
assisting the States and other cooperators by providing 
program, managerial, financial, and other advice and expertise; 
(3) measuring, reviewing, and analyzing progress toward program 
objectives; and (4) carrying out regular staff support 
functions.

                          COMMITTEE PROVISIONS

    For Food Program Administration, the Committee has provided 
$134,397,000, an increase of $6,851,000 above the amount 
available for fiscal year 2002, and a decrease of $13,547,000 
below the budget request.
    The recommended level includes an increase of $2,000,000 
for program integrity activities for Food Stamp and Child 
Nutrition Programs. This funding level represents a 30 percent 
increase over the fiscal year 2002 amounts available for these 
activities.
    Dietary Guidelines.--The Committee urges the Center for 
Nutrition Policy and Promotion to conduct research on 
modifications to the Year 2000 Dietary Guidelines for 
Americans, and directs that the Center conduct a comprehensive 
reassessment of the Food Guide Pyramid and related educational 
materials. The Center is directed to submit a report 
summarizing its progress on the reassessment and the 
modifications to the Guidelines to the Committee by March 31, 
2003.

            TITLE V--FOREIGN ASSISTANCE AND RELATED PROGRAMS

                      Foreign Agricultural Service


                                                                                 Transfer from
                                                                 Appropriation   loan accounts     Total, FAS

2002 appropriation............................................    $121,813,000    ($4,257,000)    ($126,070,000)
2003 budget estimate \1\......................................     131,570,000     (4,257,000)     (135,827,000)
Provided in the bill \2\......................................     129,964,000     (4,257,000)     (134,221,000)
Comparison:
    2002 appropriation........................................      +8,151,000  ..............        +8,151,000
    2003 budget estimate......................................      -1,606,000  ..............        -1,606,000

\1\ Excludes $3,902,000 for pension and health benefits.
\2\ Excludes $454,000 for GSA Rent which is funded in a central account under Agriculture Buildings and
  Facilities.

    The Foreign Agricultural Service (FAS) was established 
March 10, 1953, by Secretary's Memorandum No. 1320, Supplement 
1. Public Law 83-690, approved August 28, 1954, transferred the 
agricultural attaches from the Department of State to the 
Foreign Agricultural Service.
    The primary function of this organization is to help 
American agriculture in maintaining and expanding foreign 
markets for agriculture products vital to the economic well-
being of the nation. It maintains a worldwide agricultural 
intelligence and reporting service to assist the U.S. 
agricultural industry in its export operations through a 
continuous program of analyzing and reporting foreign 
agricultural production, markets, and policies. It attempts to 
develop foreign markets for U.S. farm products through 
administration of special export programs and through helping 
to secure international trade conditions that are favorable 
toward American products. FAS is also responsible for 
coordinating, planning, and directing the Department's programs 
in international development and technical cooperation in food 
and agriculture formerly carried out by the Office of 
International Cooperation and Development.

                          COMMITTEE PROVISIONS

    For the Foreign Agricultural Service, the Committee 
provides an appropriation of $129,964,000 and transfers of 
$4,257,000, for a total salaries and expenses level of 
$134,221,000, an increase of $8,151,000 above the amount 
available for fiscal year 2002 and a decrease of $1,606,000 
below the budget request.
    Azores.--The Committee urges the Department to devote 
necessary resources to establish the Azores Collaborative 
Research and Education Group to assist the U.S. Government in 
meeting its treaty obligations to the government of Portugal.
    Currency fluctuations.--The Committee provides bill 
language permitting the Department to maintain up to $2,000,000 
solely for the purpose of offsetting international currency 
fluctuations.
    U.S. commodities.--The Committee continues to believe that 
commodity assistance, including monetization, is a vital tool 
to help alleviate the needs of recipients, and a prudent way to 
help move commodities that are in surplus and urgently needed. 
In any review of international commodity assistance, including 
section 416, the Committee expects that its prior directives on 
the matter be given full consideration. Further, while any 
change in Executive Administration will routinely delay 
decisions ordinarily made in the normal course of business, the 
Committee remains concerned that decisions with respect to 
commodity assistance are being made too late in the year to be 
of maximum value. The Committee directs the Department to 
develop a system for making these decisions no later than 
February 15 of each year, and to report to the Committee on the 
steps taken to implement this system.
    Surplus Commodities.--The Committee understands that the 
CCC is currently holding a stockpile of non-fat dry milk 
exceeding 1 million pounds. The Committee believes it will 
benefit U.S. dairy farmers and taxpayers if this product is 
used to meet the nutrition demands of hungry people throughout 
the world. As such, the Committee encourages the Department to 
use this surplus to make humanitarian donations utilizing 
organizations such as Dairy Relief, Incorporated, a dairy 
industry funded non-profit organization, and other eligible 
humanitarian organizations.
    The Committee encourages the Department to cooperate with 
the South Carolina Export Consortium efforts to expand export 
markets.
    The Committee strongly encourages the Department to 
implement a data storage infrastructure to provide for the 
remote mirroring of geo-spatial information and applications 
for the Production Estimates & Crop Assessment Division to 
achieve a Continuance of Operations capability.
    The Committee expects the Department to adhere to the 
statutory requirement that 1.875 million metric tons of food 
aid under the program is to be used for nonemergency purposes. 
The Committee also expects that its previous statements in the 
fiscal 2002 supplemental appropriations report regarding the 
importance of continuing the section 416(b) assistance program 
along with maintaining contact between USDA and Private 
Voluntary Organizations will continue to be followed. Finally, 
the committee expects the Department to maintain maximum 
flexibility with respect to the monetization of commodities and 
the use of monetized proceeds. The Department's report to the 
committee regarding the accomplishments of monetization sets a 
standard that should be continued.
    The McGovern-Dole International Food for Education and 
Child Nutrition Program was established with the expectation 
that after a reasonable period of time, the local Private 
Voluntary Organizations or governments which sponsor the 
program would reach a point at which they would be able to 
continue the effort beyond the period of contribution of 
resources by the United States. The Committee urges the 
Department to undertake appropriate planning for such 
transitions, including efforts to open these new markets to 
additional commercial sales of American commodities. The 
Department is directed to provide a report regarding these 
efforts and what resources might be needed in advance of the 
fiscal 2004 appropriation hearings.

                             Public Law 480


                       PROGRAM AND GRANT ACCOUNTS

    The Federal Credit Reform Act of 1990 established the 
Program Account. Appropriations to this account are used to 
cover the lifetime subsidy cost associated with direct loans 
obligated in 2002 and beyond, as well as for administrative 
expenses.
    Financing sales of agricultural commodities to developing 
countries and private entities for dollars on credit terms, or 
for local currencies (including for local currencies on credit 
terms) for use under section 104; and for furnishing 
commodities to carry out the Food for Progress Act of 1985, as 
amended (title I).--Title I of the legislation authorizes 
financing of sales to developing countries for local currencies 
and for dollars on credit terms. Sales for dollars or local 
currency may be made to foreign governments. The legislation 
provides for repayment terms either in local currencies or U.S. 
dollars on credit terms of up to 30 years, with a grace period 
of up to 5 years.
    Local currencies under title I sales agreements may be used 
in carrying out activities under section 104 of the 
Agricultural Trade Development and Assistance Act of 1954, as 
amended. Activities in the recipient country for which these 
local currencies may be used include developing new markets for 
U.S. agricultural commodities, paying U.S. obligations, and 
supporting agricultural development and research.
    Title I appropriated funds may also be used under the Food 
for Progress Act of 1985, as amended, to furnish commodities on 
credit terms or on a grant basis to assist developing countries 
and countries that are emerging democracies that have a 
commitment to introduce and expand free enterprise elements in 
their agricultural economies.
    Ocean freight differential costs in connection with 
commodities sales financed for local currencies or U.S. dollars 
(title I).--The Commodity Credit Corporation pays ocean freight 
differential costs on shipments under this title. These costs 
are the difference between foreign flag and U.S. flag shipping 
costs.
    Commodities supplied in connection with dispositions abroad 
(title II) (7 U.S.C. 1721-1726).--Commodities are supplied 
without cost through foreign governments to combat malnutrition 
and to meet famine and other emergency requirements. 
Commodities are also supplied for nonemergencies through public 
and private agencies, including intergovernmental 
organizations. The Commodity Credit Corporation pays ocean 
freight on shipments under this title, and may also pay 
overland transportation costs to a land-locked country, as well 
as internal distribution costs in emergency situations. The 
funds appropriated for title II are made available to private 
voluntary organizations and cooperatives to assist these 
organizations in meeting administrative and related costs.
    Commodities supplied in connection with dispositions abroad 
(title III).--Commodities are supplied without cost to least 
developed countries through foreign governments for direct 
feeding, development of emergency food reserves, or may be sold 
with the proceeds of such sale used by the recipient country 
for specific economic development purposes. The Commodity 
Credit Corporation may pay ocean freight on shipments under 
this title, and may also pay overland transportation costs to a 
landlocked country, as well as internal distribution costs.

