[House Report 108-193]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    108-193

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



 
   AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND 
               RELATED AGENCIES APPROPRIATIONS BILL, 2004

                                _______
                                

  July 9, 2003.--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

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 2673]

    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 2004.



88-185




                     TITLE I--AGRICULTURAL PROGRAMS

                 Production, Processing, and Marketing

                        Office of the Secretary

2003 appropriation......................................      $3,320,000
2004 budget estimate....................................      10,068,000
Provided in the bill....................................       3,468,000
Comparison:
    2003 appropriation..................................        +148,000
    2004 budget estimate................................      -6,600,000

                          COMMITTEE PROVISIONS

    For the Office of the Secretary, the Committee provides an 
appropriation of $3,468,000, an increase of $148,000 above the 
amount available for fiscal year 2003 and a decrease of 
$6,600,000 below the budget request.
    The Committee does not recommend $6,600,000 as proposed in 
the budget for cross-cutting trade negotiations and 
biotechnology resources in the Office of the Secretary. The 
Committee has provided $4,000,000 in the APHIS account, 
$2,000,000 in the FAS account, and $600,000 to GIPSA for these 
activities.
    Assessment of Conservation Programs.--The Committee directs 
the Secretary to conduct an assessment of all Farm Bill 
conservation programs in order to obtain quantifiable data on 
water quality, soil enhancements, air quality, and wildlife 
enhancements. The Committee encourages the Secretary to include 
state natural resource agencies and local units of government, 
educational institutions, and nonprofit organizations in 
conducting the monitoring and evaluation of these programs.
    Tree Assistance.--The Committee is aware that Western New 
York fruit orchards sustained major fruit tree damage as a 
result of a three-day April ice storm earlier this year. An 
estimated 85% of the tart cherry trees in Wayne County, New 
York were severely damaged or destroyed and significant damage 
was also incurred by the sweet cherry, peach, pear, apple and 
plum trees in the region. New York is the third largest 
producer of tart cherries in the nation and Wayne County is the 
largest cherry-producing county in New York State so these 
losses will have a significant long-term deleterious impact on 
the fruit tree industry in New York State. While this region 
has been declared a federal disaster area and farmers have 
received some assistance through the Federal Emergency 
Management Agency, additional federal assistance is greatly 
needed to cover the expenses of removing the ruined trees and 
replanting the orchards for tart cherries and other tree 
fruits. The 2002 Farm Bill provides for such assistance through 
the Tree Assistance Program. In addition, New York farmers will 
incur an estimated $15 million in market losses to their fruit 
tree crops as it takes new orchards eight years to mature.
    The Committee is sympathetic to the plight of tree fruit 
farmers in New York State and the Committee encourages the 
Secretary to take appropriate measures, including the use of 
funds under the Commodity Credit Corporation to provide 
assistance under the Tree Assistance Program for farmers who 
have suffered tree losses in 2003 as a result of a natural 
disaster in a federally declared disaster area.
    Productivity of the tree fruit industry.--The Committee 
encourages the Department to continue to work closely with the 
tree fruit industry to complete the Technology Roadmap process 
and develop a national research strategy. The Committee expects 
the Department to submit a strategic plan as soon as practical, 
but not later than November 30, 2003, that includes suggestions 
for future research initiatives, based on strong public/private 
collaborations.
    Bovine Genome.--The Committee recognizes the importance of 
the ongoing efforts by the Department, state, and local 
governments, universities, industry groups, and the private 
sector, to map the bovine genome. The Committee directs USDA to 
continue to provide discretionary funding to reach this goal. 
All funds expended for this purpose shall be used in a direct 
cooperative effort with the National Institutes of Health.
    State Office Collocation.--The Committee continues to 
direct that any reallocation of resources related to the 
collocation of state offices scheduled for 2003 and subsequent 
years is subject to the Committee's reprogramming procedures. 
The Committee notes that no such reprogramming requests have 
been received to date.
    Ralstonia.--The Committee notes that the Secretary of 
Agriculture has initiated emergency actions during FY 2003 to 
ensure the eradication of the disease Ralstonia solanacearum, 
Race 3, Biovar 2, which is of great concern to U.S. 
agriculture, including ornamentals growers, the potato 
industry, and others. The Committee encourages the Secretary of 
Agriculture to continue to use existing authority to fund this 
initiative, and to establish a compensation program for persons 
suffering from losses as a result of the eradication and 
control efforts related to this disease.
    Competitive Sourcing.--The Committee is aware of new 
opportunities to contract with certified third parties for 
providing conservation program technical assistance. The 
Committee believes that the use of these technical service 
providers is consistent with the competitive sourcing 
objectives of the Department, and directs the Secretary to 
count utilization of technical service providers toward the 
NRCS competitive sourcing goals.
    Urban Encroachment.--The Committee continues to recognize 
the major difficulties created by the encroachment of urban 
areas on rural areas that are also sensitive environmental 
areas. The Committee believes there is a need to develop a more 
comprehensive and integrated view of transportation, land use 
by commercial, residential, agricultural and public entities, 
and conservation of agricultural and environmental areas. The 
Committee directs the Secretary to develop a proposal, and 
identify pilot projects, for such a comprehensive program, in 
partnership with State or local government agencies, fully 
utilizing and coordinating the Farm Service Agency and Natural 
Resources Conservation Service authorities and discretion in 
order to achieve this important objective in Orange and 
Riverside Counties in California.
    Administrative Provision.--The Committee directs the 
Secretary to advise the Committees on Appropriations in writing 
of the status of all reports requested of the Department in 
this bill, at the time of submission of the FY 2005 budget and 
quarterly thereafter.
    Lamb Meat Adjustment Assistance Program.--The Committee 
commends the Department on the success achieved with the Lamb 
Meat Adjustment Assistance Program. However, the Committee also 
recognizes that the ewe lamb expansion portion was curtailed as 
a result of the serious drought conditions throughout the U.S. 
The Committee encourages the Department to continue this 
portion of the program for an additional year through the use 
of Section 32 funds.
    Quality Grading.--The Committee directs the Department to 
submit a report detailing the practice of quality grading 
foreign and domestic lamb, beef, and pork carcasses, and the 
use of the USDA Quality Shield in this process.
    Insular Areas.--The Committee is concerned that the fiscal 
year 2004 budget request did not include any funds to implement 
the Resident Instruction and Distance Education Grants Program 
for Insular Area Institutions of Higher Education, authorized 
by section 7501 of Public Law 107-171. The needs of 
institutions of higher education in U.S. territories are 
unique, and are deserving of consideration. The Committee 
encourages the Secretary to provide within existing authority 
such assistance to these institutions as may be appropriate, 
and to provide to the Committee prior to the fiscal 2005 
hearings a report describing what steps are being taken to 
respond to these needs.

                          Executive Operations


                     OFFICE OF THE CHIEF ECONOMIST




2003 appropriation....................................        $8,510,000
2004 budget estimate..................................        12,264,000
Provided in the bill..................................         8,716,000
Comparison:
    2003 appropriation................................          +206,000
    2004 budget estimate..............................        -3,548,000


                          COMMITTEE PROVISIONS

    For the Office of the Chief Economist, the Committee 
provides an appropriation of $8,716,000, an increase of 
$206,000 above the amount available for fiscal year 2003 and a 
decrease of $3,548,000 below the budget request.
    Biofuels.--The Committee expects the Department to develop 
and initiate a comprehensive program for providing assistance 
for the marketing of value-added products, including biofuels. 
Further, the Department is directed to provide a report with 
respect to this action.

                       NATIONAL APPEALS DIVISION




2003 appropriation....................................       $13,670,000
2004 budget estimate..................................        14,242,000
Provided in the bill..................................        13,670,000
Comparison:
    2003 appropriation................................             - - -
    2004 budget estimate..............................          -572,000


                          COMMITTEE PROVISIONS

    For the National Appeals Division, the Committee provides 
an appropriation of $13,670,000, the same as the amount 
available for fiscal year 2003 and a decrease of $572,000 below 
the budget request.

                 OFFICE OF BUDGET AND PROGRAM ANALYSIS




2003 appropriation....................................        $7,270,000
2004 budget estimate..................................         7,980,000
Provided in the bill..................................         7,749,000
Comparison:
    2003 appropriation................................          +479,000
    2004 budget estimate..............................          -231,000


                          COMMITTEE PROVISIONS

    For the Office of Budget and Program Analysis, the 
Committee provides an appropriation of $7,749,000, an increase 
of $479,000 above the amount available for fiscal year 2003 and 
a decrease of $231,000 below the budget request.

                           HOMELAND SECURITY




2003 appropriation....................................             - - -
2004 budget estimate..................................        $1,479,000
Provided in the bill..................................             - - -
Comparison:
    2003 appropriation................................             - - -
    2004 budget estimate..............................        -1,479,000


                          COMMITTEE PROVISIONS

    The Committee does not recommend funding for this account.

                Office of the Chief Information Officer





2003 appropriation....................................       $14,993,000
2004 budget estimate..................................        31,334,000
Provided in the bill..................................        14,993,000
Comparison:
    2003 appropriation................................             - - -
    2004 budget estimate..............................       -16,341,000


                          COMMITTEE PROVISIONS

    For the Office of the Chief Information Officer, the 
Committee provides an appropriation of $14,993,000, the same as 
the amount available for fiscal year 2003 and a decrease of 
$16,341,000 below the budget request.

                      Common Computing Environment





2003 appropriation....................................      $132,289,000
2004 budget estimate..................................       177,714,000
Provided in the bill..................................       133,155,000
Comparison:
    2003 appropriation................................          +866,000
    2004 budget estimate..............................       -44,559,000



                          COMMITTEE PROVISIONS

    For the Common Computing Environment, the Committee 
provides an appropriation of $133,155,000, an increase of 
$866,000 above the amount available in fiscal year 2003 and a 
decrease of $44,559,000 below 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.

                 Office of the Chief Financial Officer





2003 appropriation....................................        $5,496,000
2004 budget estimate..................................         7,902,000
Provided in the bill..................................         5,785,000
Comparison:
    2003 appropriation................................          +289,000
    2004 budget estimate..............................        -2,117,000


                          COMMITTEE PROVISIONS

    For the Office of the Chief Financial Officer, the 
Committee provides an appropriation of $5,785,000, an increase 
of $289,000 above the amount available for fiscal year 2003 and 
a decrease of $2,117,000 below 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 is aware that the National Finance Center's 
(NFC) proposal for e-payroll consolidation was rated the 
highest in the competition held by the Office of Management and 
Budget and the Office of Personnel Management. The Committee 
believes that the NFC's demonstrated ability to provide a high 
level of service while operating on a fee-for-service basis 
provides a significant opportunity to utilize a public/private 
partnership to provide private investment and share risk in the 
modernization of systems and infrastructure creation for e-
payroll. The Committee encourages the USDA to utilize the NFC 
to create a public/private partnership, such as the one that 
the State of Louisiana, private industry, and a consortium of 
academic institutions has developed, to help leverage scarce 
Federal resources to continue the modernization and development 
of Federal government wide e-payroll functions.
    In the reports accompanying its fiscal year 2001, 2002 and 
2003 bills, the Committee addressed the issue of contracting 
out. The Committee noted its concerns about the potential cost 
benefit impact of contracting out and about the needs of 
customers in programs such as those of the Rural Development 
Services and the Farm Service Agency.
    The Committee also directed the Department each year to 
submit a report concurrent with the Department's annual budget 
submission for the following fiscal year, ``on its contracting 
out policies, including agency budgets for contracting out.'' 
The Department has failed to comply with this directive for 
three years.
    The Committee intends its directives to be carried out by 
the Department. The reports it requested are essential to the 
Committee conducting its oversight responsibilities. Because of 
the Department's failure to comply with the Committee's 
directives and the importance of this information to the 
performance of the Committee's oversight responsibilities, the 
Committee has included bill language requiring the submission 
of a report on contracting out policies and agency budgets, 
prior to the use of any funds appropriated to the Office of the 
Chief Financial Officer for FAIR Act or Circular A-76 
activities.

                          Working Capital Fund





2003 appropriation....................................       $11,922,000
2004 budget estimate..................................             - - -
Provided in the bill..................................             - - -
Comparison:
    2003 appropriation................................       -11,922,000
    2004 budget estimate..............................             - - -


                          COMMITTEE PROVISIONS

    The fiscal year 2003 Agriculture Appropriations Act 
included $11,922,000 for remote mirroring backup technology. 
Before those funds may be expended, the USDA is required to 
submit, and the Committees on Appropriations must approve, a 
feasibility study on the need for remote mirroring backup 
technology of the National Finance Center's data. The Committee 
strongly encourages the Department to submit this report, so 
that a decision can be made on the use of these funds.

           Office of the Assistant Secretary for Civil Rights





2003 appropriation....................................          $397,000
2004 budget estimate..................................           808,000
Provided in the bill..................................           397,000
Comparison:
    2003 appropriation................................             - - -
    2004 budget estimate..............................          -411,000


                          COMMITTEE PROVISIONS

    For the Office of the Assistant Secretary for Civil Rights, 
the Committee provides an appropriation of $397,000, the same 
as the amount provided in fiscal year 2003 and a decrease of 
$411,000 below the budget request.

          Office of the Assistant Secretary for Administration





2003 appropriation....................................          $660,000
2004 budget estimate..................................           793,000
Provided in the bill..................................           678,000
Comparison:
    2003 appropriation................................           +18,000
    2004 budget estimate..............................          -115,000


                          COMMITTEE PROVISIONS

    For the Office of the Assistant Secretary for 
Administration, the Committee provides an appropriation of 
$678,000, an increase of $18,000 above the amount available for 
fiscal year 2003 and a decrease of $115,000 below the budget 
request.

        Agriculture Buildings and Facilities and Rental Payments





2003 appropriation....................................      $186,879,000
2004 budget estimate..................................       199,332,000
Provided in the bill..................................       156,891,000
Comparison:
    2003 appropriation................................       -29,988,000
    2004 budget estimate..............................       -42,441,000


                          COMMITTEE PROVISIONS

    For Agriculture Buildings and Facilities and Rental 
Payments to GSA, the Committee provides an appropriation of 
$156,891,000, a decrease of $29,988,000 below the amount 
available for fiscal year 2003 and a decrease of $42,441,000 
below the budget request.
    Included in this amount is $124,332,000 for rental payments 
to GSA.
    The following table represents the Committee's specific 
recommendations for this account:

        Agriculture Buildings and Facilities and Rental Payments


                        [In thousands of dollars]

                                    2003     2004 budget     Committee
                                  estimate      request   recommendation

Rental Payments...............     $120,796     $124,332        $124,332
Building Operations...........       32,327       41,000          32,559
Strategic Space Plan..........       33,756       34,000           - - -
                               -----------------------------------------
      Total...................      186,879      199,332         156,891


                     Hazardous Materials Management





2003 appropriation....................................       $15,583,000
2004 budget estimate..................................        15,713,000
Provided in the bill..................................        15,713,000
Comparison:
    2003 appropriation................................          +130,000
    2004 budget estimate..............................             - - -


                          COMMITTEE PROVISIONS

    For Hazardous Materials Management, the Committee provides 
an appropriation of $15,713,000, an increase of $130,000 above 
the amount available for fiscal year 2003 and the same amount 
as the budget request.

                      Departmental Administration





2003 appropriation....................................       $37,629,000
2004 budget estimate..................................        45,128,000
Provided in the bill..................................        38,592,000
Comparison:
    2003 appropriation................................          +963,000
    2004 budget estimate..............................        -6,536,000


                          COMMITTEE PROVISIONS

    For Departmental Administration, the Committee provides an 
appropriation of $38,592,000, an increase of $963,000 above the 
amount available for fiscal year 2003 and a decrease of 
$6,536,000 below the budget request.

     Office of the Assistant Secretary for Congressional Relations





2003 appropriation....................................        $3,796,000
2004 budget estimate..................................         4,186,000
Provided in the bill..................................         3,796,000
Comparison:
    2003 appropriation................................             - - -
    2004 budget estimate..............................          -390,000


                          COMMITTEE PROVISIONS

    For the Office of the Assistant Secretary for Congressional 
Relations, the Committee provides an appropriation of 
$3,796,000, the same as the amount available for fiscal year 
2003 and a decrease of $390,000 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 2003, 
the notification on the allocation of these funds was received 
on May 19, 2003, and has therefore, included bill language 
addressing this issue.

                        Office of Communications





2003 appropriation....................................        $9,031,000
2004 budget estimate..................................        10,084,000
Provided in the bill..................................         9,245,000
Comparison:
    2003 appropriation................................          +214,000
    2004 budget estimate..............................          -839,000


                          COMMITTEE PROVISIONS

    For the Office of Communications, the Committee provides an 
appropriation of $9,245,000, an increase of $214,000 above the 
amount available for fiscal year 2003 and a decrease of 
$839,000 below the budget request.
    The Committee directs the Office of Communications to 
provide to the Committee on Appropriations in electronic 
format, copies of any open source news material made available 
to USDA officials that is purchased or otherwise obtained using 
appropriated funds, amending licenses as necessary.

                      Office of Inspector General





2003 appropriation....................................       $73,417,000
2004 budget estimate..................................        81,895,000
Provided in the bill..................................        77,314,000
Comparison:
    2003 appropriation................................        +3,897,000
    2004 budget estimate..............................        -4,581,000


                          COMMITTEE PROVISIONS

    For the Office of Inspector General (OIG), the Committee 
provides an appropriation of $77,314,000, an increase of 
$3,897,000 above the amount available for fiscal year 2003, and 
a decrease of $4,581,000 below the budget request. The 
Committee recommendation includes the full amount requested for 
information technology investments.

                     Office of the General Counsel





2003 appropriation....................................       $34,700,000
2004 budget estimate..................................        37,328,000
Provided in the bill..................................        34,700,000
Comparison:
    2003 appropriation................................             - - -
    2004 budget estimate..............................        -2,628,000


                          COMMITTEE PROVISIONS

    For the Office of the General Counsel, the Committee 
provides an appropriation of $34,700,000, the same as the 
amount available in fiscal year 2003 and a decrease of 
$2,628,000 below the budget request.

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





2003 appropriation....................................          $584,000
2004 budget estimate..................................           792,000
Provided in the bill..................................           597,000
Comparison:
    2003 appropriation................................           +13,000
    2004 budget estimate..............................          -195,000


                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Research, 
Education, and Economics, the Committee provides an 
appropriation of $597,000, an increase of $13,000 above the 
amount available for fiscal year 2003 and a decrease of 
$195,000 below the budget request.
    Agro-terrorism research.--The Committee is familiar with 
potential agro/bioterrorism vulnerabilities, from animal and 
plant diseases to food chain introductions. While some agro-
terrorism research is already being done by the Department of 
Agriculture, the Committee is aware of the need for more such 
research, particularly in the areas of threats to field crops, 
farm animals, and food in the processing and distribution 
chain. The Homeland Security Act of 2002 provides for 
coordination of research between the Department of Homeland 
Security (DHS) and other relevant federal agencies in various 
areas of research. Because the Department of Agriculture (USDA) 
already possesses mechanisms, authorities, and personnel to 
carry out needed agro/bioterrorism research, the Committee 
expects to see effective coordination between the USDA and the 
DHS to move such research forward in an effective and 
expeditious fashion. The Committee expects USDA to coordinate 
with DHS to identify research gaps and develop a plan, to 
include research priorities, for proceeding to fill such gaps. 
Further, the Committee expects that non-government entities 
selected to carry out research will be ones with proven 
expertise in agriculture research, and strong familiarity with 
USDA animal and plant diagnostic laboratories and practices.
    Proposed project terminations.--Research budgets submitted 
by the Department reflect a continuing disregard for 
Congressional program priorities. The Committee has made it 
clear on a number of occasions that the role of Congress in 
identifying essential agricultural needs of this Nation will be 
maintained. Agricultural research projects of regional and 
national priority will be funded. There has been no adequate 
justification presented to the Committee to support proposed 
project terminations. The Committee urges the Under Secretary 
to end the recycling of proposed terminations which have 
already been rejected by the Congress. Should similar proposals 
be submitted again in the budget for fiscal year 2005, the 
Committee will expect the Under Secretary to explain and defend 
each proposed termination in detail during the fiscal year 2005 
hearings.

                       Economic Research Service





2003 appropriation....................................       $68,674,000
2004 budget estimate..................................        76,657,000
Provided in the bill..................................        71,402,000
Comparison:
    2003 appropriation................................        +2,728,000
    2004 budget estimate..............................        -5,255,000


                          COMMITTEE PROVISIONS

    For the Economic Research Service, the Committee provides 
an appropriation of $71,402,000, an increase of $2,728,000 
above the amount available for fiscal year 2003 and a decrease 
of $5,255,000 below the budget request.
    The Committee provides the requested increase of $1,000,000 
for development of an expanded Security Analysis System for 
U.S. Agriculture (SAS-USA). This is a scenario-based decision 
system, which will aid in evaluating threats to the food 
system.
    The Committee recommendation also includes $500,000 to 
analyze available data to be newly compiled on organic and 
other differentiated products' production, marketing, and 
trade. This information will benefit a broad range of producers 
on the performance of agricultural and food markets that are 
differentiated by certification, type, process, or geographical 
location of production.
    The Committee urges the Economic Research Service to 
complete its work with North Carolina State University on the 
construction of an improved measure of net returns for the 
broiler industry. The Committee understands that a meeting is 
scheduled for August 2003 to consider the viability of the net 
returns series for broilers as well as other livestock 
products. ERS should take industry viewpoints into account in 
assessing whether to modify or halt calculation of the net 
return series.

                National Agricultural Statistics Service





2003 appropriation....................................      $138,448,000
2004 budget estimate..................................       136,182,000
Provided in the bill..................................       129,800,000
Comparison:
    2003 appropriation................................        -8,648,000
    2004 budget estimate..............................        -6,382,000


                          COMMITTEE PROVISIONS

    For the National Agricultural Statistics Service, the 
Committee provides an appropriation of $129,800,000, a decrease 
of $8,648,000 below the amount available in fiscal year 2003 
and a decrease of $6,382,000 below the budget request.
    The Committee recommendation includes an increase of 
$5,410,000, as requested, for Agricultural Estimates to ensure 
that the estimates are of a sufficient precision, quality, and 
detail to meet the needs of all customers. All segments of the 
agriculture industry, including State and Federal components, 
base business decisions on NASS estimates, making data quality 
a high priority. The amount provided also funds restoration of 
activities related to objective yield estimates and area 
segment rotation.
    Included in this amount is $25,279,000 for the Census of 
Agriculture, as requested. The Census of Agriculture collects 
and provides comprehensive data on all aspects of the 
agricultural economy.

