[House Report 108-584]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     108-584

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



 
   AGRICULTURE, RURAL DEVELOPMENT, FOOD AND DRUG ADMINISTRATION, AND 
               RELATED AGENCIES APPROPRIATIONS BILL, 2005

                                _______
                                

  July 7, 2004.--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. 4766]

    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 2005.

                     TITLE I--AGRICULTURAL PROGRAMS

                 Production, Processing, and Marketing

                        Office of the Secretary

 
 
 
2004 appropriation....................................        $5,062,000
2005 budget estimate..................................         5,185,000
Provided in the bill..................................         5,185,000
Comparison:
    2004 appropriation................................          +123,000
    2005 budget estimate..............................             - - -
 


                          COMMITTEE PROVISIONS

    For the Office of the Secretary, the Committee provides an 
appropriation of $5,185,000, an increase of $123,000 above the 
amount available for fiscal year 2004 and the same amount as 
the budget request.
    The Committee appreciates receiving the detailed 
information provided in the Explanatory Notes prepared by the 
Department and relies heavily on this information when 
considering budget proposals. These materials have 
traditionally been prepared for the sole use of the 
Appropriations Committee in a format consistent with the 
organization and operation of the programs and the structure of 
the Appropriations Act. At the direction of the Office of 
Management and Budget, the Department has changed the format 
and content of these materials to focus on broader goals and 
objectives rather than the major program structure followed in 
the Act and in the actual conduct of the programs. The new 
organization and content does not present budget information in 
a format useful to the deliberations of the Committee. For 
fiscal year 2006 and future years, the Department is directed 
to present Explanatory Notes in a format consistent with the 
presentation used for the fiscal year 2002 Budget. Any 
deviations from that format are to be approved in advance by 
the Committee.
    When trade sanctions were imposed in 1990, Iraq had been 
purchasing about $1 billion in U.S. agricultural commodities 
each year under the GSM export credit guarantee program. The 
Secretary of Agriculture has the legal authority to facilitate 
the export of U.S. agricultural commodities to Iraq by making 
available new guarantees, notwithstanding current or past debt. 
In order to begin to rebuild this important market, the 
Committee urges the Department to offer a GSM program for Iraq 
as soon as possible.
    Counter-Terrorism Measures.--The Committee supports the 
efforts of USDA in implementing a national policy for defending 
the agriculture and food system against terrorist attacks.
    State Office Collocation.--The Committee continues to 
direct that any reallocation of resources related to the 
collocation of state offices scheduled for 2005 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 2004 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 directs the Secretary of 
Agriculture to continue to use existing authority including 
that provided under CCC, 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. The Secretary shall submit to the 
Committee on Appropriations a report regarding the feasibility 
of establishing additional research and forward control 
programs in countries and/or regions that had been the point of 
origin for infected product.
    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 2006 budget and 
quarterly thereafter.
    The Committee is concerned that the Agricultural Research 
Service has not yet implemented steps in fiscal year 2004 to 
expand the access to and use of the United States National 
Arboretum by private sector and nonprofit organizations. At a 
time when federal budgetary resources are scarce, it is 
imperative that the Agricultural Research Service aggressively 
pursues opportunities to supplement federal funding with funds 
generated by private sector and nonprofit organizational 
sources (such as the Friends of the National Arboretum), as 
other federal institutions have done. Congress clearly stated 
that it expects the Department to implement a more open and 
creative policy for use of the National Arboretum at a 
Congressional oversight hearing held in October 2003. The 
Committee directs the Secretary to expedite implementation of a 
more open policy for utilization of the facilities of the 
National Arboretum as a means of generating supplemental funds 
to be available for the programs and facilities of the National 
Arboretum, and to report to the Committees on Appropriations 
and Agriculture within 15 days of enactment on the steps taken 
to implement this directive.
    Of the funds appropriated for Title II of P.L. 480, the 
Committee directs the Administration to provide adequate 
amounts for five-year, nonemergency programs in order to reach 
the 1,875,000 metric ton statutory level. The Committee is 
concerned about the low level of funding for these programs 
because chronic hunger increases people's susceptibility to 
illness, reduces their productivity and income, and makes them 
more vulnerable to economic downturns and disasters.
    The Committee is concerned about the reaction of USDA and 
some states to a recent discovery in southern California of 
Phytophthora ramorum, the pathogen that causes Sudden Oak 
Death. While USDA expanded its regulations in response to the 
discover of P. ramorum, it failed to enforce a single national 
standard. Several states have imposed regulations that pre-empt 
or are more restrictive than the Federal emergency order. As a 
direct result, nurseries in California have lost customers and 
markets even for plants that USDA certifies are free of the 
pathogen. The Committee notes that such actions taken by states 
are in violation of the Plant Protection Act. The Committee 
expects the Secretary, when regulating a plant pest, to ensure 
that the Federal standard is followed to facilitate the 
interstate movement of horticultural commodities and to fulfill 
the Department's duties under existing law. While the Plant 
Protection Act provides a mechanism for states to submit 
petitions for pre-emption to USDA that must be based on sound 
science and assessment of risk, no such petitions have been 
granted in this case.
    Continuing information on BSE.--The finding of a case of 
BSE in a cow in Washington state last year was a matter of 
great concern to the nation. The Committee appreciates the work 
by the Department to develop and implement a response plan. 
Because of the importance of this issue, the Committee needs 
information on an ongoing basis from the Secretary regarding 
the BSE surveillance program and the national animal 
identification program. In light of their importance, the 
Committee requests a report from the Secretary by July 15, 
2004, on these issues, including a status report on 
implementation of each component of the BSE response plan, and 
quarterly reports thereafter.
    Beef products from Canada.--The Committee is concerned that 
USDA improperly allowed the importation of millions of pounds 
of ground and processed beef from Canada for many months, until 
the practice was stopped in April by a federal judge. The judge 
wrote, ``the Court is concerned by the manner in which, 
according to counsel for USDA, USDA has been authorizing 
imports of virtually all edible bovine meat products, 
apparently through issuing individual permits, at a time when 
it was assuring the public that such authorization would take 
place through the rulemaking process.'' The Committee shares 
this concern and requests a report from the Secretary by 
September 1, 2004, on specifically how a decision was made to 
allow these imports, apparently without the awareness of senior 
officials, and what actions she has taken to ensure this kind 
of problem will not happen in the future.''

                          Executive Operations


                     OFFICE OF THE CHIEF ECONOMIST

 
 
 
2004 appropriation....................................        $8,656,000
2005 budget estimate..................................        14,949,000
Provided in the bill..................................        10,810,000
Comparison:
    2004 appropriation................................        +2,154,000
    2005 budget estimate..............................        -4,139,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Chief Economist, the Committee 
provides an appropriation of $10,810,000, an increase of 
$2,154,000 above the amount available for fiscal year 2004 and 
a decrease of $4,139,000 below the budget request. The 
Committee provides the requested increase of $1,969,000 for a 
preferred procurement system and labeling system for bio-based 
products.

                       NATIONAL APPEALS DIVISION

 
 
 
2004 appropriation....................................       $13,589,000
2005 budget estimate..................................        14,826,000
Provided in the bill..................................        14,526,000
Comparison:
    2004 appropriation................................          +937,000
    2005 budget estimate..............................          -300,000
 

                          COMMITTEE PROVISIONS

    For the National Appeals Division, the Committee provides 
an appropriation of $14,526,000, an increase of $937,000 above 
the amount available for fiscal year 2004 and a decrease of 
$300,000 below the budget request.

                 OFFICE OF BUDGET AND PROGRAM ANALYSIS

 
 
 
2004 appropriation....................................        $7,694,000
2005 budget estimate..................................         8,146,000
Provided in the bill..................................         8,246,000
Comparison:
    2004 appropriation................................          +552,000
    2005 budget estimate..............................          +100,000
 

                          COMMITTEE PROVISIONS

    For the Office of Budget and Program Analysis, the 
Committee provides an appropriation of $8,246,000, an increase 
of $552,000 above the amount available for fiscal year 2004 and 
an increase of $100,000 above the budget request.

                        HOMELAND SECURITY STAFF

 
 
 
2004 appropriation....................................          $496,000
2005 budget estimate..................................         1,491,000
Provided in the bill..................................           508,000
Comparison:
    2004 appropriation................................           +12,000
    2005 budget estimate..............................          -983,000
 

                          COMMITTEE PROVISIONS

    For the Homeland Security staff, the Committee provides an 
appropriation of $508,000, an increase of $12,000 above the 
amount available for fiscal year 2004 and a decrease of 
$983,000 below the budget request.

                Office of the Chief Information Officer


 
 
 
2004 appropriation....................................       $15,402,000
2005 budget estimate..................................        22,093,000
Provided in the bill..................................        15,608,000
Comparison:
    2004 appropriation................................          +206,000
    2005 budget estimate..............................        -6,485,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Chief Information Officer, the 
Committee provides an appropriation of $15,608,000, an increase 
of $206,000 above the amount available for fiscal year 2004 and 
a decrease of $6,485,000 below the budget request.
    The Committee learned that the Department transferred more 
than $16,000,000 in agency funds to the Office of the Chief 
Information in fiscal years 2003 and 2004 to help finance 
several Presidential eGovernment initiatives. The Department 
testified that, in addition, it collected fiscal years 2003 and 
2004 funds in unspecified amounts from USDA agencies for its 
own eGovernment initiatives. The Committee is extremely 
disturbed that the Department has failed to comply with Section 
718 of Public Law 108-199 that plainly states that no funds may 
be transferred to the Office of the Chief Information Officer 
without the prior approval of the Committees on Appropriations 
of both Houses of Congress. The USDA General Counsel's office 
advised the USDA Chief Information Officer in a memorandum 
dated April 20, 2004, that the Department notify the Committees 
of its intention to transfer funds to the Office of the Chief 
Information Officer and await a response. Yet, in spite of the 
clear legislative language and the General Counsel's advice, 
the Department proceeded to transfer these funds without the 
notification and approval of Congress. The Department further 
testified that the cost of these eGovernment initiatives will 
exceed $40,000,000 in fiscal year 2005, and about its plans to 
use the Greenbook mechanism to manage agency contributions 
towards funding these initiatives. The Committee again directs 
that no funds be transferred, contributed, pooled or otherwise 
made available from the agencies to the Office of the Chief 
Information Officer without the prior approval of the 
Committees on Appropriations of both Houses of Congress. The 
Committee further directs that the Department provide, no later 
than February 1, 2005, a report on the fiscal years 2003, 2004, 
and estimated 2005 funds, transferred to the Office of the 
Chief Information Officer through interagency agreements, the 
Greenbook mechanism or any other means. The report should 
identify the amounts transferred or otherwise made available, 
by Agency, how those funds were or are to be used and the 
impact of the transfers on agency program activities.

                      Common Computing Environment


 
 
 
2004 appropriation....................................      $118,585,000
2005 budget estimate..................................       136,736,000
Provided in the bill..................................       120,957,000
Comparison:
    2004 appropriation................................        +2,372,000
    2005 budget estimate..............................       -15,779,000
 

                          COMMITTEE PROVISIONS

    For the Common Computing Environment, the Committee 
provides an appropriation of $120,957,000, an increase of 
$2,372,000 above the amount available in fiscal year 2004 and a 
decrease of $15,779,000 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.
    The Committee is aware that the acquisition of geospatial 
data and Geographic Information System technologies is critical 
to the Department of Agriculture's plans to modernize its 
County Service Centers and install a common computing 
environment that optimizes information sharing, customer 
service, and staff efficiencies, and improves the Department's 
ability to track and react to natural and/or man-made 
disasters. Within the funds provided in this Act, the conferees 
encourage the Department to provide the appropriate level of 
support for the acquisition of geospatial data and Geographic 
Information System technologies.

                 Office of the Chief Financial Officer


 
 
 
2004 appropriation....................................        $5,650,000
2005 budget estimate..................................         8,063,000
Provided in the bill..................................         5,811,000
Comparison:
    2004 appropriation................................          +161,000
    2005 budget estimate..............................        -2,252,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Chief Financial Officer, the 
Committee provides an appropriation of $5,811,000, an increase 
of $161,000 above the amount available for fiscal year 2004 and 
a decrease of $2,252,000 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.
    The Committee directs the Department to submit a report 
concurrent with the Department's annual budget submission for 
the following fiscal year, updating the Committee on its 
contracting out policies, including agency budgets for 
contracting out, for fiscal year 2004. The Committee is 
continuing bill language requiring the submission of the report 
on contracting out policies and agency budgets, prior to use of 
any funds appropriated to the Office of the Chief Financial 
Officer for FAIR Act or Circular A-76 activities.

                          Working Capital Fund


 
 
 
2004 appropriation....................................             - - -
2005 budget estimate..................................       $12,850,000
Provided in the bill..................................        12,850,000
Comparison:
    2004 appropriation................................       +12,850,000
    2005 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the Working Capital Fund, the Committee recommends an 
appropriation of $12,850,000, an increase of $12,850,000 above 
the amount available for fiscal year 2004 and the same amount 
as the budget request.
    The Committee recommends funding for the acquisition of a 
disaster recovery and continuity of operations technology for 
the National Finance Center to begin the design and 
implementation of a point-in-time remote backup capability, and 
to begin equipping and implementing the secondary backup data 
center to support that capability.

           Office of the Assistant Secretary for Civil Rights


 
 
 
2004 appropriation....................................          $803,000
2005 budget estimate..................................           819,000
Provided in the bill..................................           803,000
Comparison:
    2004 appropriation................................             - - -
    2005 budget estimate..............................           -16,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Assistant Secretary for Civil Rights, 
the Committee provides an appropriation of $803,000, the same 
as the amount provided in fiscal year 2004 and a decrease of 
$16,000 below the budget request.

                         Office of Civil Rights


 
 
 
2004 appropriation....................................       $18,123,000
2005 budget estimate..................................        22,283,000
Provided in the bill..................................        19,452,000
Comparison
    2004 appropriation................................        +1,329,000
    2005 budget estimate..............................        -2,831,000
 

                          COMMITTEE PROVISIONS

    For the Office of Civil Rights, the Committee recommends an 
appropriation of $19,452,000, an increase of $1,329,000 above 
the amount available for fiscal year 2004 and a decrease of 
$2,831,000 below the budget request.
    The Committee recommendation includes an increase of 
$1,000,000, as requested, for tracking applications and 
analysis. This includes development of the business case for a 
Civil Rights Enterprise System, maintenance and contract 
support, westlaw/personet, software license, and replacement 
computers to increase percent efficiency and cost effectiveness 
of EEO and Program complaint processing.

          Office of the Assistant Secretary for Administration


 
 
 
2004 appropriation....................................          $669,000
2005 budget estimate..................................           808,000
Provided in the bill..................................           669,000
Comparison:
    2004 appropriation................................             - - -
    2005 budget estimate..............................          -139,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Assistant Secretary for 
Administration, the Committee provides an appropriation of 
$669,000, the same as the amount available for fiscal year 2004 
and a decrease of $139,000 below the budget request.

        Agriculture Buildings and Facilities and Rental Payments


 
 
 
2004 appropriation....................................      $155,546,000
2005 budget estimate..................................       203,938,000
Provided in the bill..................................       165,883,000
Comparison:
    2004 appropriation................................       +10,337,000
    2005 budget estimate..............................       -38,055,000
 

                          COMMITTEE PROVISIONS

    For Agriculture Buildings and Facilities and Rental 
Payments to GSA, the Committee provides an appropriation of 
$165,883,000, an increase of $10,337,000 above the amount 
available for fiscal year 2004 and a decrease of $38,055,000 
below the budget request.
    Included in this amount is $128,319,000 for rental payments 
to GSA.
    The Committee recommendation includes an increase of 
$3,000,000 for building operations and maintenance for costs 
related to: the Fair Labor Standards Act and collective 
bargaining; major repairs and improvements to headquarters; 
homeland security requirements; and physical security, 
occupational safety, and environmental protection compliance.
    The Committee recommendation also includes an increase of 
$2,000,000 for the Strategic Space Plan.
    The following table represents the Committee's specific 
recommendations for this account:

        Agriculture Buildings and Facilities and Rental Payments


                        [In thousands of dollars]
 
                                    2004     2005 budget     Committee
                                  estimate      request   recommendation
 
Rental Payments...............     $123,179     $128,319        $128,319
Building Operations...........       32,367       41,642          35,564
Strategic Space Plan..........        - - -       33,977           2,000
                               -----------------------------------------
      Total...................      155,546      203,938         165,883
 

                     Hazardous Materials Management


 
 
 
2004 appropriation....................................       $15,519,000
2005 budget estimate..................................        15,730,000
Provided in the bill..................................        15,730,000
Comparison:
    2004 appropriation................................          +211,000
    2005 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For Hazardous Materials Management, the Committee provides 
an appropriation of $15,730,000, an increase of $211,000 above 
the amount available for fiscal year 2004 and the same amount 
as the budget request.