                          COMMITTEE PROVISIONS

    The following table reflects the loan levels, subsidy 
levels, and administrative costs for all Public Law 480 
programs:

----------------------------------------------------------------------------------------------------------------
                                                                                                    Committee
                                                             FY 2002 enacted  FY 2003 estimate     provisions
----------------------------------------------------------------------------------------------------------------
Public Law 480 Program Account:
    Title I--Credit sales:
        Direct loans......................................    ($154,664,000)    ($131,676,000)    ($169,085,000)
        Loan subsidies....................................       126,409,000        98,904,000       127,000,000
        Ocean freight differential........................        20,277,000        28,000,000        28,000,000
    Title II--Commodities for disposition abroad:
        Program level.....................................     (850,000,000)   (1,185,000,000)   (1,200,000,000)
        Appropriation.....................................       850,000,000     1,185,000,000     1,200,000,000
    Salaries and expenses:
        FAS...............................................         1,033,000         1,033,000         1,033,000
        FSA...............................................           972,000         1,026,000         1,026,000
                                                           -----------------------------------------------------
          Subtotal........................................         2,005,000         2,059,000         2,059,000

          Total, Public Law 480:
              Program level...............................     (850,000,000)     (185,000,000)   (1,200,000,000)
              Appropriation...............................       998,691,000     1,313,963,000     1,357,059,000
----------------------------------------------------------------------------------------------------------------

    Rural electrification.--The Committee recognizes the 
importance of rural electrification as part of U.S. foreign 
assistance efforts. A direct linkage can be made between rural 
electrification and improved agriculture production, lower 
birth rates, microenterprise development, and better medical 
care. The committee is pleased with the track record and 
success of rural electrification programs based on the electric 
cooperative model and encourages the Department to consider 
proposals submitted by the National Rural Electric Cooperative 
Association and other organizations through the Food for 
Progress and related programs to advance rural electrification 
projects in developing nations.
    Funds interchange.--The Committee has included bill 
language providing that funds made available for the cost of 
title I agreements and for title I ocean freight differential 
may be used interchangeably.
    Reporting requirement.--The Committee has included language 
that would make the availability of $350,000,000 of the 
appropriation for Public Law 480, Title II, subject to the 
receipt of a plan from the Secretary for the use of these 
funds.
    While the Committee supports international food 
assistance--and in fact provided a level of funding slightly 
above that requested by the Administration--it does not believe 
that it has received a full and complete justification for the 
budget request.
    First, the budget information submitted by the 
Administration provides virtually no specific justification for 
the amount of the proposed increase.
    Second, the budget request was prepared when the threat of 
massive famine in southern Africa was less acutely understood. 
The Committee needs to understand the Administration's view of 
the role that the United States will play in alleviating the 
famine and how that role can be accommodated with the funds 
provided here and under other authorities available to the 
Administration.
    Third, the budget request was prepared before enactment of 
the Farm Security and Rural Investment Act of 2002, Public Law 
107-171, on May 13, 2002. That law established a number of new 
requirements relating to international food aid. For example, 
the law increased the minimum level of non-emergency assistance 
under P.L. 480, Title II, to 1,875,000 metric tons and it 
established a minimum level of CCC-funded tonnage for the Food 
for Progress program of 400,000 metric tons.
    The Committee needs to be assured that these and other 
requirements are being implemented, and further, it needs 
information reconciling the Administration's 2003 request with 
these important new provisions.
    The Committee is also disturbed by reports that even before 
the start of fiscal year 2003, the Administration may already 
be considering exercising its waiver authority with respect to 
non-emergency funding under P.L. 480, title II.
    Finally, the Committee is concerned that the proposal in 
the Administration's food aid review to shift programs run by 
private voluntary organizations and the World Food Programme 
from the Department of Agriculture to the U.S. Agency for 
International Development may have the unintended consequence 
of disrupting the proper operation of food aid programs in 
fiscal year 2003 and may raise other policy concerns.
    For these reasons, the Committee has restricted use of the 
funds above the fiscal year 2002 level until it receives 
further information from the Administration about its food aid 
proposals for fiscal year 2003.

                    CCC EXPORT LOANS PROGRAM ACCOUNT

                        ADMINISTRATIVE EXPENSES




2002 appropriation....................................        $4,014,000
2003 budget estimate..................................         4,058,000
Provided in the bill..................................         4,058,000
Comparison:
    2002 appropriation................................           +44,000
    2003 budget estimate..............................  ................



    Under the export credit programs, guarantees are provided 
by CCC for the repayment of commercial credit extended to 
finance U.S. agricultural export sales. The GSM-102 program 
covers export credit with repayment terms of up to three years. 
The GSM-103 program provides intermediate-term credit with 
repayment terms of three to ten years. The Agricultural Trade 
Act of 1978, as amended, requires that not less than $5.5 
billion be made available annually through 2007 for GSM-102 and 
GSM-103.
    The Federal Credit Reform Act of 1990 established the 
Program Account. Appropriations to this account will be used to 
cover the lifetime subsidy costs associated with the loan 
guarantees committed in 2003 and beyond, as well as for 
administrative expenses.
    Funding for the loan subsidy costs of CCC export credit is 
provided through a permanent, indefinite appropriation and not 
by annual appropriation.

                          COMMITTEE PROVISIONS

    For administrative expenses of the Commodity Credit 
Corporation Export Loans Program Account, the Committee 
provides an appropriation of $4,058,000, an increase of $44,000 
above the amount available for fiscal year 2002 and the same 
amount as the budget request.

      TITLE VI--RELATED AGENCIES AND FOOD AND DRUG ADMINISTRATION

                DEPARTMENT OF HEALTH AND HUMAN SERVICES

                      Food and Drug Administration

                         SALARIES AND EXPENSES


                                                                                Prescription
                                                             Appropriation     drug  user fee    Total, FDA, S&E
                                                                                     \3\

2002 appropriation......................................  \1\ $1,183,670,000      $161,716,000    $1,345,386,000
2003 budget estimate....................................   \2\ 1,369,385,000       264,220,000     1,633,605,000
Provided in the bill....................................       1,376,702,000       222,900,000     1,599,602,000
Comparison:
        2002 appropriation..............................        +193,032,000       +61,184,000      +254,216,000
        2003 budget estimate............................          +7,317,000       -41,320,000       -34,003,000

\1\ Does not include the FY2002 supplemental of $151,100,000 for Homeland Security, P.L. 107-117.
\2\ Excludes $54,751,000 in appropriated amount and $7,818,000 in user fee amount for pension and health
  benefits.
\3\ User fee legislation was reauthorized through P.L. 107-188 at a level of $222,900,000 for fiscal year 2003.
  This was an adjusted amount from the budget estimate of $264,220,000.

    The Food and Drug Administration (FDA) is the principal 
public health protection agency of the Federal Government. FDA 
has jurisdiction over a wide variety of products that affect 
every person, every day: foods and cosmetics; human and animal 
drugs; biologics including blood and vaccines; medical devices; 
and radiological products. FDA's mission is to promote and 
protect the public health by helping safe and effective 
products reach the market in a timely way, and to monitor 
products for continued safety after they are in use.
    FDA works extensively with stakeholders--industry, 
consumers, and other interested parties--to: (1) set food and 
product standards; (2) evaluate the safety and efficacy of new 
drugs and medical devices before they are marketed; (3) conduct 
and sponsor research studies to detect health hazards and 
violations of laws or regulations, and improve the agency's 
base of scientific knowledge to allow for better regulatory 
decision-making; (4) inform business firms and consumers about 
FDA-related topics; (5) work with state and local agencies to 
develop programs that will supplement or complement those of 
FDA; (6) maintain surveillance over foods, drugs, medical 
devices and electronic products to ensure that they are safe, 
effective, and honestly labeled; and (7) take legal action when 
necessary to remove violative products from the marketplace and 
to prosecute firms or individuals that violate the law.
    FDA's actions in responding to the terrorist events of 2001 
serve as a reminder of the agency's role in the Federal 
Government's response to health emergencies or threats. In 
health crises, FDA responsibilities include: investigation and 
laboratory support for detection and management of food and 
medical product contamination; regulatory guidance to 
manufacturers and government agencies to assure the 
availability of medical products, including blood; acting as 
the approving body of medical products used to manage patients 
exposure to biological, chemical, or nuclear agents; and 
developing and maintaining a communications network that 
optimize preparedness within FDA and across government 
agencies.