                     Agricultural Research Service





2003 appropriation....................................    $1,035,130,000
2004 budget estimate..................................       987,303,000
Provided in the bill..................................     1,014,000,000
Comparison:
    2003 appropriation................................       -21,130,000
    2004 budget estimate..............................       +26,697,000


                          COMMITTEE PROVISIONS

    Salaries and expenses.--For salaries and expenses of the 
Agricultural Research Service, the Committee provides an 
appropriation of $1,014,000,000, a decrease of $21,130,000 
below the amount available for fiscal year 2003 and an increase 
of $26,697,000 above the budget request.
    The following table reflects the amount provided by the 
Committee:
    Advanced animal vaccines.--There is a continuing need to 
develop new technologies to mitigate the adverse impacts of 
disease on cattle, poultry, and swine. 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 $300,000 in fiscal year 2004 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.
    Air quality.--Many urban areas in the Columbia Plateau are 
experiencing concentrations of size 10 microns and small 
particulates exceeding Federal standards due in part to wind 
erosion generated from agricultural operations. The Committee 
provides an increase of $250,000 in fiscal year 2004 to the ARS 
Wind Erosion Laboratory at Pullman, Washington for increased 
PM-10 air quality programs for the purpose of meeting the 
requirements of the Clean Air Act of 1990.
    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 directs ARS to continue its support 
of animal welfare activities at the fiscal year 2003 level.
    Aquaculture feeds.--Idaho is a leader in the national 
aquaculture industry, producing over 70 percent of the nation's 
commercially grown rainbow trout. The Committee recognizes the 
need to develop grain-based, low-pollution fish feeds needed by 
the industry to allow the continued economic production of 
rainbow trout while meeting new regulations concerning the 
aquatic environment. The Committee provides an additional 
$300,000 in fiscal year 2004 to ARS' Aberdeen, ID research 
station to carry out this program.
    Arbovirus vaccine strains.--The Committee supports the 
Department's initiative to conduct emerging diseases of 
livestock. There is an urgent need to develop biological and 
proteomic approaches for the development of vaccines to control 
major classes of arbovirus. The Committee provides an addition 
of $300,000 for fiscal year 2004 for this research at the ARS 
research station at Laramie, WY.
    Asian longhorned beetle/emerald ash borer.--The Committee 
continues to be alarmed about the devastation caused by these 
invasive pests. The Asian longhorned beetle is perhaps the most 
economically harmful invasive pest to enter this country and 
capable of causing tens of billions of dollars to forests, 
parks and residential areas. The Committee provides $300,000 
over the fiscal year 2003 level for biological control research 
at the ARS Newark, DE laboratory.
    Barley food health.--The Committee directs that research 
carried out by ARS to investigate the benefits of barley foods 
to human health be maintained at fiscal year 2003 funding 
levels.
    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 2003 level.
    Binational agriculture research and development.--The 
Committee supports the important research carried out through 
the binational agriculture research and development program and 
provides funding at the same level as in fiscal year 2003.
    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 program be maintained 
at the fiscal year 2003 level.
    Bovine genetics.--The Committee recognizes the importance 
of ongoing research on biotechnology and genetics in cattle 
jointly carried out by ARS, the University of Connecticut and 
the University of Illinois. The Committee provides an increase 
of $600,000 to expand studies to improve efficiencies of clones 
and establish cell lines from elite cows and bulls for cloning.
    Broomweed biological controls.--The Committee understands 
that increased infestations of exotic brooms and gorse weeds 
are causing serious economic and environmental losses to 
agriculture and rangelands in the Western United States. The 
Committee provides an increase of $300,000 in fiscal year 2004 
to the ARS research laboratory at Albany, California to develop 
new biological control methods for management of exotic brooms 
and gorse weeds infestations in the Western United States.
    Cereal disease research.--Wheat and barley research 
conducted at the ARS Cereal Disease Laboratory, St. Paul, MN 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 
$50,000 in fiscal 2004 to support this research.
    Children's Nutrition Center, Little Rock, AR.--The Center 
has not reached its full research potential in terms of 
optimizing the nutrition and health studies of children from 
conception to adolescence. While research on brain development 
and remodeling, and dietary factors affecting the health of 
children are fully operational, others areas of research such 
as bone development and enhancement of immune function are not 
fully realized. The Committee provides an increase of $250,000 
in fiscal year 2004 to the Children's Human Nutrition Center at 
Little Rock, AR for expanded research aimed at reaching the 
Center's full research potential.
    Chronic diseases of children.--The Committee has provided 
an additional $425,000 for the Children's Nutrition Research 
Center at Houston, TX for an ongoing, cooperative research 
project with Baylor University and the Peanut Institute to 
examine ways to affect the onset of chronic diseases and the 
growing problem of overweight children.
    Citrus waste utilization.--Developing alternative value-
added uses of citrus peel and pulp has the potential to enhance 
Florida citrus industry's competitiveness in world markets 
while reducing the environmental impact of disposing waste 
peel. Currently, citrus peel and pulp are dumped as refuse or 
processed into low grade cattle feed. The Committee provides an 
increase of $400,000 in fiscal year 2004 to the ARS Winter 
Haven Research Laboratory for collaborative research with the 
Florida Department of Citrus--Lake Alfred on the alternative 
commercial utilization of citrus wastes.
    Coffee and cocoa research.--The Committee continues the 
same level of funding in fiscal year 2004 for alternative crop 
research 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 
2004 at the same funding level provided in fiscal year 2003: 
Aerial Application Research, College Station, TX; Aflatoxin in 
Cotton, Phoenix, AZ; Animal Health Consortium, Peoria, IL; 
Animal Vaccines; Animal Welfare Information Center; Aquaculture 
Density Research, Stuttgart, AR; Aquaculture Fisheries Center, 
Pine Bluff, AR; Aquaculture Initiative for Mid-Atlantic 
Highlands, Leetown, WV; Aquaculture Initiatives, Harbor Branch 
Oceanographic Institute, Stuttgart, AR; Arkansas Children's 
Nutrition Center, Little Rock, AR; Asian Bird Influenza, 
Athens, GA; Avian Pneumovirus, Athens, GA; Barley Food Health 
Benefits, Beltsville, MD; Bee Research, Logan, UT; Bee 
Research, Weslaco, TX; Binational Agricultural Research and 
Development Program; Biological Controls and Agricultural 
Research, Gainesville, FL; Biomineral Soil Amendments for 
Control of Nematodes, Beltsville, MD; Biotechnology Research 
and Development Corp., Peoria, IL; Bovine Genetics, Beltsville, 
MD; Cereal Crops Research, Madison, WI; Cereal Disease 
Research, St. Paul, MN; Chloroplast Genetic Engineering 
Research, Urbana, IL; Citrus and Horticultural Research, Ft. 
Pierce, FL; Coffee and Cocoa Research; Conservation Research, 
Pendleton, OR; Corn Germplasm, Ames, IA; Crop Production and 
Food Processing, Peoria, IL; Dairy Forage, Madison, WI; Dairy 
Genetics, Beltsville, MD; Diet and Immune Function, Little 
Rock, AR; Endophyte Research, Booneville, AR; Floriculture and 
Nursery Crops; Food Safety for Listeria and E. coli; Formosan 
Subterranean Termites, New Orleans, LA; Foundry Sand By-
Products, Beltsville, MD; Ft. Pierce Horticultural Research 
Laboratory, Ft. Pierce, FL; Golden Nematode, Ithaca, NY; Grain 
Legume Plant Pathologist Position, Pullman, WA; Grand Forks 
Human Nutrition Laboratory, Grand Forks, ND; Grape Genetics, 
Geneva, NY; Grape Rootstock, Geneva, NY; Grapefruit Juice/Drug 
Interaction, Winter Haven, FL; Great Basins Rangeland; 
Greenhouse Hydroponics Research, Wooster, OH; Greenhouse 
Lettuce Germplasm, Salinas, CA; Harry Dupree National 
Aquaculture Research Center, Stuttgart, AR; Harvesting Research 
for Sugarcane, Houma, LA; Honey Bee Research, Baton Rouge, LA; 
Hops Research, Corvallis, OR; Improved Animal Waste Management, 
Florence, SC; Improved Crop Production Practices, Auburn, AL; 
Karnal Bunt, Manhattan, KS; Lettuce Geneticist/Breeder, 
Salinas, CA; Malignant Catarrhal Fever (MCF) Virus, Pullman, 
WA; Manure Management Research, Ames, IA; Mid-West/Mid-South 
Irrigation, Columbia, MO; Minor Use Pesticide (IR-4); Mosquito 
Trapping Research/West Nile Virus, Gainesville, FL; National 
Germplasm Resources Program; National Soil Dynamics Laboratory, 
Auburn, AL; Nematology Research, Tifton, GA; Nutritional 
Requirements, Houston, TX; NW Small Fruits Research, Corvallis, 
OR; Olive Fruit Fly; Organic Minor Crop Research, Salinas, CA; 
Ornamental and Horticulture Research, Ithaca, NY; Pasture 
Systems and Watershed Management, University Park, PA; Pecan 
Scab Research, Byron, GA; Phytoestrogen Research, New Orleans, 
LA; Pierce's Disease; Post-harvest and Controlled Atmosphere 
Chamber (Lettuce), Salinas, CA; Potato Breeding Research, 
Aberdeen, ID; Potato Research Enhancement, Prosser, WA; Poult 
Enterititis-Mortality Syndrome (PEMS), Athens, GA; Poultry 
Disease (Avian Coccidiosis), Beltsville, MD; Poultry Disease 
(Avian Leukosis-J Virus); Poultry Disease, Athens, GA; Quantify 
Basin Water Budget Components in the Southwest, Tucson, AZ; 
Rainbow Trout, Leetown, WV; Rangeland Resource Management, 
Cheyenne, WY; Rangeland Resources Research, Las Cruces, NM; 
Regional Grains Genotyping Research, Raleigh, NC; 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; Seismic and Acoustic 
Technologies in Soils, Sedimentation Laboratory, Oxford, MS; 
Shellfish Genetics, Newport, OR; Small Farms, Booneville, AR; 
Soil Tilth Research, Ames, IA; Sorghum Research; Source Water 
Protection; 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 Research, Canal Point, FL; 
Sustainable Olive Production, Weslaco, TX; Sustainable Vineyard 
Practices Research, Davis, CA; Sustainable Viticulture 
Research, Davis, CA; Swine Lagoon Alternatives Research, 
Florence, SC; Temperate Fruit Flies, Wapato, WA; U.S. National 
Arboretum, Washington, DC; U.S. Plant Stress & Water 
Conservation Laboratory, Lubbock, TX; Virus-Free Fruit Tree 
Cultivars, Wapato, WA; Viticulture Research, Corvallis, OR, and 
Prosser, WA; Water Management Research Laboratory, Brawley, CA; 
Water Resource Management, Tifton, GA; Water Use Management 
Technology, Tifton, GA; Water Use Reduction/Producer 
Enhancement Research, Dawson, GA; Watershed Research, Columbia, 
MO; Western Grazinglands, Burns, OR; Western Wheat Quality 
Laboratory, Pullman, WA; Wheat Quality Research; Wild Rice 
Research, St. Paul, MN; Woody Genomics and Breeding for the 
Southeast, Poplarville, MS.
    Conservation tillage.--Better management and conservation 
of natural resources is essential for sustainable crop 
production in the Columbia River Plateau and regional areas. 
The ARS Soil Conservation Laboratory at Pendleton, Oregon 
conducts non-irrigated dryland research important to this 
region. The Committee provides an increase of $250,000 in 
fiscal year 2004 to this ARS research laboratory for expanded 
research directed toward developing management practices 
required for sound management and conservation of natural 
resources in the Columbia River Plateau and regional resource 
areas.
    Conversion of agricultural materials to biofuels.--The 
Committee provides an increase of $400,000 to expand the 
development of biodiesel fuels through improved understanding 
of biodiesel chemistry. This research is conducted at the 
Peoria Utilization Center.
    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 $250,000 in fiscal year 2004 
to the ARS research laboratory at Ames, IA.
    Cotton pathology research.--The Committee understands that 
Fusarium oxysporum f. sp. vasinfectum (FOV) is a particularly 
virulent plant pathogen that attacks cotton. In fact it is so 
virulent that the industry refers to it as the cotton AIDS 
virus. FOV is becoming a bigger threat to California cotton, 
particularly since recent reports have shown the presence of 
FOV infected Pima plants in the absence of nematodes; a 
development that raises concerns because it raises questions 
about the effectiveness of crop rotation as a means to prevent 
infection. The Committee provides an increase of $300,000 in 
fiscal year 2004 to the ARS research laboratory in Shafter, CA.
    Cotton quality.--Since 1997, the U.S. textile industry has 
been in record decline, with over 196,000 jobs lost because of 
illegal transhipments of textile products into the U.S. With 
the growth of free trade and preferential trade agreements, the 
Bureau of Customs and Border Protection requires a quick and 
effective method of determining whether textile and apparel 
products entering the U.S. meet the eligibility criteria. An 
effective, economical system to track U.S. yarn from the mill 
to the finished product has been a goal of the U.S. textile 
industry for years to restore profitability to the failing 
industry. The committee provides an increase of $300,000 in 
fiscal year 2004 to the ARS Cotton Quality Research Laboratory 
at Clemson, SC for increased research and development of a 
tagging and identification system for the cotton textile 
industry.
    Cropping systems research.--The Committee recognizes the 
need for regional research in the Mississippi River watershed 
to develop new varieties of soybean and cropping systems that 
will improve disease resistance, enhance value of the crop, and 
protect the region's natural resources. Crops management 
practices to limit erosion on the highly erodible soils of 
Tennessee and other southern states impact soybean diseases, 
both favorably and adversely. Research is needed to optimize 
disease control while maintaining these best crop management 
practices to protect soil and water quality. Molecular genetics 
technologies will be used to develop better soybeans and site-
specific systems will be developed for improving cropping 
systems in the region. The Committee provides an increase of 
$700,000 for an ARS cooperative research program with the 
University of Tennessee. The research will be conducted at the 
West Tennessee Agricultural Experiment Station.
    Crop production and food processing.--The Committee is 
aware of a collaborative research between the ARS' National 
Center for Agricultural Utilization Research Center (NCAUR) at 
Peoria, IL, Purdue University, and the University of Illinois 
on genomics to identify and implement critical steps in the 
development of pest resistance in wheat. The Committee provides 
an increase of $430,000 in fiscal year 2004 to the National 
Center for Agricultural Utilization Research (NCAUR) at Peoria, 
IL for expanded collaborative efforts with these universities.
    Delta Research Policy Initiative (DRPI).--This initiative, 
originated by the rice industries in Missouri and Arkansas, is 
organized to expand rice production in Southeast Missouri 
through enhanced rice research to identify rice varieties 
specifically adapted to the region and needs of emerging 
markets. This initiative also identified the need for 
identification of successful policies required for the 
diversification and value-added utilization of rice and other 
Delta products. The Committee provides and increase of $300,000 
in fiscal year 2004 to the ARS' National Rice Research Center 
at Stuttgart, AR in support of this Delta rice initiative.
    Detection of animal pathogens.--The Committee supports the 
need to develop rapid and simple diagnostic tools for use by 
field personnel to identify infectious pathogens that cause 
disease outbreaks and to prevent further spread. The Committee 
provides an increase for fiscal year 2004 of $300,000 to 
develop and validate rapid diagnostic tests for livestock 
diseases conducted at Ames, IA and $300,000 for similar 
research on poultry diseases conducted at Athens, GA.
    Diet, nutrition monitoring, and obesity research.--The 
Pennington Biomedical Research Center (PBRC) is an outstanding 
facility with several investigators having international 
reputations. The strengths of the Center are its outstanding 
research and clinical facilities and its ability to conduct 
large scale clinical trials. The Center has considerable 
expertise in obesity and cancer prevention. The Committee 
recognizes that obesity is a major health problem in the U.S. 
It increases the likelihood of developing diabetes, 
cardiovascular diseases, and a host of other illnesses and 
disabilities. Health related illnesses due to obesity cost the 
Nation tens of billion of dollars annually. With regard to the 
obesity epidemic now clearly established in the United States, 
the PBRC could instantly provide research activities that would 
complement the ARS human nutrition research program. Genetic 
parameters that influence the development of obesity in 
individuals is a primary focus. The PBRC is particularly strong 
in conducting research on the polymorphisms in the population 
that are important for obesity. The PBRC has demonstrated 
expertise in conducting long-term feeding studies and they 
could easily develop obesity intervention strategies that 
result in weight loss, and more importantly encourage healthy 
eating habits and prevent obesity. The PBRC is developing plans 
for calorimetry and can provide much needed information on the 
relationship between food consumption, energy expenditure, and 
body composition. The state-of-the-art facility will also house 
ARS scientists' intramural obesity focus. The Committee 
provides ARS an increase of $750,000 in fiscal year 2004 to 
direct a collaborative nutrition program with PBRC. The obesity 
research program is to be food-based and consistent with the 
human nutrition program carried out by ARS.
    Emissions from livestock wastewater.--Emissions from swine 
and dairy wastewater causes significant environmental and 
economic problems. Emissions from livestock wastewater produces 
unpleasant smell and diseases, as well as the risk of runoff 
and pollution of waterways. The economic benefits of 
controlling smell will result in increased property values as 
well as increased business investments. The Committee provides 
an increase of $100,000 in fiscal year 2004 for the ARS 
research station at Florence, SC to expand this research.
    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 $150,000 in fiscal year 2004 
to the ARS Research Center at Booneville, AR for expanded 
collaborative research with the University of Arkansas, 
University of Missouri and the Oregon State University.
    Feed efficiency in cattle.--Feed costs represent 65% of the 
total cost in beef production. The Committee provides an 
increase of $250,000 in fiscal year 2004 to the ARS Meat Animal 
Research Center at Clay Center, NE for expanded research to 
reduce the cost and improve the efficiency of beef production, 
while minimizing impact to the environment.
    Flood/Control acoustic technology.--The Committee provides 
an increase of $250,000 to continue important research to 
develop a high resolution acoustic sub-bottom profiling system 
for use in flood-control dams. This research is to be conducted 
at the ARS Sedimentation Laboratory at Oxford, MS.
    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 2003 level for this 
research.
    Food fermentation research.--The primary source for new 
scientific information and development of new processing 
concepts related to fermented and acidified vegetables 
important to the pickle vegetable industry is the ARS Food 
Fermentation Research Laboratory at Raleigh, NC. This 
laboratory conducts research on cucumbers, peppers, cabbage, 
sweet potatoes and other produce. The Committee provides an 
increase of $300,000 in fiscal year 2004 for the recruitment of 
a microbial physiologist position needed by this ARS laboratory 
to optimize its research capability.
    Foot and Mouth Disease.--The Committee remains concerned 
about the spread of FMD and the threat it poses to American 
agriculture. The Committee provides an increase of $350,000 to 
develop new vaccines for FMD to more effectively respond to 
emerging disease outbreaks and to validate tests that can 
differentiate between antibodies induced by current vaccines 
and those induced by field exposure.
    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 $350,000 in fiscal year 2004 to the Southern 
Regional Research Center at New Orleans, LA to continue current 
efforts to expand the program 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 $500,000 in fiscal year 2004 for staffing the U.S. 
Horticultural Research Laboratory at Ft. Pierce, FL.
    Foundry sand by-products utilization.--The Committee 
recognizes the potential use of foundry sand by-products as a 
soil amendment or component of blended materials including 
composts for agricultural applications. The Committee provides 
an increase of $180,000 in fiscal year 2004 for expanded ARS 
research with university/industry partners on the beneficial 
uses of foundry sand by-products in agriculture and 
horticulture.
    Genetic diversity of major crops.--The Committee is aware 
of the need to develop genetic markers to study the genetic 
diversity and population structure of important crops (e.g., 
maize and wheat); and to determine gene expression of plant 
pathogens; and to develop new bioinformatics tools to analyze 
data from these studies. The Committee provides an increase of 
$300,000 over fiscal year 2003 for this research at the ARS 
Ithaca research station.
    Genomic database for livestock disease agents.--The 
Committee is aware of the Agency's effort to generate a fully 
annotated sequence database of livestock threat agents. Only 
through a comprehensive understanding of genomics can a full 
understanding of critical disease agent behaviors be 
accomplished. The Committee provides an increase of $300,000 at 
Clay Center, NE to continue this vital work.
    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 2003 funding levels.
    Grand Forks Human Nutrition Center.--Rural health problems 
related to diets, with particular emphasis on the rural elderly 
and native Americans continue to be a major concern in the 
Northern Great Plains. The Committee provides an increase of 
$150,000 in fiscal year 2004 to the ARS Human Nutrition Center 
at Grand Forks, North Dakota for cooperative research with the 
University of North Dakota School of Medicine and Health 
Sciences to resolve this health issue in the Northern Great 
Plains.
    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 2004 to expand this 
important research program at the ARS facility in Geneva, NY.
    Grassland soil and water research.--The development of new 
conservation tillage systems that limit the loss of topsoil, 
improve environmental qualities, and increase farm 
profitability is a major concern in the Southwest. In addition, 
there is a need to study the phosphorous loading capacities of 
soils in the Central Texas region and develop methods of 
applying animal wastes to cropland that do not result in runoff 
and contamination of downstream waters. The Committee provides 
an increase of $250,000 in fiscal year 2004 for the ARS' 
Grassland Soil and Water Research Laboratory for expanded 
research to address these agricultural issues.
    Invasive aphid research.--The Committee is concerned about 
the emergence of new virulent strains of Russian Wheat Aphids 
in the Middle East and in South America that are able to kill 
newly developed wheat and barley crops resistant to this 
devastating pest. U.S. wheat, barley, and soybean production 
are now vulnerable to attack by new virulent strains of Russian 
Wheat Aphid and Greenbug. The Committee provides an increase of 
$250,000 in fiscal year 2004 to the ARS Research Station at 
Stillwater, OK for expanded research focused on monitoring 
collecting, characterizing and testing of this new virulent 
strain of aphids.
    Invasive aquatic weeds.--Recent introductions of exotic 
weeds including Eurasian, variable Milfoil, and Cabomba 
seriously threaten the health of Connecticut lakes. Traditional 
control methods focusing on whole lake treatments are 
prohibitively expensive. More effective and economical weed 
control methods focusing on localized spot treatments of weed 
beds in large bodies of water are needed. The Committee 
provides an increase of $150,000 for fiscal year 2004 to the 
Agricultural Research Service for increased research on 
invasive aquatic weeds.
    Karnal bunt.--Karnal bunt diseases in wheat continues to be 
a major threat to the U.S. wheat industry and U.S. wheat 
exports. The Committee provides an increase of $100,000 in 
fiscal year 2004 to the ARS research station in Manhattan, KS 
for increased collaboration with Kansas State University on the 
development of Karnal bunt resistance and control methods.
    Marek's Disease research.--The Committee directs ARS to 
accelerate its research to develop both biological and 
molecular approaches for vaccines to control the devastating 
virus that causes Marek's Disease. The Committee provides an 
increase of $300,000 for this research which is conducted at 
the ARS laboratory in East Lansing, MI.
    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 $50,000 in 
fiscal year 2004 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 New Jersey, Delaware 
and other states in the Mid-Atlantic region. 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 $300,000 in fiscal year 2004 to expand this 
research.
    National Agricultural Library.--Acquiring, organizing, 
disseminating, and preserving agricultural information for 
current and future use is essential for research, education, 
and extension. The Committee provides the Library an increase 
of $250,000 over fiscal year 2003.
    Newcastle Disease research.--The Committee recognizes the 
urgent research needed to provide better diagnostic tests and 
vaccines for avian Newcatle Disease on the viral genome. The 
Committee provides an increase of $300,000 for this research to 
be carried out at the Athens laboratory.
    Northwest hops research.--The Committee acknowledges the 
importance of hops production to the Pacific Northwest. Hops 
are grown commercially in Washington, Oregon, and Idaho. ARS 
research assists the hops growers to combat the outbreak of 
powdery mildew that has caused hundreds of acres to be 
destroyed. This research allows our farmers to successfully 
compete with European growers. The Committee provides an 
increase of $250,000 in fiscal year 2004 for this research at 
Corvallis, OR.
    Nutritional requirements research.--The Children's Human 
Nutrition Center at the Baylor college of Medicine, Houston, TX 
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 $500,000 in fiscal year 2004 
to the Center to develop a better understanding of how dietary 
factors affect the growth and development of children and the 
onset of chronic diseases.
    Offshore animal diseases.--The Committee understands the 
importance of collaborating and conducting studies offshore to 
characterize disease threats in their natural environment. This 
research is vital to reduce and eliminate disease threats to 
the U.S. The Committee provides an increase of $250,000 over 
fiscal year 2003 for this research. The Committee directs the 
Agency to provide a more detailed plan as it conducts studies 
and activities to implement this program.
    Olive fruitfly research.--The olive fruitfly is the world's 
number one pest of olives, causing devastating effects on the 
olive industry in California. The Committee provides an 
increase of $100,000 in fiscal year 2004 to expand the 
integrated pest management research program to control the 
olive fruitfly at ARS' European Biological Control Laboratory.
    Paper sludge utilization.--Paper sludge is waste product of 
paper production and is spread over fields as fertilizer. This 
method of disposal, used by the paper industry as an affordable 
disposal option, benefits the environment and serves as 
effective fertilizer. The coal industry also uses paper sludge 
to quickly grow plants on reclaimed mine lands. However, the 
science behind the proper amount of paper byproduct that is 
environmentally safe and maximizes plant growth for mine lands 
is not fully explored. The Committee provides an increase of 
$250,000 in fiscal year 2004 to the ARS' Northern Appalachian 
Experimental Watershed Research Station at Coshocton, OH for 
research to better understand current disposal practices 
including the safest methods for this practice.
    Pay act costs.--The Committee provides funding for 
increased costs associated with Federal employees salaries and 
benefits.
    Peanut research.--The competitiveness and quality of U.S. 
peanuts domestically and in world markets are critical to the 
U.S. peanut industry. The ARS National Peanut Research 
Laboratory at Dawson, GA is the primary source of peanut 
research in the U.S. The Committee provides an increase of 
$150,000 for expanded research on the factors affecting the 
production, harvesting, storage, and quality of peanuts 
conducted at this national research laboratory.
    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 $400,000 for cooperative 
research with SRRC and Tulane, Xavier and the University of 
Toledo.
    Pierce's disease.--Pierce's Disease and its vector the 
Glassywinged 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 $500,000 in fiscal year 2004 to enable ARS to move 
aggressively and effectively against this serious pest/disease 
combination threat to the economic viability of many crops in 
California. While the Agency's major program is located at the 
Parlier laboratory, the Committee directs that $200,000 of the 
increase be implemented to supplement ongoing research at 
Davis, California, and Ft. Pierce, Florida.
    Plant genome sequencing.--The Committee acknowledges the 
need for more rapid and efficient methods to characterize, 
identify, and manipulate the useful properties of plants/crops 
genes and genomes. The research will enhance the quality and 
safety of the U.S. competitiveness in global markets. The 
Committee provides increases of $200,000 in fiscal year 2004 
for functional analyses of genomics and proteomics of maize at 
Albany, CA .
    Potato research.--The Agricultural Research Service 
conducts a progressive potato breeding program at Aberdeen, ID. 
The Committee notes that the location staffing level limits 
important aspects of variety development research. Additional 
resources are needed to develop a strong molecular biology 
program component. The Committee provides an increase of 
$250,000 for this research at Aberdeen, ID. The Committee also 
provides an addition of $50,000 in fiscal year 2004 for 
expanded research on exotic diseases including late blight and 
PVYN on potatoes at the ARS Prosser research station. avocados.
    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 2003 level.
    Regional molecular genotyping research.--The Committee 
concurs with the need to accelerate the application of DNA 
molecular marker technology in order to accelerate plant 
improvement in wheat, barley, oats, and other small grains 
breeding programs. Regional molecular genotyping will further 
enhance this process by closely aligning both breeders and 
mappers for traits of value to particular geographical 
production areas and regional market needs. The Committee 
provides an increase of $800,000 in fiscal year 2004 consisting 
of $200,000 to the ARS Western Wheat Research Laboratory at 
Pullman, WA; and $200,000 each to the ARS Plant Science 
Research Laboratories at Raleigh, NC; Fargo, ND; and Manhattan, 
KS.
    Reprogramming.--The Committee concurs with the Agricultural 
Research Service's proposal to reprogram existing resources 
into priority initiatives of emerging diseases, global climate 
change, biosecurity, and genomic sequencing.
    Risk assessment.--The Committee notes the importance of 
identifying and developing gene technology that will limit 
transgene activity to specific plant tissues. The Committee 
provides an increase for fiscal year 2004 as requested for this 
research at Corvallis, OR, $150,000. The Committee also directs 
the development of new strategies to prevent pest populations 
becoming resistant to plant incorporated protectorants. An 
increase over fiscal year 2003 is provided for this research at 
Phoenix, AZ, $250,000; and Wapato, WA, $160,000.
    Shellfish ecology.--The Agricultural Research Service has 
established a national aquaculture program with the goal of 
establishing a globally competitive sustainable aquaculture 
industry in the U.S. The Committee supports the establishment 
of this program and provides an increase in fiscal year 2004 of 
$300,000 to address shellfish ecology and food quality. This 
ARS program would address a multi-state West Coast shellfish 
ecology concern and will complement the existing genetics 
research at the Hatfield Marine Science Center.
    Soil drainage research.--Management of excess water on 
agricultural lands is the most serious production problem 
facing agriculture in the cool humid region of the U.S. The 
Committee provides an increase of $160,000 in fiscal year 2004 
to the ARS Soil Drainage Research Laboratory at Columbus, Ohio 
for expanded research on the development and demonstration of 
integrated water management and cropping systems to increase 
profitability and environmental protection for corn and soybean 
growers in the Mid-West.
    Soil dynamics research.--The profitability and economic 
sustainability of farms in the South is dependent upon the 
sound maintenance of the soil resources base which continues to 
decrease in the region due to soil degradation. The use of 
proper crop rotation including peanuts and cotton can greatly 
improve the problems faced by farmers in the Southern states 
concerning compacted and droughty soils. The Committee provides 
an increase of $150,000 in fiscal year 2004 to the ARS Soil 
Dynamics Laboratory at Auburn, Alabama for expanded research to 
develop technologies and effective strategies for managing 
soils.
    Sorghum cold tolerance.--Cold tolerance is a major 
constraint in sorghum yield. Developing improved hybrids with 
cold tolerance genes would increase yield by merely extending 
sorghum's growing season. The Committee provides an increase of 
$300,000 in fiscal year 2004 to the ARS Plant Stress Laboratory 
at Lubbock, TX for cold tolerance research to determine the 
feasibility of extended growing seasons for sorghum to increase 
production and income of sorghum growers.
    Sorghum utilization.--The Committee provides an increase of 
$400,000 to the ARS Grain Marketing Research Laboratory, 
Manhattan, KS for sorghum utilization work. This research is to 
be coordinated with groups in Nebraska, Wisconsin, 
Massachusetts, Georgia, and Texas.
    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 $200,000 in FY 2004 to the Soil Drainage Research Unit 
in Columbus, OH to continue the source water protection 
initiative in the Upper Big Walnut Creek Watershed. The 
Committee also provides an increase of $200,000 in fiscal year 
2004 to the National Soil Erosion Laboratory, West Lafayette, 
IN to continue the source water initiative in the St. Joseph 
River Watershed. Additional funds will provide for additional 
research staffing and equipment at both ARS locations.
    South Central Agricultural Research Laboratory, Lane, 
Oklahoma.--The mission of this ARS laboratory is to identify 
and develop improved sustainable horticultural crop and 
production systems for the South Central region of the U.S. The 
Committee recognizes the important research in plant sciences, 
insect management, and production systems carried out at this 
laboratory and provides an increase of $300,000 in fiscal year 
2004 for expanded crop production research important to this 
region.
    Southeastern fruit and tree nut research.--The peach and 
pecan industry are major crops in middle Georgia. One of the 
challenges facing the peach industry in the area is how to 
effectively combat insect pests. As pesticides are being phased 
out to protect the environment, there is growing need to 
replace these pesticides with alternative products or 
processes. The Committee provides an increase of $300,000 in 
fiscal year 2004 to the ARS Southeastern Fruit and Tree Nut 
Research Laboratory at Byron, GA for expanded research needed 
by the peach and pecan industries in Georgia and elsewhere to 
remain profitable.
    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 $250,000 to conduct research to identify causative 
agents and diagnostic tools. This research is carried out at 
the ARS Ft. Detrick research laboratory. The Committee provides 
an additional $250,000 for an applied genomics research 
position at ARS' Davis, CA laboratory.
    Sugarcane variety research.--The ARS Sugarcane Research 
Station at Canal Point, FL is the main hybridization station 
for the development of cultivated commercial sugarcane 
varieties for Florida, Texas, and Louisiana. The Committee 
provides an increase of $400,000 in fiscal year 2004 to the 
station to accelerate implementation of molecular marker-
assisted breeding programs needed for the production of broad 
sections of sugarcane varieties and utilization of molecular 
tools for screening of specific traits to improve disease, 
weed, and insect resistance.
    Sustainable grazing livestock systems.--Forage-based farms 
throughout Kentucky, Tennessee, and Missouri--as well as parts 
of other adjacent Eastern and Midwestern states--are dependent 
on sustainable, low input forage-animal systems for economical 
production of livestock-derived food and fiber products, 
particularly, meat, milk, wool, and leather. This region of the 
Lower Ohio River Valley and Lower Mississippi River Valley 
constitutes a transition zone between cool- and warm-season 
forages. The Committee provides an increase of $250,000 to 
conduct research leading to recommendations for diversifying 
and integrating the production of cool- and warm-season grasses 
and legumes for grazing to maximize the efficiency of forage 
utilization and sustainability. The research will be conducted 
at the Lexington, KY research laboratory.
    Sustainable olive production.--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 $100,000 at the ARS Weslaco, 
Texas laboratory for expanded research on sustainable olive 
production in the South and Southwest.
    Sustainable viticulture research.--The Committee provides 
an increase of $300,000 to the ARS research laboratory at 
Davis, California. These funds will be used to expand research 
on sustainable, biologically, and environmentally sound 
viticulture practices which enhance compatibility with soil, 
water, air, and biotic resources.
    Texas Fever (Babesiosis).--The Committee recognizes the 
progress and additional research required to identify genes 
that influence disease resistance in livestock. The Committee 
provides an increase of $700,000 for the Kerrville research 
station for fiscal year 2004 to determine critical metabolic 
pathways unique to the Boophilus Tick carrying Texas Fever 
(Babesiosis). An increase of $300,000 is provided to the ARS 
Pullman, WA, laboratory to sequence genes expressed by the 
Boophilus Tick at all stages of development.
    Tree Fruit Quality Research.--The Committee understands 
that the tree fruit industry's survival in the Pacific 
Northwest depends on its ability to develop and utilize new 
technologies to reduce costs while improving quality. The 
Committee provides an increase of $300,000 for a geneticist 
position at the ARS research station at Wenatchee, Washington 
to focus on the genetic, biochemical and cellular physiological 
processes affecting fruit quality and its nutritive value.
    United States National Arboretum (USNA).--The country's 
interest in gardening and environmental horticulture, along 
with increased desire for urban green space continues to grow. 
The Arboretum maintains internationally acclaimed gardens for 
visitors and tourists seeking green space and solace in the 
middle of our Nation's capital. The Committee provides an 
increase of $900,000 in fiscal year 2004 for the maintenance 
and support of the Arboretum's Garden's Unit.
    Vector-borne diseases.--Infectious diseases transmitted by 
insects have become an increasing concern to public health 
agencies at local, state, and national levels because of its 
potential impact on human health and human food production. 
Increased research is needed to identify and detect new vector-
borne infectious agents in the environment to assess their 
risks to public health. The Committee provides an increase of 
$250,000 in fiscal 2004 for the Agricultural Research Service 
for scientific staffing to increase its efforts to control this 
public health concern. This research is conducted at the 
Gainsville, FL research station.
    Verticillium wilt.--The Committee is aware of the extensive 
damages caused by ``Verticillium Wilt'' to lettuce and 
vegetable producers in California. The Committee provides an 
increase of $400,000 in fiscal year 2004 for the ARS research 
station at Salinas, California to address this serious 
vegetable production problem in California.
    Watershed management in the Southwest.--The Committee 
provides an increase of $300,000 in fiscal year 2004 to the ARS 
Southwest Watershed Research Laboratory at Tucson, AZ for 
expanded collaborative research with the consortium of local, 
state, Federal and NGO's of the Upper San Pedro Partnership on 
hydro-ecological modeling and specialized field experiments to 
more accurately quantify components of a basin's water budget 
to support local and community based watershed management.
    Water use reduction/producer enhancement research.--
Available water supplies are 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 $250,000 in 
fiscal year 2004 to ARS research laboratory at Dawson, Georgia 
for research to enhance, in a sustainable manner, irrigated 
agriculture and associated rural economies in Southwest, 
Georgia.
    Weed management research.--Costs for control of weeds in 
the U.S. exceed $120 billion a year. For many invasive weeds, 
available herbicides are not effective or cannot be used in 
certain crops or landscapes. Biologically-based weed 
management, using biological control and revegetation offers 
affordable and environmentally sound strategy for many weeds. 
The Committee provides an increase of $200,000 in fiscal year 
2004 to the ARS Weed Science Laboratory at Beltsville, Maryland 
for a cooperative research program with Rodale Institute, 
Kutztown, Pennsylvania to examine non-chemical alternatives for 
weed control.
    Western grazinglands.--The management, conservation, and 
sustainability of rangelands resources is of paramount 
importance to the economy of the Great Basin region. The ARS 
research stations at Burns, OR and Reno, NV conduct important 
rangeland research programs to control invasive weeds unique to 
the Great Basin. The Committee provides an increase of $300,000 
for these laboratories to expand invasive weed research 
pertinent to the Great Basin region.
    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 $250,000 in 
fiscal year 2004 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' wheat 
quality research programs carried out at Wooster, OH; 
Manhattan, KS; and Pullman, WA. The research conducted at these 
laboratories is essential to this segment of the agricultural 
economy. The Committee notes the importance of evaluating the 
quality of breeding lines and cultivars; genetic improvement 
and protection; and research in the physics and chemistry of 
wheat and flour and provides an increase of $750,000 for this 
research in fiscal year 2004.