                      Departmental Administration


 
 
 
2004 appropriation....................................       $22,119,000
2005 budget estimate..................................        26,361,000
Provided in the bill..................................        22,939,000
Comparison:
    2004 appropriation................................          +820,000
    2005 budget estimate..............................        -3,422,000
 

                          COMMITTEE PROVISIONS

    For Departmental Administration, the Committee provides an 
appropriation of $22,939,000, an increase of $820,000 above the 
amount available for fiscal year 2004 and a decrease of 
$3,422,000 below the budget request.

     Office of the Assistant Secretary for Congressional Relations


 
 
 
2004 appropriation....................................        $3,774,000
2005 budget estimate..................................         4,263,000
Provided in the bill..................................         3,852,000
Comparison:
    2004 appropriation................................           +78,000
    2005 budget estimate..............................          -411,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Assistant Secretary for Congressional 
Relations, the Committee provides an appropriation of 
$3,852,000, an increase of $78,000 above the amount available 
for fiscal year 2004 and a decrease of $411,000 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.

                        Office of Communications


 
 
 
2004 appropriation....................................        $9,174,000
2005 budget estimate..................................        10,288,000
Provided in the bill..................................         9,378,000
Comparison:
    2004 appropriation................................          +204,000
    2005 budget estimate..............................          -910,000
 

                          COMMITTEE PROVISIONS

    For the Office of Communications, the Committee provides an 
appropriation of $9,378,000, an increase of $204,000 above the 
amount available for fiscal year 2004 and a decrease of 
$910,000 below the budget request.
    The Committees direct the Office to continue to provide 
them with copies of open source news material made available to 
USDA officials through the use of appropriated funds.

                      Office of Inspector General


 
 
 
2004 appropriation....................................       $76,825,000
2005 budget estimate..................................        78,392,000
Provided in the bill..................................        78,392,000
Comparison:
    2004 appropriation................................        +1,567,000
    2005 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the Office of Inspector General, the Committee provides 
an appropriation of $78,392,000, an increase of $1,567,000 
above the amount available for fiscal year 2004, and the same 
as the budget request.
    The Committee directs the Inspector General to send all 
audit reports and other findings concerning the Forest Service 
directly to the Subcommittee on Interior and Related Agencies 
of the Committee on Appropriations at the same time they are 
sent to the agency for comment. The Committee also encourages 
the Inspector General to do more investigations of the Forest 
Service, as it is the single largest agency in the Department 
of Agriculture and has a continual history of various 
management difficulties and fiscal challenges.
    BSE and food safety reports requested by the Committee.--
The Committee has not received two reports that the Inspector 
General (``IG'') said at the budget hearing that she would 
provide: (1) regular updates on the status of her investigation 
into the recent BSE incident in Washington state; and (2) the 
report on food safety problems in 2002 at the Wampler plant in 
Pennsylvania, which the IG said in March was ``relatively 
close'' to release. The Committee directs the Inspector General 
by July 15, 2004, to provide the information requested by the 
Committee or give the Committee a firm date on which the 
information will be provided.
     Failure to test cow for BSE.--The Committee requests a 
report on the investigation into the failure of USDA to perform 
a test on a cow in Texas that was manifesting central nervous 
system symptoms, as soon as the investigation is completed.

                     Office of the General Counsel


 
 
 
2004 appropriation....................................       $34,495,000
2005 budget estimate..................................        38,589,000
Provided in the bill..................................        35,486,000
Comparison:
    2004 appropriation................................          +991,000
    2005 budget estimate..............................        -3,103,000
 

                          COMMITTEE PROVISIONS

    For the Office of the General Counsel, the Committee 
provides an appropriation of $35,486,000, an increase of 
$991,000 above the amount available in fiscal year 2004 and a 
decrease of $3,103,000 below the budget request.

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


 
 
 
2004 appropriation....................................          $592,000
2005 budget estimate..................................           805,000
Provided in the bill..................................           592,000
Comparison:
    2004 appropriation................................             - - -
    2005 budget estimate..............................          -213,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Research, 
Education, and Economics, the Committee provides an 
appropriation of $592,000, the same as the amount available for 
fiscal year 2004 and a decrease of $213,000 below the budget 
request.
    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 2006, the 
Committee will expect the Under Secretary to explain and defend 
each proposed termination in detail during the fiscal year 2006 
hearings.

                       Economic Research Service


 
 
 
2004 appropriation....................................       $70,981,000
2005 budget estimate..................................        80,032,000
Provided in the bill..................................        76,575,000
Comparison:
    2004 appropriation................................        +5,594,000
    2005 budget estimate..............................        -3,457,000
 

                          COMMITTEE PROVISIONS

    For the Economic Research Service, the Committee provides 
an appropriation of $76,575,000, an increase of $5,594,000 
above the amount available for fiscal year 2004 and a decrease 
of $3,457,000 below the budget request.
    The Committee recommendation includes an increase of 
$2,971,000 of the amount requested for a Consumer Data and 
Information System to develop an integrated and comprehensive 
data and analysis framework of the food system beyond the farm-
gate to provide a basis for understanding, monitoring, 
tracking, and identifying changes in food supply and 
consumption patterns.
    The Committee recommendation also includes an increase of 
$1,500,000 for a comprehensive study of WIC-only stores, WIC 
program vendors that solely or primarily market supplemental 
WIC foods to WIC program participants, compared to other WIC 
program vendors. This study is a continuation of the current 
review the Economic Research Service is undertaking on WIC-only 
stores and should be expanded to include the impact of WIC-only 
stores on State agency food costs, the policies currently used 
to regulate store authorization and food prices, the benefits 
derived by participants and the State agency, the impact if 
WIC-only stores are made to compete with other peer groups, and 
the impact of WIC-only stores on infant formula rebates. The 
Committee expects the Department to submit an interim report to 
the Committee by April 1, 2005.
    The Committee provides $500,000, the same as the fiscal 
year 2004 level, for the continuation of their organic data 
surveys, the compilation of non-survey data on organic 
production and marketing, its merger and reconciliation with 
any new survey information, analysis that reveal patterns, 
similarities and differences from comparisons among organic, 
other differentiated markets, and bulk or homogeneous product 
markets, and the development of policy-relevant findings from a 
full portfolio of data and information.

                National Agricultural Statistics Service


 
 
 
2004 appropriation....................................      $128,161,000
2005 budget estimate..................................       137,594,000
Provided in the bill..................................       128,661,000
Comparison:
    2004 appropriation................................          +500,000
    2005 budget estimate..............................        -8,933,000
 

                          COMMITTEE PROVISIONS

    For the National Agricultural Statistics Service, the 
Committee provides an appropriation of $128,661,000, an 
increase of $500,000 above the amount available for fiscal year 
2004 and a decrease of $8,933,000 below the budget request.
    Included in this amount is $22,520,000 for the Census of 
Agriculture, a decrease of $2,610,000 below the amount 
available for fiscal year 2004 and the same amount as the 
budget request. The Census of Agriculture collects and provides 
comprehensive data on all aspects of the agricultural economy. 
Also, included in this amount is $106,141,000 for the 
Agricultural Estimates, an increase of $3,110,000 above the 
amount available in fiscal year 2004 and a decrease of 
$8,933,000 below the budget request.
    Within the increase provided for Agricultural estimates, 
the Committee recommendation includes an increase of $1,397,000 
of the amount requested for continuation of the Agricultural 
Estimates Restoration and Modernization project to provide 
timely, accurate, and useful agricultural statistics.
    The Committee encourages the National Agricultural 
Statistics Service to develop an organic data survey process 
based on the 2002 Census of Agriculture.

                     Agricultural Research Service


 
 
 
2004 appropriation....................................    $1,082,468,000
2005 budget estimate..................................       987,597,000
Provided in the bill..................................     1,057,029,000
Comparison:
    2004 appropriation................................       -25,439,000
    2005 budget estimate..............................       +69,432,000
 