                          COMMITTEE PROVISIONS

    For the Food and Drug Administration, the Committee 
provides a total direct appropriation of $1,376,702,000 for 
salaries and expenses and makes available an additional 
$222,900,000 in fees collected under the Prescription Drug User 
Fee Act, for a total of $1,599,602,000. This is an increase of 
$254,216,000 above the total amount available in fiscal year 
2002 and a decrease of $34,003,000 below the budget request. 
The decrease is due solely to a change in estimated revenues 
from prescription drug user fees, which are fully funded at the 
authorized level.
    The Committee recommendation fully funds the budget 
authority request for the Food and Drug Administration (FDA), 
including $159,048,000 for counter-terrorism activities. 
Increases are recommended, as requested, for the generic drug 
program, activities related to medical errors and adverse 
events, and pay costs.
    The Committee notes that the recommended funding level 
includes $7,317,000 for FDA public and legislative affairs 
activities. The Committee does not support the transfer of 
these functions to the Department of Health and Human Services, 
as proposed in the budget request.
    The recommended funding level includes a total of 
$8,300,000 for costs associated with establishing the Unified 
Financial Management System (UFMS), a Department of Health and 
Human Services (DHHS) initiative, including costs for FDA to 
maintain and improve its legacy systems. The Committee 
recommendation fully funds the request; any additional costs to 
FDA for this purpose, either direct or by transfer, are subject 
to approval by the Committee. The Committee requires DHHS to 
provide a complete briefing to the Committee on the business 
case for UFMS by July 31, 2002, to include the system 
requirements that will be imposed upon participating agencies, 
the costs of meeting those requirements, and outyear cost 
estimates for the system. Further, the Committee requests 
quarterly updates on the progress of the system, its ability to 
meet agency needs, and updated cost estimates for 
implementation.
    Generic Drug Education Activities.--The Committee expects 
the FDA to continue funding generic drug education activities 
at not less than $400,000. The Committee understands that the 
agency is conducting studies and developing continuing 
education programs for physicians and pharmacists. However, the 
Committee strongly believes that consumers should also be 
included in generic drug education efforts by the FDA, and 
expects increased consumer education in fiscal year 2003.
    Generic Drug Program.--The recommended funding level 
includes a $4,582,000 increase for the generic drugs program, 
and also funds pay cost increases within the program, as 
requested. The Committee expects that the entire amount 
recommended for the generic drugs program be applied solely to 
activities of the generic drugs program, and not transferred to 
any other activity within or outside of FDA. The Committee is 
aware that the fiscal year 2003 budget request for the generic 
drug program supports a performance level of reviewing 75 
percent of Abbreviated New Drug Applications (ANDAs) within six 
months after submission of an application. The FDA should 
review 100 percent of ANDAs within the statutory timeframe for 
generic drug review. Therefore, the Committee directs the 
Commissioner to provide a plan to the Committee to eliminate 
this performance gap. The plan should include detailed 
estimates of the resources needed in the generic drug program, 
including field personnel, to meet statutory timeframes for 
drug application review and statutory inspection requirements, 
and infrastructure or technological upgrades required. The plan 
should be submitted to the Committee within 90 days of 
enactment.
    Genetically Engineered Foods.--The Committee notes that the 
Food and Drug Administration proposed a rule on premarket 
notification of food that has been genetically engineered or 
made of ingredients that have been genetically engineered. In 
addition FDA published a draft guidance for companies that wish 
to label their products to indicate whether they have been 
genetically engineered. FDA is encouraged to finalize voluntary 
labeling guidance for companies to indicate whether the foods 
are prepared with or without the use of genetic engineering.
    Import Tracking.--The Committee directs FDA to report to 
the Committee on updates and developments made to the 
Operational and Administrative System for Import Support 
(OASIS) system and import tracking, and any additional system 
or financial requirements to provide current, accurate data and 
to link into other federal import-related databases.
    Intravenous Immune Globulin.--The Committee notes the 
importance of expedited review for intravenous immune globulin 
(IGIV). The Committee encourages the Center for Biologics 
Evaluation and Research to allocate adequate resources to the 
Office of Blood Research and Review to promote the timely 
review of new IGIV products that have been submitted for 
licensure under the FDA's revised IGIV clinical trial protocol.
    Juice HACCP Implementation.--The Committee understands that 
in overseeing the juice industry's implementation of the juice 
Hazard Analysis and Critical Control Point (HACCP) rule, FDA is 
delaying initial HACCP inspections until the draft Juice HACCP 
Hazards and Controls Guide is released and until FDA 
investigators have been trained to conduct juice HACCP 
inspections. The Committee urges the agency to allow sufficient 
time and information sharing from the date of publication of 
the guide to scheduling of regulatory inspections. The 
Committee encourages FDA in its plans to make initial 
inspections educational in nature in order to counsel juice 
manufacturers on the adequacy of their HACCP plans and 
implementation of such plans, reserving regulatory actions for 
situations in which a safety issue is present.
    Listeria Risk Assessment.--The Committee is encouraged by 
the progress FDA and USDA have made in evaluating the risk of 
listeriosis in ready to eat products and in developing a plan 
for the reduction of risk through science-based policy. The 
Committee strongly urges the FDA and USDA to complete the 
listeria risk assessment and begin work on revising the 
listeria action plan. The Committee directs the FDA and USDA to 
rely solely on scientific data in their policy development 
process.
    Medical Device Program.--The Committee recommendation fully 
funds the medical device program, as requested. In addition, 
the Committee notes that the prevalence of combination products 
should be taken into account in determinations about program 
resources. The Committee encourages the agency to fully 
integrate its programs and allocate resources so that 
combination products, in particular devices that require 
consultation by the Center for Biologics Evaluation and 
Research, are reviewed in a timely manner. The Committee 
requests a report regarding the prevalence of combination 
products and the review times of those products as opposed to 
standard products by May 31, 2003.
    Medical Device Review.--The Committee is deeply concerned 
about the impact that delays in medical device application 
review have on Americans' health. In last year's Committee 
Report, the Committee directed that FDA provide updates of its 
medical device review performance, as compared to statutory 
requirements for application decisions, to the Committee in 
January and July 2002. The Committee has yet to receive the 
January update, and was not able to obtain an informative 
answer to a related question submitted to the agency at its 
fiscal year 2003 appropriations hearing. The Committee directs 
the Commissioner to provide a plan to the Committee to 
eliminate the medical device performance gap. The plan should 
include detailed estimates of the resources needed in the 
device program, including field personnel, to meet statutory 
timeframes for application review and statutory inspection 
requirements, and infrastructure or technological upgrades 
required. The plan should be submitted to the Committee within 
90 days of enactment. The Committee notes that this information 
is critical to funding decisions on increases or decreases to 
budget items.
    National Antimicrobial Resistance Monitoring System 
(NARMS).--The Committee remains interested in the function and 
administration of NARMS, and notes that it has not yet received 
the report it requested regarding NARMS, due May 1, 2002. The 
Committee directs FDA to provide the report, as detailed in the 
fiscal year 2002 conference report within 60 days of enactment.
    Test Method Evaluation.--The Committee directs that the 
agency continue the fiscal year 2002 level of funding for FDA 
to continue its contract with New Mexico State University's 
Physical Science Laboratory to conduct method evaluation of 
rapid testing methods of fresh fruits and vegetables for 
microbial contamination.
    Office of Women's Health.--The Committee strongly supports 
FDA's efforts to improve gender-based research, in part by 
encouraging women's participation in clinical trials and 
tracking demographic data about such participation. The 
Committee directs that FDA continue, at a minimum, the fiscal 
year 2002 level of funding for the Office of Women's Health and 
report to the Committee the agency's progress in developing an 
agency-wide data set focused on women's health activities 
before the fiscal year 2004 appropriations hearing.
    Vaccine Review.--The Committee is aware that clinical 
testing of vaccines, including candidate HIV vaccines, requires 
careful review and oversight by the Center for Biologics 
Evaluation and Review (CBER), and notes that there is 
particular urgency for expediting clinical trials for HIV 
vaccines, as well as vaccines for other serious illnesses, 
without compromising safety. The Committee urges the agency to 
develop a feasibility plan for a Fast Track program to 
facilitate the awarding of Investigational New Drug status to 
new vaccine candidates. The Committee directs FDA to report on 
progress toward implementing this program by March 1, 2003.
    Shellfish Safety.--The Committee expects that FDA will 
continue its work with the Interstate Shellfish Sanitation 
Commission (ISSC) to promote educational and research 
activities related to shellfish safety in general, and Vibrio 
vulnificus in particular. The Committee directs the use of 
$250,000 for this effort from within sums provided for food 
safety. In addition, the Committee understands that FDA's 
Office of Seafood has a memorandum of understanding with ISSC 
to work on assuring the safety and quality of shellfish, 
including regulation development when needed. The Committee 
directs that FDA continue this work with the ISSC, and that FDA 
continue to devote not less than $200,000 to these efforts.
    Training.--The Committee recognizes the challenge FDA faces 
in training 635 new field hires for food-related counter-
terrorism activities. The Committee understands that the Agency 
goal is for new field personnel to become functional in 
targeted operations within three months of the time they come 
on board, with additional training in the following nine 
months. The Committee directs FDA to report to the Committee, 
regarding its plans to adequately ensure that new inspection 
personnel are trained for duties in inspecting for both 
unintentional and intentional adulterates to food.
    Drug Patent Listing.--The Committee understands that in May 
2001 the Bureau of Competition and Policy Planning Staff of the 
Federal Trade Commission submitted a Citizen Petition to the 
FDA seeking specific guidance as to what patents may 
appropriately be listed in the Orange Book. The Committee is 
extremely concerned that the FDA has not responded to the FTC's 
request. Therefore, the Committee directs that within six 
months of enactment: (i) the FDA issue and publish in the 
Federal Register a final guidance for industry that provides 
clarification regarding the patent information submission 
requirements of sections 505(b)(1) and (c)(2) of the Federal 
Food, Drug, and Cosmetic Act, 21 U.S.C. Sec. Sec. 355(b)(1), 
355(c)(2), and the implementing regulation, 21 C.F.R. 314.53, 
including, but not limited to, clarification regarding the type 
of patents that may and may not be submitted for listing in the 
Orange Book; and (ii) the FDA issue a final response to the 
Citizen Petition, which shall be submitted to FDA's Dockets 
Management Branch for public dissemination.
    Foodborne Illness Information.--The Committee supports 
efforts of the Food Safety and Inspection Service (FSIS), the 
Food and Drug Administration (FDA), and the Centers for Disease 
Control (CDC) to work together through FoodNet to improve 
national data on the incidence of foodborne illness. The 
Committee is particularly interested in studies that would 
determine the proportion of cases of bacterial pathogens, such 
as E. coli O157:H7, Salmonella, Listeria, and Campylobacter, 
attributable to meat, poultry, eggs, seafood, fruits, and 
vegetables. The Committee requests a summary of planned, 
ongoing, or completed case-control studies before the fiscal 
year 2004 appropriations hearings.
    Ginseng.--The Committee notes the Section 10806 of P.L. 
107-171 states, in part: ``(A) the term ginseng may only be 
considered to be a common or usual name (or part thereof) for 
any herb or herbal ingredient derived from the plant classified 
within the genus Panax; and (B) only labeling of or advertising 
for herbs or herbal ingredients classified within that genus 
may include the term ``ginseng''.'' Despite this, a product 
labeled ``siberian ginseng,'' which is, in fact, not ginseng 
and is unrelated to ginseng, is being sold in U.S. health food 
stores in competition with ginseng. ``Siberian ginseng'' is not 
an herb; it is correctly known as Eleutherococcus senticosus. 
Under the provisions of Section 10806 of P.L. 107-171, this 
product cannot be labeled and sold as ginseng. The Committee 
expects the Food and Drug Administration to take all 
appropriate action to expeditiously enforce Section 403 of the 
Federal Food, Drug, and Cosmetic Act in regard in ginseng 
labeling.
    Office of Drug Safety.--The Committee has received 
assurance that, at the recommended funding level for fiscal 
year 2003, the Office of Drug Safety will receive at least a 
five million dollar increase over its fiscal year 2002 funding 
level.
    Ephedra Products.--The Committee commends FDA for its 
recent statement that adverse event reports (AERs) regarding 
dietary supplements containing ephedrine alkaloids do not alone 
provide a scientific basis for assessing the safety of these 
products. Additionally, the Committee agrees that the 
Department of Health and Human Services (DHHS)-sponsored 
comprehensive review of the scientific data is the appropriate 
response to possible concerns raised by adverse event reports. 
The Committee further understands that the National Institutes 
of Health will use the review to guide an expanded research 
effort on ephedrine alkaloids, and that FDA will be guided by 
the review in regulatory discussions on ephedra products. The 
Committee urges that following publication of this review, a 
dialogue take place between FDA and industry to determine any 
necessary actions or decisions regarding ephedra products, 
including development of a standard label of warnings and 
contraindications.
    Juice Labeling.--The Committee is concerned that labeling 
on a number of beverage products may lead consumers to believe 
they are purchasing orange juice when the actual content of 
orange juice is negligible. The Committee directs the FDA to 
review the labeling requirements for products that claim to be 
orange juice when the orange juice content is 5 percent or 
less. The Committee requests a report from FDA by April 1, 
2003, regarding its recommendation to create new labeling 
guidelines, specific to this issue, to avoid consumer 
confusion.
    Food Allergies.--The Committee is concerned about the 
incidence of food allergies, and notes that scientists and the 
public are increasingly concerned about the possibility of new 
food ingredients causing allergic reactions. While the FDA 
encourages careful evaluation of new proteins in genetically 
engineered foods, it has given less scrutiny to other food 
ingredients, such as whole new foods, such as kiwifruit, and 
mycoprotein (processed fungus). The Committee requests that the 
FDA, with input from the National Institutes of Health and 
other agencies it believes appropriate, review its practices on 
allergenicity and develop a comprehensive and consistent policy 
for evaluating novel foods and ingredients for potential 
allergenicity, including the types of tests that would be 
appropriate for evaluating different types of ingredients.
    Building International Regulatory Capacity.--The Committee 
recognizes the need to expand regulatory capacity in low and 
middle income countries to facilitate local consideration of 
clinical trials of HIV and other vaccines and therapies. The 
Committee encourages the FDA to provide technical assistance to 
regulatory bodies in other countries to assist them in 
developing their own regulatory capacity. The Committee also 
supports continued efforts at international regulatory 
harmonization.
    Dietary Supplement Study.--The Committee commends the Food 
and Drug Administration for having signed in September 2000 a 
two-year contract with the Institute of Medicine of the 
National Academies to develop a framework for evaluating the 
safety of dietary supplements and apply it to six dietary 
supplements. The Committee encourages the FDA to continue this 
contract into fiscal year 2003 and, if possible, to increase 
the number of dietary supplements to be evaluated by the 
Institute of Medicine.
    Blood Safety and Adequacy.--The Committee is aware of 
several factors that have affected the nation's blood supply, 
including a recently implemented FDA deferral policy which 
restricts eligibility of blood donors who have traveled or 
lived in Europe or the U.K. because of the theoretical risk of 
variant Creutzfeldt-Jakob Disease. The Committee is concerned 
about existing blood shortages and the possibility of 
increasingly severe shortages in the future because of the 
elimination of blood donors, confusion about donor criteria, 
and the loss of up to 25 percent of the U.S. military donor 
base. The Committee understands that additional FDA donor 
restrictions will become effective October 31, 2002.
    Maintaining an adequate blood supply is critical for the 
nation's public health and is essential for national 
preparedness in the event of public health emergencies. The 
Committee urges the FDA and the Department of Health and Human 
Services to address this issue and consider the potential need 
for modification of donor deferral criteria or other measures 
if serious blood shortages continue.
    Recommendations by activity.--The Committee recommends that 
of the total amount provided: (1) $148,112,000 shall be for the 
Center for Food Safety and Applied Nutrition; (2) $330,766,000 
shall be for the Center for Drug Evaluation and Research; (3) 
$163,663,000 shall be for the Center for Biologics Evaluation 
and Research; (4) $57,875,000 shall be for the Center for 
Veterinary Medicine; (5) $137,420,000 shall be for the Center 
for Devices and Radiological Health; (6) $473,346,000 shall be 
for the Office of Regulatory Affairs; (7) $40,688,000 shall be 
for the National Center for Toxicological Research (NCTR); (8) 
$36,498,000 shall be for Rent and Related activities, other 
than the amounts paid to the General Services Administration; 
(9) $106,678,000 shall be for payments to the General Services 
Administration for rent and related costs; and (10) 
$104,556,000 shall be for other activities, including the 
Office of the Commissioner; the Office of Senior Associate 
Commissioner; the Office of International and Constituent 
Relations; the Office of Policy, Legislation and Planning; the 
Office of Management and Systems; the Office of Chief Counsel; 
and central services for these offices. Funds may be 
transferred from one specified activity to another with the 
prior approval of the Committee.