                        BUILDINGS AND FACILITIES




2003 appropriation....................................      $118,703,000
2004 budget estimate..................................        24,000,000
Provided in the bill..................................        35,900,000
Comparison:
    2003 appropriation................................       -82,803,000
    2004 budget estimate..............................       +11,900,000


                          COMMITTEE PROVISIONS

    For Agricultural Research Service, Buildings and 
Facilities, the Committee provides an appropriation of 
$35,900,000, a decrease of $82,803,000 below the amount 
available for fiscal year 2003 and an increase of $11,900,000 
above the budget request.
    The following table summarizes the Committee's provisions:

         AGRICULTURAL RESEARCH SERVICE, BUILDINGS AND FACILITIES
                        [In thousands of dollars]
------------------------------------------------------------------------
                                                  FY 2004     Committee
                                                  estimate    provisions
------------------------------------------------------------------------
California:
    Grape Genomics Research Center, Davis.....            0       $3,000
    U.S. Agricultural Research Station,                   0        5,000
     Salinas..................................
Illinois:
    National Center for Agricultural                      0        3,000
     Utilization Research, Peoria.............
Louisiana:
    ARS Sugarcane Research Laboratory, Houma..            0        1,500
Maryland:
    Abraham Lincoln National Agricultural            $2,000        1,000
     Library, Beltsville......................
New York:
    Center for Crop-based Health Genomics,                0        4,300
     Ithaca...................................
    Center for Grape Genetics, Geneva.........            0        2,700
Washington:
    ARS Research Laboratory, Pullman..........            0        4,400
Upgrade Security at ARS Laboratories..........       22,000       11,000
                                               -------------------------
      Total, Buildings & Facilities...........      $24,000      $35,900
------------------------------------------------------------------------

                        BUILDINGS AND FACILITIES

    The Committee recognizes the importance of ``state of the 
art'' laboratories to the overall efficiency of agricultural 
research given the growing complexity and diversity of today's 
agriculture problems and needs. The Committee provides 
increased funding in fiscal year 2004 to undertake the 
establishment of new facilities, as well as replacement for 
aging and inadequate research facilities. Planning and design 
is provided for research facilities at the following locations: 
the Grape Genomics Research Center, Davis, California; the 
Center for Crop-based Health Genomics, Ithaca, New York; the 
U.S. Agricultural Research Station, Salinas, California; the 
ARS Research Laboratory, Pullman, Washington; the ARS Sugarcane 
Research Laboratory, Houma, Louisiana; and the Center for Grape 
Genetics, Geneva, New York.
    Funding is provided toward the continued modernization of 
the National Center for Agricultural Utilization Research, 
Peoria, Illinois; and the Abraham Lincoln National Agricultural 
Library, Beltsville, Maryland. Funding is also provided for 
security upgrades at ARS laboratories.
    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. 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.
    Potato Storage Research Facility.--Wisconsin Potato and 
Vegetable Growers and the University of Wisconsin Foundation 
are raising the funding needed to construct and equip a Potato 
Storage Research Facility at the Hancock Research Station in 
Central Wisconsin. The facility is expected to be completed in 
the Fall of 2004 at which time they will need funding for 
staffing. The Committee encourages the Agricultural Research 
Service to work with the Wisconsin Potato industry to assist in 
this effort.

      Cooperative State Research, Education, and Extension Service


                   RESEARCH AND EDUCATION ACTIVITIES




2003 appropriation....................................      $616,792,000
2004 budget estimate..................................       514,228,000
Provided in the bill..................................       594,772,000
Comparison:
    2003 appropriation................................       -22,020,000
    2004 budget estimate..............................       +80,544,000


                          COMMITTEE PROVISIONS

    For payments under the Hatch Act, the Committee provides an 
appropriation of $180,148,000, an increase of $1,171,000 above 
the amount available for fiscal year 2003 and the same as the 
budget request.
    For cooperative forestry research, the Committee provides 
an appropriation of $21,884,000, an increase of $142,000 above 
the amount available for fiscal year 2003 and the same as the 
budget request.
    For the Evans-Allen Program (payments to the 1890 land-
grant colleges, Tuskegee University, and West Virginia State 
College), the Committee provides an appropriation of 
$36,000,000, an increase of $589,000 above the amount available 
for fiscal year 2003 and the same as the budget request.
    The following table reflects the amount provided by the 
Committee:


    Indirect costs.--The Committee has recommended a general 
provision to this bill which limits indirect costs charged 
against competitively awarded grants to 20 percent of total 
Federal funds provided under each award, 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, 2004, 
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 2003.
    Hydroponic tomato production (OH).--The Committee provides 
an increase of $101,000 to support continuing demonstrations at 
Toledo Botanic Gardens.
    Joe Skeen Institute for Rangeland Restoration (NM, TX, 
MT).--The Committee provides $1,000,000 for the Joe Skeen 
Institute for Rangeland Restoration, to be utilized by New 
Mexico State University, Texas A & M University, and Montana 
State University. The Committee directs these universities to 
work cooperatively to provide programmatic oversight for the 
Joe Skeen Institute for Rangeland Restoration.
    Aquaculture (OH).--The Committee provides an increase of 
$503,000 for this project for the establishment of the Ohio 
Aquaculture Consortium and utilization by extension programs in 
the northwest and central coastal Lake Erie counties in Ohio.

              NATIVE AMERICAN INSTITUTIONS ENDOWMENT FUND




2003 appropriation....................................        $7,054,000
2004 budget estimate..................................         9,000,000
Provided in the bill..................................         9,000,000
Comparison:
    2003 appropriation................................        +1,946,000
    2004 budget estimate..............................             - - -


                          COMMITTEE PROVISIONS

    For the Native American Institutions Endowment Fund, the 
Committee provides $9,000,000, an increase of $1,946,000 above 
the amount available in fiscal year 2003 and the same as the 
budget request.

                          EXTENSION ACTIVITIES




2003 appropriation....................................      $450,520,000
2004 budget estimate..................................       422,268,000
Provided in the bill..................................       438,242,000
Comparison:
    2003 appropriation................................       -12,278,000
    2004 budget estimate..............................       +15,974,000


                          COMMITTEE PROVISIONS

    For Extension Activities, the Committee provides an 
appropriation of $438,242,000, a decrease of $12,278,000 below 
the amount available for fiscal year 2003 and an increase of 
$15,974,000 above the budget request.
    The following table reflects the amount provided by the 
Committee:


    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.
    Indirect costs.--This matter is addressed under Research 
and Education Activities.

                         INTEGRATED ACTIVITIES




2003 appropriation....................................       $46,439,000
2004 budget estimates.................................        62,865,000
Provided in the bill..................................        62,942,000
Comparison:
    2003 appropriation................................       +16,503,000
    2004 budget estimate..............................           +77,000


                          COMMITTEE PROVISIONS

    For Integrated Activities, the Committee provides an 
appropriation of $62,942,000, an increase of $16,503,000 above 
the amount available for fiscal year 2003 and an increase of 
$77,000 above the budget request.
    The following table reflects the amount provided by the 
Committee.


    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.

              OUTREACH FOR SOCIALLY DISADVANTAGED FARMERS




2003 appropriation....................................        $3,470,000
2004 budget estimate..................................         4,003,000
Provided in the bill..................................         3,470,000
Comparison:
    2003 appropriation................................            - - -
    2004 budget estimate..............................          -533,000


                          COMMITTEE PROVISIONS

    For the Outreach for Socially Disadvantaged Farmers and 
Ranchers Program, the Committee provides an appropriation of 
$3,470,000, the same as the amount available for fiscal year 
2003 and a decrease of $533,000 below the budget request.

  Office of the Under Secretary for Marketing and Regulatory Programs





2003 appropriation....................................          $725,000
2004 budget estimate..................................           791,000
Provided in the bill..................................           725,000
Comparison:
    2003 appropriation................................             - - -
    2004 budget estimate........................           -66,000



                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Marketing and 
Regulatory Programs, the Committee provides an appropriation of 
$725,000, the same as the amount available for fiscal year 2003 
and a decrease of $66,000 below the budget request.

               Animal and Plant Health Inspection Service


                         SALARIES AND EXPENSES


                                                                                                  Total, APHIS
                                                             Appropriations      User Fees       Appropriations

2003 appropriation .......................................      $682,757,000    ($275,000,000)      $682,757,000
2004 budget estimate......................................       694,897,000     (285,000,000)       694,897,000
Provided in the bill......................................       725,502,000     (285,000,000)       725,502,000
Comparison:
    2003 appropriation....................................       +42,745,000             - - -       +42,745,000
    2004 budget estimate..................................       +30,605,000             - - -       +30,605,000


                          COMMITTEE PROVISIONS

    For the Animal and Plant Health Inspection Service, 
Salaries and Expenses, the Committee recommends an 
appropriation of $725,502,000, an increase of $42,745,000 above 
the amount appropriated in fiscal year 2003, and an increase of 
$30,605,000 above the budget request.
    The following table reflects the amounts provided by the 
Committee:


    Animal health laboratory network.--The Committee directs 
the agency to report on a comprehensive, coordinated, and 
modern Federal/State animal health laboratory network to 
address emergent biological and chemical threats to animal 
agriculture and the Nation's food supply including the cost to 
implement such a system. The Committee notes that while a basic 
Federal/State laboratory infrastructure is in place critical 
features to address new threats are missing including: secure 
communication, reporting, and alerting systems; standardized, 
rapid diagnostic techniques; modern equipment and experienced 
personnel trained in the detection of emergent, foreign, and 
bioterrorist agents; training proficiency testing, and quality 
assurance to ensure that laboratories within the system meet 
quality standards; Federal and State facility upgrades to meet 
biocontainment requirements; and periodic scenario testing of 
this National Animal Health Laboratory Network. This report 
shall be submitted to the Committee no later than April 1, 
2004.
    Trade issues resolution management.--The Committee provides 
an increase of $4,000,000 for cross-cutting trade negotiations 
and biotechnology resources in the trade issues resolution 
management program.
    Pest detection.--The Committee provides an increase of 
$200,000 to evaluate the utility of remote sensing 
(hyperspectral imaging and Light Detection and Ranging) for the 
identification of ash trees, the early identification of 
emerald ash borer infestation, and the tracking and mapping of 
the diseased trees.
    The Committee provides an increase of $1,000,000 for a 
cooperative agreement with the California County Pest Detection 
Augmentation Program.
    Animal Health Monitoring and Surveillance (AHM&S).--The 
Committee provides $1,000,000 to continue 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, an increase of $100,000, 
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.
    Greater Yellowstone Interagency Brucellosis Committee 
(GYIBC).--The Committee provides $900,000 for the GYIBC and 
encourages the coordination of Federal, State, and private 
actions aimed at eliminating brucellosis from wildlife in the 
Greater Yellowstone area.
    Chronic wasting disease.--For chronic wasting disease, the 
Committee provides $16,815,000 for fiscal year 2004, an 
increase of $1,979,000 above the amount available in fiscal 
year 2003. The Committee directs that of this amount $1,500,000 
shall go to the State of Wisconsin.
    The recent emergence of chronic wasting disease in 
Wisconsin and Illinois is of grave concern. Even though, the 
Secretary has directed USDA's General Counsel to lead a review 
of Departmental policy regarding pest and disease testing by 
private laboratories, the Committee is unaware of any effort by 
anyone within the Department conducting such a review. The 
Committee is concerned that the Department has failed to take 
all the necessary steps to increase testing capacity to detect 
chronic wasting disease among farmed and free-ranging deer and 
elk, such as certifying experienced private laboratories to 
conduct testing and approving rapid testing protocols at 
laboratories that are capable of conducting such testing.
    The Committee directs the Department to move aggressively 
to confront the disease and expand testing capacity by 
certifying experienced and qualified private laboratories and 
by approving rapid testing at both public and private 
laboratories that have the ability, equipment, and staffing to 
conduct such testing.
    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.
    For emerging plant pests, the Committee provides an 
increase of $21,396,000 above the amount available in fiscal 
year 2003. Within this amount, the Committee provides an 
increase of $9,000,000 for citrus canker, $8,000,000 for Asian 
long-horned beetle, and $4,396,000 for Pierce's Disease.
    The Committee continues the fiscal year 2003 funding level 
of $2,000,000 for Sudden Oak Death (SOD). The Committee 
encourages the agency to monitor plant importations for SOD, to 
harmonize federal and state SOD regulations, and to conduct 
outreach and education activities with outdoor recreational 
users and commercial entities (e.g., construction companies) 
that could contribute to soil movement as well as with affected 
industries, including nurseries.
    The Committee continues the fiscal year 2003 funding level 
for hydrilla eradication around Smith Mountain Lake in 
Virginia, and Lake Gaston in Virginia and North Carolina.
    The Committee continues to provide $320,000 for olive fruit 
fly trapping and pest management data, the same as in fiscal 
year 2003.
    Grasshopper.--The Committee provides an increase of 
$250,000 above the budget request for grasshopper and mormon 
cricket suppression.
    Imported fire ant.--The Committee provides $2,421,000 for 
imported fire ant of which $45,000 is for New Mexico.
    Johne's Disease.--The Committee encourages the agency to 
cooperate with those States with Johne's Disease management and 
control programs.
    Noxious weeds.--The Committee notes that APHIS is devoting 
$180,000 from the noxious weeds line item to control and 
eradicate tropical soda apple. The Committee encourages the 
agency to continue this work, and to report to the Committee by 
February 1, 2004 on its plan to carry out this work in fiscal 
year 2004.
    The Committee provides an increase of $100,000 over the 
fiscal year appropriation for noxious weeds for the Nez-Perce 
Biocontrol Center, and continues $300,000 for the Kiski Basin 
Initiative in Pennsylvania.
    Tuberculosis.--The Committee provides that of the total 
amount provided for bovine tuberculosis, that no less than 
$5,000,000 shall be for activities in Michigan. The Committee 
is concerned about the potential threats that wildlife poses 
for transmitting bovine tuberculosis to domestic livestock and 
directs the Agency to increase technical and operational 
assistance to Michigan producers to prevent or reduce the 
transmission of tuberculosis between wildlife and cattle.
    Wildlife services.--The Committee is concerned with the 
degradation of the population of both mule deer and pronghorn 
antelope in the Trans-Pecos area of Texas due to predation, and 
directs APHIS, in conjunction with the National Academy of 
Sciences, to conduct a study on the reintroduction of sodium 
monofluoroacetate to address this problem.
    The Committee continues to provide $1,200,000 for wolf 
predation management, of which $1,050,000 is for Wisconsin, 
Minnesota, and Michigan, and $150,000 is for New Mexico and 
Arizona.
    The Committee provides a $1,000,000 increase above the 
fiscal year 2003 level for a cooperative oral rabies 
vaccination program.
    The Committee encourages the agency to provide assistance 
for mongoose and rabies control in Puerto Rico.
    The Committee provides an increase of $500,000 for a total 
of $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 directs the continuation of the following 
programs that were included in fiscal year 2003: $250,000 to 
assist North Carolina's Beaver Management Assistance Program; 
$300,000 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 in Louisiana; $240,000 
for rodent control in Hawaii; $1,300,000 for predator control 
programs for livestock operators in Montana, Idaho, and 
Wyoming; and, $1,000,000 for Wildlife Services in the State of 
Texas.
    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.
    Physical security.--The Committee does not concur with the 
budget request for $6,273,000 for APHIS physical and 
operational security. The Committee notes that of the 
$328,000,000 available under the Homeland Security Supplemental 
of 2002, USDA has obligated $154,270,000, or 47 percent of the 
funds available. Specifically, APHIS has an unobligated balance 
of more than $16,000,000 for physical and operational security, 
and the Office of the Secretary has $15,700,000 of physical 
security funding unobligated. The Committee will continue to 
monitor the agency's physical and operational security needs.
    Monkeypox.--The Committee is aware of the Monkeypox 
outbreak in Wisconsin and other midwestern states, including a 
number of cases of human to human transmission of the disease. 
The Committee understands that APHIS is working with the 
Centers for Disease Control to facilitate a comprehensive 
federal response to the outbreak. The Committee urges APHIS to 
continue to take all necessary steps to deal with the problem 
and provide the Committee with regular reports on the status of 
the situation.
    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.
    The Committee is aware that avocado growers in the Valley 
Center area of San Diego County continue to experience the 
devastating effects of the worst Mexican fruit fly infestation 
ever experienced in the State of California. The Committee 
encourages the Secretary to use existing authority to provide 
financial assistance to avocado growers in the Valley Center 
area of San Diego County, California, who have incurred losses 
associated with the quarantine that has been imposed by the 
Department as a result of Mexican fruit fly infestation.
    Cormorants.--The Committee notes the growing problem due to 
cormorants in the State of Michigan and urges APHIS to provide 
support, as deemed necessary, to assist in the management of 
cormorants in the state.
    Ralstonia solanacearum.--The Committee is concerned about 
the significant delays in getting test results from the Animal 
and Plant Health Inspection Service to State inspectors, and a 
lack of clarity regarding what specific actions inspectors 
should take in connection with the recent introduction into the 
United States of Ralstonia solanacearum, race 3, biovar 2, 
through infected imported geraniums, and the subsequent 
quarantine. Economic losses to U.S. growers totaled over $6 
million. Pursuant to section 212 of the Agricultural 
Bioterrorism Protection Act of 2002 (7 U.S.C. 8401), the 
Secretary of Agriculture has listed Ralstonia solanacearum, 
race 3, biovar 2, as a biological agent and toxin that has the 
potential to pose a severe threat to plant health or plant 
products. Not later than 60 days after the date of the 
enactment of this Act, the Secretary shall submit to the 
Committees on Appropriations a report detailing what new or 
revised procedures the Animal and Plant Health Inspection 
Service will implement, possibly including a clean stock 
certification program and insurance requirements for companies 
that import plants, to improve instructions for State 
inspectors, to product test results to State inspectors within 
two weeks, and to help prevent future outbreaks.

                        BUILDINGS AND FACILITIES




2003 appropriation....................................        $9,924,000
2004 budget estimate..................................         4,996,000
Provided in the bill..................................         4,996,000
Comparison:
    2003 appropriation................................        -4,928,000
    2004 budget estimate..............................             - - -


                          COMMITTEE PROVISIONS

    For Animal and Plant Health Inspection Service, Buildings 
and Facilities, the Committee provides an appropriation of 
$4,996,000, a decrease of $4,928,000 below the amount available 
for fiscal year 2003 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 2003    FY 2004    Committee
                                         enacted    request   provisions
------------------------------------------------------------------------
Buildings and Facilities:
    Miami Animal Import Center, FL....     $4,967      - - -       - - -
    Basic buildings and facilities          4,957     $4,996      $4,996
     repair, alterations, and
     preventative maintenance.........
                                       ---------------------------------
      Total, Buildings & Facilities...     $9,924     $4,996      $4,996
------------------------------------------------------------------------

                     Agricultural Marketing Service


                           MARKETING SERVICES




2003 appropriation....................................       $75,210,000
2004 budget estimate..................................        75,071,000
Provided in the bill..................................        75,953,000
Comparison:
    2003 appropriation................................          +743,000
    2004 budget estimate..............................          +882,000


                          COMMITTEE PROVISIONS

    For Marketing Services of the Agricultural Marketing 
Service, the Committee provides an appropriation of 
$75,953,000, an increase of $743,000 above the amount available 
for fiscal year 2003 and an increase of $882,000 above the 
budget request.

                 LIMITATION ON ADMINISTRATIVE EXPENSES




2003 limitation.......................................     ($61,619,000)
2004 budget limitation................................      (62,577,000)
Provided in the bill..................................      (62,577,000)
Comparison:
    2003 limitation...................................          +958,000
    2004 budget limitation............................             - - -


                          COMMITTEE PROVISIONS

    For a Limitation on Administrative Expenses of the 
Agricultural Marketing Service, the Committee provides 
$62,577,000, an increase of $958,000 above the amount available 
for fiscal year 2003 and the same as the budget request.

          FUNDS FOR STRENGTHENING MARKETS, INCOME, AND SUPPLY

                              (SECTION 32)

                     MARKETING AGREEMENT AND ORDERS

2003 appropriation......................................   ($14,910,000)
2004 budget estimate....................................    (15,392,000)
Provided in the bill....................................    (15,392,000)
Comparison:
    2003 appropriation..................................      (+482,000)
    2004 budget estimate................................           - - -

    The following table reflects the status of this fund for 
fiscal years 2002 through 2004:

               ESTIMATED TOTAL FUNDS AVAILABLE AND BALANCE CARRIED FORWARD, FISCAL YEARS 2002-2004
----------------------------------------------------------------------------------------------------------------
                                                                            FY 2003 current     FY 2004 budget
                                                        FY 2002 actual         estimate            estimate
----------------------------------------------------------------------------------------------------------------
Appropriation (30 percent of Customs Receipts)......      $6,139,942,369      $5,798,093,321      $5,927,395,463
FY 2003 Appropriation (P.L. 108-7)..................  ..................         250,000,000  ..................
Rescission (P.L. 107-206)...........................            -468,370  ..................  ..................
Less Transfers:
    Food and Nutrition Service......................      -5,172,458,000      -4,745,663,000      -4,699,661,000
    Commerce Department.............................         -79,126,813         -75,223,778         -79,724,463
                                                     -----------------------------------------------------------
      Total, Transfers..............................     $-5,251,584,813     $-4,820,886,778     $-4,779,385,463
                                                     ===========================================================
Budget Authority....................................         887,889,186       1,227,206,543       1,148,010,000
Unobligated Balance Available, Start of Year........         107,824,527         192,156,087                   0
Recoveries of Prior Year Obligations................                   0          13,000,000                   0
                                                     -----------------------------------------------------------
      Available for Obligation......................        $995,713,713      $1,432,362,630      $1,148,010,000
                                                     ===========================================================
Less Obligations:
    Commodity Procurement:
        Child Nutrition Purchases...................         399,934,661          15,000,000         400,000,000
        State Option contract.......................  ..................           5,000,000           5,000,000
        Removal of Defective Commodities............  ..................           1,000,000           1,000,000
        Emergency Surplus Removal...................         206,898,187         182,232,371                   0
        Diversion Payments..........................                   0                   0                   0
        Direct Payments.............................         172,867,307         897,000,000                   0
        Lamb Grading and Certification Support......             592,057             950,626                   0
        Disaster Relief.............................                   0             500,000                   0
        Fruit and Vegetable Pilot Program (P.L. 107-           6,000,000                   0                   0
         171).......................................
        Estimated Future Purchases..................                   0         304,036,633         415,575,000
                                                     -----------------------------------------------------------
          Total, Commodity Procurement..............        $786,292,212      $1,406,719,630        $821,575,000
                                                     ===========================================================
    Administrative Funds:
        Commodity Purchase Service..................           6,906,166          10,733,000          11,043,000
    Marketing Agreements & Orders...................          10,359,248          14,910,000          15,392,000
                                                     -----------------------------------------------------------
          Total, Administrative Funds...............          17,265,414          25,643,000          26,435,000
                                                     ===========================================================
          Total, Obligations........................         803,557,626       1,432,362,630         848,010,000
                                                     -----------------------------------------------------------
Unobligated Balance Available, End Of Year..........        $192,156,087                  $0        $300,000,000
----------------------------------------------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Marketing Agreements and Orders Program, the 
Committee provides a transfer from section 32 funds of 
$15,392,000, an increase of $482,000 above the amount available 
for fiscal year 2003 and the same as the budget request.
    In the utilization of section 32 funds for USDA feeding 
programs, the USDA shall not exclude or disciminate against 
Farmer-owned cooperatives when awarding contracts involving 
small business and any other preferences.

                   PAYMENTS TO STATES AND POSSESSIONS




2003 appropriation....................................        $1,338,000
2004 budget estimate..................................         1,347,000
Provided in the bill..................................         1,347,000
Comparison:
    2003 appropriation................................            +9,000
    2004 budget estimate..............................             - - -


                          COMMITTEE PROVISIONS

    For Payments to States and Possessions, the Committee 
provides an appropriation of $1,347,000, an increase of $9,000 
over the amount available for fiscal year 2003, and the same as 
the budget request.

        Grain Inspection, Packers and Stockyards Administration


                         SALARIES AND EXPENSES




2003 appropriation....................................       $39,690,000
2004 budget estimate..................................        41,688,000
Provided in the bill..................................        39,690,000
Comparison:
    2003 appropriation................................             - - -
    2004 budget estimate..............................        -1,998,000


                          COMMITTEE PROVISIONS

    For Grain Inspection, Packers and Stockyards 
Administration, the Committee provides $39,690,000, the same 
amount available for fiscal year 2003, and a decrease of 
$1,998,000 below the budget request.
    The recommendation does not include $5,238,000 in 
standardization user fees or $23,542,000 in Packers and 
Stockyards licensing fees, as proposed in the President's 
budget. These user fees are not 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.
    The Committee provides $600,000 for cross-cutting trade 
negotiation and biotechnology resources. Funds for this purpose 
were requested under the account of the Office of the 
Secretary, but are provided under the individual agency 
accounts. Also provided is $3,350,000 for high priority 
information technology investments and evaluation of carcass 
technologies. The Committee does not provide resources for 
packer audits, as included in the budget request.
    Product Verification Protocols Pilot.--The Committee 
understands that the Secretary has undertaken a product 
verification protocols pilot, in conjunction with the Missouri, 
Illinois and Iowa Corn Growers Associations, to establish 
controls for regulated seed varieties and to augment grain 
marketing. The Committee provides $500,000 to continue this 
pilot program with the growers associations for development of 
production protocols.
    Packer Ownership.--The Committee continues to be concerned 
about the economic impacts of packer control, feeding, or 
ownership on local communities. The Committee notes that it 
provided funding for a comprehensive, objective study of the 
issues surrounding a ban on packer ownership in the fiscal year 
2003 appropriations Act. The Committee expects the Department 
to provide regular updates on the study plan and to report on 
the Department's progress.

        LIMITATION ON INSPECTION AND WEIGHING SERVICES EXPENSES




2003 limitation.......................................     ($42,463,000)
2004 budget limitation................................      (42,463,000)
Provided in the bill..................................      (42,463,000)
Comparison:
    2003 limitation...................................             - - -
    2004 budget limitation............................             - - -


                          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 2003 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 Committees on Appropriations. 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





2003 appropriation....................................          $599,000
2004 budget estimate..................................           792,000
Provided in the bill..................................           599,000
Comparison:
    2003 appropriation................................             - - -
    2004 budget estimate..............................          -193,000



                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Food Safety, the 
Committee provides an appropriation of $599,000, the same as 
the amount provided for fiscal year 2003 and a decrease of 
$193,000 below the budget request.

                   Food Safety and Inspection Service





2003 appropriation....................................      $754,821,000
2004 budget estimate..................................       797,149,000
Provided in the bill..................................       785,261,000
Comparison:
    2003 appropriation................................       +30,440,000
    2004 budget estimate..............................       -11,888,000



                          COMMITTEE PROVISIONS

    For the Food Safety and Inspection Service, the Committee 
provides an appropriation of $785,261,000, an increase of 
$30,440,000 above the amount available for fiscal year 2003 and 
a decrease of $11,888,000 below the budget request.
    The recommendation does not include $122,000,000 in user 
fees to be paid by industry for Federal inspections, as 
proposed in the President's budget. These user fees are not 
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.
    The Committee provides the full amount requested for 
inspection activities, including funds to meet needs caused by 
industry growth; scientific training for personnel; pathogen 
sampling and risk assessment; laboratory capacity; an 
educational campaign; and international audits. The Committee 
notes that activities related to enforcement of the Humane 
Methods of Slaughter Act are fully funded; in addition to funds 
provided for inspections in the Committee recommendation for 
fiscal year 2004, the fiscal year 2003 appropriations act 
provided $5,000,000 in funds for inspection that remain 
available through fiscal year 2004. The Committee did not fund 
the request for non-salary related inflation and retirement 
costs, as these were not requested--or funded--in any other 
account.
    The Committee provides the agency with $1,650,000 solely to 
outsource microbiological testing, as requested in the 
President's budget, with the goal of establishing a continuous 
baseline program for risk assessment and performance 
measurement. The Committee expects the Department to outsource 
baseline testing to private American Association for Laboratory 
Accreditation (A2LA) International Standards Organization (ISO) 
approved laboratories. The Committee directs the Department to 
report on the progress of this initiative within 60 days of 
enactment.
    Food Safety Education Campaign Pilot.--The Committee is 
aware of the Department's efforts to enhance their activities 
and promotional campaigns to better educate the general public 
about the risks associated with food borne pathogens. However, 
given the limited focus of specific media outreach efforts to 
some of the most ``at risk'' audiences such as our senior 
citizens, the Committee expects the Department to establish a 
regional pilot project to provide outreach to this segment of 
the population. In particular, the Committee is very concerned 
about the risks posed to seniors in regions of the country such 
as the northeast, southeast, and Great Lakes representing the 
highest concentrated populations of older Americans in the 
country and encourages the Department to target such areas.

                        FARM ASSISTANCE PROGRAMS


    Office of the Under Secretary for Farm and Foreign Agricultural 
                                Services





2003 appropriation....................................          $618,000
2004 budget estimate..................................           916,000
Provided in the bill..................................           636,000
Comparison:
    2003 appropriation................................           +18,000
    2004 budget estimate..............................          -280,000



                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Farm and Foreign 
Agricultural Services, the Committee provides an appropriation 
of $636,000, an increase of $18,000 above the amount available 
for fiscal year 2003 and a decrease of $280,000 below the 
budget request.

                          Farm Service Agency


                         SALARIES AND EXPENSES


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

2003 appropriation......................................      $970,389,000    ($279,209,000)    ($1,249,598,000)
2004 budget estimate....................................     1,016,836,000     (294,096,000)     (1,310,932,000)
Provided in the bill....................................     1,016,836,000     (294,096,000)     (1,310,932,000)
Comparison:
    2003 appropriation..................................       +46,447,000     (+14,887,000)       (+61,334,000)
    2004 budget estimate................................                 0                 0                   0




                          COMMITTEE PROVISIONS

    For Salaries and Expenses of the Farm Service Agency (FSA), 
the Committee provides an appropriation of $1,016,836,000 and 
transfers from other accounts of $294,096,000, for a total 
program level of $1,310,932,000. This is an increase of 
$61,334,000 above the amount available for fiscal year 2003 and 
the same as 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.
    Milk Income Loss Contract program.--Local county FSA 
offices are struggling with record workloads due to the 
requirements of the Farm Security and Rural Investment Act of 
2002. Wisconsin is especially burdened because of the nearly 
17,000 dairy farmers who are eligible to receive benefits under 
the Milk Income Loss Contract (MILC) program, approximately 20 
percent of all dairy operations in the United States. It is 
estimated that Wisconsin needs 30-35 additional employees just 
to administer the MILC program. Short staffing at county 
offices is taking a tremendous toll on loyal employees and 
hurting the services that farmers receive. As such, the 
Committee directs the Department to increase staffing levels at 
county offices in Wisconsin by at least 30 staff years.
    Peanut Promotion Assessments.--Historically, the Farm 
Services Administration (FSA) has deducted assessments mandated 
by Federal and State laws when peanuts go into the USDA loan 
program. These assessments are used to fund research and 
promotion programs that peanut growers vote for in referenda 
conducted pursuant to Federal and State laws.
    In the course of implementing the new peanut program 
authorized by the Farm Security and Rural Investment Act of 
2002, FSA for the first time, refused to collect the 
assessments when peanuts are put into the loan program. 
However, the changes in the law for the new program did not 
require FSA to cease collecting the assessments. The new policy 
created great confusion in the marketplace and has inhibited 
the ability of peanut growers to fund their research and 
promotion programs. It is especially confusing because private 
entities who buy peanuts from producers must comply with State 
and Federal law and collect these assessments. Therefore, the 
Committee encourages FSA to revert to its previous practice of 
collecting assessments mandated by Federal and State statutes 
on peanuts when a producer places peanuts under loan. The 
Committee directs FSA to report within six months how it plans 
to comply with the Committee's directive.

                         STATE MEDIATION GRANTS

2003 appropriation......................................      $3,974,000
2004 budget estimate....................................       4,000,000
Provided in the bill....................................       3,974,000
Comparison:
    2003 appropriation..................................           - - -
    2004 budget estimate................................         -26,000

                          COMMITTEE PROVISIONS

    For State Mediation Grants, the Committee provides an 
appropriation of $3,974,000, the same as the amount available 
in fiscal year 2003 and a decrease of $26,000 below the budget 
request.

                        DAIRY INDEMNITY PROGRAM

2003 appropriation......................................        $100,000
2004 budget estimate....................................         100,000
Provided in the bill....................................         100,000
Comparison:
    2003 appropriation..................................           - - -
    2004 budget estimate................................           - - -

                          COMMITTEE PROVISIONS

    For the Dairy Indemnity Program, the Committee provides an 
appropriation of $100,000 the same as the amount available for 
fiscal year 2003 and the same as the budget request.

           AGRICULTURAL CREDIT INSURANCE FUND PROGRAM ACCOUNT

                         ESTIMATED LOAN LEVELS

2003 loan level.........................................  $3,937,000,000
2004 budget estimate....................................   3,518,398,000
Provided in the bill....................................   3,385,583,000
Comparison:
    2003 loan level.....................................    -551,417,000
    2004 budget estimate................................    -132,815,000

                          COMMITTEE PROVISIONS

    Approximate loan levels provided by the Committee for 
fiscal year 2004 for the agricultural credit insurance fund 
programs are: $1,083,143,000 for farm ownership loans, of which 
$133,143,000 is for direct loans and $950,000,000 is for 
guaranteed loans; $2,200,440,000 for farm operating loans, of 
which $617,503,000 is for direct loans, $252,937,000 is for 
guaranteed subsidized loans, and $1,330,000,000 is for 
guaranteed unsubsidized loans; $2,000,000 for Indian tribe land 
acquisition loans; and $100,000,000 for boll weevil eradication 
loans.

                      AGRICULTURE CREDIT PROGRAMS

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                      FY 2004        Committee
                                                                  FY 2003  level     estimate       provisions
----------------------------------------------------------------------------------------------------------------
Farm loan programs:
  Farm ownership:
    Direct......................................................        $130,000        $140,149        $133,143
    Guaranteed..................................................       1,000,000       1,000,000         950,000
  Farm operating:
    Direct......................................................         605,000         650,000         617,503
    Unsubsidized guaranteed.....................................       1,700,000       1,400,000       1,330,000
    Subsidized guaranteed.......................................         400,000         266,249         252,937
Indian tribe land acquisition...................................           2,000           2,000           2,000
Boll Weevil Eradication.........................................         100,000          60,000         100,000
                                                                 -----------------------------------------------
      Total, farm loans.........................................      $3,937,000      $3,518,398      $3,385,583
----------------------------------------------------------------------------------------------------------------

       ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS


                                                                 Direct loan    Guaranteed loan   Administrative
                                                                   subsidy          subsidy          expenses

2003 appropriation...........................................     $118,917,000     $107,884,000     $285,309,000
2004 budget estimate.........................................      124,675,000       86,020,000      298,136,000
Provided in the bill.........................................      118,442,000       81,719,000      298,136,000
Comparison:
    2003 appropriation.......................................         -475,000      -26,165,000      +12,827,000
    2004 budget estimate.....................................       -6,233,000       -4,301,000  ...............



    The following table reflects the costs of loan programs 
under credit reform:

----------------------------------------------------------------------------------------------------------------
                                                                 FY 2003           FY 2004          Committee
                                                                estimate          estimate         provisions
----------------------------------------------------------------------------------------------------------------
Loan subsidies:
  Farm ownership:
    Direct................................................       $14,995,000       $30,945,000       $29,398,000
    Guaranteed............................................         7,451,000         5,400,000         5,130,000
                                                           -----------------------------------------------------
      Subtotal............................................        22,446,000        36,345,000        34,528,000
                                                           =====================================================
  Farm operating:
    Direct................................................       103,744,000        93,730,000        89,044,000
    Guaranteed unsubsidized...............................        53,540,000        46,620,000        44,289,000
    Guaranteed subsidized.................................        46,893,000        34,000,000        32,300,000
                                                           -----------------------------------------------------
      Subtotal............................................       204,177,000       174,350,000       165,633,000
                                                           =====================================================
Indian tribe land acquisition.............................           178,000                 0                 0
                                                           -----------------------------------------------------
    Total, Loan subsidies.................................      $226,801,000      $210,695,000      $200,161,000
                                                           =====================================================
ACIF expenses:
  Salaries and expenses...................................       277,361,000       290,136,000       290,136,000
  Administrative expenses.................................         7,948,000         8,000,000         8,000,000
                                                           -----------------------------------------------------
    Total, ACIF expenses..................................      $285,309,000      $298,136,000      $298,136,000
----------------------------------------------------------------------------------------------------------------

                         Risk Management Agency

2003 appropriation......................................     $70,248,000
2004 budget estimate....................................      78,488,000
Provided in the bill....................................      71,509,000
Comparison:
    2003 appropriation..................................      +1,261,000
    2004 budget estimate................................      -6,979,000

                          COMMITTEE PROVISIONS

    For the Risk Management Agency, the Committee provides an 
appropriation of $71,509,000, an increase of $1,261,000 above 
the amount available for fiscal year 2003 and a decrease of 
$6,979,000 below the budget request.
    The Committee directs the Agency to develop a cost-of-
production insurance program for specialty crop growers. If the 
Agency develops this program as a pilot, it should include New 
York as one of the states in the pilot.
    The budget request included a proposal to cap the amount of 
delivery expense reimbursement that companies may receive at 20 
percent for each of the 2004 and subsequent reinsurance years. 
This proposal would be a decrease from the existing cap of 24.5 
percent. The Office of Management and Budget estimated that 
savings of $81,000,000 during fiscal year 2004 would result 
from enactment of this proposal. The Committee does not 
recommend any change to the existing cap.