                          COMMITTEE PROVISIONS

    Salaries and expenses.--For salaries and expenses of the 
Agricultural Research Service, the Committee provides an 
appropriation of $1,057,029,000, a decrease of $25,439,000 
below the amount available for fiscal year 2004 and an increase 
of $69,432,000 above the budget request.
    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 
continues the fiscal year 2004 funding level for research on 
advanced animal vaccines and diagnostic applications currently 
carried out jointly by ARS, the University of Connecticut, and 
the University of Missouri.
    Aflatoxin in cotton.--The Committee recognizes the 
promising research the Agricultural Research Service has 
accomplished to eliminate aflatoxin as an agricultural hazard. 
The Committee provides an increase of $300,000 in fiscal year 
2005 for expanded research aimed at lowering aflatoxin levels 
in cotton.
    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 
maintains the fiscal year 2004 funding level for the ARS Wind 
Erosion Laboratory at Pullman, Washington for PM-10 air quality 
programs for the purpose of meeting the requirements of the 
Clean Air Act of 1990.
    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 the fiscal year 
2004 funding level to ARS' Aberdeen, ID research station to 
carry out this program.
    Avian pneumovirus.--The Committee notes the losses to the 
turkey and poultry producers due to the spread of avian 
pneumovirus. The eradication of this disease is vital to 
national and international competitiveness and is a limiting 
factor to the expansion of U.S. exports. An increase of 
$200,000 is provided in fiscal year 2005.
    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 2004 funding 
levels.
    Bee research.--The Committee recognizes the importance of 
honeybee 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 2004 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 2004.
    Biological toxins research.--The Committee understands the 
need for the increased effort to develop a research program 
focused on biological toxins. Development of new detection and 
prevention technologies need to be allied with knowledge of the 
toxin's characteristics, role in virulence, and dose response 
relationships. The Committee provides an increase of $2,000,000 
in fiscal year 2005 for this work.
    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 Committee 
provides an increase of $160,000 for the BRDC. The success of 
this investment can be measured by the large number of patents 
and technology licenses of inventions sponsored through BRDC.
    Bovine genetics.--The Committee provides an increase of 
$200,000 for the ongoing research on biotechnology and genetics 
in cattle jointly carried out by ARS, the University of 
Connecticut and the University of Illinois 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 directs that this research be continued at the fiscal 
year 2004 funding level.
    Carbon sequestration and greenhouse gas exchange.--
Additional research is needed to manage livestock, manures, 
fertilizers, biological nitrogen fixation, and soils to 
minimize emissions and increase sinks for greenhouse gases. The 
Committee supports ARS research in these areas and provides an 
increase of $1,700,000 for these investigations in fiscal year 
2005.
    Cereal crops research.--The Committee is aware of the 
research accomplishments of the Cereal Crops Research 
Laboratory in Madison, Wisconsin on the quality and improved 
production and marketing practices for small grains, 
particularly barley and oats. An increase of $200,000 is 
provided in fiscal year 2005 for expanded research on these 
important commodities.
    Chronic diseases of children.--The Committee has provided 
an additional $250,000 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 $42,124 in fiscal year 2005 for continued research 
on the alternative commercial utilization of citrus wastes.
    Coffee and cocoa research.--The Committee provides an 
increase of $200,000 in each of Beltsville, MD and Miami, FL in 
fiscal year 2005 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 
2005: Advanced Animal Vaccines (U CT/U MO); Aerial Application 
Research, College Station, TX; Aflatoxin in Cotton, Phoenix, 
AZ; Air Quality (PM-10), Pullman, WA; Animal Health Consortium, 
Peoria, IL; Animal Waste Treatment, Florence, SC; Appalachian 
Horticulture Research, Poplarville, MS (Univ. of TN/TN State); 
Appalachian Pasture Based Beef Systems, Beaver, WV; Aquaculture 
Fisheries Center, Pine Bluff, AR; Aquaculture Initiatives for 
Mid-Atlantic Highlands, Leetown, WV; Aquaculture Initiatives, 
Harbor Branch Oceanographic Institute, Stuttgart, AR; 
Aquaculture Research, Aberdeen, ID; Arid Lands Research, Las 
Cruces, NM; Arkansas Children's Nutrition Center, Little Rock, 
AR; Avian Pneumovirus, Athens, GA; Barley Food Health Benefits, 
Beltsville, MD; 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 Corporation, Peoria, IL; 
Bovine Genetics, Beltsville, MD; Broomweed Biological Controls, 
Albany, CA; Catfish Genome, Auburn, AL; Cereal Crops Research, 
Madison, WI; Cereal Disease Research, St. Paul, MN; Chloroplast 
Genetic Engineering Research, Urbana, IL; Chronic Diseases of 
Children, Baylor College of Medicine/Peanut Institute, Houston, 
TX; Citrus and Horticultural Research, Ft. Pierce, FL; Citrus 
Waste Utilization, Winter Haven, FL; Coffee and Cocoa Research, 
Miami, FL; Beltsville, MD; Conservation Research/Tillage, 
Pendleton, OR; Corn Germplasm, Ames, IA; Corn Rootworm, Ames, 
IA; Cotton Genetics Research, Florence, SC; Cotton Ginning 
Research, Las Cruces, NM; Cotton Pathology Research, Shafter, 
CA; Cotton Quality, Clemson, SC; Crop Production and Food 
Processing, Peoria, IL; Cropping Systems Research, Stoneville, 
MS; Dairy Forage, Madison, WI; Dairy Genetics, Beltsville, MD; 
Diet and Immune Function, Little Rock, AR; Diet, Nutrition and 
Obesity Research (Pennington Biomedical Research Center); 
Emissions from Livestock Wastewater, Florence, SC; Feed 
Efficiency in Cattle, Clay Center, NE; Flood/Control Acoustic 
Technology, National Sedimentation Laboratory, Oxford, MS; 
Floriculture and Nursery Crops; Food Fermentation Research, 
Raleigh, NC; Food Safety for Listeria, Salmonella, 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; Grape Genetics, 
Geneva, NY; Grape Rootstock, Geneva, NY; Grapefruit Juice/Drug 
Interaction, Winter Haven, FL; Grassland Soil and Water 
Research, Temple, TX; Great Basins Rangeland, Burns, OR; 
Greenhouse Hydroponics Research, Wooster, OH; Greenhouse 
Lettuce Germplasm, Salinas, CA; Harry Dupree National 
Aquaculture Research Center, Stuttgart, AR; Honey Bee Research, 
Baton Rouge, LA; Hops Research, Corvallis, OR; Improved Animal 
Waste Management, Florence, SC; Improved Crop Production 
Practices, Auburn, AL; Invasive Aquatic Weeds, Ft. Lauderdale, 
FL; Johne's Disease, Ames, IA; Jornada Experimental Range 
Research Station, Las Cruces, NM; Lettuce Geneticist/Breeder, 
Salinas, CA; Malignant Catarrhal Fever (MCF) Virus, Pullman, 
WA; Manure Management Research, Ames, IA; Microbial Genomics, 
Kerrville, TX; Pullman, WA; 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; Noxious Weeds in the Desert Southwest, Las Cruces, NM; 
Nutritional Requirements, Houston, TX; NW Small Fruits 
Research, Corvallis, OR; Ogallala Aquifer, Bushland, TX; Olive 
Fruit Fly, Parlier, CA; Montpellier, FR; Organic Minor Crop 
Research, Salinas, CA; Peanut Research, Dawson, GA; Pecan Scab 
Research, Byron, GA; Phytoestrogen Research, New Orleans, LA; 
Pierce's Disease, Davis, CA; Parlier, CA; Ft. Pierce, FL; Post-
harvest and Controlled Atmosphere Chamber (Lettuce), Salinas, 
CA; Potato Breeding Research, Aberdeen, ID; Potato Research 
Enhancement, Prosser, WA; Potato Storage, Madison, WI; Poult 
Enteritis-Mortality Syndrome (PEMS), Athens, GA; Poultry 
Disease (Avian Coccidiosis), Beltsville, MD; Quantify Basin 
Water Budget Components in the Southwest, Tucson, AZ; Rangeland 
Resources Research, Las Cruces, NM; Regional Grains Genotyping 
Research, Raleigh, NC; Regional Molecular Genotyping, Fargo, 
ND; Manhattan, KS; Pullman, WA; Rice Research, Stuttgart, AR; 
Root Diseases in Wheat and Barley, Pullman, WA; Sedimentation 
Issues in Flood-control Dam Rehabilitations, Oxford, MS; 
Seismic and Acoustic Technologies in Soils, Sedimentation 
Laboratory, Oxford, MS; Shellfish Genetics, Newport, OR; Small 
Farms, Booneville, AR; Soil Tilth Research, Ames, IA; Sorghum 
Cold Tolerance, Lubbock, TX; Sorghum Research, Little Rock, AR; 
Manhattan, KS; Stillwater, OK; Bushland, TX; Lubbock, TX; 
Sorghum Utilization, Manhattan, KS; Source Water Protection, 
Columbus, OH; South Central Agricultural Research Laboratory, 
Lane, OK; Southeastern Fruit and Tree Nut Research, Byron, GA; 
Southwest Pecan Research, College Station, TX; Soybean and 
Nitrogen Fixation, Raleigh, NC; Sudden Oak Disease, Frederick, 
MD; Davis, CA; Sugarbeet Research, Kimberly, ID; Sugarcane 
Variety Research, Canal Point, FL; Sustainable Vineyard 
Practices, Davis, CA; Sustainable Viticulture Research, Davis, 
CA; Swine Lagoon Alternatives Research, Florence, SC; Temperate 
Fruit Flies, Wapato, WA; Tree Fruit Quality Research, 
Wenatchee, WA; U.S. National Arboretum, Washington, DC; U.S. 
Plant Stress and Water Conservation Laboratory, Lubbock, TX; 
Vaccines and Microbe Control for Fish Health, Auburn, AL; 
Vector-borne Diseases, Gainesville, FL; Verticillium Wilt, 
Salinas, CA; Virus-Free Fruit Tree Cultivars, Wapato, WA; 
Viticulture, Corvallis, OR; Water Management Research 
Laboratory, Brawley, CA; Water Use Reduction/Producer 
Enhancement Research, Dawson, GA; Western Grazinglands, Burns, 
OR; Western Wheat Quality Laboratory, Pullman, WA; Wheat 
Quality Research, Manhattan, KS; Fargo, ND; Wooster, OH; 
Pullman, WA; Wild Rice, 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 maintains the fiscal year 2004 funding 
level for this necessary research.
    Controlling exotic/emerging diseases of crops and 
livestock.--The Committee is aware of the threat of new 
diseases and the urgent challenge to American agricultural 
producers and the increasing concern about bioterrorists and 
Homeland Security. The Committee understands the possibility 
that exotic or especially virulent crop and livestock diseases 
could be introduced. Globalized trade also increases the 
vulnerability of American agriculture to introduced diseases 
and pests. The Committee provides an increase of $7,744,000 
over fiscal year 2004 to develop systems for rapid response to 
Bioterror agents; develop vaccines for high priority threat 
agents; and improve product delivery systems for the control of 
plant diseases.
    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 $200,000 in fiscal year 2005 
to the ARS research laboratory at Ames, IA.
    Corn rootworm.--This pest continues to create economic and 
environmental problems in the Corn Belt region of the U.S. The 
Committee directs that current research funding of $398,495 for 
the Risk Assessment of BT Corn at Ames, Iowa, be used to fund 
priority research into the biology of controlling the corn 
rootworm which poses a significant economic threat to the corn 
industry.
    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 $200,000 in 
fiscal year 2005 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 maintains the fiscal year 2004 funding 
level to the ARS Cotton Quality Research Laboratory at Clemson, 
SC for 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. Crop 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 
$100,000 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 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 
maintains the fiscal year 2004 funding level to the National 
Center for Agricultural Utilization Research (NCAUR) at Peoria, 
IL.
    Diet, nutrition monitoring, and obesity research.--The 
Committee recognizes that obesity is a major health problem in 
the U.S. The Committee provided the ARS $671,000 in fiscal year 
2004 to establish an intramural cooperative research program at 
the Pennington Biomedical Research Center (PBRC), Baton Rouge, 
LA, that is focused on food-based strategies for moderating 
weight gain in humans. ARS scientists cooperate with PBRC 
scientists at Baton Rouge to plan and conduct research for 
preventing obesity and fostering the maintenance of healthy 
body weight. For fiscal year 2005, the Committee continues the 
fiscal year 2004 funding level for this important research.
    Expanded research projects of agricultural importance.--The 
Committee provides additional funding in fiscal year 2005 for 
the following important research projects: Appalachian 
Horticulture Research, $150,000; Aquaculture Initiatives for 
Mid-Atlantic Highlands, $200,000; Biological Controls & 
Agricultural Research, $50,000; Catfish Genome, $200,000; 
Cereal Disease Research, $25,000; Citrus & Horticultural 
Research, $250,000; Golden Nematode, $50,000; Grape Rootstock, 
$300,000; Grapefruit Juice/Drug Interaction, $3,708; Greenhouse 
Hydroponics Research, $25,000; Improved Crop Production 
Practices, $200,000; Organic Minor Crop Research, $250,000; 
Pecan Scab Research, $200,000; Potato Storage, $1,593; Poultry 
Enteritis-Mortality Syndrome (PEMS), $50,000; Regional Grains 
Genotyping Research, $200,000; Soybean and Nitrogen Fixation, 
$200,000; and, Wild Rice, $50,000.
    Feed efficiency in cattle.--Feed costs represent 65% of the 
total cost in beef production. The Committee provides the 
fiscal year 2004 funding level for the ARS Meat Animal Research 
Center at Clay Center, NE for 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 
funding 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. cash 
crop 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 2004 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 $200,000 in fiscal year 2005 to optimize its 
research capability.
    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 continues the 
fiscal year 2004 funding level to the Southern Regional 
Research Center at New Orleans, LA to continue current efforts 
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 $200,000 in fiscal year 2005 for staffing the U.S. 
Horticultural Research Laboratory at Ft. Pierce, FL.
    Food safety research.--The Committee recognizes the 
importance of food safety research in support of the Food and 
Agriculture Defense Initiative and provides an increase in 
fiscal year 2005 of $7,200,000 for PCR-based tests for 
pathogens and the validation of tests in food matrices.
    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 $50,000 in fiscal year 2005 for expanded ARS 
research with university/industry partners on the beneficial 
uses of foundry sand by-products in agriculture and 
horticulture.
    Germplasm sequencing of livestock.--The Committee supports 
the ARS initiative to collect, catalog and preserve germplasm 
sequencing of cattle, poultry, and swine and provides an 
increase of $800,000 for this research in fiscal year 2005.
    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 2004 funding levels.
    Grape genetics.--Grapes are the 6th largest crop in the 
United States and one of the most important cash crops 
worldwide. The U.S. is the 4th largest producer of wine, 
responsible for about 10% of all world wine. The Committee 
provides an increase of $250,000 in fiscal year 2005 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 continues 
the fiscal year 2004 funding level for the ARS' Grassland Soil 
and Water Research Laboratory to address these agricultural 
issues.
    Identify and characterize economically important genes.--
The Committee understands the increased need to identify and 
characterize genes responsible for crop and livestock 
production and quality; and resistance to diseases, pests, and 
weather. An increase of $5,700,000 is provided above the fiscal 
year 2004 level for additional plant and animal research in 
these areas.
    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 
maintains the fiscal year 2004 funding level for the 
Agricultural Research Service for continued research on 
invasive aquatic weeds.
    Library and information services.--The Committee provides 
an increase of $750,000 to enhance the Library's effort to 
improve information integration and delivery.
    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, increasing producer 
yields, promoting good land management practices, and reducing 
input costs. The Committee provides an increase of $26,728 in 
fiscal year 2005 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 maintains 
the fiscal year 2004 funding level for this research.
    Noxious weeds in the desert southwest.--Invasive and 
noxious weeds are expected to infest 140 million acres of land 
in the U.S. by the year 2010; with rangeland and pastures as 
primary areas invaded by these species. An increase of $125,000 
is provided in fiscal year 2005 in support of biocontrol 
research on invasive non-native and tree species carried out by 
ARS at the Jornada Experimental Range Station in Las Cruces, 
New Mexico.
    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 maintains the fiscal year 2004 funding level for 
continued research on how dietary factors affect the growth and 
development of children and the onset of chronic diseases.
    Nutrition research.--The Committee continues to support the 
nutrition research investigations carried out by the 
Department's nutrition research Centers and provides an 
increase of $2,500,000 for expanded research in intervention, 
dietary intake, chronic disease prevention, and obesity issues.
    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 maintains the 
fiscal year 2004 funding level for continued integrated pest 
management research program to control the olive fruitfly at 
ARS' European Biological Control Laboratory, and Parlier, CA.
    Ogallala aquifer.--Surface water in the Central High Plains 
region of the U.S. is severely limited. The Ogallala Aquifer, 
which is a finite resource, has provided water resources in the 
development of a highly significant agricultural economy in 
this region. The Committee provides an increase of $1,250,000 
in fiscal year 2005 for research into the complex nature of 
water availability, potential uses, and costs to determine 
future water policy in this region, which includes Texas, 
Kansas, and adjoining states.
    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 
$200,000 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 $200,000 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 maintains the fiscal 
year 2004 funding level to enable ARS to continue to move 
aggressively and effectively against this serious pest/disease 
combination threat to the economic viability of many crops in 
California. The Committee maintains the current funding levels 
at Parlier and Davis, CA, and Ft. Pierce, FL.
    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 the fiscal year 2004 
funding level for this research at Aberdeen, ID, and Prosser, 
WA.
    Quantify basin water budget components in the Southwest.--
The Committee acknowledges the need to expand efforts to more 
accurately quantify components of a basin's water budget to 
support local and community based watershed management. The 
Committee provides an increase of $250,000 above the fiscal 
year 2004 level for additional research at the Southwest 
Watershed Research Center at Tucson, Arizona.
    Research to control invasive species.--Research is 
essential to find technologies that will eliminate or control 
invasive species of crops and livestock. The Committee provides 
an increase of $4,000,000 over fiscal year 2004 to develop 
systems for rapid response to bioterror agents; develop 
vaccines for high priority threat agents; and increase research 
on exotic plant diseases.
    Salmonella, Listeria, E. Coli, and Other Food Pathogens.--
The Committee recognizes the importance of research and new 
technology developments to identify, control, and eliminate 
Listeria monocytogenes, E. Coli O157:H7, and Salmonella 
pathogens contamination in foods. The Committee provides an 
increase of $399,861 for expanded research to control and 
prevent Listeria monocytogenes in ready-to-eat meat and poultry 
products, and E. coli O157:H7 and Salmonella in raw beef, pork, 
and poultry products. The Committee provides that $100,000 of 
this increased funding level is for cooperative research with 
Penn State University for the development of capabilities for 
products for coating a wide variety of substrates.
    Seismic and acoustic technologies in soils.--The Committee 
continues to support the use of new acoustic and seismic 
technologies to reduce crop production costs and conserve 
energy, water, and soil. An increase of $250,000 is provided to 
the ARS National Sedimentation Laboratory at Oxford, 
Mississippi for expanded research in this area.
    Sorghum research.--The Committee provides an increase of 
$250,000 in fiscal year 2005 for expanded sorghum research to 
be conducted at the ARS Plant Stress Laboratory at Lubbock, TX.
    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 maintains the fiscal year 2004 funding 
level for the ARS Southeastern Fruit and Tree Nut Research 
Laboratory at Byron, GA for 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. The Committee provides an increase of $400,000 to 
conduct research to identify causative agents and diagnostic 
tools. This research is carried out at the ARS Ft. Detrick, MD 
research laboratory, and at the 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 $200,000 in fiscal year 2005 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 viticulture research.--The Committee provides 
an increase of $100,000 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.
    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 $200,000 for expanded 
research 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 $250,000 in fiscal year 2005.
    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 $250,000 in fiscal year 2005 for the ARS research 
station at Salinas, California to address this serious 
vegetable production problem in California.
    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 maintains the fiscal year 2004 funding 
level for the ARS research laboratory at Dawson, Georgia for 
research to enhance, in a sustainable manner, irrigated 
agriculture and associated rural economies in Southwest 
Georgia.
    Western grazinglands.--The management, conservation, and 
sustainability of rangeland resources is of paramount 
importance to the economy of the Great Basin region. The ARS 
research station at Burns, OR conducts important rangeland 
research programs to control invasive weeds unique to the Great 
Basin. The Committee maintains the fiscal year 2004 funding 
level for this laboratory to continue invasive weed research 
pertinent to the Great Basin region.
    Wheat quality research.--The Committee supports ARS' wheat 
quality research programs carried out at Wooster, OH; Fargo, 
ND; 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 maintains this critical 
research at the fiscal year 2004 funding level.

                        BUILDINGS AND FACILITIES

 
 
 
2004 appropriation....................................       $63,434,000
2005 budget estimate..................................       178,000,000
Provided in the bill..................................       202,000,000
Comparison:
    2004 appropriation................................      +138,566,000
    2005 budget estimate..............................       +24,000,000
 

                          COMMITTEE PROVISIONS

    For Agricultural Research Service, Buildings and 
Facilities, the Committee provides an appropriation of 
$202,000,000, an increase of $138,566,000 above the amount 
available in fiscal year 2004, and an increase of $24,000,000 
above the budget request.
    The Committee acknowledges the importance of funding the 
construction of the National Centers for Animal Health located 
at Ames, Iowa and provides $178,000,000 as requested in the 
President's budget. The research and diagnostic programs 
carried out at the Centers are critical to the Nation's 
homeland security and agricultural industry.
    The Committee provides additional funds in support of the 
modernization and construction of Federal research facilities 
as follows: National Center for Agricultural Utilization 
Research, Peoria, IL; Grape Genomics Research Center, Davis, 
CA; U.S. Agricultural Research Station, Salinas, CA; ARS Sugar 
Research Laboratory, Houma, LA; Center for Grape Genetics, 
Geneva, NY; Center for Crop-based Health Genomics, Ithaca, NY; 
ARS Research Laboratory, Pullman, WA, and the ARS Nutrient 
Management Research Laboratory, Marshfield, WI. Due to 
budgetary constraints, the Committee is unable to provide the 
full amount required to complete construction of these 
projects.
    The following table summarizes the Committee's provisions:

         AGRICULTURAL RESEARCH SERVICE, BUILDINGS AND FACILITIES
------------------------------------------------------------------------
                                                            Committee
                                                            provisions
------------------------------------------------------------------------
California, Davis: Grape Genomics Research Center......       $3,000,000
California, Salinas: U.S. Agricultural Research Station        3,000,000
Illinois, Peoria: National Center for Agricultural             3,000,000
 Utilization Research..................................
Iowa, Ames: National Centers for Animal Health.........      178,000.000
Louisiana, Houma: ARS Sugarcane Research Laboratory....        3,000,000
New York, Geneva: Center for Grape Genetics............        3,000,000
New York, Ithaca: Center for Crop-based Health Genomics        3,000,000
Washington, Pullman: ARS Research Laboratory...........        3,000,000
Wisconsin, Marshfield: Nutrient Management Research            3,000,000
 Laboratory............................................
                                                        ----------------
      Total, ARS Buildings and Facilities..............      202,000,000
------------------------------------------------------------------------

    The Committee expects the ARS to provide a feasibility 
prospectus, by March 1, 2005, for the Canal Point, Florida 
facility; the ARS citrus laboratory in Winter Haven, Florida 
for colocation with the citrus experiment station in Lake 
Alfred, Florida; and on an ARS National Irrigation Watershed 
Laboratory in Lonoke, Arkansas.

      Cooperative State Research, Education, and Extension Service


                   RESEARCH AND EDUCATION ACTIVITIES

 
 
 
2004 appropriation....................................      $617,780,000
2005 budget estimate..................................       501,540,000
Provided in the bill..................................       628,607,000
Comparison:
    2004 appropriation................................       +10,827,000
    2005 budget estimate..............................      +127,067,000
 

                          COMMITTEE PROVISIONS

     For payments under the Hatch Act, the Committee provides 
an appropriation of $628,607,000, an increase of $10,827,000 
above the amount available for fiscal year 2004 and an increase 
of $127,067,000 above the budget request.
    For payments under the Hatch Act, the Committee provides an 
appropriation of $180,648,000, an increase of $1,563,000 above 
the amount available for fiscal year 2004 and increase of 
$500,000 above the budget request.
    For cooperative forestry research, the Committee provides 
an appropriation of $22,384,000, an increase of $629,000 above 
the amount available for fiscal year 2004 and an increase of 
$500,000 above 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 
$37,000,000, an increase of $1,212,000 above the amount 
available for fiscal year 2004 and an increase of $1,000,000 
above the budget request.
     For the National Research Initiative, the Committee 
provides an appropriation of $180,000,000, an increase of 
$15,973,000 above the amount available for fiscal year 2004 and 
the same as the budget request.
    Aquaculture (OH).--The Committee provides that funds are 
for establishment of Ohio Aquaculture Consortium and extension 
programs in northwest and central lake counties.
    Dietary Intervention (OH).--Within funds provided for 
dietary intervention research, $500,000 is provided for 
research on Dietary and Genetic Risk Factors in Obesity and 
Diabetes at the University of Toledo, and $900,000 is provided 
for Ohio State University.
    Joe Skeen Institute for Rangeland Restoration (NM, TX).--
The Committee provides $1,000,000 for the Joe Skeen Institute 
for Rangeland Restoration, to be utilized by New Mexico State 
University and Texas A&M University. The Committee directs 
these universities to work cooperatively to provide 
programmatic oversight for the Joe Skeen Institute for 
Rangeland Restoration.
    Viticulture Consortium--Funds may be used by the 
Viticulture Consortium for ``technology transfer'' and outreach 
to communicate viticulture research outcomes to the grape and 
wine industry in order to foster the accelerated adoption of 
the best science, environmental and business practices to keep 
the American grape and wine industry competitive in the global 
market.
     The following table reflects the amount provided by the 
Committee:


              NATIVE AMERICAN INSTITUTIONS ENDOWMENT FUND

 
 
 
2004 appropriation....................................        $9,000,000
2005 budget estimate..................................        12,000,000
Provided in the bill..................................        12,000,000
Comparison:
    2004 appropriation................................        +3,000,000
    2005 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the Native American Institutions Endowment Fund, the 
Committee provides $12,000,000, an increase of $3,000,000 above 
the amount available in fiscal year 2004 and the same as the 
budget request.