                        BUILDINGS AND FACILITIES

2002 appropriation......................................     $34,281,000
2003 budget estimate....................................       8,000,000
Provided in the bill....................................       8,000,000
Comparison:
    2002 appropriation..................................     -26,281,000
    2003 budget estimate................................................

    The Buildings and Facilities account was established for 
repair and improvement of existing facilities, as well as for 
construction of new facilities when needed.

                          COMMITTEE PROVISIONS

    For Buildings and Facilities of the Food and Drug 
Administration, the Committee provides an appropriation of 
$8,000,000, decrease of $26,281,000 below the amount available 
for fiscal year 2002 and the same amount as the budget request.
    The decrease in funding in this account is primarily due to 
the completion of the funding for construction of the Los 
Angeles regional laboratory. The funding in this account is 
directed toward repairs and improvements to existing 
facilities.

                          Independent Agencies


                  Commodity Futures Trading Commission

2002 appropriation \1\..................................     $70,700,000
2003 budget estimate \2\................................      79,884,000
Provided in the bill....................................      79,884.000
Comparison:
    2002 appropriation..................................      +9,184,000
    2003 budget estimate................................    ............

\1\ Does not include FY2002 supplemental of $16,900,000 for Homeland 
Security, P.L. 107-117.
\2\ Excludes $2,916,000 in Pension and Health Benefits.

    The Commodity Futures Trading Commission (CFTC) administers 
the Commodity Exchange Act of 1936, as amended. The purpose of 
the Commission is to further the economic utility of futures 
and option markets by encouraging their efficiency, assuring 
their integrity, and protecting participants and the public 
against manipulation, fraud, and abusive trade practices. The 
objective is to enable the markets to better serve their 
designated function in providing a price discovery mechanism 
and as a means of offsetting price risk. In properly serving 
these functions, the futures markets contribute toward better 
planning, more efficient distribution and consumption, and more 
economical marketing.

                          COMMITTEE PROVISIONS

    For the Commodity Futures Trading Commission, the Committee 
provides an appropriation of $79,884,000, an increase of 
$9,184,000 above the amount available for fiscal year 2002 and 
the same as the budget request.
    Pay Parity.--The Committee is aware that Public Law 107-171 
contained a provision (Section 10702) authorizing the Commodity 
Futures Trading Commission to pay employees at a rate 
comparable to employees of any agency included in the Financial 
Institutions Reform, Recovery and Enforcement Act of 1989. The 
Committee encourages the agency to submit a budget proposal 
that includes resources dedicated to pay parity under the 
aforementioned authority.
    Transaction fee.--The President's budget proposed a 
transaction fee of $33,000,000 on commodity futures and options 
contracts to be available for CFTC activities. Such a 
transaction fee is not authorized to be collected. Therefore, 
the Committee recommendation does not assume revenue from the 
fee. The Committee is concerned that the fee, although neither 
authorized nor received by the Congress as part of a 
legislative proposal, was included as revenue in the 
President's budget. In effect, the fee proposal created a 
$33,000,000 cost to the Committee to maintain CFTC operations. 
The Committee notes that this bill includes a General 
Provision, Section 723, that prohibits funds from being used to 
prepare a budget submission to Congress that assumes reductions 
from the previous year's budget due to user fee proposals 
unless the submission also identifies spending reductions which 
should occur if the user fees are not enacted.
    Reporting Requirements.--The Committee directs that up to 
$1 million of this increase be provided to the Inspector 
General to conduct a thorough investigation into suspicious 
activities or transactions involving Enron, its subsidiaries, 
affiliates or related entities. While the Commission has been 
soliciting voluntary reporting of this activity, the situation 
is of such a serious nature that a more specific program for 
investigation should be developed and implemented. The 
Committee directs that the Commission provide a report 
regarding what action has been taken to comply with this 
requirement prior to the fiscal year 2004 appropriation 
hearings.

                       Farm Credit Administration


                 LIMITATION ON ADMINISTRATIVE EXPENSES




2002 limitation.......................................     ($36,700,000)
2003 budget estimate \1\..............................      (36,700,000)
Provided in the bill..................................      (38,400,000)
Comparison:
    2002 limitation...................................        +1,700,000
    2003 budget estimate..............................        +1,700,000

\1\ Excludes $1,796,000 in Pension and Health Benefits.