                              Corporations


                FEDERAL CROP INSURANCE CORPORATION FUND

2003 appropriation...........................1 $2,886,000,000
2004 budget estimate..........................1 3,368,000,000
Provided in the bill..........................1 3,368,000,000
Comparison:
    2003 appropriation..................................    +482,000,000
    2004 budget estimate................................           - - -

\1\ Current indefinite appropriation.
---------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Federal Crop Insurance Corporation Fund, the 
Committee provides an appropriation of such sums as may be 
necessary (estimated to be $3,368,000,000 in the President's 
fiscal year 2004 Budget Request), an increase of $482,000,000 
above the amount provided in fiscal year 2003 and the same as 
the budget request.

                   Commodity Credit Corporation Fund


                 REIMBURSEMENT FOR NET REALIZED LOSSES




2003 appropriation.............................        1 $16,285,000,000
2004 budget estimate...........................         1 17,275,000,000
Provided in the bill...........................       \1\ 17,275,000,000
Comparison:
    2003 appropriation.........................             +990,000,000
    2004 budget estimate.......................                    - - -


1 Current indefinite appropriation.

                          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 $17,275,000,000 in 
the President's fiscal year 2004 Budget Request), an increase 
of $990,000,000 above the amount provided in fiscal year 2003 
and the same as the budget request.

                       HAZARDOUS WASTE MANAGEMENT




2003 limitation................................               $5,000,000
2004 budget estimate...........................                5,000,000
Provided in the bill...........................                5,000,000
Comparison:
    2003 limitation............................                    - - -
    2004 budget estimate.......................                    - - -


                          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 2003 and the same as the budget request.

                    TITLE II--CONSERVATION PROGRAMS

  Office of the Under Secretary for Natural Resources and Environment

2003 appropriation......................................        $745,000
2004 budget estimate....................................         918,000
Provided in the bill....................................         745,000
Comparison:
    2003 appropriation..................................           - - -
    2004 budget estimate................................        -173,000

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Natural Resources 
and Environment, the Committee provides an appropriation of 
$745,000, the same as the amount available for fiscal year 2003 
and a decrease of $173,000 below the budget request.

                 Natural Resources Conservation Service


                        CONSERVATION OPERATIONS




2003 appropriation....................................      $819,641,000
2004 budget estimate..................................       703,605,000
Provided in the bill..................................       850,004,000
Comparison:
    2003 appropriation................................       +30,363,000
    2004 budget estimate..............................      +146,399,000


                          COMMITTEE PROVISIONS

    For Conservation Operations, the Committee provides an 
appropriation of $850,004,000, an increase of $30,363,000 above 
the amount available for fiscal year 2003 and an increase of 
$146,399,000 above the budget request.
    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 2004 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 2003 
Conservation Operations allocation by State, fiscal year 2004 
Conservation Operations allocation by State, the fiscal year 
2004 Congressional earmarks by State, and the total 
conservation operations allocation by State.
    Grazing Lands Conservation Initiative.--The Committee 
includes legislative language that provides $23,500,000 for the 
Grazing Lands Conservation Initiative.
    Animal Feeding Operations Pilot Projects.--The Committee 
provides $5,000,000 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.
    The committee urges NRCS to make EQIP funding available for 
public land contracts to the maximum extent permitted under the 
law. In particular, the Committee is concerned that EQIP 
funding be made available for public land ranchers in states 
such as AZ, NM, ID, UT, OR, CA, CO, and WY to help meet 
regulatory demands and to relieve utilization pressure on 
private lands in those states.
    The Committee encourages the Department to construct 
wetlands to treat critical pollutants in the McDowell Creek 
(NC) Watershed.
    The Committee encourages continued work in the Bosque River 
watershed by the Texas Institute for Applied Environmental 
Research to monitor water quality and implement practices and 
other actions to improve water quality.
    Funding for fiscal year 2003 projects is not continued in 
fiscal year 2004 unless specifically mentioned: Implementation, 
through a cooperative agreement, of environmental, educational, 
and demonstration of conservation practices (AL)--$250,000; 
National Water Management Center (AR)--$2,750,000; Little Red 
River Irrigation Project--$375,000; Walnut Bayou (AR) 
Irrigation Project--$300,000; East Valley Conservation 
District/Santa Ana Watershed Authority (CA) non-native plant 
removal--$1,000,000; Monterey Bay Sanctuary--$600,000; Expand 
cooperative efforts w/Delaware State for plant materials--
$290,000; Manatee (FL) Agriculture Reuse System--$2,000,000; 
Georgia Soil and Water Conservation Commission Cooperative 
Agreement--$3,600,000; PMC for Native Plants to clean up the 
Island of Kahoolawe (HI)--$120,000; Molokai (HI) Agriculture 
Community Committee--$250,000; Idaho One Plan--$200,000; Trees 
Forever Program (IL)--$100,000; Illinois River Basin--$600,000 
through EQIP; Hungry Canyon/Loess Hills Erosion Control/Western 
Iowa--$1,200,000; Trees Forever Program (IA)--$100,000; CEMSA 
w/Iowa Soybean Association--$400,000; Technical assistance to 
providing grants to Soil Conservation Districts in Kentucky--
$1,000,000; Dairy waste remediation-Lake Ponchartrain (LA) 
Basin--$350,000; Chesapeake Bay activities--$6,000,000; Weed It 
Now-Taconic Mountains (MA/NY/CT)--$200,000; Choctaw County (MS) 
feasibility study for surface impoundment--$250,000; Upper 
White River Water Quality Project Office in southern Missouri--
$380,000; Lake Tahoe Basin Soil Conservation Project (NV/CA)--
$500,000; Lake Tahoe Basin area soil survey (NV/CA)--$200,000; 
State conservation cost share program (NJ)--$900,000; 
Pastureland Management/Rotational Grazing (NY)--$500,000; Best 
management practices/Skaneateles and Owasco Watersheds (NY)--
$250,000; Address non-point pollution in Onondaga Lake 
Watershed (NY)--$250,000; Beaver Swamp Brook project (NY) 
implementation and environmental restoration--$300,000; Phase 
II/Watershed Agriculture Council in Walton (NY)--$700,000, of 
which $80,000 is for monitoring the easements purchased by the 
WAC's Whole Farm Easement Program; Technical assistance to 
livestock/poultry industry (NC)--$500,000; Maumee Watershed 
Hydrological Study and Flood Mitigation Plan (OH)--$1,000,000; 
Oregon Garden Silverton (OR)--$325,000; Study to characterize 
land use change while preserving natural resources in 
cooperation with Clemson University (SC)--$900,000; Bexar, 
Medina, Uvalde Counties irrigation in Edwards Aquifer (TX)--
$500,000; Field office telecommunications pilot program/
advanced soil survey methods (TX)--$2,000,000; Leon River 
restoration project (TX)--$150,000; Range vegetation pilot 
project, Ft. Hood (TX)--$500,000; $500,000 for a cooperative 
agreement with the Texas Water Resources Institute to implement 
a watershed protection plan for Tarrant County (TX); Walla 
Walla (WA) watershed alliance--$500,000; Design/implement 
natural stream restration initiatives (WV)--$900,000; Soil 
survey geographic database in the Mid-Atlantic Highlands (WV)--
$200,000; Grazing Lands Initiative/Wisconsin Department of 
Agriculture--$950,000; Global Environment Mgmt. Education 
Center at Stevens Point (WI)--$2,000,000; Audubon at Home Pilot 
Program--$500,000; Great Lakes Basin Program for Soil & Erosion 
Sediment--$2,500,000; Watershed management demo program/NPPC--
$600,000; Source water protection project to States showing 
greatest need--$2,500,000; technical assistance to address 
water quality problems in Sodus Bay Watershed, Wayne County 
(NY)--$250,000; New York State Agriculture and Environmental 
Management Program--$750,000; Community Nutrient Management 
Facilities (GA)--$300,000; Cooperative agreement for 
comprehensive irrigation district management plans (WA)--
$250,000; Tipton Creek watershed project (IA)--$150,000; 
Operation Oak Program to restore hardwoods in the South--
$300,000; Dairy and poultry waste treatment in Suwannee, Dixie, 
and Lafeyette Counties (FL)--$350,000; Soil survey mapping and 
digitization with State of Wisconsin--$415,000; Study to 
determine the logistics of transportation and coordination of 
excess nutrient management (AR)--$250,000; Long Island (NY) 
Sound watershed initiative--$200,000; Pace University Land Use 
Law center--$200,000; Erosion Control and Stabilization for 
Hudson River (NY) shoreline--$250,000; Indian Creek (PA) 
watershed--$500,000; Basalt and Ground Water protection project 
(ID)--$250,000; Innovative environmental technology program 
(IN)--$400,000; Choupique Drainage Canal Improvements (LA)--
$250,000; for a cooperative agreement with the Green Institute 
(FL)--$350,000; and Ciudad Soil and Water Conservation District 
(NM)--$50,000.
    Hawaii Plant Materials Center.--The Committee provides the 
fiscal year 2003 level of funding for the Hawaii Plant 
Materials Center.
    The Committee directs the NRCS to provide technical and 
financial assistance to the Arkansas, Missouri, Oklahoma Common 
Watershed region to address water quality concerns, and to the 
Upper White River Initiative.
    The Committee recognizes the successful results that have 
been achieved in the West Texas Pilot Project with broadband 
mobile wireless services. The Committee encourages the 
Department to support the deployment of nomadic vehicles by 
modifying current vehicles to enhance the continuity of 
operation for USDA service centers.

                     WATERSHED SURVEYS AND PLANNING




2003 appropriation....................................       $11,124,000
2004 budget estimate..................................         5,000,000
Provided in the bill..................................        11,124,000
Comparison:
    2003 appropriation................................             - - -
    2004 budget estimate..............................        +6,124,000


                          COMMITTEE PROVISIONS

    For Watershed Surveys and Planning, the Committee provides 
an appropriation of $11,124,000, the same as the amount 
available for fiscal year 2003 and an increase of $6,124,000 
above the budget request.

               WATERSHED AND FLOOD PREVENTION OPERATIONS




2003 appropriation....................................      $109,285,000
2004 budget estimate..................................        40,000,000
Provided in the bill..................................        90,000,000
Comparison:
    2003 appropriation................................       -19,285,000
    2004 budget estimate..............................       +50,000,000




                          COMMITTEE PROVISIONS

    For Watershed and Flood Prevention Operations, the 
Committee provides an appropriation of $90,000,000, a decrease 
of $19,285,000 below the amount available for fiscal year 2003 
and an increase of $50,000,000 above the budget request. 
Language is included which limits the amount spent on technical 
assistance to not more than $40,000,000.
    The Committee is aware of and expects progress to continue 
and/or to provide financial/technical assistance 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; Martinez 5 
flood detention dam in Bexar County, TX; southwest VA waterways 
of Clinch, Powell, Holston, Pound and Bluestone Rivers and 
tributaries; Lower Hamakua Ditch Watershed (HI); Aowa Creek 
Watershed, Dixon County (NE); Ditch 26 Project (AR); Elm Creek 
Watershed, Floodwater Structure Number 5A (TX); Bentley Creek 
Watershed (PA); Neshaminy Creek Watershed Project, Bucks County 
(PA); Tuplehocken Creek (PA); Bayou Bourbeux Watershed (LA); 
Town Creek in Flowood (MS); Christina River Basin Clean Water 
Partnership (PA); Florence (AZ) Flood Retention Structure; 
Rockhouse Creek in Leslie County (KY); Upper Petit Jean 
Watershed Project (AR); Elm Creek (TX); Big Sandy Creek, 
Trinity River, Wise County (TX); Cave Creek Watershed (CA); 
Whitewater East Watershed Project No. 57 and Whitewater West 
Watershed Project No. 58 (KS); Taos Flood Control Project (NM); 
Highlands Creek Land Treatment Watershed (KY); Luxapalila Creek 
Erosion and Flood Control Project (MS); Central Sonoma 
Watershed (CA); Marrowbone Creek Dam, Henry County (VA); Bayou 
Meto (AR) Project; Buena Vista (VA) Watershed; North 
Chickamauga Creek, City of Soddy Daisy, Hamilton County, TN; 
and, Sumter County (SC) to complete flood mitigation projects 
with Sumter County Soil and Water Conservation District.
    The Committee includes funds for DuPage County, Illinois 
and Rockhouse Creek Watershed, Leslie County, Kentucky 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.

                    WATERSHED REHABILITATION PROGRAM




2003 appropriation....................................       $29,805,000
2004 budget estimate..................................        10,000,000
Provided in the bill..................................        40,000,000
Comparison:
    2003 appropriation................................       +10,195,000
    2004 budget estimate..............................       +30,000,000


                          COMMITTEE PROVISIONS

    For the Watershed Rehabilitation Program, the Committee 
provides an appropriation of $40,000,000, an increase of 
$10,195,000 above the amount available for fiscal year 2003 and 
an increase of $30,000,000 above the budget request.

                 RESOURCE CONSERVATION AND DEVELOPMENT




2003 appropriation....................................       $50,668,000
2004 budget estimate..................................        49,943,000
Provided in the bill..................................        52,894,000
Comparison:
    2003 appropriation................................        +2,226,000
    2004 budget estimate..............................        +2,951,000


                          COMMITTEE PROVISIONS

    For Resource Conservation and Development, the Committee 
provides an appropriation of $52,894,000, an increase of 
$2,226,000 above the amount available for fiscal year 2003 and 
an increase of $2,951,000 above the budget request.
    The Committee has included bill language related to a 
cooperative agreement with a national association.
    The Committee has included bill language limiting the 
amount that can be spent at national headquarters from this 
account.

                     FARM BILL TECHNICAL ASSISTANCE




2003 appropriation....................................             - - -
2004 budget estimate..................................      $432,160,000
Provided in the bill..................................             - - -
Comparison:
    2003 appropriation................................             - - -
    2004 budget estimate..............................      -432,160,000


                          COMMITTEE PROVISIONS

    The Committee does not concur with the budget request for a 
farm bill technical assistance account.

                 TITLE III--RURAL DEVELOPMENT PROGRAMS

          Office of the Under Secretary for Rural Development

2003 appropriation......................................        $636,000
2004 budget estimate....................................         913,000
Provided in the bill....................................         636,000
Comparison:
    2003 appropriation..................................           - - -
    2004 budget estimate................................        -277,000

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Rural 
Development, the Committee provides an appropriation of 
$636,000, the same as the amount available for fiscal year 2003 
and a decrease of $277,000 below the budget request.
    The Committee directs the Under Secretary to give 
consideration to the following projects or organizations 
requesting financial and/or technical assistance, and grants 
and/or loans made available under the Rural Development mission 
area: Lincoln Parish (LA) Alternative Water Supply; Sustainable 
Economic Development Institute (LA); Southern University (LA) 
Center for Community and Economic Development; Southern 
University (LA) Center for Excellence for Educational Outreach 
Technology; Neuse Regional Water and Sewer Authority (NC); SW 
Georgia Low Income modular/mobile home demonstration; Abraham 
Baldwin Ag College (GA) Blackbelt initiative; Pine Barren (AL) 
Channel improvements; Northwest Arkansas Conservation 
authority; Floyd County Industrial Shell Building; Grayson 
County Industrial Shell Building; Buchanan County Small 
Business Incubator; Shockley Heights and Wekiva Falls, Lake 
County (FL) drinking water quality improvements; Hernando 
County (FL) Fairgrounds Facility; Freewood Farms (SC); Saginaw 
Chippewa (MI) Water Main Extension Project; Saginaw Chippewa 
(MI) Sewer Main Extension Program; Luray (VA) water clarifier 
and selector tank; Page County (VA) economic development; raw 
water storage basin in Orange (VA); Gordonsville (VA) water 
system upgrade; Clay County Park (WV); Upper Fishers Branch/
Guthrie Water Project (WV); Town of New Haven (WV) Water System 
Upgrades; Helvetia (WV) Swiss Revitalization Project; East 
Bank/Multi-Purpose (WV) Building; Central Coast (CA) 
Agritourism Council Program in San Luis Obispo and Santa 
Barbara Counties; East Kauai (HI) Water Users' Cooperative; 
Honomalino (HI) Irrigation Cooperative; Sanitary sewer system 
evaluation survey in St. Croix (VI); Reinforce west berm of the 
Airport Lagoon wastewater treatment plant in St. Thomas (VI); 
plans and specifications to construct new Power Boyd Pump 
Station and construction of new Power Boyd Pump Station in St. 
John (VI); Summerton (SC) water and wastewater treatment system 
upgrade; Pamplico (SC) wastewater treatment facility; Albany 
(OR) water conservation and steel water line replacement; 
establish a minimum of 20 First Book Local Advisory Boards in 
rural communities across Connecticut; Plantation (FL) 
stormwater management improvements; Cowanshannock Township (PA) 
community development; Erie County (PA) wastewater system 
evaluation and upgrades; Leetsdale Industrial Park, Alleghany 
County (PA); Big Beaver Industrial Business Park (PA); South 
Florida Fair Agriplex; Cabarrus Arena and Events Center (NC); 
Water and sewer projects in the Village of Saugerties (NY); 
water and wastewater projects in the Town of Nichols (NY); 
Southern Tier Sports and Recreation Development Center in 
Vestal (NY); financial assistance for the Valley of Innovation 
Initiative in Binghamton (NY); Proyecto Azteca in South Texas 
for community facilities and housing; Community Development of 
South Texas; Dairy Manure Compost Plant, Tillamook County (OR); 
Opal Creek Wilderness and Scenic Recreation Area (OR); Southern 
Maryland Regional Processing Kitchen and Agriculture Business 
Incubator Park, Prince George's County (MD); Sugarcane and 
Renewable Energy/Ethanol Project, Imperial Valley (CA); 
Snohomish Basin BioGas Partnership (WA); Louisiana Native Plant 
Materials Laboratory; Little Milligan/Fish Springs water 
construction project Carter County (TN); Neuse Regional Water 
and Sewer Authority in Lenoir County (NC); Agri-Waste to 
ethanol projects in Northwest Wisconsin and Southeast Iowa; 
Sustainable agricultural/rural freshwater resource conservation 
initiative in the Rio Grande Basin region of South Texas; North 
Morgan (IL) Water Cooperative for water system installation and 
improvements; City of Winchester (IL) for the construction of a 
new combination city hall/police station/fire department; Cass 
County, (IL) financial assistance to expand water treatment 
plant facilities; Western Washington Regional Agricultural 
Marketing Program (WA); Skykomish River Basin for the lower 
Skykomish HCP/NW Chinook Recovery Program (WA); Skagit County 
rural business expansion (WA); Whatcom County (WA) fiber optics 
development program; Hi-Desert Regional Neonatal Medical Center 
(CA); Ohio County Regional Wastewater District (KY); Livestock 
exhibition center for Germantown (KY) Fair Board; Refrigerated 
facility in Mason County (KY); Northern Kentucky regional 
farmers' market; Maine rural community innovation center; 
Caswell County (NC) high-speed telecommunications; Vandalia 
Heritage Foundation (WV) for revitalization through community 
and economic development; Kiski-Conemaugh River Basin Economic 
Action Project (PA); Agriculture Entrepreneurial Alternative 
for Small Farmers (PA); Southeastern Massachusetts Agricultural 
Partnership (MA); Town of Ione (WA) water system upgrades; 
Community Facility, Belmont (OH); International Agri-Center, 
Tulare (CA); Central Valley Applied Agricultural Technology 
Center (CA); Sewer system in Cutler and Orosi Counties (CA); 
Farm to market road construction, Tulare County (CA); Buckhorn 
Water Treatment Plant Replacement in Amador County (CA); Food 
Innovation Research and Extension Center in Bridgeton (NJ); 
Multi-Purpose center for the Southern New Mexico State Fair 
(NM); community facility for the City of Tatum (NM); Pueblo of 
Laguna (NM) for Phase II and Phase III rehabilitation of the 
San Jose Valley Domestic Water System; Cesar Chavez Education 
and Retreat Center (CA); Elk Regional Health System Telehealth 
Project (PA); Keystone Community Network (PA); Monroe Township, 
Clarion County (PA) wastewater treatment; Industrial/warehouse 
building in Pike County (OH); Peanut marketing cooperatives 
(NC); 21st Century Fredonia Vineyard Lab Infrastructure (NY); 
Chautauqua County Agritourism Strategic Plan (NY); Chautauqua 
County Fair Infrastructure Improvements (NY); Chautauqua County 
Fair equestrian and agricultural exhibition center (NY); 
Western New York Equestrian Center construction, Erie County 
(NY); Technology Venture Center (MT); Springdale Farm (NY) 
milking parlor demonstration project; Dorton Branch, City of 
Pineville (KY) water and waste systems; multi-purpose/senior 
center for the City of Pineville (KY); Mt. Vernon (KY) for 
water and wastewater systems; Dallas County (AR) water system; 
Franklin County (PA) agriculture service center; Quinebaug-
Shetucket Heritage Corridor (CT) economic and community 
development; Brushy Island (AR) Water Improvement Association-
water improvements; White County (AR) emergency warning 
systems; Morrilton (AR) community facility; Middleport (OH) 
community facility; Salisbury Township in Meigs County (OH) 
water treatment facility; water line extension in northern 
Lawrence County (OH); Northern Initiatives, Marquette (MI); 
City of Menominee (MI) community facilities upgrades; Northern 
Lakes Economic Alliance (MI); City of Munising (MI) Water and 
Sewer Improvements; Tuscarora Township (MI) Wastewater 
treatment system; Online Louisiana; St. Martin Parish (LA) 
Water and Wastewater; St. James and St. John Parish (LA) water 
and wastewater; Choupique Drainage Canal improvements (LA); 
Iberia Parish conference center (LA); Chitimacha Tribe (LA) 
drainage and road improvements; Buncombe County (NC) emergency 
operating center; Westside Healthcare District in Taft (CA); 
community youth center in Atascadero (CA); Tehachapi Valley 
Healthcare District in Kern County (CA) for medical facilities; 
Laytonville (CA) wastewater treatment project; City of Bogalusa 
(LA) for development of Town Square and for rehabilitation of 
Main Street; St Charles Parish (LA) farmers' market; Tangipahoa 
Parish (LA) wastewater improvements; Washington Parish (LA) for 
water treatment repairs; Lincoln Parish (LA) for water and 
wastewater treatment improvements; Rural family health and 
diabetes outreach (NM); Klamath County (OR) Economic 
Development Association; Lake County (OR) Economic Development 
Association; Gilliam County (OR) Wheat Quality Initiative; Blue 
Mountain (OR) Value-Added Agriculture Product Development and 
Education Center; Union and Wallowa Counties Railroad Project 
(OR); Oregon Trail Beef Cooperative (OR); Grainger County (TN) 
water line construction; St. Cloud (FL) storm water and 
rehabilitation project; Purchase (KY) Area Regional Industrial 
Park; Ohio County (KY) Regional Wastewater Project; Digital 
Translators demonstration project (NM); rail line upgrade in 
Perry County (OH); community facility for Portsmouth (OH); 
Water Project, City of Marlin, Falls County (TX); Telework 
Consortium, Roanoke (VA); DeSoto County (FL) water and 
wastewater facility; and, Salkehatchie Leadership Center (SC).
    The Committee expects the Under Secretary to approve these 
projects only when such applications are judged to be 
meritorious when subject to established review procedures.
    The Committee directs Rural Development to provide a grant 
to the Renewable Fuels Association and the National Corn 
Growers Association to promote a comprehensive national 
communications program to heighten consumer awareness and 
educate stakeholders on ethanol.