                          EXTENSION ACTIVITIES

 
 
 
2004 appropriation....................................      $439,125,000
2005 budget estimate..................................       421,174,000
Provided in the bill..................................       440,349,000
Comparison:
    2004 appropriation................................        +1,224,000
    2005 budget estimate..............................       +19,175,000
 

                          COMMITTEE PROVISIONS

    For Extension Activities, the Committee provides an 
appropriation of $440,349,000, an increase of $1,224,000 above 
the amount available for fiscal year 2004 and an increase of 
$19,175,000 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.

                         INTEGRATED ACTIVITIES

 
 
 
2004 appropriation....................................       $50,195,000
2005 budget estimates.................................        76,865,000
Provided in the bill..................................        66,255,000
Comparison:
    2004 appropriation................................       +16,060,000
    2005 budget estimate..............................       -10,610,000
 

                          COMMITTEE PROVISIONS

    For Integrated Activities, the Committee provides an 
appropriation of $66,255,000, an increase of $16,060,000 above 
the amount available for fiscal year 2004 and a decrease of 
$10,610,000 below the budget request.
    The Committee provides $18,000,000 for increased activities 
related to food and agriculture defense, including: adding 
diagnostic laboratories to the current network of diagnostic 
laboratories; educating and training of personnel to handle 
high-risk infectious agents; expanding testing capabilities; 
and improving communications over a secure network.
    The following table reflects the amount provided by the 
Committee.


              OUTREACH FOR SOCIALLY DISADVANTAGED FARMERS

 
 
 
2004 appropriation....................................        $5,935,000
2005 budget estimate..................................         5,935,000
Provided in the bill..................................         5,935,000
Comparison:
    2004 appropriation................................             - - -
    2005 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the Outreach for Socially Disadvantaged Farmers and 
Ranchers Program, the Committee provides an appropriation of 
$5,935,000, the same as the amount available for fiscal year 
2004 and the same amount as the budget request.

  Office of the Under Secretary for Marketing and Regulatory Programs


 
 
 
2004 appropriation....................................          $721,000
2005 budget estimate..................................           804,000
Provided in the bill..................................           721,000
Comparison:
    2004 appropriation................................             - - -
    2005 budget estimate..............................           -83,000
 


                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Marketing and 
Regulatory Programs, the Committee provides an appropriation of 
$721,000, the same as the amount available for fiscal year 2004 
and a decrease of $83,000 below the budget request.

               Animal and Plant Health Inspection Service


                         SALARIES AND EXPENSES

 
                                                                                                  Total, APHIS
                                                             Appropriations      User Fees       Appropriations
 
2004 appropriation .......................................      $716,329,000    ($327,000,000)    $1,043,329,000
2005 budget estimate......................................       828,361,000     (344,000,000)     1,172,361,000
Provided in the bill......................................       808,823,000     (344,000,000)     1,152,823,000
Comparison:
    2004 appropriation....................................       +92,494,000      +$17,000,000      +109,494,000
    2005 budget estimate..................................       -19,538,000             - - -       -19,538,000
 

                          COMMITTEE PROVISIONS

    For the Animal and Plant Health Inspection Service, 
Salaries and Expenses, the Committee recommends an 
appropriation of $808,823,000, an increase of $92,494,000 above 
the amount appropriated in fiscal year 2004, and a decrease of 
$19,538,000 below the budget request.
    The recommendation does not include $10,857,000 in Animal 
Welfare Inspection User Fees, as proposed in the President's 
budget. These user fees are currently not authorized in law.
    The following table reflects the amounts provided by the 
Committee:


    To maintain agency functions the Committee provides the 
requested amount for cost of living requirements.
    Animal health monitoring and surveillance.--The Committee 
provides an increase of $33,197,000 for the National Animal 
Identification System (NAIS). The Secretary transferred 
$18,792,997 from the Commodity Credit Corporation for animal 
identification in April 2004.
    The Committee points out that the ability of the nation to 
move quickly in designing an animal identification system has 
been aided immensely by Congressional earmarks. Since fiscal 
year 1998, Congress has funded pilot projects to evaluate 
various aspects of animal identification. The knowledge 
provided by these projects was critical to the Department 
having the ability to make rapid and considered decisions 
regarding the design of a national animal identification 
program.
    The Committee directs that not less than $2,000,000 be 
provided for a cooperative agreement with the Wisconsin 
Livestock Identification Consortium. This project supports the 
national plan to establish an animal and livestock 48-hour 
traceback system.
    The Committee provides not less than $500,000 for the Farm 
Animal Identification and Records (FAIR) program. Both the 
Wisconsin consortium and the FAIR project should also be 
eligible to apply for cooperative agreement funding for animal 
identification, which is funded within the NAIS total.
    The Committee remains interested in the Interstate 
Certificate of Veterinary Inspection System and the role of the 
System in animal identification for purposes of disease 
tracking. In particular, the Committee urges APHIS to continue 
efforts on veterinary practice documentation as it relates to 
the interstate movement of animals.
    The Committee provides $300,000 to assist in creating a 
database of North Carolina's agriculture industry for rapid 
response capabilities.
    The Committee provides the full increase requested, 
$8,641,000 over the fiscal year 2004 level, for activities 
related to Bovine Spongiform Encephalopathy (BSE). In addition, 
the Department has available $69,900,000, which the Secretary 
transferred in March 2004 from the Commodity Credit Corporation 
to fund an intense BSE surveillance testing program. That 
funding will allow APHIS to conduct testing for approximately 
268,000 animals within a 12 to 18 month period starting June 1, 
2004. The Committee notes that the CCC-transferred amount will 
cover all BSE testing during that timeframe.
    The Committee continues funding for the New Mexico Rapid 
Syndrome Validation Program at $450,000 to support early 
detection of pathogens in animals and prevent its spread.
    The Committee provides the fiscal year 2004 funding level 
for Iowa State University's work regarding risk assessments of 
genetically modified agricultural products.
    The Committee continues funding at the fiscal year 2004 
level toward an anaerobic digester for disposal and reuse of 
biomass.
    Emergency management systems.--The Committee provides an 
increase of $2,625,000 for emergency coordinators and 
$3,000,000 to establish a vaccine bank.
    Pest detection.--The Committee provides an increase of 
$2,500,000, as requested for the select agents program, and 
$2,000,000 for surveys through the state-based Cooperative 
Agricultural Pest Surveys system.
    The Committee continues funding 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 funding for a cooperative agreement 
with the California County Pest Detection Augmentation Program 
at the fiscal year 2004 level.
    Greater Yellowstone Interagency Brucellosis Committee 
(GYIBC).--The Committee continues to provide the fiscal year 
2004 funding level for the GYIBC to eliminate brucellosis from 
wildlife in the Greater Yellowstone area.
    Chronic wasting disease.--For chronic wasting disease, the 
Committee provides $18,589,000 for fiscal year 2005. The 
Committee directs that of this amount $1,750,000 shall go to 
the State of Wisconsin.
    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 includes an 
increase of $10,743,000 above the amount available in fiscal 
year 2004. The Committee provides $51,578,000 for citrus 
canker, $23,510,000 for Pierce's Disease, and $12,050,000 for 
Emerald Ash borer.
    The Committee continues funding for Sudden Oak Death and 
olive fruit fly trapping at the fiscal year 2004 level. Funding 
for Sudden Oak Death should be allocated primarily to states 
with the most severe outbreaks.
    The Committee provides $100,000 of funding for hydrilla 
eradication around Smith Mountain Lake in Virginia, and Lake 
Gaston in Virginia and North Carolina.
    The Committee provides $10,333,000 for the Asian long-
horned beetle. This is $1,000,000 over the amount requested for 
fiscal year 2005. In the budget justification, the Department 
states that the budget request is adequate to control the Asian 
long-horned beetle, and that the goal of the program has 
shifted from eradication to control. The Committee is concerned 
about the damage that this pest can do, and about possible 
occurrence of the beetle outside of known affected areas. The 
Committee expects the Department to carefully consider this 
program, and if infestation spreads, that the Secretary will 
use her emergency authority to provide funds to combat the 
infestation and that APHIS will reevaluate the control/
eradication decision.
    Imported fire ant.--The Committee provides $2,148,000 for 
imported fire ant of which $45,000 is for New Mexico.
    Johne's Disease.--The Committee provides $7,155,000 for 
Johne's disease, which is $4,000,000 above the budget request.
    Avian Influenza.--The Committee provides $23,000,000 for 
activities relating to the prevention, control, and eradication 
of Low Pathogenic Avian Influenza (LPAI), which is $22,006,000 
over the fiscal year 2004 level. Within the total amount, 
$12,000,000 is for indemnities, $3,000,000 is for surveillance 
activities, up to $2,000,000 is for reagents and costs of 
administering tests, and up to $2,000,000 is for live bird 
market closure for disinfection, as needed. Full funding for 
other LPAI activities that were included in the budget request 
is included in the total. The Committee is concerned that LPAI, 
which appears to be endemic in certain live bird markets in 
urban areas, could mutate into highly pathogenic forms. To 
prevent this from happening, a robust surveillance and control 
system in both commercial poultry industries and live bird 
markets is important. The Committee believes that industry 
cooperation and program fairness will be maximized through the 
indemnification of losses.
    The Committee notes that in addition to depopulation, 
vaccination is likely to be an important and cost-effective 
control measure in some situations. The Committee encourages 
the Department to quantify the losses due to vaccine and 
associated costs and to consider such losses in program 
decisions.
    Noxious weeds.--From within the amount provided for noxious 
weeds, the Committee directs that no less than $180,000 be used 
to control and eradicate tropical soda apple.
    The Committee continues funding of $100,000 for the Nez 
Perce Bio-control Center, and $100,000 for the Kiski Basin 
Initiative.
    Wildlife services.--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 continues funding for the following projects: 
$250,000 for Beaver management in North Carolina; $250,000 for 
crop and aquaculture losses in southwest Missouri; $625,000 for 
game bird predation work with the University of Georgia; 
$100,000 for predation wildlife services in western Virginia; 
$125,000 for blackbird control in Louisiana; $1,300,000 for 
predator control programs in Montana, Idaho, and Wyoming; 
$1,000,000 for wildlife services in Texas; $200,000 for beaver 
management and damage in Wisconsin; $250,000 for wolf control 
in Minnesota; $515,000 for brown tree snake management in Guam; 
$310,000 for Hawaii and Guam operations; $300,000 for sandhill 
cranes in Idaho; $50,000 for control of feral hogs in Missouri; 
$1,000,000 for cormorant control in New York; and $150,000 for 
cormorant control in Michigan.
    Funds are provided for information technology support and 
aviation safety activities as requested in the President's 
budget.
    The Committee provides a $1,420,000 increase above the 
fiscal year 2004 level for a cooperative rabies oral rabies 
vaccination program, of which not less than $420,000 is 
directed to go to the state of Florida for bait and related 
costs.
    The Committee encourages the agency to provide assistance 
for mongoose and rabies control in Puerto Rico.
    The Committee directs that, other than funding for the 
specific items noted in this report, the funds provided in the 
Wildlife Services line item are available for general 
operations needs.
    The Committee continues the fiscal year 2004 funding level 
for wildlife surveillance.
    The Committee does not concur with the President's request 
to reduce funding in the Wildlife Services account to allow 
cooperators to assume a larger share of the costs associated 
with preventing wildlife damage, and protecting human health 
and safety.
    Veterinary diagnostics.--The Committee provides an increase 
of $1,947,000 for the national animal health laboratory 
network, as requested. No increase is provided for work 
conducted at Plum Island.
    Wildlife services methods development.--The Committee 
continues to provide $400,000 in funding for the National 
Wildlife Research Station in Kingsville, Texas, to address 
emerging infectious disease issues associated with wildlife 
populations.
    The Committee provides funding to continue the cooperative 
agreement between the Hawaii Agricultural Research Center and 
the National Wildlife Research Center in Hilo at the fiscal 
year 2004 level.
    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 the results of pest surveys 
and any instances of diversion of Mexican avocados to other 
than approved destinations. The Committee also directs APHIS to 
report to Congress prior to publishing any rules expanding the 
approved areas or lengthening the time periods for importation 
of Mexican avocados.
    The Committee is aware of an unexplained disease that is 
harming rice crops in many parishes in Louisiana. The Committee 
directs APHIS to look promptly into this situation and to work 
with rice farmers, local officials, and local researchers to 
determine the cause of the disease and work for a remedy.
    Wildlife Hazards to Aircraft.--The Committee recognizes the 
increasing demands by the nation's airports for assistance by 
APHIS Wildlife Services to mitigate the growing human safety 
concern and economic problem of bird and other wildlife hazards 
to aircraft. The Committee requests a report from APHIS on the 
unmet needs of the nation's airports regarding economic losses 
and the threat to human safety caused by aircraft collisions 
with federally protected migratory birds and other wildlife.

                        BUILDINGS AND FACILITIES

 
 
 
2004 appropriation....................................        $4,967,000
2005 budget estimate..................................         4,996,000
Provided in the bill..................................         4,996,000
Comparison:
    2004 appropriation................................           +29,000
    2005 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For Animal and Plant Health Inspection Service, Buildings 
and Facilities, the Committee provides an appropriation of 
$4,996,000, an increase of $29,000 above the amount available 
for fiscal year 2004 and the same as the budget request.

                     Agricultural Marketing Service


                           MARKETING SERVICES

 
 
 
2004 appropriation....................................       $74,985,000
2005 budget estimate..................................        85,998,000
Provided in the bill..................................        75,892,000
Comparison:
    2004 appropriation................................          +907,000
    2005 budget estimate..............................       -10,106,000
 

                          COMMITTEE PROVISIONS

    For Marketing Services of the Agricultural Marketing 
Service, the Committee provides an appropriation of 
$75,892,000, an increase of $907,000 above the amount available 
for fiscal year 2004 and a decrease of $10,106,000 below the 
budget request.
    The Committee does not provide the increase requested for a 
new commodity purchasing computer system in this account. That 
is provided under the Section 32 account. The Committee 
recommendation does not include the proposed information 
technology cuts, nor the increase in funding requested for 
transportation analysis.
    The Committee provides $2,040,000 for activities relating 
to Organic Standards.

                 LIMITATION ON ADMINISTRATIVE EXPENSES

 
 
 
2004 limitation.......................................     ($62,577,000)
2005 budget limitation................................      (64,459,000)
Provided in the bill..................................      (64,459,000)
Comparison:
    2004 limitation...................................        +1,882,000
    2005 budget limitation............................             - - -
 

                          COMMITTEE PROVISIONS

    For a Limitation on Administrative Expenses of the 
Agricultural Marketing Service, the Committee provides 
$64,459,000, an increase of $1,882,000 above the amount 
available for fiscal year 2004 and the same as the budget 
request.

          FUNDS FOR STRENGTHENING MARKETS, INCOME, AND SUPPLY

                              (SECTION 32)

                     MARKETING AGREEMENT AND ORDERS

 
2004 appropriation....................................     ($15,392,000)
2005 budget estimate..................................      (15,800,000)
Provided in the bill..................................      (15,800,000)
Comparison:
    2004 appropriation................................          +408,000
    2005 budget estimate..............................             - - -
 

    The following table reflects the status of this fund for 
fiscal years 2003 through 2005:


                          COMMITTEE PROVISIONS

    For the Marketing Agreements and Orders Program, the 
Committee provides a transfer from section 32 funds of 
$15,800,000, an increase of $408,000 above the amount available 
for fiscal year 2004 and the same as the budget request.
    The Committee provides $10,000,000 in funding for the Web-
based Supply Chain Management System in this account, under 
Commodity Purchase Services, rather than as requested in the 
Marketing Services account. Administrative expenses to support 
Section 32 purposes have been expressly allowed since fiscal 
year 1936. The Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies Appropriations Act for 
fiscal year 2004 stated that funds available under Section 32 
``shall be used only for commodity program expenses as 
authorized therein, and other related expenses''. The Committee 
includes the same language in the fiscal year 2005 bill. 
Accordingly, the Agriculture Marketing Service may use Section 
32 funds to support computer systems, including a web-based 
purchasing system, to the extent that such systems relate to 
program activities authorized by Section 32. In reviewing the 
documentation provided with the President's budget request, it 
is clear that the proposed Web-based Supply Chain Management 
System is integral to the activities authorized by Section 32 
and funding for the system should be provided in this account.
    The Committee is aware of the recent pricing of cranberries 
below the cost of production that has negatively impacted 
cranberry producers in growing regions across the country. In 
addition to marketing restrictions imposed by the Cranberry 
Marketing Committee, Congress has made both direct payments to 
growers and directed Section 32 purchases by the USDA to 
stabilize the market. Given the anticipated industry inventory 
of 3.4 million barrels during the coming fiscal year, the 
Committee expects USDA to buy at a minimum the levels equal to 
historic averages over the past two years, about 35-40 million 
pounds, to prevent market instability.
    In the utilization of Section 32 funds for USDA commodity 
purchase programs, USDA shall not exclude or discriminate 
against Farmer-owned cooperatives based on any preference or 
set asides.