    The Farm Credit Administration (FCA) originally created by 
Executive Order No. 6084 on May 27, 1933, was transferred to 
the Department of Agriculture on July 1, 1939, by 
Reorganization Plan No. 1. From December 4, 1953 to January 23, 
1986, the Administration was an independent agency under the 
direction of a Federal Farm Credit Board (12 U.S.C. 636). The 
Farm Credit Amendments Act of 1985 (P.L. 99-205) clarified the 
FCA's role as an arm's-length financial regulator, granting it 
the same intermediate enforcement powers as other Federal 
financial regulatory agencies. The Act also replaced the 
Federal Farm Credit Board of 13 Presidentially appointed part-
time Board members with the FCA Board, comprised of a Chairman 
and two other Board members, all serving in a full-time 
capacity. Not more than two members of the Board shall be 
members of the same political party.
    The FCA is responsible for regulating, supervising, and 
examining the institutions of the Farm Credit System (System). 
The FCA and the System institutions operate under the authority 
of the Farm Credit Act of 1971 (12 U.S.C. 2003 et seq.). The 
institutions of the System are the Farm Credit banks, 
production credit associations, Federal land credit 
associations, agricultural credit associations, and one 
Agricultural Credit Bank. The combined lending activities in 
the System institutions provided short- and long-term credit to 
the nation's farmers, ranchers, and producers and harvesters of 
aquatic products, and their cooperatives. System institutions 
are owned by their member borrowers. The operation of the 
System is funded through the sale of systemwide consolidated 
bonds and discount notes in the public money markets, and the 
institutions are fully liable for the payment of these 
securities. The operating expenses of the FCA are paid by the 
System institutions and by the Federal Agricultural Mortgage 
Corporation through assessments, which are deposited in a 
special fund in the Treasury which is available for the use of 
the FCA.

                          COMMITTEE PROVISIONS

    For a limitation on the expenses of the Farm Credit 
Administration, the Committee provides $38,400,000, an increase 
of $1,700,000 above the amount available for fiscal year 2002 
and an increase of $1,700,000 over the budget request.
    The Committee has raised the cap on administrative expenses 
to allow the Farm Credit Administration flexibility to deal 
with hiring and retention issues. This flexibility would allow 
the FCA Board to make adjustments to the budget, if warranted 
by the results of their study of personnel needs. The Committee 
understands that no additional assessment on member 
institutions would be necessary, as the agency reserve funds 
are sufficient to cover the increase.

                     TITLE VII--GENERAL PROVISIONS

    The General Provisions contained in the accompanying bill 
for fiscal year 2003 are fundamentally the same as those 
included in last year's appropriations bill.
    Section 721: Language is included to prohibit funds from 
being used to carry out the Initiative for Future Agriculture 
and Food Systems.
    Section 722: Language is included that prohibits the use of 
funds to reduce staff levels at certain Food and Drug 
Administration offices in Detroit, Michigan.
    Section 723: Language is included that prohibits funds from 
being used to prepare a budget submission to Congress that 
assumes reductions from the previous year's budget due to user 
fee proposals unless the submission also identifies spending 
reductions which should occur if the user fees are not enacted.
    Section 724: Language is included that provides that no 
funds may be used to close or relocate a state Rural 
Development office unless or until cost effectiveness and 
enhancement of program delivery have been determined.
    Section 725: Language is included that provides that, of 
any shipments of commodities pursuant to section 416(b) of the 
Agricultural Act of 1949, the Secretary of Agriculture shall, 
to the extent practicable, direct that tonnage equal in value 
to not more than $25,000,000 shall be made available to foreign 
countries to assist in mitigating the effects of HIV and AIDS.
    Section 726: Language is included that provides $4,000,000 
for a hunger fellowship program.
    Section 727: Language is included that provides that any 
balances available to carry out Title III of the Agricultural 
Trade Development and Assistance Act of 1954, and any 
recoveries and reimbursements that become available, may be 
used to carry out Title II of such Act. Funds were last 
appropriated for Title III programming in FY 2000. However, 
there are Title III balances remaining of less than $500,000. 
This provision allows remaining Title III account balances to 
be used for Title II programming since no new Title III 
programming is anticipated. This provision will allow the use 
of remaining Title III balances for Title II even though 
Section 412 of P.L. 480 provides that only 50 percent of the 
funds available for Title III may be used to carry out Title 
II.
    Section 728: Language is included that amends Section 
375(e)(6)(B) of the Consolidated Farm and Rural Development Act 
regarding the National Sheep Industry Improvement Center 
revolving fund.
    Section 729: Language is included that provides that the 
City of Coachella, California, shall be eligible for loans and 
grants provided through the Rural Community Advancement 
Program.
    Section 730: Language is included that provides that the 
City of Casa Grande, Arizona, shall be considered as meeting 
the requirements of a rural area in section 520 of the Housing 
Act of 1949.
    Section 731: Language is included that provides that 
Natural Resources Conservation Service shall provide certain 
assistance to DuPage County, Illinois, under the Watershed and 
Flood Prevention Operations program.
    Section 732: Language is included that provides that any 
current Rural Utilities Service borrower within 100 miles of 
New York City shall be eligible for certain assistance related 
to the terrorist events of September 11, 2001.
    Section 733: Language is included that provides for a 
Livestock Assistance Program, to make and administer payments 
for livestock losses using similar criteria as established in 
the 1999 and 2000 Livestock Assistance Programs and as 
authorized in Sec. 10104 (P.L. 107-171; 116 Stat. 488)
    Section 734: Language is included that provides that no 
funds may be transferred to any department, agency, or 
instrumentality of the United States Government, except 
pursuant to a transfer made by, or transfer authority provided 
in, this Act or any other appropriation Act.
    Section 735: Language is included that limits the Export 
Enhancement Program.
    Section 736: Language is included that makes funds 
available for temporary personnel, and for experts and 
consultants.
    Section 737: Language is included that limits the use of 
funds for alteration and repair of buildings.
    Section 738: Language is included that provides for a 
citrus canker compensation program.
    Section 739: Language is included that prohibits release of 
information that may be used by individuals or terrorist 
organizations for the purpose of targeting biomedical and/or 
agricultural research facilities or personnel.
    Section 740: Language is included that makes the 
municipality of Carolina, Puerto Rico, eligible for grants and 
loans administered by the Rural Utilities Service.
    Section 741: Section 7404 of the recently enacted Farm 
Security and Rural Investment Act of 2002 (Public Law 107-171) 
calls on the Secretary of Agriculture to establish a task force 
to conduct a review of the Agricultural Research Service, at a 
cost of approximately $1,000,000. The Committees notes that 
section 632 of the Agricultural Research, Extension, and 
Education Reform Act of 1998 (Public Law 105-185) called for a 
similar review, to be performed by the National Academy of 
Sciences, and that this work should be completed this summer. 
The Committee recommends a general provision to prohibit 
carrying out the new directive, and recommends review of the 
results of the National Academy of Sciences review prior to 
scarce research funds for another similar effort.
    Section 742: The Committee recommends a technical provision 
regarding accounting procedures affecting the Agricultural 
Marketing Service (AMS) and the Grain Inspection, Packers and 
Stockyards Administration (GIPSA). Language is included that 
would exempt AMS and GIPSA user fee programs from the 
requirement to reflect insured and/or collateralized 
investments as obligations and outlays. OMB Circulars require 
that Federal funds invested in interest bearing instruments 
outside of the U.S. Treasury be posted as obligations and 
outlays on the books of the investing agency. However, these 
Circulars do not address the security of investments that are 
insured by the Federal Deposit Insurance Corporation (FDIC) 
and/or are collateralized with U.S. securities. The obligation 
of insured and/or collateralized investments results in 
inflated obligation levels being reported to Congress for that 
program, and can reduce interest income for that same investing 
program. This general provision allows for an ``accounting'' 
recognition of FDIC insurance and/or U.S. securities 
collateral. In addition, it allows the user fee agencies of 
USDA to maximize their interest income, which is consistent 
with the intent of Congress when it enacted investment 
authority for those programs.
    Section 743: Language is included that provides that the 
city of Starkville, Mississippi, shall be eligible for loans 
and grants provided through the Rural Community Advancement 
Program.
    Section 744: Language is included that would provide the 
Secretary the authority to transfer up to $10,000,000 for costs 
associated with the processing, storage, transporting, and 
distribution of commodities.
    Section 745: Language is included to limit enrollment of 
acres in the Wetlands Reserve Program to 245,833 acres.
    Section 746: Language is included to limit the amount of 
funds available for the Environmental Quality Incentives 
Program to $695,000,000.
    Section 747: Language is included to limit the Conservation 
Security Program to the State of Iowa.
    Section 748: Language is included that makes Hollister, 
Salinas, and Watsonville, California, eligible for rural 
housing programs.
    Section 749: Language is included that prohibits the use of 
funds for consolidation of Food and Drug Administration offices 
at the Department of Health and Human Services.
    Section 750: Language is included that amends Section 844 
of the fiscal year 2001 Agriculture Appropriations Act.
    Section 751: Language is included that makes the City of 
Vicksburg, Mississippi, eligible for Rural Housing Service 
programs.
    Section 752: Language is included that rescinds $5,000,000 
of unobligated balances in the Agricultural Stabilization and 
Conservation Service-Rural Clean Water Program.
    Section 753: (a) Limitation.--None of the funds made 
available in this Act or any other Act may be obligated for 
payment on any new contract to a subsidiary of a publicly 
traded corporation if the corporation is incorporated in a tax 
haven country but the United States is the prinicipal market 
for the public trading of the corporation's stock.
    (b) Definition.--For purposes of subsection (a), the term 
``tax haven country'' means each of the following: Barbados, 
Bermuda, British Virgin Islands, Cayman Islands, Commonwealth 
of the Bahamas, Cyprus, Gibraltar, Isle of Man, the 
Principality of Liechtenstein, the Principality of Monaco and 
the Republic of the Seychelles.
    (c) Waiver.--The President may waive subsection (a) with 
respect to any specific contract if the President certifies to 
the Appropriations Committees that the waiver is required in 
the interest of national security.
    Underwriting gains.--The Committee does not recommend 
including a limitation on underwriting gains, which was 
included as a proposed general provision in the budget request.
    Outlease agreements.--The Committee does not recommend a 
legislative provision regarding outlease agreements, which was 
included as a proposed general provision in the budget request.
    Definition of ``emergency.''--The Committee does not 
recommend a legislative provision defining ``emergency'' as a 
precondition for a transfer of funds to combat infestations, 
which was included as a proposed general provision in the 
budget request.