                  RURAL COMMUNITY ADVANCEMENT PROGRAM

2003 appropriation......................................    $901,837,000
2004 budget estimate....................................     477,864,000
Provided in the bill....................................     706,006,000
Comparison:
    2003 appropriation..................................    -195,831,000
    2004 budget estimate................................    +228,142,000

                          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 2003      FY 2004     Committee
                                      level       estimate    provisions
------------------------------------------------------------------------
Community facilities:
    Community facility direct          $15,762            0            0
     loans.......................
    Community facility grants....       14,838      $17,000      $17,000
    Rural community development          6,954            0        6,000
     initiative..................
    Other........................       59,610            0        4,000
    Rescission...................          629            0            0
                                  --------------------------------------
          Subtotal, Community           96,800       17,000       27,000
           facilities............
                                  ======================================
Business:
    Business and industry loans:
        Guaranteed...............       35,498       29,280       27,000
    Rural business enterprise           46,684       44,000       44,000
     grants......................
    Rural business opportunity           2,981        3,000        3,000
     grants......................
    Delta regional authority.....        1,987            0            0
    Rescission...................          570            0            0
                                  --------------------------------------
          Subtotal, business.....       87,720       76,280       74,000
                                  ======================================
Utilities:
    Water and waste disposal
     loans:
        Direct...................      102,642       35,132       35,132
    Water and waste disposal           612,968      345,952      566,374
     grants......................
    Solid waste management grants        3,500        3,500        3,500
    Rescission...................        4,107            0            0
                                  --------------------------------------
          Subtotal, utilities....      723,217      384,584      608,006
    Rescission...................      (5,900)            0            0
                                  ======================================
          Total, loans and grants     $901,837     $477,864     $706,006
------------------------------------------------------------------

    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; $25,000,000 for water and waste disposal systems in 
the Colonias; $17,465,000 for technical assistance for rural 
water and waste systems; $13,000,000 for a circuit rider 
program; and $22,132,000 for empowerment zones and enterprise 
communities (EZ/EC) and communities designated by the Secretary 
of Agriculture as Rural Economic Area Partnership Zones, of 
which $1,000,000 is for community facilities, of which 
$12,582,000 shall be for rural utilities programs, and of which 
$8,550,000 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, $5,513,000 
is designated for the Rural Community Assistance Programs.
    The Committee expects the Department to coordinate with the 
Foundation for Affordable Drinking Water to carry out the 
provisions of section 7 U.S.C. 1926e of the Consolidated Farm 
and Rural Development Act.
    The Committee expects the Department to carry out the 
provisions of 7 U.S.C. 1926(a)(2) to coordinate with groups who 
have expertise in operating revolving funds similar to that 
authorized under 7 U.S.C. 1926(a)(2), including Rural Community 
Assistance Programs.

                RURAL DEVELOPMENT SALARIES AND EXPENSES


                                                                                                    Committee
                                                            FY 2003 estimate  FY 2004 estimate     provisions

Appropriations............................................      $144,789,000      $147,520,000      $146,495,000
Transfer from:
    Rural Housing Insurance Fund Loan Program Account.....       429,564,000       482,787,000       447,151,000
    Rural Electrification and Telecommunications Loans            37,587,000        41,562,000        38,166,000
     Program Account......................................
    Rural Telephone Bank Program Account..................         3,062,000         3,462,000         3,182,000
    Rural Development Loan Fund Program Account...........         4,163,000         4,850,000         4,283,000
                                                           -----------------------------------------------------
      Total, RD Salaries and Expenses.....................      $619,165,000      $680,181,000      $639,277,000



                          COMMITTEE PROVISIONS

    For Salaries and Expenses of the Rural Development mission 
areas, the Committee provides an appropriation of $146,495,000, 
an increase of $1,706,000 above the amount available for fiscal 
year 2003 and a decrease of $1,025,000 below the budget 
request.

                         Rural Housing Service


              RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT

                    ESTIMATED LOAN AND GRANT LEVELS




2003 loan levels......................................    $4,156,048,000
2004 budget estimate..................................     4,319,012,000
Provided in the bill..................................     4,364,727,000
Comparison:
    2003 loan level...................................      +208,679,000
    2004 budget estimate..............................       +45,715,000


                          COMMITTEE PROVISIONS

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

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                           FY 2003 level     FY 2004 estimate      provisions
----------------------------------------------------------------------------------------------------------------
Rural Housing Insurance Fund Loans and Grant:
    Single family housing (sec. 502):
        Direct.........................................         $1,037,868         $1,366,462         $1,366,462
        Unsubsidized guaranteed........................          2,845,318          2,725,172          2,725,172
    Rental housing (sec. 515)..........................            115,805             70,830            116,545
    Multi-family guaranteed (sec. 538).................            100,000            100,000            100,000
    Housing repair (sec. 504)..........................             35,000             35,003             35,003
    Credit sales of acquired property..................             12,000             11,500             11,500
    Housing site development (sec. 524)................              5,046              5,045              5,045
    Self-help housing land development fund............              5,011              5,000              5,000
                                                        --------------------------------------------------------
      Total, Loan authorization........................         $4,156,048         $4,319,012         $4,364,727
----------------------------------------------------------------------------------------------------------------

   ESTIMATED LOAN SUBSIDY, GRANTS, AND ADMINISTRATIVE EXPENSES LEVELS

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                           FY 2003 level     FY 2004 estimate      provisions
----------------------------------------------------------------------------------------------------------------
Rural Housing Insurance Fund Program Account (loan
 subsidies):
    Single family housing (sec. 502):
        Direct.........................................           $201,035           $126,018           $126,018
        Unsubsidized guaranteed........................             32,388             39,903             39,903
    Rental housing (sec. 515)..........................             53,649             30,464             50,126
    Multi-family guaranteed (sec. 538).................              4,471              5,950              5,950
    Housing repair (sec. 504)..........................             10,786              9,612              9,612
    Credit sales of acquired property..................                928                663                663
    Housing site development (sec. 524)................                 55              - - -              - - -
    Self-help housing land development fund............                220                154                154
      Total, Loan subsidies............................            303,532            212,764            232,426
RHIF expenses:
    Administrative expenses............................            429,564            482,787            447,151
----------------------------------------------------------------------------------------------------------------

                       RENTAL ASSISTANCE PROGRAM




2003 appropriation....................................      $721,281,000
2004 budget estimate..................................       740,000,000
Provided in the bill..................................       731,000,000
Comparison:
    2003 appropriation................................        +9,719,000
    2004 budget estimate..............................        -9,000,000


                          COMMITTEE PROVISIONS

    For the Rental Assistance Program, the Committee provides a 
program level of $731,000,000, an increase of $9,719,000 above 
the amount available in fiscal year 2003 and a decrease of 
$9,000,000 below the budget request.

                  MUTUAL AND SELF-HELP HOUSING GRANTS

2003 appropriation......................................     $34,772,000
2004 budget estimate....................................      34,000,000
Provided in the bill....................................      34,772,000
Comparison:
    2003 appropriation..................................           - - -
    2003 budget estimate................................        +772,000

                          COMMITTEE PROVISIONS

    For Mutual and Self-Help Housing Grants, the Committee 
provides an appropriation of $34,772,000, the same as the 
amount available in fiscal year 2003 and an increase of 
$772,000 above the budget request.

                    RURAL HOUSING ASSISTANCE GRANTS




2003 appropriation....................................       $42,222,000
2004 budget estimate..................................        41,500,000
Provided in the bill..................................        42,222,000
Comparison:
    2003 appropriation................................  ................
    2004 budget estimate..............................          +722,000



                          COMMITTEE PROVISIONS

    For the Rural Housing Assistance Grants program, the 
Committee provides an appropriation of $42,222,000, the same as 
the amount provided in fiscal year 2003 and an increase of 
$722,000 above the budget request. The appropriated amount 
includes $1,000,000 for supervisory and technical assistance.

                       FARM LABOR PROGRAM ACCOUNT

----------------------------------------------------------------------------------------------------------------
                                                               Loan level       Subsidy level        Grants
----------------------------------------------------------------------------------------------------------------
2003 appropriation........................................       $37,480,000       $18,373,000       $17,698,000
2004 budget estimate......................................        42,167,000        18,018,000        17,000,000
Provided in the bill......................................        42,827,054        18,300,000        18,007,000
Comparison:
    2003 appropriation....................................        +5,347,054           -73,000          +309,000
    2004 budget estimate..................................          +660,054          +282,000        +1,007,000
----------------------------------------------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Farm Labor program account, the Committee provides 
a loan subsidy of $18,300,000 which supports a loan level of 
$42,827,054, a decrease of $73,000 in loan subsidy and an 
increase of $5,347,054 in loan level above the amount available 
in fiscal year 2003, and an increase in loan subsidy of 
$282,000 and an increase of $660,054 above the budget request.
    The Committee also provides $18,007,000 in grants, an 
increase of $309,000 above the amount available in fiscal year 
2003 and an increase of $1,007,000 above the budget request.

                   Rural Business-Cooperative Service


              RURAL DEVELOPMENT LOAN FUND PROGRAM ACCOUNT

                          ESTIMATED LOAN LEVEL




2003 loan level.......................................       $40,000,000
2004 budget estimate..................................        40,000,000
Provided in the bill..................................        40,000,000
Comparison:
    2003 loan level...................................  ................
    2004 budget estimate..............................  ................



                          COMMITTEE PROVISIONS

    For the Rural Development Loan Fund program account, the 
Committee provides for a loan level of $40,000,000, the same as 
the amount provided in fiscal year 2003 and the same as the 
budget request.

       ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS


                                         Direct loan     Administrative
                                           subsidy          expenses

2003 appropriation..................       $19,179,000        $4,163,000
2004 budget estimate................        17,308,000         4,850,000
Provided in the bill................        17,308,000         4,283,000
Comparison:
    2003 appropriation..............        -1,871,000          +120,000
    2004 budget estimates...........             - - -              -567


            RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM ACCOUNT

                          ESTIMATED LOAN LEVEL

2003 loan level.........................................     $14,967,000
2004 budget estimate....................................      15,002,000
Provided in the bill....................................      16,120,000
Comparison:
    2003 loan level.....................................      +1,153,000
    2004 budget estimate................................      +1,118,000

                          COMMITTEE PROVISIONS

    For the Rural Economic Development Loans program account, 
the Committee provides for a loan level of $16,120,000, an 
increase of $1,153,000 above the amount provided for fiscal 
year 2003, and an increase of $1,118,000 above the budget 
request.

                         ESTIMATED LOAN SUBSIDY

                                                     Direct loan subsidy

2003 appropriation......................................  \1\ $3,176,000
2004 budget estimate....................................   \1\ 2,792,000
Provided in the bill....................................   \1\ 3,000,000
Comparison:
    2003 appropriation..................................        -176,000
    2004 budget estimate................................        +208,000

\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.
---------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the estimated loan subsidy, the Committee provides an 
appropriation of $3,000,000, a decrease of $176,000 below the 
amount provided in fiscal year 2003 and an increase of $208,000 
above the budget request.

                  RURAL COOPERATIVE DEVELOPMENT GRANTS




2003 appropriation....................................        $8,941,000
2004 budget estimate..................................        11,000,000
Provided in the bill..................................        13,000,000
Comparison:
    2003 appropriation................................        +4,059,000
    2004 budget estimate..............................        +2,000,000



                          COMMITTEE PROVISIONS

    For Rural Cooperative Development Grants, the Committee 
provides an appropriation of $13,000,000, an increase of 
$4,059,000 above the amount available in fiscal year 2003 and 
an increase of $2,000,000 above 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 through a cooperative 
agreement with the National Center for Appropriate Technology, 
and $4,000,000 is for value-added market development grants.

       RURAL EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES GRANTS




2003 appropriation....................................       $14,870,000
2004 budget estimate..................................                 0
Provided in the bill..................................        10,967,000
Comparison:
    2003 appropriation................................        -3,903,000
    2004 budget estimate..............................       +10,967,000


                          COMMITTEE PROVISIONS

    For Rural Empowerment Zones and Enterprise Communities 
Grants, the Committee provides an appropriation of $10,967,000, 
a decrease of $3,903,000 below the amount available in fiscal 
year 2003 and an increase of $10,967,000 above the budget 
request.

                        RENEWABLE ENERGY PROGRAM




2003 appropriation....................................             - - -
2004 budget estimate..................................        $3,000,000
Provided in the bill..................................         3,000,000
Comparison:
    2003 appropriation................................        +3,000,000
    2004 budget estimate..............................             - - -


                          COMMITTEE PROVISIONS

    For the Renewable Energy Program, the Committee concurs 
with the budget request and provides an appropriation of 
$3,000,000 for this program authorized by section 9006 of the 
Farm Security and Rural Investment Act of 2002 (7 U.S.C. 8106).

                        Rural Utilities Service


   RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LOANS PROGRAM ACCOUNT

                          ESTIMATED LOAN LEVEL

2003 loan level.........................................  $5,566,132,000
2004 budget estimate....................................   3,135,000,000
Provided in the bill....................................   4,655,000,000
Comparison:
    2003 loan level.....................................    -911,132,000
    2004 budget estimate................................  +1,520,000,000

                          COMMITTEE PROVISIONS

    The following table reflects the loan levels for the Rural 
Electrification and Telecommunications Loans Program account:

                                             [Dollars in thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                    Committee
                                                             FY 2003 enacted  FY 2004 estimate     provisions
----------------------------------------------------------------------------------------------------------------
Loan authorizations:
    Electric:
        Direct, 5%........................................          $121,103          $240,000          $240,000
        Direct, Municipal rate............................           100,000           100,000         1,000,000
        Direct, FFB.......................................         2,600,000         1,500,000         2,000,000
        Direct, Treasury Rate.............................         1,150,000           700,000           750,000
        Guaranteed electric...............................           100,000           100,000           100,000
        Guaranteed underwriting...........................         1,000,000             - - -             - - -
                                                           -----------------------------------------------------
            Subtotal......................................         5,071,103         2,640,000         4,090,000
                                                           =====================================================
    Telecommunications:
        Direct, 5%........................................            75,029           145,000           145,000
        Direct, Treasury rate.............................           300,000           250,000           300,000
        Direct, FFB.......................................           120,000           100,000           120,000
                                                           -----------------------------------------------------
            Subtotal......................................           495,029           495,000           565,000
                                                           =====================================================
            Total, Loan authorizations....................        $5,566,132        $3,135,000        $4,655,000
----------------------------------------------------------------------------------------------------------------

       ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS

                                             [Dollars in thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                    Committee
                                                             FY 2003 enacted  FY 2004 estimate     provisions
----------------------------------------------------------------------------------------------------------------
Loan subsidies:
    Electric:
        Direct, 5%........................................            $6,870             - - -             - - -
        Direct, Municipal rate............................             4,004             - - -             - - -
        Private Sector Guarantee..........................                79               $60               $60
                                                           -----------------------------------------------------
            Subtotal......................................           $10,953               $60               $60
                                                           =====================================================
    Telecommunications:
        Direct, 5%........................................             1,275             - - -             - - -
        Direct, Treasury rate.............................               149               125               125
                                                           -----------------------------------------------------
            Subtotal......................................             1,424               125               125
                                                           =====================================================
            Total, Loan subsidies.........................           $12,377              $185              $185
                                                           =====================================================
    E & T expenses:
        Administrative expenses...........................            37,857            41,562            38,166
----------------------------------------------------------------------------------------------------------------

                  RURAL TELEPHONE BANK PROGRAM ACCOUNT

                          ESTIMATED LOAN LEVEL

2003 loan level.........................................    $174,615,000
2004 budget estimate....................................           - - -
Provided in the bill....................................           - - -
Comparison:
    2003 loan level.....................................    -174,615,000
    2004 budget estimate................................           - - -

                          COMMITTEE PROVISIONS

    For the Rural Telephone Bank Program, the Committee concurs 
with the budget request authorizing the Rural Telephone Bank to 
make expenditures within the limits of funds available to carry 
out authorized programs.
    The Committee includes the same provision from the fiscal 
year 2003 bill which limits the retirement of the Class A stock 
of the Rural Telephone Bank.

       ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS


                                         Direct loan     Administrative
                                           subsidy          expenses

2003 appropriation..................        $2,394,000        $3,062,000
2004 budget estimate................             - - -         3,462,000
Provided in the bill................             - - -         3,182,000
Comparison:
    2003 appropriation..............        -2,394,000          +120,000
    2004 budget estimate............             - - -          -280,000


         DISTANCE LEARNING, TELEMEDICINE AND BROADBAND PROGRAM


                                                                   Loan level      Subsidy level      Grants

2003 appropriation............................................      $380,000,000               0     $56,571,000
2004 budget estimate..........................................       386,000,000       9,116,000      27,000,000
Provided in the bill..........................................       636,000,000       9,116,000      33,000,000
Comparison:
    2003 appropriation........................................      +256,000,000      +9,116,000     -23,571,000
    2004 budget estimates.....................................      +250,000,000           - - -      +6,000,000



                          COMMITTEE PROVISIONS

    For the Distance Learning, Telemedicine, and Broadband 
Program, the Committee provides an appropriation of 
$42,116,000, a decrease of $14,455,000 below the amount 
available for fiscal year 2003 and an increase of $6,000,000 
above the budget request, including $25,000,000 for Distance 
Learning and Telemedicine Grants, $9,116,000 for Broadband 
Telecommunications loan subsidy, and $8,000,000 for Broadband 
Grants.

                    TITLE IV--DOMESTIC FOOD PROGRAMS

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

2003 appropriation......................................        $599,000
2004 budget estimate....................................         786,000
Provided in the bill....................................         599,000
Comparison:
    2003 appropriation..................................           - - -
    2004 budget estimate................................        -187,000

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Food, Nutrition 
and Consumer Services the Committee provides $599,000, the same 
as the amount provided in fiscal year 2003 and a decrease of 
$187,000 below the budget request.
    The Committee recommends that $100,000 be directed to the 
State of New York to complete their pilot program 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.

                        CHILD NUTRITION PROGRAMS


                                                               Direct         Transfer from      Total program
                                                           appropriation        section 32           level

2003 appropriation.....................................     $5,834,480,000     $4,745,663,000    $10,580,143,000
2004 budget estimate...................................      6,819,340,000      4,599,101,000     11,418,441,000
Provided in the bill...................................      6,718,780,000      4,699,661,000     11,418,441,000
Comparison:
    2003 appropriation.................................       +884,300,000        -46,002,000       +838,298,000
    2004 budget estimate...............................       -100,560,000       +100,560,000              - - -



                          COMMITTEE PROVISIONS

    For the Child Nutrition Programs, the Committee provides a 
total of $11,418,441,000, an increase of $838,298,000 above the 
amount available for fiscal year 2003 and the same amount as 
included in the budget request. Of the total amount provided, 
$6,718,780,000 is by direct appropriation and $4,699,661,000 is 
by transfer from Section 32.

Child Nutrition Programs:
    School lunch program................................  $6,683,704,000
    School breakfast program............................   1,797,923,000
    Child and adult care food program...................   2,019,045,000
    Summer food service program.........................     308,653,000
    Special milk program................................      15,270,000
    State administrative expenses.......................     140,240,000
    Commodity procurement...............................     421,936,000
    School meals initiative.............................      10,025,000
    Food safety education...............................       1,000,000
    Coordinated review effort...........................       5,235,000
    Computer support....................................       9,373,000
    Program pay cost....................................          37,000
    Certification and data match assessment.............       6,000,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total........................................... $11,418,441,000

    The Committee recommendation includes $6,000,000 in one-
time funding for an assessment of National School Lunch and 
School Breakfast program certification procedures, accuracy in 
the program, and the feasibility of data matching regarding 
eligibility. This amount is in addition to other Food and 
Nutrition Service program integrity funds provided. The 
Committee has been informed that this amount of funding is 
adequate for the stated purpose, and that no out-year or 
additional costs are anticipated.
    The Committee notes that nutrition-related illnesses are at 
an all-time high, and the poor nutrition status of American 
youth presents a potential public health crisis. The Committee 
fully funds the request for nutrition education under the 
School Meals Initiative program in this account at $10,025,000. 
The Committee urges the Department to build upon the program to 
make it a more effective tool for encouraging healthy nutrition 
choices among schoolchildren. Should additional resources 
become available, the Committee would encourage the Department 
to increase grant funding to States to enable the appointment 
of a nutrition education specialist in each State. The 
specialist would coordinate and implement State-wide nutrition 
education programming; assess the nutrition education needs of 
the State; thoroughly disseminate all visual aids and materials 
provided currently through Team Nutrition; develop a State plan 
of operation and management for nutrition education; plan, 
develop and conduct nutrition education programs and workshops 
for food service and education personnel; and coordinate and 
promote nutrition education and training activities in local 
school districts.
    Authorization for the Child Nutrition Programs expires at 
the end of fiscal year 2003, and at the time of this Committee 
action, the House authorizing committee had not yet taken 
action on reauthorization. Therefore, the budget request and 
the Committee assume extension of current services into fiscal 
year 2004.

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

2003 appropriation......................................  $4,696,000,000
2004 budget estimate....................................   4,769,232,000
Provided in the bill....................................   4,588,310,000
Comparison:
    2003 appropriation..................................    -107,690,000
    2004 budget estimate................................    -180,922,000

                          COMMITTEE PROVISIONS

    For the Special Supplemental Nutrition Program for Women, 
Infants, and Children (WIC) the Committee provides an 
appropriation of $4,588,310,000, a decrease of $107,690,000 
below the amount available in fiscal year 2003 and $180,922,000 
below the budget request.
    The Committee recommendation for the Special Supplemental 
Nutrition Program for Women, Infants, and Children (WIC) is 
$4,588,310,000, which will provide the program with the 
resources to serve approximately 7.8 million women, infants and 
children, as estimated in the President's budget. The Committee 
notes that, since the budget request was submitted last 
February, estimates for food costs in the WIC program for the 
current and budget year have declined and participation in 
fiscal year 2003 is below the budgeted amount. Therefore, the 
recommended funding level, although significantly below the 
budget request, is sufficient to meet program needs and to 
allow for certain additional investments in the program, as 
requested by the President. The Committee recommendation 
assumes a carryout of $100,000,000 into fiscal year 2005.
    The recommended funding level includes $20,000,000 for a 
breastfeeding peer counselor program, $25,000,000 for 
investments in management information systems, and $4,000,000 
for pilot projects to combat obesity in children. The Committee 
provides $25,000,000 for the WIC contingency fund, as 
requested. The Committee notes that it provided $125,000,000 
for the WIC contingency fund in the fiscal year 2003 
appropriations act, to remain available until expended. The 
Committee has been informed that the Secretary does not 
anticipate use of these funds in fiscal year 2003; therefore, 
the Secretary will have a total contingency fund of 
$150,000,000 available for WIC food costs if necessary.
    Authorization for the WIC program expires at the end of 
fiscal year 2003, and at the time of this Committee action, the 
House authorizing committee had not yet taken action on 
reauthorization. Therefore, the budget request and the 
Committee assume extension of current services into fiscal year 
2004.
    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 $20,000,000 for the Farmers' Market 
Nutrition Program account under the Commodity Assistance 
Program as included in the budget request.
    Food Prescription Package.--Although the Department has 
requested that the National Academy of Sciences, Institute of 
Medicine, review and comment on the WIC food packages and make 
recommendations to the Department, the Committee continues to 
be concerned that this review will further delay the 
publication of proposed rules to revise the regulations 
governing the WIC food packages. The Committee directs the 
Secretary to report to Congress on the status and progress of 
the NAS/IOM review every six months until the review is 
complete. Further, within 180 days of receipt of the final NAS/
IOM report, the Committee directs the Department to move 
expeditiously in consultation with WIC agencies to develop for 
public comment a food prescription rule responding to the needs 
of the WIC population and to provide a report to the Committee 
regarding the status and publication of a proposed rule prior 
to February 1, 2004.
    WIC Services and Referrals.--While the Committee supports 
State and local agency efforts to utilize WIC as a means of 
participation referral to other health care services, it also 
recognizes the constraints that WIC programs experience as a 
result of expanding health care priorities and continuing 
demand for core WIC program activities. The Committee wishes to 
clarify that while WIC plays an important role in screening and 
referral to other health care services, it is not the 
Committee's intention that WIC should perform aggressive 
screening, referral and assessment functions in a manner that 
supplants the responsibilities of other programs, nor should 
WIC State and local agencies assume the burden of entering into 
and negotiating appropriate cost sharing agreements. The 
Committee again includes language in the bill to preserve WIC 
funding for WIC services authorized by law to ensure that the 
WIC funds are not used to pay the expenses or to coordinate 
operations or activities other than those allowable pursuant to 
section 17 of the Child Nutrition Act of 1966, unless fully 
reimbursed by the appropriate Federal agency.
    Interim Regulations on Infant Formula.--The Committee is 
concerned that the Department has published interim infant 
formula cost containment regulations without the benefit of 
public comment, failing to consider State agencies' experience 
with bidding and contracting and preventing States from 
negotiating the best contract for individual circumstances. The 
Committee directs the Department to partner with WIC State 
agency directors to review the interim regulations and propose 
regulatory changes to appropriately respond to States' concern 
assuring maximum participant benefits.