                   PAYMENTS TO STATES AND POSSESSIONS

 
 
 
2004 appropriation....................................        $3,318,000
2005 budget estimate..................................         1,347,000
Provided in the bill..................................         1,347,000
Comparison:
    2004 appropriation................................        -1,971,000
    2005 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For Payments to States and Possessions, the Committee 
provides an appropriation of $1,347,000, a decrease of 
$1,971,000 below the amount available for fiscal year 2004, and 
the same as the budget request.

        Grain Inspection, Packers and Stockyards Administration


                         SALARIES AND EXPENSES

 
 
 
2004 appropriation....................................       $35,678,000
2005 budget estimate..................................        44,150,000
Provided in the bill..................................        37,540,000
Comparison:
    2004 appropriation................................        +1,862,000
    2005 budget estimate..............................        -6,610,000
 

                          COMMITTEE PROVISIONS

    For Grain Inspection, Packers and Stockyards 
Administration, the Committee provides $37,540,000, an increase 
$1,862,000 over the amount available for fiscal year 2004, and 
a decrease of $6,610,000 below the budget request. The amount 
provided includes a $1,200,000 increase for critical 
information technology needs at GIPSA.
    The recommendation does not include $5,817,000 in 
standardization user fees or $23,159,000 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.
    In order to further the Federal Grain Inspection Service 
mission to facilitate the marketing of U.S. grain, the 
Committee urges the Secretary to incorporate the tracking 
system technological advancements of EDAT in the development of 
a process verification service for grains.
    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 the Committee with a comprehensive update on the 
study by January 1, 2005.

        LIMITATION ON INSPECTION AND WEIGHING SERVICES EXPENSES

 
 
 
2004 limitation.......................................     ($42,463,000)
2005 budget limitation................................      (42,463,000)
Provided in the bill..................................      (42,463,000)
Comparison:
    2004 limitation...................................             - - -
    2005 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 2004 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


 
 
 
2004 appropriation....................................          $595,000
2005 budget estimate..................................           803,000
Provided in the bill..................................           595,000
Comparison:
    2004 appropriation................................             - - -
    2005 budget estimate..............................          -208,000
 


                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Food Safety, the 
Committee provides an appropriation of $595,000, the same as 
the amount provided for fiscal year 2004 and a decrease of 
$208,000 below the budget request.

                   Food Safety and Inspection Service


 
 
 
2004 appropriation....................................      $779,882,000
2005 budget estimate..................................       838,660,000
Provided in the bill..................................       824,746,000
Comparison:
    2004 appropriation................................       +44,864,000
    2005 budget estimate..............................       -13,914,000
 


                          COMMITTEE PROVISIONS

    For the Food Safety and Inspection Service, the Committee 
provides an appropriation of $824,746,000, an increase of 
$44,864,000 above the amount available for fiscal year 2004 and 
a decrease of $13,914,000 below the budget request.
    The recommendation does not include $124,000,000 in user 
fees to be paid by the 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 amount provided for the Food Safety and Inspection 
Service includes the full increases requested, as follows: 
$17,267,000, for frontline inspectors and humane slaughter 
enforcement, $3,000,000 for BSE surveillance, $7,153,000 for 
inspector training, and $15,511,000 for increased pay costs. 
The Committee recommendation includes a cut of $7,653,000 in 
information technology savings as requested in the budget.
    The Committee provides an increase of $9,586,000 for food 
defense activities, including $2,500,000 for biosurveillance, 
$3,586,000 for the Food Emergency Response Network (FERN), 
$3,000,000 for FERN data systems support, and $500,000 for 
laboratory equipment and additional training.
    The Committee provides the full amount requested, 
$2,726,000, for Codex Alimentarius activities, which are 
critical for maintaining food safety worldwide and facilitating 
international trade.
    The Committee provides the agency with $1,650,000, the same 
as the fiscal year 2004 level, solely to outsource 
microbiological testing 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.
    Recall improvement.--The Committee directs FSIS to list, on 
all FSIS recall press releases, the website address of the 
manufacturer of the recalled product--if any--and, when it will 
assist consumers and the media in identifying it, a photograph 
of the recalled product and/or product label. The Committee 
also directs FSIS to ask the manufacturer to voluntarily 
provide information on retail outlets of the product for 
inclusion on the FSIS press release.

                        FARM ASSISTANCE PROGRAMS


    Office of the Under Secretary for Farm and Foreign Agricultural 
                                Services


 
 
 
2004 appropriation....................................          $631,000
2005 budget estimate..................................           933,000
Provided in the bill..................................           631,000
Comparison:
    2004 appropriation................................             - - -
    2005 budget estimate..............................          -302,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Farm and Foreign 
Agricultural Services, the Committee provides an appropriation 
of $631,000, the same as the amount available for fiscal year 
2004 and a decrease of $302,000 below the budget request.

                          Farm Service Agency


                         SALARIES AND EXPENSES

 
                                                                              Transfer from
                                                            Appropriation    program accts.     Total, FSA, S&E
 
2004 appropriation......................................      $982,934,000    ($283,244,000)    ($1,266,178,000)
2005 budget estimate....................................     1,007,877,000     (309,163,000)     (1,317,040,000)
Provided in the bill....................................     1,007,597,000     (291,747,000)     (1,299,344,000)
Comparison:
    2004 appropriation..................................       +24,663,000        +8,503,000         +33,166,000
    2005 budget estimate................................          -280,000       -17,416,000         -17,696,000
 

                          COMMITTEE PROVISIONS

    For Salaries and Expenses of the Farm Service Agency (FSA), 
the Committee provides an appropriation of $1,007,597,000 and 
transfers from other accounts of $291,747,000, for a total 
program level of $1,299,344,000. This is an increase of 
$33,166,000 above the amount available for fiscal year 2004 and 
a decrease of $17,696,000 below the budget request.
    The Committee expects the Secretary of Agriculture to 
promulgate regulations for the Conservation Reserve Program 
that defines ``person'', for the purposes of payment 
limitations for rental payments, in a manner that prevents 
separate organizations who are controlled by a parent 
organization from being identified as separate ``persons''.
    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.
    The Committee provides that $50,000 shall be made available 
for payments to producers who, until September 30, 2003, had 
land enrolled in the conservation reserve program in an area 
that during fiscal year 2003 was omitted from the Cheney Lake 
Watershed conservation priority area, and whose offers were not 
accepted during fiscal year 2003, in amounts equivalent to what 
the producer would have earned in conservation reserve program 
rental payments during fiscal year 2004 had the offer been 
accepted.

                         STATE MEDIATION GRANTS

 
 
 
2004 appropriation....................................        $3,951,000
2005 budget estimate..................................         4,000,000
Provided in the bill..................................         4,000,000
Comparison:
    2004 appropriation................................           +49,000
    2005 budget estimate..............................  ................
 

                          COMMITTEE PROVISIONS

    For State Mediation Grants, the Committee provides an 
appropriation of $4,000,000, an increase of $49,000 above the 
amount available in fiscal year 2004 and the same as the budget 
request.

                        DAIRY INDEMNITY PROGRAM

 
 
 
2004 appropriation....................................          $100,000
2005 budget estimate..................................           100,000
Provided in the bill..................................           100,000
Comparison:
    2004 appropriation................................             - - -
    2005 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 2004 and the same as the budget request.

           AGRICULTURAL CREDIT INSURANCE FUND PROGRAM ACCOUNT

                         ESTIMATED LOAN LEVELS

 
 
 
2004 loan level.......................................    $3,246,249,000
2005 budget estimate..................................     3,803,253,000
Provided in the bill..................................     3,818,253,000
Comparison:
    2004 loan level...................................      +572,004,000
    2005 budget estimate..............................       +15,000,000
 

                          COMMITTEE PROVISIONS

    Approximate loan levels provided by the Committee for 
fiscal year 2005 for the Agricultural Credit Insurance Fund 
Programs are: $1,600,000,000 for farm ownership loans, of which 
$200,000,000 is for direct loans and $1,400,000,000 is for 
guaranteed loans; $2,116,253,000 for farm operating loans, of 
which $650,000,000 is for direct loans, $266,253,000 is for 
guaranteed subsidized loans, and $1,200,000,000 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 2005        Committee
                                                                  FY 2004  level     estimate       provisions
----------------------------------------------------------------------------------------------------------------
Farm loan programs:
  Farm ownership:
    Direct......................................................        $128,396         200,000        $200,000
    Guaranteed..................................................         944,395       1,400,000       1,400,000
  Farm operating:
    Direct......................................................         613,860         650,000         650,000
    Unsubsidized guaranteed.....................................       1,192,920       1,200,000       1,200,000
    Subsidized guaranteed.......................................         264,678         266,253         266,253
Indian tribe land acquisition...................................           2,000           2,000           2,000
Natural disasters emergency.....................................               0          25,000               0
Boll Weevil Eradication.........................................         100,000          60,000         100,000
                                                                 -----------------------------------------------
      Total, farm loans.........................................      $3,246,249      $3,803,253      $3,818,253
----------------------------------------------------------------------------------------------------------------

       ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS

 
                                                                 Direct loan    Guaranteed loan   Administrative
                                                                   subsidy          subsidy          expenses
 
2004 appropriation...........................................     $116,869,000      $78,623,000       $7,901,000
2005 budget estimate.........................................       79,625,000       81,618,000        8,000,000
Provided in the bill.........................................       76,390,000       81,618,000        8,000,000
Comparison:
    2004 appropriation.......................................      -40,479,000       +2,995,000          +99,000
    2005 budget estimate.....................................       -3,235,000            - - -            - - -
 
 

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

----------------------------------------------------------------------------------------------------------------
                                                                 FY 2004           FY 2005          Committee
                                                                estimate          estimate         provisions
----------------------------------------------------------------------------------------------------------------
Loan subsidies:
  Farm ownership:
    Direct................................................       $28,350,000        10,700,000       $10,700,000
    Guaranteed............................................         5,100,000         7,420,000         7,420,000
                                                           -----------------------------------------------------
      Subtotal............................................        33,450,000        18,120,000        18,120,000
                                                           =====================================================
  Farm operating:
    Direct................................................        88,519,000        65,585,000        65,585,000
    Guaranteed unsubsidized...............................        39,724,000        38,760,000        38,760,000
    Guaranteed subsidized.................................        33,799,000        35,438,000        35,438,000
                                                           -----------------------------------------------------
      Subtotal............................................       162,042,000       139,783,000       139,783,000
                                                           =====================================================
Indian tribe land acquisition.............................                 0           105,000           105,000
Natural disasters emergency...............................                 0         3,235,000                 0
                                                           -----------------------------------------------------
    Total, Loan subsidies.................................      $195,492,000      $161,243,000      $158,008,000
                                                           =====================================================
ACIF expenses:
  Salaries and expenses...................................       281,350,000       305,011,000       289,445,000
  Administrative expenses.................................         7,901,000         8,000,000         8,000,000
                                                           -----------------------------------------------------
    Total, ACIF expenses..................................      $289,251,000      $313,011,000       297,445,000
----------------------------------------------------------------------------------------------------------------

                         Risk Management Agency


 
 
 
2004 appropriation....................................       $71,001,000
2005 budget estimate..................................        91,582,000
Provided in the bill..................................        72,044,000
Comparison:
    2004 appropriation................................        +1,043,000
    2005 budget estimate..............................       -19,538,000
 

                          COMMITTEE PROVISIONS

    For the Risk Management Agency, the Committee provides an 
appropriation of $72,044,000, an increase of $1,043,000 above 
the amount available for fiscal year 2004 and a decrease of 
$19,538,000 below the budget request.
    The Committee directs the Risk Management Agency to develop 
a Gross Revenue Income Protection program for sorghum, at 
coverage rates equal to other feed grains.
    The 2002 Farm Bill drastically changed the Peanut Program. 
The per-acre insurance guarantee was reduced to reflect the 
lower loan rate required by the Bill. This rate is below the 
cost of production and is not an effective risk management tool 
for peanut producers. Most peanuts in the U.S. are now marketed 
through a contract between the Sheller and the Peanut Farmer at 
a price higher than the loan rate. The Committee urges Risk 
Management Agency to work with the insurance industry to 
quickly develop an insurance product that will allow the peanut 
producer to insure peanuts at an amount equal to the contract 
value of the crop.

                              Corporations


                FEDERAL CROP INSURANCE CORPORATION FUND

 
 
 
2004 appropriation.............................         1 $3,765,000,000
2005 budget estimate...........................          1 4,095,128,000
Provided in the bill...........................          1 4,095,128,000
Comparison:
    2004 appropriation.........................             +330,128,000
    2005 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 $4,095,128,000 in the President's 
fiscal year 2005 Budget Request), an increase of $330,128,000 
above the amount provided in fiscal year 2004 and the same as 
the budget request.

                   Commodity Credit Corporation Fund


                 REIMBURSEMENT FOR NET REALIZED LOSSES

 
 
 
2004 appropriation.............................        1 $22,937,000,000
2005 budget estimate...........................         1 16,452,377,000
Provided in the bill...........................       \1\ 16,452,377,000
Comparison:
    2004 appropriation.........................           -6,484,623,000
    2005 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 $16,452,377,000 in 
the President's fiscal year 2005 Budget Request), a decrease of 
$6,484,623,000 below the amount provided in fiscal year 2004 
and the same as the budget request.

                       HAZARDOUS WASTE MANAGEMENT

 
 
 
2004 limitation................................               $5,000,000
2005 budget estimate...........................                5,000,000
Provided in the bill...........................                5,000,000
Comparison:
    2004 limitation............................                    - - -
    2005 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 2004 and the same as the budget request.

                    TITLE II--CONSERVATION PROGRAMS

  Office of the Under Secretary for Natural Resources and Environment

 
 
 
2004 appropriation....................................          $741,000
2005 budget estimate..................................           936,000
Provided in the bill..................................           731,000
Comparison:
    2004 appropriation................................           -10,000
    2005 budget estimate..............................          -205,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Natural Resources 
and Environment, the Committee provides an appropriation of 
$731,000, a decrease of $10,000 below the amount available for 
fiscal year 2004 and a decrease of $205,000 below the budget 
request.