                    Transfer of Unexpended Balances

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following statement is submitted 
describing the transfer of unexpended balances provided in the 
accompanying bill. Transfers of unexpended balances are 
assigned to the jurisdiction of the Committee on Appropriations 
by clause 1(b)(3) of rule X.
    1. Hazardous Materials Management.--The bill allows the 
funds appropriated to the Department for hazardous materials 
management to be transferred to agencies of the Department as 
required.
    2. Departmental Administration.--The bill requires 
reimbursement for expenses related to certain hearings.
    3. Office of the Assistant Secretary for Congressional 
Relations.--The bill allows a portion of the funds appropriated 
to the Office of the Assistant Secretary to be transferred to 
agencies.
    4. Animal and Plant Health Inspection Service.--Authority 
is included to enable the Secretary of Agriculture to transfer 
from other appropriations or funds of the Department such sums 
as may be necessary to combat emergency outbreaks of certain 
diseases of animals, plants, and poultry.
    5. Agricultural Marketing Service.--The bill limits the 
transfer of section 32 funds to purposes specified in the bill.
    6. Farm Service Agency.--The bill provides that funds 
provided to other accounts in the agency may be merged with the 
salaries and expenses account of the Farm Service Agency.
    7. Dairy Indemnity Program.--The bill authorizes the 
transfer of funds to the Commodity Credit Corporation, by 
reference.
    8. Agricultural Credit Insurance Fund.--The bill provides 
that funds from the account shall be transferred to the Farm 
Service Agency salaries and expenses account, and that funds 
may be transferred among lending programs.
    9. Rural Community Advancement Program.--The bill provides 
that funds available to administer certain programs may be 
transferred to the Rural Development, Salaries and Expenses 
account, and that funds for guaranteed business and industry 
loans may be transferred to direct business and industry loans.
    10. Rural Development Salaries and Expenses.--The bill 
provides that prior year balances from certain accounts shall 
be transferred to and merged with this account.
    11. Rural Housing Insurance Fund program account; Rural 
Development Loan Fund program account; Rural Electrification 
and Telecommunications Loans program account; and Rural 
Telephone Bank program account.--The bill provides that 
administrative funds shall be transferred to the Rural 
Development Salaries and Expenses Account.
    12. Child Nutrition Programs.--The bill includes authority 
to transfer section 32 funds to these programs.
    13. Foreign Agricultural Service.--The bill allows for the 
transfer of funds from the Commodity Credit Corporation Export 
Loan Program Account and Public Law 480 Program Account.
    14. Public Law 480.--The bill provides that funds made 
available for the cost of title I agreements and for title I 
ocean freight differential may be used interchangeably.
    15. Commodity Credit Corporation Export Loans Program.--The 
bill provides for transfer of funds to the Foreign Agricultural 
Service and to the Farm Service Agency for overhead expenses 
associated with credit reform.