                           FOOD STAMP PROGRAM




2003 appropriation....................................   $26,313,692,000
2004 budget estimate..................................    27,745,981,000
Provided in the bill..................................    27,745,981,000
Comparison:
    2003 appropriation................................    +1,432,289,000
    2004 budget estimate..............................             - - -


                          COMMITTEE PROVISIONS

    For the Food Stamp Program, the Committee provides 
$27,745,981,000, an increase of $1,432,289,000 above the amount 
available in fiscal year 2003 and the same as the budget 
request. The total amount includes $2,000,000,000 for a 
contingency reserve in fiscal year 2004; $1,402,805,000 for 
nutrition assistance for Puerto Rico and American Samoa; and 
$140,000,000 for The Emergency Food Assistance Program (TEFAP).

                      COMMODITY ASSISTANCE PROGRAM




2003 appropriation....................................  \1\ $164,505,000
2004 budget estimate..................................       166,072,000
Provided in the bill..................................       166,072,000
Comparison:
2003 appropriation....................................        +1,567,000
2004 budget estimate..................................             - - -


\1\ Includes $1,074,000 from the Food Donations Programs account, which
  is included in the Commodity Assistance Program account for FY 2004.


                          COMMITTEE PROVISIONS

    The Committee provides an appropriation of $166,072,000 for 
the commodity assistance program, an increase of $1,567,000 
above the amount available for fiscal year 2003 and the same as 
the budget request.
    The recommended funding level for the Commodity 
Supplemental Food Program (CSFP) is $94,991,000. The Committee 
notes that approximately $11,400,000 is expected to be 
available to the CSFP as carryover from the current year into 
fiscal year 2004, making the total available for the program 
approximately $106,391,000.
    The Committee has included $50,000,000 for administration 
of TEFAP, the same amount available in fiscal year 2003 and the 
same as the budget request. These funds may be used for 
administration purposes or for food costs at the discretion of 
the States. In addition, the Committee recommendation includes 
a general provision that allows the Secretary to transfer up to 
$10,000,000 of TEFAP commodity funding to processing, storage, 
and distribution costs.
    For the Food Donations Programs the Committee provides an 
appropriation of $1,081,000 for Pacific Island Assistance, an 
increase of $7,000 above the amount available for fiscal year 
2003, and the same as the budget request.
    Farmers' Market Nutrition Program.--The Committee 
recommendation includes $20,000,000 for the Farmers' Market 
Nutrition Program, as requested. This program was formerly 
funded in the Special Supplemental Nutrition Program for Women, 
Infants, and Children (WIC) account.
    Seniors Farmers' Market Program.--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 2004.

                   nutrition programs administration

2003 appropriation......................................    $135,672,000
2004 budget estimate....................................     144,849,000
Provided in the bill....................................     140,512,000
Comparison:
    2003 appropriation..................................      +4,840,000
    2004 budget estimate................................      -4,337,000

                          COMMITTEE PROVISIONS

    For Nutrition Programs Administration, the Committee has 
provided $140,512,000, an increase of $4,840,000 above the 
amount available for fiscal year 2003, and a decrease of 
$4,337,000 below the budget request.
    The recommended level includes $7,500,000 for program 
integrity activities for the Food Stamp and Child Nutrition 
Programs.
    The Committee recommendation includes the full amounts 
requested to increase nutrition education and promotion, to 
update the Healthy Eating Index, develop the Year 2005 Dietary 
Guidelines for Americans, to promote the Food Guide Pyramid, 
and to support the obesity prevention campaign.

            TITLE V--FOREIGN ASSISTANCE AND RELATED PROGRAMS

                      Foreign Agricultural Service


                                                                                 Transfer from
                                                                 Appropriation   loan accounts     Total, FAS

2003 appropriation............................................    $129,103,000    ($4,229,000)    ($133,332,000)
2004 budget estimate..........................................     140,798,000     (4,393,000)     (145,191,000)
Provided in the bill..........................................     133,924,000     (4,393,000)     (138,317,000)
Comparison:
    2003 appropriation........................................      +4,821,000            +164        +4,985,000
    2004 budget estimate......................................      -6,874,000           - - -        -6,874,000


                          COMMITTEE PROVISIONS

    For the Foreign Agricultural Service, the Committee 
provides an appropriation of $133,924,000 and transfers of 
$4,393,000, for a total salaries and expenses level of 
$138,317,000, an increase of $4,985,000 above the amount 
available for fiscal year 2003 and a decrease of $6,874,000 
below the budget request.
    The Committee recommendation includes: $2,000,000 for trade 
and biotechnology resources; $594,000 for increased ICASS 
costs; and $356,000 for increased overseas rent costs. The 
Committee does not concur with the President's budget request 
of $5,000,000 for the Montreal Protocol Fund.
    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.

                             Public Law 480


                       PROGRAM AND GRANT ACCOUNTS

                          COMMITTEE PROVISIONS

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

----------------------------------------------------------------------------------------------------------------
                                                                                                    Committee
                                                             FY 2003 enacted  FY 2004 estimate     provisions
----------------------------------------------------------------------------------------------------------------
Public Law 480 Program Account:
    Title I--Credit sales:
        Direct loans......................................    ($154,664,000)    ($132,000,000)    ($132,000,000)
        Loan subsidies....................................       115,416,000       103,887,000       103,887,000
        Ocean freight differential........................        24,995,000        28,000,000        28,000,000
    Title II--Commodities for disposition abroad:
        Program level.....................................   (1,192,200,000)   (1,185,000,000)   (1,192,000,000)
        Appropriation.....................................     1,192,200,000     1,185,000,000     1,192,000,000
    Salaries and expenses:
        FAS...............................................         1,026,000         1,066,000         1,066,000
        FSA...............................................         1,019,000         2,975,000         2,975,000
                                                           -----------------------------------------------------
          Total...........................................         2,045,000         4,041,000         4,041,000

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

    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.

                    CCC EXPORT LOANS PROGRAM ACCOUNT

                        ADMINISTRATIVE EXPENSES




2003 appropriation....................................        $4,032,000
2004 budget estimate..................................         4,312,000
Provided in the bill..................................         4,312,000
Comparison:
    2003 appropriation................................          +280,000
    2004 budget estimate..............................             - - -



                          COMMITTEE PROVISIONS

    For administrative expenses of the Commodity Credit 
Corporation Export Loans Program Account, the Committee 
provides an appropriation of $4,312,000, an increase of 
$280,000 above the amount available for fiscal year 2003 and 
the same amount as the budget request.

  MC GOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD NUTRITION 
                             PROGRAM GRANTS




2003 appropriation....................................             - - -
2004 budget estimate..................................       $50,000,000
Provided in the bill..................................        56,874,000
Comparison:
    2003 appropriation................................       +56,874,000
    2004 budget estimate..............................        +6,874,000


                          COMMITTEE PROVISIONS

    For McGovern-Dole Food for Education and Child Nutrition 
Program Grants, as authorized by Section 3107 of P.L. 107-171 
(7 U.S.C. 1736o-1), the Committee provides an appropriation of 
$56,874,000, an increase of $6,874,000 above 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


                                                                               Drug and device
                                                             Appropriation        user fees      Total, FDA, S&E

2003 appropriation......................................      $1,373,714,000      $248,025,000    $1,621,739,000
2004 budget estimate....................................       1,394,617,000       279,015,000     1,673,632,000
Provided in the bill....................................       1,389,234,000       279,015,000     1,668,249,000
Comparison:
    2003 appropriation..................................         +15,520,000       +30,990,000       +46,510,000
    2004 budget estimate................................          -5,383,000                 0        -5,383,000


                          COMMITTEE PROVISIONS

    The Committee recommendation includes $1,668,249,000 for 
the salaries and expenses of the Food and Drug Administration. 
Of the total, $1,389,234,000 is provided in budget authority, 
and the Committee makes available $249,825,000 in prescription 
drug user fees and $29,190,000 in medical device user fees. The 
budget authority provided is $15,520,000 over the fiscal year 
2003 level, and $5,383,000 under the budget request. Included 
in this funding level are increases of $8,000,000 for the 
generic drugs program, $20,500,000 for food safety and counter-
terrorism activities, as requested, $4,000,000 for 
implementation of the Better Pharmaceuticals for Children Act, 
$3,000,000 for patient safety and adverse event reporting, 
$700,000 for review of over-the-counter drugs, and $4,000,000 
for relocation expenses.
    The Committee has also provided an increase of $8,934,000 
over the budget authority amount in the President's budget 
request for the medical device program, for a total of 
$193,477,000 in budget authority and $209,285,000 including 
user fees. To maintain agency functions the Committee provides 
the requested amount for cost of living requirements.
    The Committee fully supports the agency's efforts to 
streamline the generic drug application review function. The 
Committee recommendation includes $53,750,000 for the generic 
drugs program, a 20 percent increase over the current level. 
The $8,000,000 increase provided specifically for the generic 
drug program, as well as that program's share of the pay cost 
increase provided, will allow FDA to hire 28 additional 
reviewers and inspectors in order to review at least 85 percent 
of applications within 180 days of receipt, with the goal of 
decreasing average review time by at least one and a half 
months.
    In a Subcommittee hearing this year, the FDA Commissioner 
noted studies that found that physicians are confused about the 
efficacy of generic drugs compared to brand name products and 
about cost differences between generics and name brand drugs. 
He suggested that an education campaign targeted at physicians 
and medical students would be something he would be interested 
in pursuing if additional funds were available. The Committee 
shares the Commissioner's interest in this matter, and 
therefore, requests FDA to submit a report to the Committee, in 
advance of the conference on the FY 2004 bill, on how such a 
campaign might be designed and what it would cost.
    The Committee notes that the proposed budget for the Food 
and Drug Administration included a reduction to the base 
programs of $57,575,000 due to management and information 
technology efficiencies, as well as $35,972,000 in cost 
absorptions. Although the Committee is in favor of creating 
greater efficiency in programs, it is concerned about the 
effect of such reductions on program delivery. For example, the 
President's budget request includes a total of $14,332,000 in 
cuts to the medical devices program. That amount represents 
over seven percent of that program's current budget authority, 
although program performance has not been at an acceptable 
level.
    The Committee recommendation includes adequate budget 
authority to meet the required level of funding for human 
prescription drug review activities, so that prescription drug 
user fee funds may continue to be collected and available to 
the agency. The Committee notes that its recommendation 
includes a transfer of the biologics therapeutic review 
function and funds, which total $32,872,000, into the human 
drugs program from the biologics program, as requested in the 
President's budget.
    The recommended funding level includes $4,000,000 for 
relocation expenses related to the move of the Center for Drug 
Evaluation and Research offices to the consolidated White Oak 
campus instead of $6,000,000, as requested. It is expected that 
carryover funds available in the Prescription Drug User Fee 
Account can fund the remaining $2,000,000 needed, since this 
phase of the move involves the new drug review functions of the 
Center.
    Within the animal drugs and feeds program, the 
recommendation does not include $5,000,000 in user fees for 
animal drug application review. These user fees are not 
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. The 
Committee recommendation for the animal drugs and feeds 
programs preserves funding for Bovine Spongiform Encephalopathy 
(BSE) prevention activities at $21,607,000.
    The Committee recommendation includes an increase of 
$600,000 for the Office of Women's Health (OWH), to make total 
funding for OWH not less than $3,675,000. Of this increase, not 
less than $500,000 should be dedicated to supporting and 
implementing important women's health outreach activities, 
including the hormone replacement education initiative that was 
started in fiscal year 2003. It is critical that the Office of 
Women's Health have the resources to partner with medical 
professional and women's health groups, as well as other 
Federal agencies, to conduct a comprehensive public awareness 
outreach campaign about the appropriate use of hormone therapy, 
including the treatment of menopausal symptoms.
    The recommended funding level includes a $700,000 increase 
for over-the-counter (OTC) drug programs, instead of $1,000,000 
as requested. The Committee agrees that OTC drugs play an 
increasingly important role in the healthcare system. The 
increase in funding should be used to hire and train five 
additional FTEs to improve the OTC drug review process, develop 
and work toward finalizing OTC drug monographs, and conduct 
consumer behavior research that would be used to identify and 
manage potential risks of OTC drugs. The increase in funding 
should also be used to facilitate the approval of new drug 
applications to switch drugs from prescription to 
nonprescription status. The Committee expects that FDA's first 
priority should be to finalize switch applications currently 
under review. Next, the increase should be used to improve on 
the long history of cooperation between the agency and switch 
applicants that has resulted in over 70 successful switches 
since 1974, and FDA should work with industry to proactively 
identify future candidates for switch applications.
    Prescription Drug Monograph System.--The Committee requests 
a report from FDA regarding the feasibility and cost of a new 
monograph system for prescription drug products that have been 
marketed to a material extent or for a material time without a 
premarket approval, provided such products are without apparent 
safety or efficacy problems. Enforcement resources regarding 
pharmaceutical products should be dedicated to activities that 
are most likely to improve public health.
    The Committee recommendation includes a total of $8,300,000 
for the Unified Financial Management System. Any additional 
costs for this purpose, either direct or by transfer, are 
subject to approval by the Committee. The Committee continues 
to request quarterly updates on the progress of the system, its 
ability to meet agency needs, and updated cost estimates for 
implementation.
    The Committee should be kept fully informed of 
consolidation efforts in the Department of Health and Human 
Services (DHHS) that affect the Food and Drug Administration. 
The current proposal to consolidate human resources functions 
has not been sufficiently explained or justified. Indeed, the 
Department has been unable to identify the costs to the FDA of 
the consolidation for fiscal years 2003 or 2004. The FDA should 
not pay any bills to the Department for the consolidation of 
human resources functions without Committee approval through 
the reprogramming process. The cost to FDA of the consolidation 
should not exceed what it currently costs to operate human 
resources functions within the FDA, and the level of service 
should be equal to that provided by the FDA human resource 
staff.
    The Committee expects the FDA to continue its support for 
the Waste Management Education and Research Consortium (WERC) 
and its work in food safety technology verification and 
education at no less than the fiscal year 2003 level.
    Alpha-1 Antitrypsin Deficiency.--The Committee notes the 
importance of expedited review for new therapies for the 
progressive degenerative lung disease Alpha-1. Currently this 
patient population is dependent on a sole source therapy that 
is in critical short supply. 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 products that have been 
submitted for licensure and requests a report on the progress 
that has been made by March 31, 2004.
    Shrimp/Chloramphenicol.--The Committee has concerns 
regarding the adequacy of FDA efforts to address seafood safety 
issues, particularly chloramphenicol contamination in farm-
raised shrimp imports. The Committee understands that FDA has 
increased its sampling rate of farm-raised shrimp imports 
fourfold, and encourages increased sampling over the current 
rate. The Committee also expects FDA to validate and employ the 
most current test methods for chloramphenicol, including 
development of testing capability for cold-storage inventories. 
The Committee directs the agency to report on its sampling 
frequency and violation rates for imported shrimp, and its 
efforts to ensure that any shrimp that test positive for 
chloramphenicol will not be subsequently consumed.
    Food Freshness.--The Committee understands that FDA has 
asked the National Advisory Committee on Microbiological 
Criteria for Foods (NACMCF) to provide advice on the necessary 
scientific parameters for establishing safety-based use-by 
dates for refrigerated ready-to-eat foods to help reduce the 
incidence of foodborne listeriosis. The Committee directs FDA 
to provide the NACMCF report when it becomes available in 2004.
    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 not 
less than $250,000 for this effort. In addition, the Committee 
expects that FDA will continue its work with ISSC through a 
memorandum of understanding, and that FDA will devote not less 
than $200,000 to this effort.
    Color Certification Fees.--The Committee understands that 
fees paid by the color certification industry have been used to 
pay rent on a much larger facility than is needed in fiscal 
year 2003, due to logistics of using a temporary space, and 
that the same situation is expected in the budget year. The 
Committee is concerned that this temporary rent increase will 
be the basis for an increase in assessed fees for the industry. 
The Committee expects FDA to calculate fees based on reasonable 
expenses, excluding the anomaly of increased rent in fiscal 
years 2003 and 2004. The Committee notes that augmentation of 
the FDA budget by the color certification fees is allowable 
only to offset reasonable expenses of running the color 
certification function, and that a separate accounting of the 
fees and expenses must be kept.
    Test Method Evaluation.--The Committee directs that the 
agency continue its contract to conduct method evaluation of 
rapid test methods of fresh fruits and vegetables for 
microbiological pathogens with New Mexico State University's 
Physical Science Laboratory at the fiscal year 2003 level.
    Plasma Therapeutics Lot Release.--It is the Committee's 
understanding that the Center for Biologics Evaluation and 
Research (CBER) is analyzing the lot release process in order 
to determine what factors increase the review time and to set a 
performance goal for lot release. The Committee is encouraged 
that CBER is evaluating its performance, and suggests that 
reviewing and acting on 90 percent of lots of plasma 
therapeutics within thirty days of receipt is an acceptable 
level of performance. The agency is directed to report its 
final plasma therapeutics performance goal, and its performance 
related to that goal, to the Committee within 90 days of 
enactment.
    Detroit District Office.--The Committee is pleased that FDA 
plans to relocate the Detroit District Office within the city 
center of Detroit, and that a long-term lease has been signed. 
The Committee supports the increase in personnel assigned to 
the Detroit District Office to meet needs in that area, and 
expects that the current level of 112 Full Time Equivalent 
employees will be maintained or exceeded in the budget year.
    Standard of Identity for Yogurt.--The Committee supports 
the agency's plans to issue an Advanced Notice of Proposed 
Rulemaking (ANPR) in August 2003 to solicit comments on the 
petition regarding the standard of identity for yogurt. The 
Committee expects to receive notice when the ANPR is published, 
and to be briefed within 120 days of the close of the ANPR 
comment period on the comments received and on agency plans to 
issue a proposed rule on the yogurt standard of identity.
    The Committee requires that the Commissioner of Food and 
Drugs work in consultation with the Director of the National 
Cancer Institute on a strategic plan to expedite the 
development of chemoprevention cancer drugs and report back to 
the Committee by March 31, 2004.
    The Committee is aware that FDA has under review a petition 
to allow for the use of ultrafiltered milk as an ingredient in 
standardized dairy products such as cheese and that 
cheesemakers may seek similar treatment for imported Milk 
Protein Concentrate (MPC). The Committee is concerned about 
this petition, and directs FDA to provide it with regular 
quarterly reports on the status of its review of any petitions 
to use ultrafiltered milk, casein or MPC in dairy products that 
have standards of identity.
    Seafood Safety.--The Committee is concerned that seafood 
Hazard Analysis and Critical Control Points (HACCP) 
requirements for imported seafood are not being met. FDA's 
HACCP guidelines contain recommendations regarding temperature 
and time requirements for certain seafood products. However, as 
agency inspectors cannot check the temperature of the seafood 
while it is in transit, compliance with this guideline cannot 
be ensured. Regarding seafood, FDA has the duty to identify 
preventive measures the processor and importer can apply to 
control microbiological hazards. The Committee requests a 
report from the FDA, including the following information: a 
description of the HACCP temperature requirements for imported 
seafood products and controls currently in place to test 
temperature in transit; identification of tests or technology 
to aid in determining compliance with the temperature 
requirements; a description of the frequency of inspection and 
the sampling performed, and if temperature of the product was 
taken upon arrival, before the product entered a chill 
facility. The report should also identify any planned or 
ongoing FDA research projects on the effectiveness of new 
technologies to control hazards due to improper temperature. 
The report should be submitted to the Committee by January 1, 
2004.

                        BUILDINGS AND FACILITIES




2003 appropriation....................................        $7,948,000
2004 budget estimate..................................        11,500,000
Provided in the bill..................................         6,000,000
Comparison:
    2003 appropriation................................        -1,948,000
    2004 budget estimate..............................        -5,500,000



                          COMMITTEE PROVISIONS

    For Buildings and Facilities of the Food and Drug 
Administration, the Committee provides an appropriation of 
$6,000,000, decrease of $1,948,000 below the amount available 
for fiscal year 2003 and a decrease of $5,500,000 below the 
budget request.
    The funding in this account is directed toward repairs and 
improvements to existing facilities. The Committee 
recommendation does not include funding for construction at the 
Arkansas Regional Lab, as requested.

                          Independent Agencies


                  Commodity Futures Trading Commission





2003 appropriation....................................       $85,426,000
2004 budget estimate..................................        88,435,000
Provided in the bill..................................        88,435,000
Comparison:
    2003 appropriation................................        +3,009,000
    2004 budget estimate..............................             - - -




                          COMMITTEE PROVISIONS

    For the Commodity Futures Trading Commission, the Committee 
provides an appropriation of $88,435,000, an increase of 
$3,009,000 above the amount available for fiscal year 2003 and 
the same as the budget request.

                       Farm Credit Administration


                 LIMITATION ON ADMINISTRATIVE EXPENSES




2003 limitation.......................................     ($38,400,000)
2004 budget estimate..................................      (40,900,000)
Provided in the bill..................................      (40,900,000)
Comparison:
    2003 limitation...................................        +2,500,000
    2004 budget estimate..............................  ................


                          COMMITTEE PROVISIONS

    For a limitation on the expenses of the Farm Credit 
Administration, the Committee provides $40,900,000, an increase 
of $2,500,000 above the amount available for fiscal year 2003 
and the same as the budget request.

                     TITLE VII--GENERAL PROVISIONS

    The General Provisions contained in the accompanying bill 
for fiscal year 2004 are fundamentally the same as those 
included in last year's appropriations bill.
    Section 710: Language is included that provides that none 
of the funds in this Act may be made available to pay indirect 
costs charged against agricultural research, education, or 
extension grants awarded by the Cooperative State Research, 
Education, and Extension Service in excess of 20 percent of 
total direct costs, except for grants available under the Small 
Business Innovation and Development Act. A limitation of 19 
percent was established in the fiscal year 2000 appropriations 
act.
    Section 720: Language is included to prohibit funds from 
being used to carry out the Initiative for Future Agriculture 
and Food Systems.
    Section 721: 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 722: 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 723: Language is included that provides $3,000,000 
for a hunger fellowship program.
    Section 724: 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 725: 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 726: Language is included that provides that the 
Natural Resources Conservation Service shall provide assistance 
to certain locations under the Watershed and Flood Prevention 
Operations program.
    Section 727: Language is included that provides that 
certain locations shall be considered as meeting the 
eligibility requirements of rural development programs.
    Section 728: Language is included that provides that 
Natural Resources Conservation Service shall provide assistance 
to certain locations under the Watershed and Flood Prevention 
Operations program.
    Section 729: 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 730: Language is included that permits the use of 
any unobligated salaries and expenses funds to reimburse the 
Office of General Counsel for representing agencies in the 
resolution of complaints by employees before the Equal 
Employment Opportunity Commission and other employment dispute 
agencies.
    Section 731: Language is included that limits the dam 
rehabilitation program.
    Section 732: Language is included that limits the rural 
strategic investment program.
    Section 733: Language is included that limits the rural 
firefighters and emergency personnel grant program.
    Section 734: Language is included that limits study of the 
Agricultural Research Service.
    Section 735: Language is included regarding certain 
accounting procedures of the Agricultural Marketing Service and 
the Grain Inspection, Packers and Stockyards Administration.
    Section 736: Language is included regarding costs 
associated with the distribution of commodities.
    Section 737: Language is included that limits the wetlands 
reserve program.
    Section 738: Language is included that limits the 
environmental quality incentives program.
    Section 739: Language is included that permits certain 
outlease agreements.
    Section 740: Language is included that limits the renewable 
energy program.
    Section 741: Language is included that limits the broadband 
program.
    Section 742: Language is included that limits the value-
added market development grant program.
    Section 743: Language is included regarding country of 
origin labeling for meat or meat products.
    Section 744: Language is included that rescinds any 
unobligated balances in the Alternative Agricultural Research 
and Commercialization Revolving Fund.
    Section 745: Language is included that limits the 
conservation security program.
    Section 746: Language is included regarding the Emerson 
Leland fellowship program.
    Section 747: Language is included that appropriates 
$5,000,000 for the Tree Assistance Program, and reduces the 
Rural Community Advancement Program by $5,000,000.
    Section 748: Language is included regarding a reporting 
requirement on the provision of agricultural commodities to 
foreign countries.
    Section 749: Language is included regarding prescription 
drug reimportation.

              HOUSE OF REPRESENTATIVES REPORT REQUIREMENTS

    The following items are included in accordance with various 
requirements of the Rules of the House of Representatives.

                        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.