                 Natural Resources Conservation Service


                        CONSERVATION OPERATIONS

 
 
 
2004 appropriation....................................      $847,971,000
2005 budget estimate..................................       710,412,000
Provided in the bill..................................       813,673,000
Comparison:
    2004 appropriation................................       -34,298,000
    2005 budget estimate..............................      +103,261,000
 

                          COMMITTEE PROVISIONS

    For Conservation Operations, the Committee provides an 
appropriation of $813,673,000, a decrease of $34,298,000 below 
the amount available for fiscal year 2004 and an increase of 
$103,261,000 above the budget request. The Committee 
recommendation includes $65,153,900 for National Headquarters 
salaries and expenses, as requested.
     Misuse of discretionary funds.--The Committee is concerned 
about the misuse of discretionary conservation technical 
assistance funds. The fiscal year 2004 instructions to State 
Conservationists from the Chief of NRCS, which were submitted 
for the record, state, ``Your fiscal and performance 
responsibilities include . . . Assuring that all planning that 
occurs before the approval of an application for Farm Bill 
conservation programs is charged to Conservation Technical 
Assistance (CTA), but charge the planning that occurs after the 
application has been approved (contract planning) to the 
benefiting program . . .''. This instruction is in clear 
violation of the fiscal year 2004 Appropriations Act, P.L. 108-
199, which directs that none of the funds made available to 
NRCS may be used to provide technical assistance ``with respect 
to programs listed in section 1241(a) of the Food Security Act 
of 1985.'' The Office of the General Counsel has opined that 
the appropriations language is clear in its prohibition of the 
use of discretionary CTA funds for Farm Bill conservation 
programs. The NRCS is directed to explain its actions to the 
Committee immediately and to provide the Committee with a 
detailed accounting of all CTA funds that were used for Farm 
Bill conservation programs at any point in fiscal years 2003 or 
2004, including the amounts and dates of any charges made to 
CTA during the planning process before application approval.
    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 2005 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 2004 
Conservation Operations allocation by State, fiscal year 2005 
Conservation Operations allocation by State, the fiscal year 
2005 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 $6,000,000 for the continued implementation 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.
    Edwards Aquifer.--The Committee encourages the Agency to 
provide technical and financial assistance to the Edwards 
Aquifer Authority and San Antonio Water Systems regarding 
plugging of wells to address pollution concerns.
    Sage grouse.--The Committee encourages NRCS to address sage 
grouse conservation projects on private and public lands 
through the Wildlife Habitat Incentives Program (WHIP) at a 
minimum of $2,000,000.
    Source Water Protection Initiative.--NRCS is strongly 
encouraged to provide support and assistance to the local 
watershed associations in Ohio, Indiana, and Missouri working 
on the Source Water Protection Initiative.
    Assistance to Puerto Rico.--The Committee encourages the 
NRCS to provide assistance for the preservation and improvement 
of water and soil resources in Cano Tiburones, Puerto Rico.
    Wetlands restoration.--The Committee requests that the NRCS 
consider funding for the Meadowlands, New Jersey, restoration 
project through the Wetlands Reserve Program (WRP).
    Funding for fiscal year 2004 projects is not continued in 
fiscal year 2005 unless specifically mentioned in this report. 
The following funds are directed to be used in cooperative 
agreements, continued with the same cooperator entities as in 
the fiscal year 2004 agreements: National Water Management 
Center (AR)--$2,750,000; East Valley Conservation District/
Santa Ana Watershed Authority (CA) non-native plant removal--
$1,000,000; Monterey Bay Sanctuary--$600,000; Manatee (FL) 
Agriculture Reuse System--$2,000,000; Georgia Soil and Water 
Conservation Commission Cooperative Agreement within which the 
Committee expects the Commission to work with the Flint River 
Agricultural Water Conservation Initiative--$3,500,000; PMC for 
Native Plants to clean up the Island of Kahoolawe (HI)--
$108,000; 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--$300,000; 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--
$403,000; Lake Tahoe Basin Soil Conservation Project (NV/CA)--
$500,000; State conservation cost share program (NJ)--
$1,000,000; Pastureland Management/Rotational Grazing (NY)--
$700,000; Best management practices/Skaneateles and Owasco 
Watersheds (NY)--$400,000; Address non-point pollution in 
Onondaga Lake Watershed (NY)--$250,000; Phase II/Watershed 
Agriculture Council in Walton (NY)--$700,000, of which, $80,000 
is for monitoring the easements purchased by the Council's 
Whole Farm Easement Program; Technical assistance to livestock/
poultry industry (NC)--$450,000; 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)--$890,000; Bexar, Medina, Uvalde Counties 
irrigation in Edwards Aquifer (TX)--$500,000; Field office 
telecommunications pilot program/advanced soil survey methods 
(TX)--$2,400,000; Leon River restoration project (TX)--
$100,000; Range vegetation pilot project, Ft. Hood (TX)--
$500,000; a cooperative agreement with the Texas Water 
Resources Institute to implement a watershed protection plan 
for Tarrant County (TX)--$500,000; Walla Walla (WA) watershed 
alliance--$500,000; Design/implement natural stream restoration 
initiatives (WV)--$800,000; Soil survey geographic database in 
the Mid-Atlantic Highlands (WV)--$200,000; Grazing Lands 
Initiative/Wisconsin Department of Agriculture--$950,000; 
Audubon at Home Pilot Program--$500,000; Great Lakes Basin 
Program for Soil & Erosion Sediment--$2,500,000; Source water 
protection project to States showing greatest need--$2,750,000; 
technical assistance to address water quality problems in Sodus 
Bay Watershed, Wayne County (NY)--$250,000; New York State 
Agriculture and Environmental Management Program--$850,000; 
Community Nutrient Management Facilities (GA)--$350,000; 
Operation Oak Program to restore hardwoods in the South--
$400,000; Dairy and poultry waste treatment in Suwannee, Dixie, 
and Lafayette Counties (FL)--$280,000; Study to determine the 
logistics of transportation and coordination of excess nutrient 
management (AR)--$200,000; 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; Basalt and Ground Water protection 
project (ID)--$250,000; Innovative environmental technology 
program (IN)--$500,000; for a cooperative agreement with the 
Green Institute (FL)--$400,000; Lake Okeechobee (FL) Watershed 
project planning--$270,000; projects for nutrient reducing 
waste treatment systems (FL)--$720,000; cooperative agreement 
with Louisiana State University on effectiveness of agriculture 
and forestry (LA)--$400,000; cooperative agreement with Sand 
County Foundation (WI)--$900,000; Soil survey mapping project 
(WY)--$290,000; and National Fish and Wildlife Foundation 
Partnerships--$3,000,000.
    The Committee provides $23,500,000 for the Grazing Lands 
Conservation Initiative, $9,250,000 for snow surveys, 
$11,722,000 for Plant Materials Centers, $85,795,000 for the 
Soil Surveys Program, and $12,169,000 for pay costs.
    The Committee provides $2,400,000 to continue a field 
office telecommunication and field technology program and to 
implement advanced soil survey methods and GIS visualization 
tools in West Texas.
    The Committee includes funding for the American Heritage 
River navigator position on the Hudson River, as requested in 
the budget.

                     WATERSHED SURVEYS AND PLANNING

 
 
 
2004 appropriation....................................       $10,500,000
2005 budget estimate..................................         5,083,000
Provided in the bill..................................        11,083,000
Comparison:
    2004 appropriation................................          +583,000
    2005 budget estimate..............................        +6,000,000
 

                          COMMITTEE PROVISIONS

    For Watershed Surveys and Planning, the Committee provides 
an appropriation of $11,083,000, an increase of $583,000 over 
the amount available for fiscal year 2004 and an increase of 
$6,000,000 above the budget request.

               WATERSHED AND FLOOD PREVENTION OPERATIONS

 
 
 
2004 appropriation....................................       $86,487,000
2005 budget estimate..................................        40,173,000
Provided in the bill..................................        86,487,000
Comparison:
    2004 appropriation................................             - - -
    2005 budget estimate..............................       +46,314,000
 

                          COMMITTEE PROVISIONS

    For Watershed and Flood Prevention Operations, the 
Committee provides an appropriation of $86,487,000, the same as 
the amount available for fiscal year 2004 and an increase of 
$46,314,000 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 
and the Big Slough Watersheds in Arkansas; Martinez 4 flood 
detention dam in Bexar County, TX; Potomac South River 
Watershed, Stoney Creek, Robinson Hollow, Toms Branch and Inch 
Branch dams (VA); Upper Black Vermillion Watershed Site 4 (KS); 
Lower Hamakua Ditch Watershed (HI); Upcountry Maui Watershed 
(HI); Elm Creek Watershed, Floodwater Structure Number 5A (TX); 
Neshaminy Creek Watershed Project, Bucks County (PA); Indian 
Creek (PA); Bayou Bourbeux Watershed (LA); Town Creek in 
Flowood (MS); Rockhouse Creek in Leslie County (KY); Kress 
Creek, DuPage County, (IL); Elm Creek (TX); Upper Walnut North 
Watershed Project 54 (KS); Marrowbone Creek Dam, Henry County 
(VA); Bayou Meto (AR) Project; Upper Red Rock Creek Watershed, 
Noble County (OK) and Big Cypress Reservation Watershed (FL) as 
part of Everglades restoration.

                    WATERSHED REHABILITATION PROGRAM

 
 
 
2004 appropriation....................................       $29,629,000
2005 budget estimate..................................        10,091,000
Provided in the bill..................................        30,091,000
Comparison:
    2004 appropriation................................          +462,000
    2005 budget estimate..............................       +20,000,000
 

                          COMMITTEE PROVISIONS

    For the Watershed Rehabilitation Program, the Committee 
provides an appropriation of $30,091,000, an increase of 
$462,000 above the amount available for fiscal year 2004 and an 
increase of $20,000,000 above the budget request.

                 RESOURCE CONSERVATION AND DEVELOPMENT

 
 
 
2004 appropriation....................................       $51,641,000
2005 budget estimate..................................        50,760,000
Provided in the bill..................................        51,641,000
Comparison:
    2004 appropriation................................             - - -
    2005 budget estimate..............................          +881,000
 

                          COMMITTEE PROVISIONS

    For Resource Conservation and Development, the Committee 
provides an appropriation of $51,641,000, the same as the 
amount available for fiscal year 2004 and an increase of 
$881,000 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

 
 
 
2004 appropriation....................................                 0
2005 budget estimate..................................       $92,024,000
Provided in the bill..................................                 0
Comparison:
    2004 appropriation................................             - - -
    2005 budget estimate..............................       -92,024,000
 

                          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

 
 
 
2004 appropriation....................................          $632,000
2005 budget estimate..................................           929,000
Provided in the bill..................................           632,000
Comparison:
    2004 appropriation................................             - - -
    2005 budget estimate..............................          -297,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Rural 
Development, the Committee provides an appropriation of 
$632,000, the same as the amount available for fiscal year 2004 
and a decrease of $297,000 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: Hardin County, Iowa Historic Barn Preservation Commission 
(IA); Martinsville (VA) West Church Street Commercial Corridor 
Revitalization Project; Halifax County (VA) Industrial 
Development Authority; water and sewer projects in the Town of 
Ulster (NY) for improvements to the East Kingston Water 
District; County Animal Shelter, Cherokee County Commission 
(AL); revitalizing downtown City of Tuskegee (AL); upgrade to 
Cherokee County (AL) Commission courthouse; to build a city 
hall complex, Smith Station (AL); courthouse construction for 
Clay County (AL) Commission; Feasibility of and plans for 
Regional Farmers Market, Loudoun County (VA); Technical 
assistance and best practices outreach for Loudoun County (VA); 
Marketing outreach and support for specific agricultural 
sectors, Loudoun County (VA); Ellwood City (PA) Area Sewage 
Treatment Plant; Rural Dialysis Initiative (PA); Butts County 
(GA) Thermal Treatment Facility; West Point Service Area 
Bummerville Community (CA); Central Valley (CA) World Trade 
Project; Galt (CA) Future Farmers of America Center; Cable 
replacement, Fox Islands (ME) Electrical Cooperative; 
University of Maine (ME) Rural Community Innovation Center; 
Children's Hospital of the King's Daughter (NC); North Carolina 
(NC) Water 2030 Initiative; Nuese (NC) Regional Water Supply; 
Calexico Telemedicine Center (CA); Imperial Valley (CA) 
Sugarcane/Renewable Energy/Ethanol; Environmental Technology 
Business Park (CA); Desert Farming Institute (CA); Neighborhood 
House of Calexico Youth Center (CA); Telework Consortium in 
Herndon (VA); Virginia (VA) Horse Center; Online Louisiana 
(LA); Morgan City (LA) water and wastewater improvements; 
Montegut (LA) water and wastewater improvements; St. Martin 
Parish upgrade water and wastewater facilities (LA); Iberia 
Parish water and wastewater renovation (LA); Fiber Optic 
Connector Project (NC); New England (ME) Deaf Education 
Broadband Initiative; Lake Erie (PA) College of Osteopathic 
Medicine--Link to Learn; GED on TV, WQLN, Public Broadcasting 
(PA); Big Butler Fair, Emergency Notification Alarm (PA); Long 
Lake (NY) Distance Learning Initiative; SUNY Morrisville's 
Anaerobic Digester Project (NY); (AL) Rural Health Information 
Network, USA; Computed Radiography, Chesapeake (VA); Federation 
of Southern Cooperatives Land Assistance Fund, East Point (GA); 
Federation of Southern Cooperatives, Albany (GA), East Baker 
Historical and 21st Century Community Corporation; Heritage 
Foundation/UJAMAA, Thomasville (GA); Springfield (MA) Public 
Market; Quinebaug Shetucket Heritage Corridor, Inc. (MA); 
Northampton (MA) Fairgrounds; Health Care Cooperative 
Purchasing Alliance Demo (MN); extend the Village of L' Anse 
water and sewer infrastructure, L' Anse Township (MI); 
community facilities upgrade for City of Menominee (MI); 
Northern Initiatives (MI); Northern Lakes Economic Alliance 
(MI); Munising (MI) water and sewer improvements; Kauai (HI) 
Sugarcane Biomass to Ethanol Project; Maui (HI) Community 
College SkyBridge; Health Care Cooperative Purchasing 
Alliance--Stop Loss Fund (WI); Armstrong Creek (WI); Oconto 
Harbor (WI) Dredging; start up and technical assistance for 
Health Care Cooperative Purchasing Alliance (WI); Hi-Desert 
Regional Neonatal Medical Center (CA); Lake Arrowhead (CA) 
Communities Services District; State of Vermont's (VT) 
Agritourism Website; Caguas (PR) Municipal Water Supply System 
Improvements; Bawcomville (LA) Stormwater Pumping Station; 
Rural Heritage Fair Property acquisition (WA); Raymond Carriage 
Museum Expansion--Raymond (WA) Riverfront Park; Morton (WA) 
Theater Conversion; Livingston Parish (LA) Alternative Fuel 
Plant; Southern University Center for Community and Economic 
Development (LA); (NH) Water Resources Management Plan; Sweet 
Potato Farmers Storage and Outreach Project (AR); University 
Extension Building, Greene County (MO); South Jersey (NJ) 
Ethanol Plant; Ozone Water Project (AR); Buchanan County (VA) 
Small Business Incubator; Dickenson County (VA) Kitchen 
Incubator; Grayson County (VA) Industrial Shell Building; Water 
Improvement Initiative, Hawthorne (FL); Rural Services 
Initiative (FL); Hernando County (FL) Fairgrounds; Water and 
wastewater system upgrades for Luray (VA); Water and wastewater 
system upgrades for Madison (VA); Water and wastewater system 
upgrades for Shenandoah (VA); Water and wastewater system 
upgrades for Stanley (VA); Rappahannock Count (VA) community/
economic development; Adrian PSD/Phase V Water Line Extension 
(WV); Town of Winifrede (WV) Wastewater Project; Camp Sheppard/
4-H Camp (WV); Mason County Fair (WV); City of Jane Lew (WV) 
Sewer Plant; Spanish Sustainable Agricultural Education Program 
(CA); upgrade the facilities at the Farmer's Market in Anderson 
County (KY); Mercer County (KY) Cooperative Extension; 
Millennium Park Amphitheater, Danville (KY); St. Croix (VI) 
Sewer System Repair; City of Florence (SC) Regional Surface 
Water Treatment; Town of Summerton (SC) water and wastewater 
system; Berkeley County (SC) Cross Water Project; Demolition of 
housing, Wilson (OK); Sewer line improvements, Chattanooga 
(OK); New community building, Cache (OK); Repainting of water 
tower, Sterling (OK); Construction of water tower, Elgin (OK); 
Water Works, Environmental Education, City of Hartselle (AL); 
Madison County (FL) Agricultural Facility; Innovation Center's 
Micro-Loan Program, Selma (AL); City of Lakeside (OR), Tenmile 
Lakes Enhancement; City of Coburg (OR) Wastewater system; City 
of Brownsville (OR), Wastewater improvements; New England 
Wildlife Center (MA); Ft. Bend County (TX), Fresh Water Supply 
District #1; Herlong (CA) Water and wastewater system, 
Utilities Cooperative; Spaulding (CA) Wastewater Community 
Services District; (CA) Central Valley Rural Trade Project; 
Equestrian Complex in Bosque County (TX); Hardee County (FL) 
Cattleman's Arena Renovation; Cabarrus Arena Infrastructure 
Improvement Program (NC); Midwest Livestock Expo Center (OH); 
Perry County (OH) Rail Line Upgrade; Opal Creek Wilderness and 
Scenic Recreation Area (OR); Tillamook Log Waste Processing and 
Pellet Mill (OR); Statewide energy assessment (SD); Statewide 
economic development assessment (SD); Black Hills (SD) 
Technology Incubator; SDSU Technology and Business Incubator 
(SD); Little Milligan Water Project (TN); Lincoln Tail 
Foundation eCommerce Incubator (IL); Neuse Regional Water and 
Sewer Authority (NC); Nanticoke (PA) Rural Development Project; 
Dunmore Borough, Lackawanna County (PA); State's Pride of New 
York (NY) Program; Skagit County (WA) Fiber Optics Expansion; 
Rural E-Learning Agricultural Program (KY); Ohio County (KY) 
Wastewater Treatment Plant; Agritourism Council (KY); Northern 
Kentucky (KY) Regional Farmer's Market; Springhill (LA) Water 
system upgrades; Canton (NY) Feasibility Study; Syracuse (NY) 
University's Public Management and Finance Program; Champlain 
Watershed Improvement Coalition of New York (NY) Sewer Project 
in Hamlet of Essex; Wastewater plant rehabilitation and 
maintenance, Crescent City (FL); Agricultural Museum 
Construction Project (FL); Aroostook (ME) strategic plan; 
Universal Public Information Access Project (ME); Rural 
Community Innovation Center (ME); Public Broadcasting 
Corporation (ME); Vandalia Heritage Foundation (WV); Stonycreek 
Initiative (PA); Rail line upgrade in Harrison County (OH); 
International Agriculture-Center, Tulare (CA); improvements to 
Farm-to-Market Roads in Tulare (CA); wastewater treatment plant 
Strathmore Public Utility District (CA); Berkshire Community 
College long distance learning (MA); Berkshire (MA) Area 
Healthcare Training Program; expansion of wastewater treatment 
plant facilities for Village of Ruidoso and Rudoso Downs (NM); 
Community center for the City of Belen (NM); Senior Center for 
the Village of Tularosa (NM); water system improvement for the 
City of Carrizozo (NM); North Ditch irrigation system 
rehabilitation for the Pueblos of Laguna and Acoma (NM); Blue 
Valley Treatment and Fish Culture Facility (PA); Clarion 
University Biotechnology Business Development Center (PA); 
Health Care Cooperative Purchasing Alliance (WI); Minnesota 
(MN) Rural Living/Pioneer Public Television; Community Design 
for Revitalization of Small Towns, Mississippi State University 
(MS); 21st Century Vineyard Laboratory, Fredonia (NY); 
Chautauqua County (NY) Fair Equestrian Center; Western New York 
Equestrian Center, Hamburg (NY); Infrastructure Improvements in 
Chadwick Bay (NY); Rural Health Outreach, St. Mary's Hospital 
(WV); Eloy Community Center (AZ); Canutillo Agricultural 
Science and Research Center (TX); Rural water system in Dallas 
County (AR); Rural Manufacturing Retention Program (IL); Rural 
Manufacturing Initiative (PA); Coventry Lake Sewers Project 
(CT); Monmouth Girl Scouts Riding Facility (NJ); Water system 
improvements for City of Ola (AR); Clio Wastewater Treatment 
Plant Upgrade (SC); Chesterfield County (SC) Industrial Park 
Development; Wastewater line construction for Dillon County 
(SC); construction of a new water treatment plant in the 
Village of Racine (OH); new water treatment system for Toronto 
(OH); complete a water line extension project for Meigs (OH); 
extend the water lines in the village of Powhatan Point, 
Belmont (OH); upgrades to the Sewer Lift Station in Centerville 
(OH); Buncombe County (NC) construction of a new Emergency 
Operating Center; renovate an existing building for a Graham 
County (NC) Emergency Services Facility; Water Remediation and 
Preservation Project, Highlands (NC); Longtown Community 
Volunteer Fire Facility (MS); expansion of Child Development 
Center, Mississippi Valley State University (MS); Laytonville 
(CA) Wastewater Treatment Project; Cave Creek Watershed and 
Flood Prevention Program (CA); West Company, Ukiah (CA); 
Phillipsburg (OH) Sanitary Sewer Force Main Connection; Rapides 
Parish (LA) water treatment plant on the Red River; Ouachita 
Parish (LA) wastewater and water treatment improvements; 
Lafourche Parish (LA) wastewater and water treatment 
improvements; St. John the Baptists Parish (LA) drinking water 
supply improvements; Washington Parish (LA) potable water 
reservoir; Eastern Oregon University in the development of the 
Oregon Center for Rural Development and Policy Studies (OR); 
National Policy Consensus Center at Portland State University 
(OR); Gilliam County (OR) Columbia Plateau Wheat Quality 
Initiative Project; Southern Oregon (OR) Education Services 
District; Happy Canyon Facility Renovation Project (OR); 
construction of the Native American Gathering Facility at the 
Pendleton Round-up (OR); Claiborne County (TN) Potable Water 
Lines; Claiborne County (TN) Water line Extensions/Storage; 
City of Harrogate (TN) Sewer System; Claiborne County (TN) 
Potable Water Line Extensions; sewer system for City of Blaine 
(TN); Murray State Agriculture Resource Diversification (KY); 
Murray State Animal Health Technology expansion (KY); Tijeras 
Water System Improvement (NM); Village of Los Lunas (NM) 
Interceptor Sewer Line; Bernalillo Wastewater Treatment Plant 
(NM); improve wastewater treatment in the Rexland Acres 
community (CA); construct agricultural training center at West 
Hills Community College, Farm of the Future Project (CA); 
NutriCore NorthEast (PA); OneMap (NC); and, University of South 
Carolina (SC) Salkehatchie Leadership Institute.
    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