               Changes in the Application of Existing Law

    Pursuant to clause 3(f)(1)(A) of rule XIII of the Rules of 
the House of Representatives, the following statements are 
submitted describing the effect of provisions in the 
accompanying bill which directly or indirectly change the 
application of existing law. In most instances, these 
provisions have been included in prior appropriations bills, 
often at the request of or with the knowledge and consent of 
the responsible legislative committees.
    Language is included in various parts of the bill to 
continue ongoing activities of those Federal agencies which 
require annual authorization or additional legislation which to 
date has not been enacted.
    Language is included in the bill in several accounts that 
earmarks funds for empowerment zones and enterprise communities 
as authorized by title XIII of the Omnibus Budget 
Reconciliation Act of 1995.
    The bill includes a number of provisions which place 
limitations on the use of funds in the bill or change existing 
limitations and which might, under some circumstances, be 
construed as changing the application of existing law:
    1. Office of the Secretary.--Language is included to limit 
the amount of funds for official reception and representation 
expenses, as determined by the Secretary.
    2. Common Computing Environment.--Language is included to 
provide that obligation of funds shall be consistent with the 
Service Center Modernization Plan, and with the concurrence of 
the Chief Information Officer, and only upon confirmation of 
the Chief Information Officer.
    3. Agriculture Buildings and Facilities and Rental 
Payments.--Language is included that allows for the 
reconfiguration and release of space back into the General 
Services Administration inventory in order to reduce space 
rental cost for space not needed for USDA programs.
    4. Departmental Administration.--Language is included to 
reimburse the agency for travel expenses incident to the 
holding of hearings.
    5. Agricultural Research Service.--Language is included 
that allows the Agricultural Research Service to grant 
easements at the Beltsville, MD agricultural research center, 
that hereafter prohibits funds from being used to carry out 
research related to the production, processing or marketing of 
tobacco or tobacco products, and that authorizes the 
Agricultural Research Service in fiscal year 2003 and 
thereafter to charge fees for any permit, easement, lease or 
other special use authorization for the occupancy or use of 
land and facilities issued by the agency and such fees shall be 
credited to the Agricultural Research Service and remain 
available until expended. Under the Buildings and Facilities 
account, the bill includes language providing that, hereafter, 
funds may be received from any State, other political 
subdivision, organization, or individual for the purpose of 
establishing any research facility of the Agricultural Research 
Service, as authorized by law.
    6. Cooperative State Research, Education, and Extension 
Service.--The bill includes language that hereafter prohibits 
funds from being used to carry out research related to the 
production, processing or marketing of tobacco or tobacco 
products.
    7. Animal and Plant Health Inspection Service.--A provision 
carried in the bill since fiscal year 1973 regarding state 
matching funds has been continued to assure more effective 
operation of the brucellosis control program through state cost 
sharing, with resulting savings to the Federal budget.
    Language is included to allow APHIS to recoup expenses 
incurred from providing technical assistance goods, or services 
to non-APHIS personnel, and to allow transfers of funds for 
Agricultural emergencies.
    8. Agricultural Marketing Service.--The bill includes 
language that allows the Secretary to charge user fees for AMS 
activity related to preparation of standards.
    9. Agricultural Marketing Service, Limitation on 
Administrative Expenses.--The bill includes language to allow 
AMS to exceed the limitation on administrative expenses by 10 
percent with notification to the Appropriations Committees. 
This allows flexibility in case crop size is understated and/or 
other uncontrollable events occur.
    10. Grain Inspection, Packers and Stockyards 
Administration, Inspection and Weighing Services.--The bill 
includes authority to exceed the limitation on inspection and 
weighing services by 10 percent with notification to the 
Appropriations Committees. This allows for flexibility if 
export activities require additional supervision and oversight, 
or other uncontrollable factors occur.
    11. Dairy Indemnity Program.--Language is included by 
reference that allows the Secretary to utilize the services of 
the Commodity Credit Corporation for the purpose of making 
dairy indemnity payments.
    12. Risk Management Agency.--Language is included to limit 
the amount of funds for official reception and representation 
expenses.
    13. Commodity Credit Corporation Fund, Reimbursement for 
Net Realized Losses.--Language is included to provide for the 
reimbursement appropriation. Language is also included which 
limits the amount of funds that can be spent on operation and 
maintenance costs of CCC hazardous waste sites.
    14. Natural Resources Conservation Service--Conservation 
Operations.--Language which has been included in the bill since 
1938 prohibits construction of buildings on land not owned by 
the government, although construction on land owned by states 
and counties is authorized by basic law.
    15. Watershed and Flood Prevention Operations.--Language 
which was included in the Emergency Jobs Bill of 1983 (P.L. 98-
8) and all bills since 1984 provides that funds may be used for 
rehabilitation of existing works.
    16. Rural Housing Service--Rental Assistance Program.--
Language is included which provides that agreements entered 
into during the current fiscal year be funded for a five-year 
period.
    17. Rural Electrification and Telecommunications Loan 
program account.--Language is included to allow borrowers' 
interest rates for loans to exceed seven percent.
    18. Child Nutrition Programs.--Language is included to 
prohibit funds from being used for studies and evaluations, 
except for verification of claims.
    19. Special Supplemental Nutrition Program for Women, 
Infants, and Children (WIC).--Language is included to prohibit 
funds from being used for studies and evaluations, except for a 
study of WIC vendor practices, and to require the use of funds 
for the farmers' market nutrition program.
    20. Food Stamp Program.--Language is included to prohibit 
funds from being used for studies and evaluations.
    21. Foreign Agricultural Service.--Language carried since 
1979 enables this agency to use funds received by an advance or 
by reimbursement to carry out its activities involving 
international development and technical cooperation. Language 
is included that hereafter prohibits funds from being used to 
promote the sale or export of tobacco or tobacco products. 
Language is included to limit the amount of funds for official 
reception and representation expenses.
    22. Commodity Futures Trading Commission.--Language is 
included to limit the amount of fund for official reception and 
representation expenses.
    23. General Provisions.--
          Section 704: This provision permits the Secretary to 
        transfer discretionary funds made available by this 
        Act, as well as other available unobligated 
        discretionary balances of the Department of 
        Agriculture, to the Working Capital fund for the 
        acquisition of plant and capital equipment, and 
        provides that no funds appropriated to an agency shall 
        be transferred to the Working Capital Fund without the 
        approval of the agency administrator. The time of 
        availability of funds has been extended until November 
        8, 2003, for unobligated balances that may be 
        transferred in order to allow the Department the time 
        it needs to close out its books for the fiscal year. 
        Only after the books have been closed, will the 
        Department be able to determine if unobligated balances 
        exist to transfer to the Working Capital Fund.
          Section 705: This provision, carried since 1976, is 
        again included which provides that certain 
        appropriations in this Act shall remain available until 
        expended where the programs or projects involved are 
        continuing in nature under the provisions of 
        authorizing legislation, but for which such legislation 
        may not specifically provide for extended availability. 
        This authority tends to result in savings by preventing 
        the wasteful practice often found in government of 
        rushing to commit funds at the end of the fiscal year 
        without due regard to the value of the purpose for 
        which the funds are used. Such extended availability is 
        also essential in view of the long lead time frequently 
        required to negotiate agreements or contracts which 
        normally extend over a period of more than one year. 
        Under these conditions such authority is commonly 
        provided in Appropriations Acts where omitted from 
        basic law. These provisions have been carried through 
        the years in this Act to facilitate efficient and 
        effective program execution and to assure maximum 
        savings. They involve the following items: Office of 
        the Secretary, $28,250,000 to remain available until 
        expended for building security and terrorism prevention 
        costs; Animal and Plant Health Inspection Service, the 
        contingency fund to meet emergency conditions, 
        information technology infrastructure, the boll weevil 
        program, up to 25 percent of the screwworm program, and 
        up to $2,000,000 for costs associated with colocating 
        regional offices; Grain Inspection, Packers and 
        Stockyards Administration, packer concentration study; 
        Food Safety and Inspection Service, field automation 
        and information management project; Cooperative State 
        Research, Education, and Extension Service, funds for 
        competitive research grants, funds for the Research, 
        Education, and Economics Information System (REEIS), 
        and funds for the Native American Institutions 
        Endowment Fund; Farm Service Agency, salaries and 
        expenses to county committees; Foreign Agricultural 
        Service, middle-income country training program and up 
        to $2,000,000 for foreign currency fluctuations.
          Section 708: This provision, included since fiscal 
        year 1981, limits the overhead that can be charged on 
        cooperative agreements to a maximum of 10 percent. This 
        provision is necessary because many universities 
        attempted to apply the same overhead rates to 
        cooperative agreements as was being applied to grants 
        and contracts, without giving consideration to the 
        cooperator's contributions as an offset to the overhead 
        charges.
          Section 709: This provision, added in 1987, provides 
        that none of the funds in this Act may be used to 
        restrict the authority of CCC to lease space. This 
        provision allows CCC to continue to lease space at a 
        lower cost than space leased by GSA.
          Section 710: This provision provides that none of the 
        funds in this Act may be made available to pay indirect 
        costs charged against competitive agricultural 
        research, education, or extension grants awarded by the 
        Cooperative State Research, Education, and Extension 
        Service in excess of 19 percent of total direct costs, 
        except for grants available under the Small Business 
        Innovation and Development Act.
          Section 711: This provision clarifies that loan 
        levels provided in the Act are to be considered 
        estimates and not limitations. The Federal Credit 
        Reform Act of 1990 provides that the appropriated 
        subsidy is the controlling factor for the amount of 
        loans made and that as lifetime costs and interest 
        rates change, the amount of loan authority will 
        fluctuate.
          Section 712: This provision allows funds made 
        available in the current fiscal year for the Rural 
        Development Loan Fund program account; Rural Telephone 
        Bank program account; the Rural Electrification and 
        Telecommunications Loans program account; the Rural 
        Housing Insurance Fund program account; and the Rural 
        Economic Development Loans program account to remain 
        available until expended. The Credit Reform Act 
        requires that the lifetime costs of loans be 
        appropriated. Current law requires that funds 
        unobligated after five years expire. The life of some 
        loans extends well beyond the five-year period and this 
        provision allows funds appropriated to remain available 
        until the loans are closed out.
          Section 713: This provision provides that, hereafter, 
        marketing services of the Agricultural Marketing 
        Service; the Grain Inspection, Packers and Stockyards 
        Administration; the Animal and Plant Health Inspection 
        Service; and the food safety activities of the Food 
        Safety and Inspection Service may use cooperative 
        agreements.
          Section 714: Provides that not more than 5 percent of 
        the Class A stock of the Rural Telephone Bank may be 
        retired in fiscal year 2003. The provision also 
        prohibits the maintenance of any account or subaccount 
        which has not been specifically authorized by law. The 
        provision also prohibits a transfer of any unobligated 
        funds of the Rural Telephone Bank telephone liquidating 
        account to the Treasury or the Federal Financing Bank 
        that are in excess of current requirements.
          Section 715: Provides that of the funds made 
        available, not more than $1,800,000 shall be used to 
        cover expenses of activities related to all advisory 
        committees, panels, commissions, and task forces of the 
        Department of Agriculture except for panels used to 
        comply with negotiated rule makings and panels used to 
        evaluate competitively awarded grants.
          Section 716: Provides that none of the funds may be 
        used to carry out certain provisions of meat and 
        poultry inspection acts.
          Section 717: This provision prohibits any employee of 
        the Department of Agriculture from being detailed or 
        assigned to any other agency or office of the 
        Department for more than 30 days unless the 
        individual's employing agency or office is fully 
        reimbursed by the receiving agency or office for the 
        salary and expenses of the employee for the period of 
        assignment.
          Section 718: This provision prohibits the Department 
        of Agriculture from transmitting or making available to 
        any non-Department of Agriculture employee questions or 
        responses to questions that are a result of information 
        requested for the appropriations hearing process.
          Section 719: Language is included that requires 
        approval of the Chief Information Officer and the 
        concurrence of the Executive Information Technology 
        Investment Review Board for acquisition of new 
        information technology systems or significant upgrades, 
        and that prohibits the transfer of funds to the Office 
        of the Chief Information Officer without the 
        notification of the Committees on Appropriations of 
        both Houses of Congress.
          Section 720: Language is included that requires 
        certain reprogramming procedures of funds provided in 
        Appropriations Acts.
          Section 721: Language is included to prohibit funds 
        from being used to carry out the Initiative for Future 
        Agriculture and Food Systems.
          Section 722: Language is included that prohibits the 
        use of funds to reduce staff levels at certain Food and 
        Drug Administration offices in Detroit, Michigan.
          Section 723: Language is included that prohibits 
        funds from being used to prepare a budget submission to 
        Congress that assumes reductions from the previous 
        year's budget due to user fee proposals unless the 
        submission also identifies spending reductions which 
        should occur if the user fees are not enacted.
          Section 724: Language is included that provides that 
        no funds may be used to close or relocate a state Rural 
        Development office unless or until cost effectiveness 
        and enhancement of program delivery have been 
        determined.
          Section 725: Language is included that provides that, 
        of any shipments of commodities pursuant to section 
        416(b) of the Agricultural Act of 1949, the Secretary 
        of Agriculture shall, to the extent practicable, direct 
        that tonnage equal in value to not more than 
        $25,000,000 shall be made available to foreign 
        countries to assist in mitigating the effects of HIV 
        and AIDS.
          Section 726: Language is included that provides 
        $4,000,000 for a hunger fellowship program.
          Section 727: Language is included that provides that 
        any balances available to carry out Title III of the 
        Agricultural Trade Development and Assistance Act of 
        1954, and any recoveries and reimbursements that become 
        available, may be used to carry out Title II of such 
        Act. Funds were last appropriated for Title III 
        programming in FY 2000. However, there are Title III 
        balances remaining of less than $500,000. This 
        provision allows remaining Title III account balances 
        to be used for Title II programming since no new Title 
        III programming is anticipated. This provision will 
        allow the use of remaining Title III balances for Title 
        II even though Section 412 of P.L. 480 provides that 
        only 50 percent of the funds available for Title III 
        may be used to carry out Title II.
          Section 728: Language is included that amends Section 
        375(e)(6)(B) of the Consolidated Farm and Rural 
        Development Act regarding the National Sheep Industry 
        Improvement Center revolving fund.
          Section 729: Language is included that provides that 
        the City of Coachella, California, shall be eligible 
        for loans and grants provided through the Rural 
        Community Advancement Program.
          Section 730: Language is included that provides that 
        the City of Casa Grande, Arizona, shall be considered 
        as meeting the requirements of a rural area in section 
        520 of the Housing Act of 1949.
          Section 731: Language is included that Natural 
        Resources Conservation Service shall provide certain 
        assistance to DuPage County, Illinois, under the 
        Watershed and Flood Prevention Operations program.
          Section 732: Language is included that provides that 
        any current Rural Utilities Service borrower within 100 
        miles of New York City shall be eligible for certain 
        assistance related to the terrorist events of September 
        11, 2001.
          Section 733: Language is included that provides for a 
        Livestock Assistance Program, to make and administer 
        payments for livestock losses using similar criteria as 
        established in the 1999 and 2000 Livestock Assistance 
        Programs and as authorized in Sec. 10104 (P.L. 107-171; 
        116 Stat. 488)
          Section 734: Language is included that provides that 
        no funds may be transferred to any other entity except 
        pursuant to authority provided in an appropriation Act.
          Section 735: Language is included that limits the 
        Export Enhancement Program.
          Section 736: Language is included that makes funds 
        available for temporary personnel, and for experts and 
        consultants.
          Section 737: Language is included that limits the use 
        of funds for alteration and repair of buildings.
          Section 738: Language is included that provides for a 
        citrus canker compensation program.
          Section 739: Language is included that prohibits 
        release of information that may be used by individuals 
        or terrorist organizations for the purpose of targeting 
        biomedical or agricultural research facilities or 
        personnel.
          Section 740: Language is included that makes the 
        municipality of Carolina, Puerto Rico, eligible for 
        grants and loans administered by the Rural Utilities 
        Service.
          Section 741: Section 7404 of the recently enacted 
        Farm Security and Rural Investment Act of 2002 (Public 
        Law 107-171) calls on the Secretary of Agriculture to 
        establish a task force to conduct a review of the 
        Agricultural Research Service, at a cost of 
        approximately $1,000,000. The Committee notes that 
        section 632 of the Agricultural Research, Extension, 
        and Education Reform Act of 1998 (Public Law 105-185) 
        called for a similar review, to be performed by the 
        National Academy of Sciences, and that this work should 
        be completed this summer. The Committee recommends a 
        general provision to prohibit carrying out the new 
        directive, and recommends review of the results of the 
        National Academy of Sciences review prior to expending 
        scarce research funds for another similar effort.
          Section 742: The Committee recommends a technical 
        provision regarding accounting procedures affecting the 
        Agricultural Marketing Service (AMS) and the Grain 
        Inspection, Packers and Stockyards Administration 
        (GIPSA). Language is included that would exempt AMS and 
        GIPSA user fee programs from the requirement to reflect 
        insured and/or collateralized investments as obligation 
        and outlays. OMB Circulars require that Federal funds 
        invested in interest bearing instruments outside of the 
        U.S. Treasury be posted as obligations and outlays on 
        the books of the investing agency. However, these 
        Circulars do not address the security of investments 
        that are insured by the Federal Deposit Insurance 
        Corporation (FDIC) and/or are collateralized with U.S. 
        securities. The obligation of insured and/or 
        collateralized investments results in inflated 
        obligation levels being reported to Congress for that 
        program, and can reduce interest income for that same 
        investing program. This general provision allows for an 
        ``accounting'' recognition of FDIC insurance and/or 
        U.S. securities collateral. In addition, it allows the 
        user fee agencies of USDA to maximize their interest 
        income, which is consistent with the intent of Congress 
        when it enacted investment authority for those 
        programs.
          Section 743: Language is included that provides that 
        the city of Starkville, Mississippi, shall be eligible 
        for loans and grants provided through the Rural 
        Community Advancement Program.
          Section 744: Language is included that would provide 
        the Secretary the authority to transfer up to 
        $10,000,000 for costs associated with the processing, 
        storage, transporting, and distribution of commodities.
          Section 745: Language is included to limit enrollment 
        of acres in the Wetlands Reserve Program to 245,833 
        acres.
          Section 746: Language is included to limit the amount 
        of funds available for the Environmental Quality 
        Incentives Program to $695,000,000.
          Section 747: Language is included to limit the 
        Conservation Security Program to the State of Iowa.
          Section 748: Language is included that makes 
        Hollister, Salinas, and Watsonville, California, 
        eligible for rural housing programs.
          Section 749: Language is included that prohibits 
        funds from being used for consolidation of Food and 
        Drug Administration offices at the Department of Health 
        and Human Services.
          Section 750: Language is included that amends Section 
        844 of the fiscal year 2001 Agriculture Appropriations 
        Act.
          Section 751: Language is included that makes the City 
        of Vicksburg, Mississippi, eligible for Rural Housing 
        Service programs.
          Section 752: Language is included that rescinds 
        $5,000,000 of unobligated balances in the Agricultural 
        Stabilization and Conservation Service--Rural Clean 
        Water Program.
          Section 753: (a) Limitation.--None of the funds made 
        available in this Act or any other Act may be obligated 
        for payment on any new contract to a subsidiary of a 
        publicly traded corporation if the corporation is 
        incorporated in a tax haven country but the United 
        States is the principal market for the public trading 
        of the corporation's stock.
          (b) Definition.--For purposes of subsection (a), the 
        term ``tax haven country'' means each of the following: 
        Barbados, Bermuda, British Virgin Islands, Cayman 
        Islands, Commonwealth of the Bahamas, Cyprus, 
        Gibraltar, Isle of Man, and Principality of 
        Liechtenstein, the Principality of Monaco and the 
        Republic of the Seychelles.
          (c) Waiver.--The President may waive subsection (a) 
        with respect to any specific contract if the President 
        certifies to the Appropriations Committees that the 
        waiver is required in the interest of national 
        security.