                    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. Agriculture Buildings and Facilities and Rental 
Payments.--The bill allows funds to be transferred to cover the 
costs of new or replacement space.
    2. 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.
    3. Departmental Administration.--The bill requires 
reimbursement for expenses related to certain hearings.
    4. 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.
    5. 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.
    6. Agricultural Marketing Service.--The bill limits the 
transfer of section 32 funds to purposes specified in the bill.
    7. 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.
    8. Dairy Indemnity Program.--The bill authorizes the 
transfer of funds to the Commodity Credit Corporation, by 
reference.
    9. 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.
    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 from the Public Law 480 Program 
Account.
    14. Public Law 480 Title I Program Account.--The bill 
allows funds to be transferred to the Foreign Agricultural 
Service, Salaries and Expenses account.
    15. Public Law 480 Title I Ocean Freight Differential 
Grants.--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.
    16. 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.
    17. Food and Drug Administration, Salaries and Expenses.--
The bill allows funds to be transferred among activities.

               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.
    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, 
as well as language that prohibits funds from being used to 
carry out research related to the production, processing or 
marketing of tobacco or tobacco products.
    6. Cooperative State Research, Education, and Extension 
Service.--The bill includes language that 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.--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: earmark 
funds for a breastfeeding support initiative; earmark funds for 
a management information system initiative; establish a reserve 
should costs or participation exceed budget estimates; earmark 
funds for pilot projects to prevent childhood obesity; prohibit 
funds from being used for studies and evaluations; pay 
administrative expenses of clinics except those that have an 
announced policy prohibiting smoking within the space used to 
carry out the program; purchase infant formula except in 
accordance with law; or pay for activities that are not fully 
reimbursed by other departments or agencies unless authorized 
by law.
    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 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 funds 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 20 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: 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 714: 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 715: Provides that none of the funds may be 
        used to carry out certain provisions of meat and 
        poultry inspection acts.
          Section 716: 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 717: 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 718: 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 719: Language is included that requires 
        certain reprogramming procedures of funds provided in 
        Appropriations Acts.
          Section 720: Language is included to prohibit funds 
        from being used to carry out the Initiative for Future 
        Agriculture and Food Systems.
          Section 721: 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 722: 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 723: Language is included that provides 
        $3,000,000 for a hunger fellowship program.
          Section 724: 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 725: 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 726: Language is included that provides that 
        the Natural Resources Conservation Service shall 
        provide assistance to certain locations under the 
        Watershed and Flood Prevention Operations program.
          Section 727: Language is included that provides that 
        certain locations shall be considered as meeting the 
        eligibility requirements of rural development programs.
          Section 728: Language is included that Natural 
        Resources Conservation Service shall provide certain 
        assistance to certain locations under the Watershed and 
        Flood Prevention Operations program.
          Section 729: 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 730: Language is included that permits the 
        use of any unobligated salaries and expenses funds to 
        reimburse the Office of General Counsel for 
        representing agencies in the resolution of complaints 
        by employees before the Equal Employment Opportunity 
        Commission and other employment dispute agencies.
          Section 731: Language is included that limits the dam 
        rehabilitation program.
          Section 732: Language is included that limits the 
        rural strategic investment program.
          Section 733: Language is included that limits the 
        rural firefighters and emergency personnel grant 
        program.
          Section 734: Language is included that limits study 
        of the Agricultural Research Service.
          Section 735: Language is included regarding certain 
        accounting procedures of the Agricultural Marketing 
        Service and the Grain Inspection, Packers and 
        Stockyards Administration.
          Section 736: Language is included regarding costs 
        associated with the distribution of commodities.
          Section 737: Language is included that limits the 
        wetlands reserve program.
          Section 738: Language is included that limits the 
        environmental quality incentives program.
          Section 739: Language is included that permits 
        certain outlease agreements.
          Section 740: Language is included that limits the 
        renewable energy program.
          Section 741: Language is included that limits the 
        broadband program.
          Section 742: Language is included that limits the 
        value-added market development grant program.
          Section 743: Language is included regarding country 
        of origin labeling for meat or meat products.
          Section 744: Language is included that rescinds any 
        unobligated balances in the Alternative Agricultural 
        Research and Commercialization Revolving Fund.
          Section 745: Language is included that limits the 
        conservation security program.
          Section 746: Language is included regarding the 
        Emerson Leland fellowship program.
          Section 747: Language is included that appropriates 
        $5,000,000 for the Tree Assistance Program, and reduces 
        the Rural Community Advancement Program by $5,000,000.
          Section 748: Language is included regarding a 
        reporting requirement on the provision of agricultural 
        commodities to foreign countries.
          Section 749: Language is included regarding 
        prescription drug reimportation.

         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(e) 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 italics, 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 [$26,499,000] $26,998,000 
                to carry out this section.

           *       *       *       *       *       *       *


   SECTION 726 OF THE AGRICULTURE, RURAL, DEVELOPMENT, FOOD AND DRUG 
     ADMINISTRATION, AND RELATED AGENCIES APPROPRIATIONS ACT, 2003


                    (Division A of Public Law 108-7)

    Sec. 726. In addition to amounts otherwise appropriated or 
made available by this Act, $3,000,000 is appropriated for the 
purpose of providing Bill Emerson and Mickey Leland Hunger 
Fellowships[, as authorized by section 4404 of Public Law 107-
171 (2 U.S.C. 1161)] through the Congressional Hunger Center.

           *       *       *       *       *       *       *


SECTION 204 OF THE AGRICULTURAL TRADE DEVELOPMENT AND ASSISTANCE ACT OF 
                                  1954


SEC. 204. LEVELS OF ASSISTANCE.

    (a) Minimum Levels.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Exception.--The Administrator may waive the 
        requirements of paragraphs (1) and (2) for any fiscal 
        year if the Administrator determines that such 
        quantities of commodities cannot be used effectively to 
        carry out this title or in order to meet an emergency. 
        In making a waiver under this paragraph, the 
        Administrator shall prepare and submit to the Committee 
        on Foreign Affairs [and Committee], the Committee on 
        Appropriations, and the Committee on Agriculture of the 
        House of Representatives, and the Committee on 
        Agriculture, Nutrition, and Forestry of the Senate a 
        report containing the reasons for the waiver. No waiver 
        shall be made before the beginning of the applicable 
        fiscal year.

           *       *       *       *       *       *       *


                  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
----------------------------------------------------------------------------------------------------------------
P.L. 105-336 William F. Goodling Child
 Nutrition Reauthorization of 1998
  Food and Nutrition Service:
    National School Lunch Program
        FY 2003..............................  Indefinite                            $5,861,488       $6,683,704
    School Breakfast Program
        FY 2003..............................  Indefinite                             1,680,563        1,797,923
    Summer Food Service Program
        FY 2003..............................  Indefinite                               288,212          308,653
    Child & Adult Care Food Program
        FY 2003..............................  Indefinite                             1,925,111        2,019,045
    Special Milk Program
        FY 2003..............................  Indefinite                                15,357           15,270
    Commodity Procurement
        FY 2003..............................  Indefinite                               646,377          421,936
    WIC Program
        FY 2003..............................  Indefinite                             4,696,000        4,588,310
----------------------------------------------------------------------------------------------------------------

                              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 $3,000,000 of funds derived 
from interest on the cushion of credit payments in fiscal year 
2004 under the Rural Economic Development Loans Program 
Account, which is an annual technical adjustment contained in 
the budget estimates.
    The bill proposes rescission of any unobligated balances in 
the Alternative Agricultural Research and Commercialization 
Revolving Fund. The Congressional Budget Office estimates that 
savings of $1,000,000 during fiscal year 2004 will result from 
enactment of this proposal.

                   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...........................................      $17,005      $17,686      $17,005      $17,663
    Mandatory...............................................       55,143       39,142       55,143       39,142
                                                             ---------------------------------------------------
      Total.................................................       72,148       56,828       72,148       56,805
----------------------------------------------------------------------------------------------------------------

                      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......................................           $77,493
Outlays:
    2004..............................................            48,596
    2005..............................................             5,558
    2006..............................................               978
    2007..............................................               525
    2008 and beyond...................................               627


               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..................................           $22,257
Fiscal year 2004 outlays resulting therefrom..........            17,630


                     Program, Project, and Activity

    During fiscal year 2004, 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 
2004, 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 2004 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 2004 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:

                             ROLLCALL NO. 1

    Date: June 25, 2003.
    Measure: Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Bill, FY 
2004.
    Motion by: Mrs. Northup.
    Description of motion: To prevent Food and Drug 
Administration funds from being used to take enforcement 
actions related to prescription drugs being imported by 
individuals, wholesalers, or pharmacists, unless those drugs 
are misbranded, adulterated or unapproved.
    Results: Adopted 24 yeas to 22 nays.
        Members Voting Yea            Members Voting Nay
Mr. Berry                           Mr. Aderholt
Mr. Bishop                          Mr. Bonilla
Mr. Boyd                            Mr. Crenshaw
Mr. Clyburn                         Mr. Culberson
Mr. Cramer                          Mr. Doolittle
Ms. DeLauro                         Mr. Frelinghuysen
Mr. Edwards                         Mr. Hobson
Mrs. Emerson                        Ms. Kaptur
Mr. Fattah                          Mr. Knollenberg
Mr. Goode                           Mr. Latham
Ms. Granger                         Mr. Lewis
Mr. Hinchey                         Mr. Nethercutt
Mr. Istook                          Mr. Obey
Mr. Kennedy                         Mr. Pastor
Ms. Kilpatrick                      Mr. Price
Mr. Kingston                        Mr. Regula
Mr. Kirk                            Mr. Rogers
Mrs. Lowey                          Mr. Rothman
Mr. Mollohan                        Ms. Roybal-Allard
Mrs. Northup                        Mr. Tiahrt
Mr. Olver                           Mr. Walsh
Mr. Peterson                        Mr. Young
Mr. Sabo
Mr. Serrano
Mr. Sherwood
Mr. Simpson
Mr. Sweeney
Mr. Taylor
Mr. Visclosky
Mr. Vitter
Mr. Wamp
Dr. Weldon
Mr. Wicker
Mr. Wolf



             ADDITIONAL VIEWS OF THE HONORABLE MARCY KAPTUR

    At a time of recession, rising unemployment, currency 
fluctuations, and greater dependency on the federal government 
by the farm sector for economic survival, this bill fails to 
meet the needs of today's economy for a counter cyclical boost.
    In part, this is the fault of the administration, which 
submitted a request that did not provide necessary support in 
many areas. In part, it is the fault of the Republican 
Congress, which adopted a budget resolution that did not 
recognize the vital role agriculture plays in our economy. The 
allocation for this bill that is below the Administration's 
request and below the 2003 level. As a result, the bill 
underinvests in rural America and in value-added production, 
crippling producers' effort to earn more from the marketplace 
and less from support payments in the mailbox. The bill fails 
to meet the needs of other Americans who depend on agencies in 
the bill for nutrition, food safety and other important 
services.
    The bill provides $17.005 billion for discretionary 
programs. It is about 1 percent below the budget request and 
nearly 5 percent below the 2003 level of $17.877 billion, a 
most astonishing set of cutbacks in America's leading domestic 
industry that still maintains a trade surplus in global 
markets.
    Among the programs that are under-funded or at risk of 
inadequate support are farm loans, rural development, domestic 
food programs, international food aid, research, the FDA, and a 
number of important mandatory programs, for which funding is 
blocked. Funding for many new initiatives established in the 
farm bill to lead American agriculture into the 21st century is 
once again, deferred.
    In some other accounts, it is highly likely that additional 
funds may be needed by the time the bill goes to conference. 
With the limited funds available for this bill, those funds 
will be difficult--if not impossible--to find.
Funding for rural America
    There is a crisis in rural America. It is a crisis born of 
concentrated enterprises in our competitive market. It is a 
crisis of diminishing U.S. exports. It is a crisis of ignoring 
investment in new value-added developments such as bioenergy 
production. The economic crisis in agriculture has resulted in 
social consequences of crime and social instability in what was 
once our nation's most cherished repository of American 
values--family, faith, community, stewardship, free-holding.
    The New York Times ran a powerful article in December, 
entitled ``Pastoral Poverty: the Seeds of Decline.'' The 
articles detailed the systematic decline of the social fabric 
across rural America. Some of the conditions noted in the 
article:
           The rate of serious crime in predominantly 
        rural states such as Kansas and Oklahoma is 50 percent 
        higher than in New York State;
           Bank robberies are most likely in towns of 
        10,000 and 25,000 people;
           People in rural areas make much less than 
        their urban counterparts, and are much more likely to 
        have only minimum wage jobs; and
           There were 300 times more seizures of 
        methamphetamine labs in Iowa in 1999 than in New York 
        and New Jersey combined, based on DEA figures.
    The economic impacts of the social fraying are clear.
    USDA's chief economist testified that in recent years 
nearly fifty percent of farm income has been derived from 
government payments.
    Additionally, more farmers and ranchers must depend on off-
farm income to supplement an economy that is not working for 
them. USDA's economists recently reported that more than half 
of all farm operators have off-farm income, and when other 
household members are added in, the off-farm income level jumps 
to 85 percent.
    The stresses of rural life were also illustrated in a story 
last year about an Iowa program to provide mental health 
counseling to struggling farmers and their families. The 
program also runs camps for children in stress. It has already 
served more than 1500 farmers and their families and trained 
300 persons in how to identify stress problems affecting farm 
families.
    Yet essential funding for farm loan programs--which help 
farmers buy a farm or operate it--and for rural development 
programs--which help both individuals and communities with 
homeownership, water and sewer needs, telecommunications and 
other vital services--to maintain and improve life in rural 
communities is denied. This bill falls far short of the need.

Farm loans programs

    Overall, the bill cuts farm loans by 5 percent below the 
request, providing $173 million less in loans.
    And for three critical programs--farm ownership guaranteed 
loans, farm operating direct loans and farm operating 
subsidized guaranteed loans--the bill provides $454 million 
less in loans than in 2003, a 20 percent cut.

 Rural development programs

    Many important programs are cut.
    The Business and Industry Guaranteed Loan Program gets $339 
million less for loans than in 2003, a reduction of 38 percent 
and $47 million less for loans than the request, a reduction of 
8 percent.
    Single family guaranteed home loans are 4 percent below the 
2003 level, with $120 million less to offer borrowers.
    The bill eliminates funding for the rural Telephone Bank, 
which made $175 million of loans last year, averaging $4.6 
million each, in 23 states.
    Water and waste disposal grants are one of the core 
programs of the Rural Development area. The bill does provide 
more funding than the request but it is still $43 million less 
than 2003, and almost $250 million below the level that 
numerous Members of both parties requested.
    Grant for distance learning and telemedicine and broadband 
are $24 million below this year's level.
    Funding for all electric loan programs is nearly $1 billion 
below this year, about a 20 percent reduction, at a time when 
energy costs across America are rising and putting a throttle 
on robust economic growth.

Domestic and international food programs

    During hearings this year, Democrats focused on the record 
demand for domestic food programs, such as WIC and food stamps. 
Noting enormous lines at soup kitchens and food pantries this 
winter, the ranking Member, in particular, stressed the need 
for full funding for the Temporary Emergency Food Assistance 
Program, which is a critical part of funding for our Nation's 
food banks.
    Members also questioned the adequacy of funding in the 
budget request for international food aid. As Democrats had 
predicted last year, the 2003 funding level proved far too low 
to meet world wide demands, and Congress was forced to provide 
more than 150% of the budget request.
    TRhe bill does not respond adequately to these concerns, 
particularly in view of our major foreign policy objectives in 
Iraq, Afghanistan and Africa.

Domestic food programs

    The Temporary Emergency Food Assistance Program--a key 
source of funding for food banks--is $10 million below the new 
authorized level in the farm bill, despite record lines at soup 
kitchens this year and repeated expressions of concern by the 
President and Secretary about the need to support food banks at 
a time rising unemployment.
    Funding for WIC is reduced below the request, and this cut 
may prove to be too deep. If funds need to be restored when the 
bill gets to conference, the tight funding level for this bill 
will leave almost no place to go to adequately meet the need.
    The Commodity Supplemental Food Program is almost $20 
million below this year, and $35 million below the level 
requested by more than 50 Members.
    Neither the administration request nor the bill provides an 
increase for the Senior Farmers Market Nutrition Program, 
despite the fact that applications in recent years outpaced 
available funds.

International food aid

    There is a slight increase over the request for the PL 480, 
Title II, humanitarian food program. But this is still more 
than $620 million less than this year's level.
    If Congress is forced to add money to this account to meet 
urgent needs overseas, it is unclear how there will be room to 
do so in this bill.
    The bill provides $57 million for the McGovern-Dole 
international food program. But, again, at least 35 members 
asked for $300 million, including several Republicans, and the 
level in the bill is far less than the $100 million funded in 
the farm bill for the current year.
    For PL 480, Title I, funding is $23 million lower than in 
2003.

Other key problems with the bill

    There are shortfalls in funding in other areas of the bill, 
including the FDA, important conservation and rural development 
mandatory programs, food safety, research, farm bill programs 
and a number of other issues.

The Food and Drug Administration

    The FDA receives $10.9 million less than requested.
    The bill does not provide full funding for the generic drug 
program, the Best Pharmaceuticals for Children act, the over-
the-counter drug program, and the patient safety and adverse 
event reporting initiative. The bill will also halt work on the 
Arkansas regional lab, and reduce funding for ongoing 
maintenance at FDA facilities by 25 percent.
    An area of interest to many Members is medical device 
funding. The administration made an agreement in 2002 with the 
medical device industry and the authorizing committees for new 
industry user fees, in exchange for a set level of 
discretionary funding each year for the program. Under the 
statute, if total discretionary funds fall short of the 
required level over a several-year period, the program sunsets. 
Despite the fact that it was a party to this agreement, the 
administration completely failed to live up to its part of the 
deal last year and this year, and did not request the required 
funds.
    At least 46 Members of both parties requested that the full 
amount for devices be provided. The bill provides an increase 
of $9 million over the request for the medical device program, 
but this is still short of the required level.
    Some believe the required level of appropriations will 
never be reached and that the agreement will have to be 
rewritten. If that is true, some or all of the $9 million for 
medical devices might have been put to better use in this bill.
    But from either perspective, the bill does not do what it 
should.

Limitations on mandatory programs

    The bill includes 10 provisions cutting mandatory 
agriculture programs by $540 million--programs that provide 
funding for rural firefighters, dam rehabilitation, renewable 
energy, conservation, telecommunications and research.
    Again, these were areas where many Members pleaded with the 
Committee to maintain levels established just last year in the 
Farm Bill.
    These cuts will have a real impact on rural programs.
    Small Watershed Rehabilitation.--the bill cuts this program 
by $95 million, more than twice the cut in the 2003 bill, 
despite a rapidly growing number of dams reaching the end of 
their useful lives. Two years ago, NRCS had identified 1450 
dams in need of rehabilitation, at a cost of more than $500 
million. While the bill does provide an increase of $20 
million. While the bill does provide an increase of $20 million 
in discretionary funding, the cut in the mandatory funding 
makes it much harder to meet identified needs. Further, there 
is an $80 million backlog just to finish projects already 
underway, so funding on both the discretionary and mandatory 
sides is needed.
    Rural firefighters.--The bill eliminates funding for this 
program, which would provide $10 million a year to train rural 
firefighters and medical personnel to respond to hazardous 
materials and bioagents.
    Conservation security program.--the bill eliminates all 
funding for this program, despite the fact that this program 
will provide assistance to farmers to adopt conservation 
measures on working farms, unlike a number of other programs 
that take land out of production for conservation. Assistance 
for conservation on working farms has been sorely neglected in 
the past and this program represents an important attempt to 
remedy that problem.
    Wetlands Reserve Program.--in a recent publication, USDA 
referred to this program as the ``premier wetland 
restorationprogram.'' But the bill cuts new enrollment in this program 
by 20 percent in 2004. The program has a backlog of 736,909 acres. That 
is why the farm bill conferees increased allowable acreage, and this 
amendment will thwart that effort.
    Environmental Quality Incentive Program.--the bill reduces 
this program by $25 million in 2004. This cut will mean there 
will be 1450 producers who won't be able to get EQIP funding in 
2004. And, in addition, the backlog last year for the program 
was $1.5 billion, which caused many producers to give up on the 
program. Another limit will discourage those who still want to 
participate.
    Rural strategic investment.--the bill cuts virtually all 
the funding available for this program, which is designed to 
encourage regional boards to develop plans for basic 
infrastructure and services and for public-private investments 
to promote the economic well-being of rural areas.
    Renewable energy.--the bill zeroes out funding for this 
program, which would provide grants and loans to farmers and 
ranchers and rural small businesses to buy renewable energy 
systems and make energy efficiency improvements. At a time when 
sharp increases in electric prices and spikes in natural gas 
prices are expected--increases that could devastate small 
farmers, ranchers and businesses--this is very ill-advised.
    Value-added grants.--the bill eliminates all funding for 
this new program, which would provide competitive grants to 
individuals who have developed innovative marketing plans for 
value-added agricultural products. This is area of great 
interest now and one which promises some of the most important 
economic gains to our agricultural community. Valuable product 
research has been done by USDA and others, but without viable 
marketing plans, there will be no benefit to our farmers. Forty 
Members urged the Committee to maintain this funding, as well 
as the renewable energy funding discussed above.
    Broadband loans.--the bill eliminates all funding for this 
program, which would provide loans and grants to small rural 
communities to help them get high-quality data lines. This is 
particularly shortsighted, as the foundation of economic 
development in our society is, increasingly, technology. If our 
small rural areas are left behind, their ability to keep and 
attract residents and businesses will be very limited.
    Initiative for Future Agriculture and Food Systems.--The 
bill cuts $120 million from this competitive grant program, 
which is designed to address critical research issues, such as 
genomics, food safety, food technology, and human nutrition; 
new and alternative uses and production of agricultural 
commodities and products; agricultural biotechnology; natural 
resource management, including precision agriculture; and farm 
efficiency and profitability, including the viability and 
competitiveness of small- and medium-sized dairy, livestock, 
crop, and other commodity operations.

Other shortcomings in the bill

    Country-of-origin labeling.--The bill prevents the 
implementation of country-of-origin labels for meat and meat 
products. This is a basic consumer-right-to-know issue, which 
the House unanimously supported when it instructed its 
conferees on the farm bill to support country-of-origin 
labeling for both meat and perishable products.
    Meatpacker audits.--The administration asked for $1 million 
for the Grain-Inspection, Packers and Stockyards Administration 
to audit the four largest steer and heifer meatpackers, for 
compliance with the Packers and Stockyards Act. This might 
sound like a routinerequest, but it is not. This would be the 
first time in the 82-year history of the Packers and Stockyards Act 
that the agency has audited a large packer. But the bill does not 
provide this funding.
    Food safety and inspection.--The bill provides about $12 
million less than requested for the Food Safety and Inspection 
Service. Under the budget request, these funds would not have 
gone directly into inspection activities, but given the large 
number of recalls in 2002 and ongoing concerns about the 
agency's performance, the $12 million should have been provided 
for increased inspection and sampling.
    Commodity Futures Trading Commission.--Although the bill 
funds the request for CFTC, there are indications that 
substantially more funding might be need in 2004. If that 
proves to be the case, it is unclear how this need would be 
accommodated within the limited funding in this bill.

Farm bill programs

    The farm bill created a host of new programs. Some were 
funded on the mandatory side, but many others were 
discretionary programs, for which funds were authorized to be 
appropriated. In last year's report, the Committee estimated 
that there were 110 such programs, as well as requirements for 
58 reports, studies and commissions. Numerous Members asked for 
funding for new programs and asked to fund existing programs at 
new, higher authorization levels, but most of these requests 
were not funded in this bill.

Research

    For the Agricultural Research Service, the bill provides 
only half of the funding requested for upgrading security at 
ARS labs; and while funding for research programs is over the 
request, it is still $21 million short of this year's level.
    Similarly, in the Cooperative Research Education and 
Extension Service, overall funding is over the request but $22 
million lower than this year's level. As a result, many 
important research institutions and activities, including the 
1890 and 1994 institutions, are shortchanged. In addition, at 
least 95 Members of both parties asked for a five percent 
increase in formula funds, but the bill does not provide this. 
Many members also asked for $200 million for the National 
Research Initiative, but the bill provides only $149 million, 
less than the request and the current year funding level.
    The Economic Research Service and National Agricultural 
Statistic Service would receive almost $12 million less than 
requested, forcing the postponement of important initiatives, 
such as genomics research and improvement of statistical 
information in the New England states, Hawaii and Alaska.

Conclusion

    The shortcomings of the bill are largely a result of the 
allocation assigned to the Subcommittee. There seems to be 
little chance that the allocation will be increased, and 
therefore, little opportunity to remedy cuts or shortfalls in 
key programs.
    Budgets reveal priorities. And this year, we are seeing 
that the Republican Party in Congress is willing to put huge 
tax breaks for the most well-off in our society ahead of almost 
every other economic and social value.

                                