 
 
 
2004 appropriation....................................      $752,956,000
2005 budget estimate..................................       541,979,000
Provided in the bill..................................       667,408,000
Comparison:
    2004 appropriation................................       -85,948,000
    2005 budget estimate..............................      +125,429,000
 

                          COMMITTEE PROVISIONS

    For the Rural Community Advancement Program, the Committee 
provides an appropriation of $667,408,000, a decrease of 
$85,948,000 below the amount available for fiscal year 2004 and 
an increase of $125,429,000 above the budget request.
    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 2004      FY 2005     Committee
                                      level       estimate    provisions
------------------------------------------------------------------------
Community facilities:
    Community facility direct                0      $12,150      $12,150
     loans.......................
    Community facility guaranteed            0          189          189
     loans.......................
    Community facility grants....      $15,825       17,000       17,000
    Rural community development          5,965            0        6,200
     initiative..................
    Other........................       53,681            0        4,000
    Rescission...................          448            0            0
                                  --------------------------------------
          Subtotal, Community           75,919       29,339       39,539
           facilities............
                                  ======================================
Business:
    Business and industry loans:
        Guaranteed...............       26,841       30,180       30,180
    Rural business enterprise           42,399       40,000       40,000
     grants......................
    Rural business opportunity           2,982        3,000        3,000
     grants......................
    Other........................        3,827            0        2,000
    Rescission...................          451            0            0
                                  --------------------------------------
          Subtotal, business.....       76,500       73,180       75,180
                                  ======================================
Utilities:
    Water and waste disposal
     loans:
        Direct...................       34,379       90,000       90,000
    Water and waste disposal           543,994      345,960      457,689
     grants......................
    Solid waste management grants        3,479        3,500        3,500
    Other........................       19,584            0        1,500
    Rescission...................        3,570            0            0
                                  --------------------------------------
          Subtotal, utilities....      605,006      439,460      552,689
    Rescission...................        4,469            0            0
                                  ======================================
          Total, loans and grants     $752,956     $541,979     $667,408
------------------------------------------------------------------------

    The following earmarks are included in bill language for 
the Rural Community Advancement Program: $1,000,000 is for 
grants to nonprofit organizations to finance construction, 
refurbishing, and servicing of individually-owned household 
water well systems in rural areas; $500,000 is for revolving 
funds for financing water and wastewater projects; $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; $6,200,000 is for the Rural Community Development 
Initiative; $500,000 for rural transportation technical 
assistance; $2,000,000 is for grants to Mississippi Delta 
Region counties; $25,000,000 is for water and waste disposal 
systems in the Colonias; $17,500,000 is for technical 
assistance for rural water and waste systems; $14,000,000 is 
for a circuit rider program; and $22,166,000 for empowerment 
zones and enterprise communities (EZ/EC) and communities 
designated by the Secretary of Agriculture as Rural Economic 
Area Partnership Zones, of which $1,081,000 is for community 
facilities, of which $12,582,000 shall be for rural utilities 
programs, and of which $8,503,000 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.
    Predevelopment Planning Grants.--The Committee directs 
that, of the funds provided for the Rural Community Development 
Initiative, $200,000 is designated for continuation of 
predevelopment planning grants.
    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)(B) 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.
    The Committee is concerned with the Department's 
administration of the Guaranteed Business and Industry Loan 
Program, and in particular, the practice of rescinding the 
Federal guarantee on loans already approved by participating 
banks serving small and rural communities in cases where the 
bank was defrauded or where the Agency failed to provide the 
banks with negative information in its possession about a 
prospective borrower. Such actions undermine the integrity of 
the loan program, and the intent of Congress for the program. 
The Committee directs the Secretary to develop a strategy to 
address this problem, and provide a report to the Committee 
outlining its plan of action, including any specific regulatory 
changes the Department is considering to the current process 
for loan origination and servicing oversight responsibility, by 
January 31, 2005. This report should include a detailed 
description of the Department's policies that existed during 
fiscal year 2003 for the oversight of loan origination and 
servicing for the Guaranteed Business and Industry Loan 
Program.
    The Committee encourages the Rural Business-Cooperative 
Service to promulgate regulations to implement an annual 
guarantee fee for business and industry loans guaranteed under 
section 310B of the Consolidated Farm and Rural Development 
Act. This annual fee will allow this guarantee loan program to 
more effectively use its budget authority.

                RURAL DEVELOPMENT SALARIES AND EXPENSES

 
                                                                                                    Committee
                                                            FY 2004 estimate  FY 2005 estimate     provisions
 
Appropriations............................................      $141,032,000      $149,749,000      $143,625,000
Transfer from:
    Rural Housing Insurance Fund Loan Program Account.....       440,687,000       465,886,000       448,889,000
    Rural Electrification and Telecommunications Loans            37,630,000        39,933,000        38,323,000
     Program Account......................................
    Rural Telephone Bank Program Account..................         3,152,000         3,328,000         3,152,000
    Rural Development Loan Fund Program Account...........         4,247,000         6,656,000         4,321,000
                                                           -----------------------------------------------------
      Total, RD Salaries and Expenses.....................      $626,748,000      $665,552,000      $638,310,000
 

                          COMMITTEE PROVISIONS

    For Salaries and Expenses of the Rural Development mission 
areas, the Committee provides an appropriation of $143,625,000, 
an increase of $2,593,000 above the amount available for fiscal 
year 2004 and a decrease of $6,124,000 below the budget 
request.

                         Rural Housing Service


              RURAL HOUSING INSURANCE FUND PROGRAM ACCOUNT

                         ESTIMATED LOAN LEVELS

 
 
 
2004 loan levels......................................    $4,329,512,000
2005 budget estimate..................................     4,041,731,000
Provided in the bill..................................     4,686,906,000
Comparison:
    2004 loan level...................................      +357,394,000
    2005 budget estimate..............................      +645,175,000
 

                          COMMITTEE PROVISIONS

    For the Rural Housing Insurance Fund program account, the 
Committee provides a loan level of $4,686,906,000, an increase 
of $357,394,000 above the amount provided in fiscal year 2004 
and an increase of $645,175,000 above the budget request.
    The following table reflects the loan levels for the Rural 
Housing Insurance Fund program account:

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                           FY 2004 level     FY 2005 estimate      provisions
----------------------------------------------------------------------------------------------------------------
Rural Housing Insurance Fund Loans and Grant:
    Single family housing (sec. 502):
        Direct.........................................         $1,351,397         $1,100,000         $1,100,000
        Unsubsidized guaranteed........................          2,709,094          2,725,185          3,309,297
    Rental housing (sec. 515)..........................            115,857             60,000            116,063
     Multi-family guaranteed (sec. 538)................             99,410            100,000            100,000
    Housing repair (sec. 504)..........................             34,797             35,000             35,000
    Credit sales of acquired property..................             11,491             11,501             11,501
    Housing site development (sec. 524)................              5,045              5,045              5,045
    Self-help housing land development fund............              2,421              5,000             10,000
                                                        --------------------------------------------------------
      Total, Loan authorization........................         $4,329,512         $4,041,731         $4,686,906
----------------------------------------------------------------------------------------------------------------

       ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS

                                            [In thousands of dollars]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                           FY 2004 level     FY 2005 estimate      provisions
----------------------------------------------------------------------------------------------------------------
Rural Housing Insurance Fund Program Account (loan
 subsidies):
    Single family housing (sec. 502):
        Direct.........................................           $125,274           $127,380           $127,380
        Unsubsidized guaranteed........................             39,668             33,608             33,608
    Rental housing (sec. 515)..........................             49,830             28,254             54,654
    Multi-family guaranteed (sec. 538).................              5,915              3,490              3,490
    Housing repair (sec. 504)..........................              9,555             10,171             10,171
    Credit sales of acquired property..................                659                727                727
    Housing site development (sec. 524)................              - - -              - - -              - - -
    Self-help housing land development fund............                 75              - - -              - - -
      Total, Loan subsidies............................           $230,976           $203,630           $230,030
RHIF expenses:
    Administrative expenses............................           $440,687           $465,886           $448,889
----------------------------------------------------------------------------------------------------------------

    The Committee has recommended a general provision to this 
bill to increase the guarantee fee for the guaranteed single-
family housing loan program by 25 basis points to two percent. 
The Committee is concerned about the need for the Rural Housing 
Service in fiscal years 2003 and 2004 to exercise the 
Secretary's interchange authority to transfer additional budget 
authority to avoid shutting down the guarantee loan program. 
The fiscal year 2005 President's budget request included only a 
small increase in loan level above the appropriated fiscal year 
2004 level. Raising the guarantee fee to two percent will allow 
this guarantee loan program to more effectively use its budget 
authority.

                       RENTAL ASSISTANCE PROGRAM

 
 
 
2004 appropriation....................................      $580,554,000
2005 budget estimate..................................       592,000,000
Provided in the bill..................................       592,000,000
Comparison:
    2004 appropriation................................       +11,446,000
    2005 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the Rental Assistance Program, the Committee provides a 
program level of $592,000,000, an increase of $11,446,000 above 
the amount available in fiscal year 2004 and the same amount as 
the budget request.

                  MUTUAL AND SELF-HELP HOUSING GRANTS

 
 
 
2004 appropriation....................................       $33,799,000
2005 budget estimate..................................        34,000,000
Provided in the bill..................................        34,000,000
Comparison:
    2004 appropriation................................          +201,000
    2005 budget estimate..............................             - - -
 


                          COMMITTEE PROVISIONS

    For Mutual and Self-Help Housing Grants, the Committee 
provides an appropriation of $34,000,000, an increase of 
$201,000 above the amount available in fiscal year 2004 and the 
same amount as the budget request.

                    RURAL HOUSING ASSISTANCE GRANTS

 
 
 
2004 appropriation....................................       $45,949,000
2005 budget estimate..................................        42,500,000
Provided in the bill..................................        42,500,000
Comparison:
    2004 appropriation................................        -3,449,000
    2005 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the Rural Housing Assistance Grants program, the 
Committee provides an appropriation of $42,500,000, a decrease 
of $3,449,000 below the amount provided in fiscal year 2004 and 
the same amount as the budget request. The appropriated amount 
includes $1,000,000 for supervisory and technical assistance.

                       FARM LABOR PROGRAM ACCOUNT

----------------------------------------------------------------------------------------------------------------
                                                               Loan level       Subsidy level        Grants
----------------------------------------------------------------------------------------------------------------
2004 appropriation........................................       $42,574,000       $18,192,000       $17,901,000
2005 budget estimate......................................        42,000,000        19,765,000        17,000,000
Provided in the bill......................................        42,000,000        19,765,000        17,000,000
Comparison:
    2004 appropriation....................................          -574,000        +1,573,000          -901,000
    2005 budget estimate..................................             - - -             - - -             - - -
----------------------------------------------------------------------------------------------------------------

                          COMMITTEE PROVISIONS

    For the Farm Labor program account, the Committee provides 
a loan subsidy of $19,765,000 which supports a loan level of 
$42,000,000, an increase of $1,573,000 in loan subsidy and a 
decrease of $574,000 in loan level below the amount available 
in fiscal year 2004, and the same amount in loan subsidy and 
loan level as the budget request.
    The Committee also provides $17,000,000 in grants, a 
decrease of $901,000 below the amount available in fiscal year 
2004 and the same amount as the budget request.

                   Rural Business-Cooperative Service


              RURAL DEVELOPMENT LOAN FUND PROGRAM ACCOUNT

                          ESTIMATED LOAN LEVEL

 
 
 
2004 loan level.......................................       $39,764,000
2005 budget estimate..................................        34,213,000
Provided in the bill..................................        34,213,000
Comparison:
    2004 loan level...................................        -5,551,000
    2005 budget estimate..............................             - - -
 


                          COMMITTEE PROVISIONS

    For the Rural Development Loan Fund program account, the 
Committee provides for a loan level of $34,213,000, a decrease 
of $5,551,000 below the amount provided in fiscal year 2004 and 
the same as the budget request.

       ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS

 
                                         Direct loan     Administrative
                                           subsidy          expenses
 
2004 appropriation..................       $17,206,000        $4,247,000
2005 budget estimate................        15,868,000         6,656,000
Provided in the bill................        15,868,000         4,321,000
Comparison:
    2004 appropriation..............        -1,338,000           +74,000
    2005 budget estimates...........             - - -        -2,335,000
 

                          COMMITTEE PROVISIONS

    For the estimated loan subsidy, the Committee provides an 
appropriation of $15,868,000, a decrease of $1,338,000 below 
the amount provided in fiscal year 2004 and the same amount as 
the budget request.
    The Committee also provides $4,321,000 in administrative 
expenses, an increase of $74,000 above the amount available in 
fiscal year 2004 and a decrease of $2,335,000 below the budget 
request.