         Statement of General Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the following is a statement of 
general performance goals and objectives for which this measure 
authorizes funding:
    The Committee on Appropriations considers program 
performance, including a program's success in developing and 
attaining outcome-related goals and objectives, in developing 
funding recommendations.

         Compliance With Clause 3 of Rule XIII (Ramseyer Rule)

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

     SECTION 375 OF THE CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT

SEC. 375. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

    (a) * * *

           *       *       *       *       *       *       *

    (e) Revolving Fund.--
          (1) * * *

           *       *       *       *       *       *       *

          (6) Funding.--
                  (A) * * *
                  (B) Mandatory funds.--Out of any moneys in 
                the Treasury not otherwise appropriated, the 
                Secretary of the Treasury shall provide to the 
                Center not to exceed [$26,000,000] $27,000,000 
                to carry out this section.

           *       *       *       *       *       *       *


                  Appropriations Not Authorized By Law

    Pursuant to clause 3(f)(1)(B) of rule XIII of the Rules of 
the House of Representatives, the following table lists the 
appropriations in the accompanying bill which are not 
authorized by law:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                 Appropriations
    Program and last year of authorization           Authorization level        in last year of   Appropriations
                                                                                 authorization     in this bill
----------------------------------------------------------------------------------------------------------------
The following programs are not currently
 authorized by law:
USDA:
    Compact of Free Association Act of 1985:
        Food and Nutrition Service:
            Food Donations Program:
                Commodity Assistance to
                 Nuclear Affected.
                    Islands: FY 2001.........  Indefinite                                 1,081            1,081
The following programs are funded in this
 bill at levels that exceed those currently
 authorized by law:
USDA:
    Farm Service Agency:
        Direct Farm Loans:
            Operating........................  565,000                                       NA          600,000
----------------------------------------------------------------------------------------------------------------
\1\ This program has never been authorized. It was initially funded in FY 2001 at $2 million.

                              Rescissions

    Pursuant to clause 3(f)(2) of rule XIII of the Rules of the 
House of Representatives, the following information is 
submitted describing the rescissions recommended in the 
accompanying bill:
    The bill proposes rescission of $3,197,000 of funds derived 
from interest on the cushion of credit payments in fiscal year 
2003 under the Rural Economic Development Loans Program 
Account, which is an annual technical adjustment contained in 
the budget estimates.
    The bill includes a rescission of $5,000,000 of unobligated 
balances available at the beginning of fiscal year 2003 for the 
experimental Rural Clean Water Program authorized under the 
headings ``Agricultural Stabilization and Conservation 
Service--Rural Clean Water Program'' in Public Law 96-108 (93 
Stat. 835) and Public Law 96-528 (94 Stat. 3111).

                   Comparison With Budget Resolution

    Clause 3(c)(2) of Rule XIII of the Rules of the House of 
Representatives requires an explanation of compliance with 
section 308(a)(1)(A) of the Congressional Budget and 
Impoundment Control Act of 1974 (Public Law 93-344), as 
amended, which requires that the report accompanying a bill 
providing new budget authority contain a statement detailing 
how that authority compares with the reports submitted under 
section 302 of the Act for the most recently agreed to 
concurrent resolution on the budget for the fiscal year from 
the Committee's section 302(a) allocation. This information 
follows:

                                            [In millions of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                     302(b) allocation           This bill
                                                                 -----------------------------------------------
                       Full committee data                          Budget                  Budget
                                                                   authority    Outlays    authority    Outlays
----------------------------------------------------------------------------------------------------------------
Comparison with Budget Resolution:
    Discretionary...............................................     $17,601     $17,907     $17,601     $17,581
    Mandatory...................................................      14,096      15,310      14,096      15,310
                                                                 -----------------------------------------------
      Total.....................................................      31,697      33,217      31,697      32,891
----------------------------------------------------------------------------------------------------------------

                      Five-Year Outlay Projections

    In compliance with section 308(a)(1)(B) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the following table contains 
five-year projections associated with the budget authority 
provided in the accompanying bill:

             [Five year projections, in millions of dollars]
Budget Authority......................................           $74,306
Outlays:
    2003..............................................            46,932
    2004..............................................             8,669
    2005..............................................               892
    2006..............................................               391
    2007 and beyond...................................               598


    The bill provides no new revenues or tax expenditures, and 
will have no effect on budget authority, budget outlays, 
spending authority, revenues, tax expenditures, direct loan 
obligations, or primary loan guarantee commitments available 
under existing law for fiscal year 2003 and beyond.

               Assistance to State and Local Governments

    In accordance with section 308(a)(1)(C) of the 
Congressional Budget and Impoundment Control Act of 1974 
(Public Law 93-344), as amended, the financial assistance to 
state and local governments is as follows:


                        [In millions of dollars]
New budget authority..................................           $21,656
Fiscal year 2003 outlays resulting therefrom..........            17,878


                     Program, Project, and Activity

    During fiscal year 2003, for purposes of the Balanced 
Budget and Emergency Deficit Control Act of 1985 (Public Law 
99-177), the following information provides the definition of 
the term ``program, project, and activity'' for departments and 
agencies under the jurisdiction of the Agriculture, Rural 
Development, Food and Drug Administration, and Related Agencies 
Subcommittee. The term ``program, project, and activity'' shall 
include the most specific level of budget items identified in 
the Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act of 
2003, the House and Senate Committee reports, and the 
conference report and accompanying joint explanatory statement 
of the managers of the committee of conference.
    If a Sequestration Order is necessary, in implementing the 
required Presidential Order, departments and agencies shall 
apply any percentage reduction for fiscal year 2003 pursuant to 
the provisions of Public Law 99-177 to all items specified in 
the explanatory notes submitted to the Committees on 
Appropriations of the House and Senate in support of the fiscal 
year 2003 budget estimates, as amended, for such departments 
and agencies, as modified by congressional action, and in 
addition:
    For the Agricultural Research Service the definition shall 
include specific research locations as identified in the 
explanatory notes and lines of research specifically identified 
in the reports of the House and Senate Appropriations 
Committees.
    For the Natural Resources Conservation Service the 
definition shall include individual flood prevention projects 
as identified in the explanatory notes and individual 
operational watershed projects as summarized in the notes.
    For the Farm Service Agency the definition shall include 
individual state, district, and county offices.
                          Full Committee Votes

    Pursuant to the provisions of clause 3(b) of rule XIII of 
the House of Representatives, the results of each roll call 
vote on an amendment or on the motion to report, together with 
the names of those voting for and those voting against, are 
printed below:



                                
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