            RURAL ECONOMIC DEVELOPMENT LOANS PROGRAM ACCOUNT

                          ESTIMATED LOAN LEVEL

 
 
 
2004 loan level.......................................       $14,914,000
2005 budget estimate..................................        25,003,000
Provided in the bill..................................        25,003,000
Comparison:
    2004 appropriation................................       +10,089,000
    2005 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For the Rural Economic Development Loans program account, 
the Committee provides for a loan level of $25,003,000, an 
increase of $10,089,000 above the amount provided for fiscal 
year 2004, and the same as the budget request.

                         ESTIMATED LOAN SUBSIDY

 
                                                   Direct loan subsidy
 
2004 appropriation.............................           \1\ $2,776,000
2005 budget estimate...........................            \1\ 4,698,000
Provided in the bill...........................            \1\ 4,698,000
Comparison:
    2004 appropriation.........................               +1,922,000
    2005 budget estimate.......................                    - - -
 
\1\ Offset by a rescission from interest on the cushion of credit
  payments, as authorized by section 313 of the Rural Electrification
  Act of 1936.

                          COMMITTEE PROVISIONS

    For the estimated loan subsidy, the Committee provides an 
appropriation of $4,698,000, an increase of $1,922,000 above 
the amount provided in fiscal year 2004 and the same as the 
budget request.

                  RURAL COOPERATIVE DEVELOPMENT GRANTS

 
 
 
2004 appropriation....................................       $23,858,000
2005 budget estimate..................................        21,000,000
Provided in the bill..................................        23,500,000
Comparison:
    2004 appropriation................................          -358,000
    2005 budget estimate..............................        +2,500,000
 


                          COMMITTEE PROVISIONS

    For Rural Cooperative Development Grants, the Committee 
provides an appropriation of $23,500,000, a decrease of 
$358,000 below the amount available in fiscal year 2004 and an 
increase of $2,500,000 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 $15,500,000 is for value-added market development grants.
    The Committee encourages the Department to provide a grant 
for peanut marketing cooperatives to develop and expand the 
cooperatives to assist peanut producers who are transitioning 
to the new peanut program provided by the Farm Security and 
Rural Investment Act of 2002.

       RURAL EMPOWERMENT ZONES AND ENTERPRISE COMMUNITIES GRANTS

 
 
 
2004 appropriation....................................       $12,592,000
2005 budget estimate..................................                 0
Provided in the bill..................................        11,419,000
Comparison:
    2004 appropriation................................        -1,173,000
    2005 budget estimate..............................       +11,419,000
 

                          COMMITTEE PROVISIONS

    For Rural Empowerment Zones and Enterprise Communities 
Grants, the Committee provides an appropriation of $11,419,000, 
a decrease of $1,173,000 below the amount available in fiscal 
year 2004 and an increase of $11,419,000 above the budget 
request.

                        RENEWABLE ENERGY PROGRAM

 
 
 
2004 appropriation....................................       $22,864,000
2005 budget estimate..................................        10,770,000
Provided in the bill..................................        15,000,000
Comparison:
    2004 appropriation................................        -7,864,000
    2005 budget estimate..............................        +4,230,000
 

                          COMMITTEE PROVISIONS

    For the Renewable Energy Program, the Committee provides an 
appropriation of $15,000,000, a decrease of $7,864,000 below 
the amount available in fiscal year 2004 and an increase of 
$4,230,000 above the budget request.

                        Rural Utilities Service


   RURAL ELECTRIFICATION AND TELECOMMUNICATIONS LOANS PROGRAM ACCOUNT

                          ESTIMATED LOAN LEVEL

 
 
 
2004 loan level.......................................    $5,502,935,000
2005 budget estimate..................................     3,135,000,000
Provided in the bill..................................     4,840,000,000
Comparison:
    2004 appropriation................................      -662,935,000
    2005 budget estimate..............................    +1,705,000,000
 

                          COMMITTEE PROVISIONS

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

                                             [Dollars in thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                   Committee
                                                          FY 2004 enacted    FY 2005 estimate      provisions
----------------------------------------------------------------------------------------------------------------
Loan authorizations:
    Electric:
        Direct, 5%.....................................           $240,000           $120,000           $120,000
        Direct, Municipal rate.........................          1,000,000            100,000            100,000
        Direct, FFB....................................          1,900,000          1,620,000          2,000,000
        Direct, Treasury Rate..........................            750,000            700,000          1,000,000
        Guaranteed electric............................             99,410            100,000            100,000
        Guaranteed underwriting........................          1,000,000                  0          1,000,000
                                                        --------------------------------------------------------
            Subtotal...................................          4,989,410          2,640,000          4,320,000
                                                        ========================================================
    Telecommunications:
        Direct, 5%.....................................            145,000            145,000            145,000
        Direct, Treasury rate..........................            248,525            250,000            250,000
        Direct, FFB....................................            120,000            100,000            125,000
                                                        --------------------------------------------------------
            Subtotal...................................            513,525            495,000            520,000
                                                        ========================================================
            Total, Loan authorizations.................         $5,502,935         $3,135,000         $4,840,000
----------------------------------------------------------------------------------------------------------------

       ESTIMATED LOAN SUBSIDY AND ADMINISTRATIVE EXPENSES LEVELS

                                             [Dollars in thousands]
----------------------------------------------------------------------------------------------------------------
                                                                                                    Committee
                                                             FY 2004 enacted  FY 2005 estimate     provisions
----------------------------------------------------------------------------------------------------------------
Loan subsidies:
    Electric:
        Direct, 5%........................................             - - -            $3,648            $3,648
        Direct, Municipal rate............................             - - -             1,350             1,350
        Guaranteed Electric...............................               $60                60                60
                                                           -----------------------------------------------------
            Subtotal......................................                60             5,058             5,058
                                                           =====================================================
    Telecommunications:
        Direct, 5%........................................             - - -             - - -             - - -
        Direct, Treasury rate.............................               124               100               100
                                                           -----------------------------------------------------
            Subtotal......................................               124               100               100
                                                           =====================================================
            Total, Loan subsidies.........................              $184            $5,158            $5,158
                                                           =====================================================
    E & T expenses:
        Administrative expenses...........................           $37,630           $39,933           $38,323
----------------------------------------------------------------------------------------------------------------

     The Committee is concerned about the Secretary's failure 
to issue a final rule necessary to carry out section 313A of 
the Rural Electrification Act of 1936. The public comment 
period ended March 1, 2004 for the proposed rule. The Committee 
directs the Department to move expeditiously to publish a final 
rule to implement the Guaranteed Electric Underwriting Loan 
Program as authorized in the 2002 Farm Bill.

                  RURAL TELEPHONE BANK PROGRAM ACCOUNT

                          ESTIMATED LOAN LEVEL

 
 
 
2004 loan level.......................................      $173,503,000
2005 budget estimate..................................                 0
Provided in the bill..................................       175,000,000
Comparison:
    2004 loan level...................................        +1,497,000
    2005 budget estimate..............................      +175,000,000
 

                          COMMITTEE PROVISIONS

    For the Rural Telephone Bank Program, the Committee 
provides for a loan level of $175,000,000, an increase of 
$1,497,000 above the amount provided in fiscal year 2004 and an 
increase of $175,000,000 above the budget request.
    The Committee includes the same provision from the fiscal 
year 2004 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
 
2004 appropriation..................             - - -        $3,152,000
2005 budget estimate................             - - -         3,328,000
Provided in the bill................             - - -         3,152,000
Comparison:
    2004 appropriation..............             - - -             - - -
    2005 budget estimate............             - - -          -176,000
 

                          COMMITTEE PROVISIONS

    The Committee provides $3,152,000 in administrative 
expenses, the same as the amount available in fiscal year 2004 
and a decrease of $176,000 below the budget request.

         DISTANCE LEARNING, TELEMEDICINE AND BROADBAND PROGRAM

 
                                                                   Loan level      Subsidy level      Grants
 
2004 appropriation............................................      $898,101,000     $13,039,000     $47,717,000
2005 budget estimate..........................................       331,081,000       9,884,000      25,000,000
Provided in the bill..........................................       514,038,000      10,594,000      34,000,000
Comparison:
    2004 appropriation........................................      -384,063,000      -2,445,000     -13,717,000
    2005 budget estimates.....................................      +182,957,000        +710,000      +9,000,000
 


                          COMMITTEE PROVISIONS

    For the Distance Learning, Telemedicine, and Broadband 
Program, the Committee provides an appropriation of 
$44,594,000, a decrease of $16,162,000 below the amount 
available for fiscal year 2004 and an increase of $9,710,000 
above the budget request, including $710,000 for Distance 
Learning and Telemedicine loan subsidy, $25,000,000 for 
Distance Learning and Telemedicine Grants, $9,884,000 for 
Broadband Telecommunications loan subsidy, and $9,000,000 for 
Broadband Grants.

                    TITLE IV--DOMESTIC FOOD PROGRAMS

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

 
 
 
2004 appropriation....................................          $595,000
2005 budget estimate..................................           799,000
Provided in the bill..................................           595,000
Comparison:
    2004 appropriation................................             - - -
    2005 budget estimate..............................          -204,000
 

                          COMMITTEE PROVISIONS

    For the Office of the Under Secretary for Food, Nutrition 
and Consumer Services, the Committee provides an appropriation 
of $595,000, the same as the amount provided in fiscal year 
2004 and a decrease of $204,000 below the budget request.

                        CHILD NUTRITION PROGRAMS

 
                                                               Direct         Transfer from      Total program
                                                           appropriation        section 32           level
 
2004 appropriation.....................................     $6,717,780,000     $4,699,661,000    $11,417,441,000
2005 budget estimate...................................      6,060,860,000      5,319,697,000     11,380,557,000
Provided in the bill...................................      6,227,595,000      5,152,962,000     11,380,557,000
Comparison:
    2004 appropriation.................................       -490,185,000       +453,301,000        -36,884,000
    2005 budget estimate...............................       +166,735,000       -166,735,000              - - -
 

                          COMMITTEE PROVISIONS

    For the Child Nutrition Programs, the Committee provides a 
total of $11,380,557,000, a decrease of $36,884,000 below the 
amount available for fiscal year 2004 and the same amount as 
the budget request. Of the total amount provided, 
$6,227,595,000 is by direct appropriation and $5,152,962,000 is 
by transfer from Section 32.

Child Nutrition Programs:
    School lunch program................................  $6,532,488,000
    School breakfast program............................   1,825,646,000
    Child and adult care food program...................   2,064,676,000
    Summer food service program.........................     295,305,000
    Special milk program................................      14,875,000
    State administrative expenses.......................     148,176,000
    Commodity procurement...............................     469,701,000
    School meals initiative.............................      10,025,000
    Food safety education...............................       1,000,000
    Coordinated review effort...........................       5,235,000
    Computer support and processing.....................      13,373,000
    Program pay cost....................................          57,000
                    --------------------------------------------------------
                    ____________________________________________________
        Total........................................... $11,380,557,000

    The Committee notes the School Meal Program in southern 
Texas is offering a new line of school meals fortified with 
Omega-3 fatty acids. Research suggests that long-chain Omega-3 
fatty acids can help reduce the risk of heart disease, lower 
blood pressure and decrease the risk of sudden cardiac death 
and arrhythmia. The Committee also notes that learning 
disabilities and behavioral disorders have been linked to low 
serum levels of Omega-3 fatty acids. The Committee directs the 
Food and Nutrition Service to work aggressively to develop food 
products for the school meal program that are appealing to 
children, high in nutrition, and will foster lifelong healthy 
eating patterns. Particular attention should be paid to 
developing food choices that are high in marine-sourced long-
chain Omega-3 fatty acids. The Committee urges the Food and 
Nutrition Service to initiate pilot programs in at least 5 
regions or states to ensure that school meals contain between 
500 milligrams and one gram of marine-sourced long-chain Omega-
3 fatty acids that are from sources that fall under the Food 
and Drug Administration's status of GRAS or ``Generally 
Recognized as Safe''.
    Authorization for the Child Nutrition Programs expires on 
June 30, 2004, and at the time of this Committee action, the 
House authorizing committee has passed a reauthorization bill 
but the Senate authorizing committee has not yet passed a 
reauthorization bill.

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

 
 
 
2004 appropriation....................................    $4,611,861,000
2005 budget estimate..................................     4,787,250,000
Provided in the bill..................................     4,907,250,000
Comparison:
    2004 appropriation................................      +295,389,000
    2005 budget estimate..............................      +120,000,000
 

                          COMMITTEE PROVISIONS

    For the Special Supplemental Nutrition Program for Women, 
Infants, and Children (WIC) the Committee provides an 
appropriation of $4,907,250,000, an increase of $295,389,000 
above the amount available in fiscal year 2004 and an increase 
of $120,000,000 above the budget request.
    The Committee recommendation for the Special Supplemental 
Nutrition Program for Women, Infants, and Children (WIC) is 
$4,907,250,000. 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 
increased. The Committee provides an increase of $157,250,000 
above the budget request for WIC food costs. The Committee will 
continue to monitor WIC food costs and take additional action 
as necessary to ensure that the funding provided in fiscal year 
2005 is sufficient to serve all eligible applicants.
    The recommended funding level includes $15,000,000 for 
continuation of the breastfeeding peer counselor program.
    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.--The Committee directs the 
Secretary to continue to report to Congress on the status and 
progress of the National Academy of Sciences, Institute of 
Medicine (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 final rule prior to 
February 1, 2005.
    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 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.
    Authorization for the WIC program expired at the end of 
fiscal year 2003, and at the time of this Committee action, the 
House authorizing committee has passed a reauthorization bill 
but the Senate authorizing committee has not yet passed a 
reauthorization bill.

                           FOOD STAMP PROGRAM

 
 
 
2004 appropriation....................................   $30,945,981,000
2005 budget estimate..................................    33,641,798,000
Provided in the bill..................................    33,635,798,000
Comparison:
    2004 appropriation................................    +2,689,817,000
    2005 budget estimate..............................        -6,000,000
 

                          COMMITTEE PROVISIONS

    For the Food Stamp Program, the Committee provides 
$33,635,798,000, an increase of $2,689,817,000 above the amount 
available in fiscal year 2004 and a decrease of $6,000,000 
below the budget request. The total amount includes 
$3,000,000,000 for a contingency reserve in fiscal year 2005; 
$1,448,522,000 for nutrition assistance for Puerto Rico and 
American Samoa; and $140,000,000 for The Emergency Food 
Assistance Program (TEFAP).
    The Committee recommendation includes of the amount 
provided, up to $4,000,000 is to purchase bison for the Food 
Distribution Program on Indian Reservations from Native 
American bison producers.

                      COMMODITY ASSISTANCE PROGRAM

 
 
 
2004 appropriation....................................  \1\ $149,115,000
2005 budget estimate..................................       169,416,000
Provided in the bill..................................       178,797,000
Comparison:
    2004 appropriation................................       +29,682,000
    2005 budget estimate..............................        +9,381,000
 
 
\1\ Includes $1,075,000 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 $178,797,000 for 
the commodity assistance program, an increase of $29,682,000 
above the amount available for fiscal year 2004 and an increase 
of $9,381,000 above the budget request.
    The recommended funding level for the Commodity 
Supplemental Food Program (CSFP) is $107,716,000, an increase 
of $9,381,000 above the amount available for fiscal year 2004 
and above the budget request. The Committee notes that 
approximately $6,500,000 in commodity inventory is expected to 
be available to the CSFP in fiscal year 2005, making the total 
available for the program approximately $114,216,000. This 
increased level of funding will prevent elderly slots from 
being cut in the CSFP in fiscal year 2005, allowing the 
existing caseload to be maintained.
    The Committee has included $50,000,000 for administration 
of TEFAP, an increase of $295,000 above the amount available in 
fiscal year 2004 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 $6,000 above the amount available for fiscal year 
2004, 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 2005.

                   nutrition programs administration


 
 
 
2004 appropriation....................................      $137,488,000
2005 budget estimate..................................       152,227,000
Provided in the bill..................................       133,742,000
Comparison:
    2004 appropriation................................        -3,746,000
    2005 budget estimate..............................       -18,485,000
 

                          COMMITTEE PROVISIONS

    For Nutrition Programs Administration, the Committee has 
provided $133,742,000, a decrease of $3,746,000 below the 
amount available for fiscal year 2004, and a decrease of 
$18,485,000 below the budget request.
    The Committee recommendation includes language to limit new 
states from authorizing WIC-only stores. The Committee is 
concerned with the rapid growth of WIC-only stores, WIC Program 
vendors that solely or primarily market supplemental foods to 
WIC program participants. The Food and Nutrition Service is 
directed to promptly provide guidance, regulations, and other 
documents to each State agency to assure that new WIC-only 
stores do not get authorized in states that did not have WIC-
only stores authorized prior to fiscal year 2005.
    The Committee also notes that WIC-only store food costs 
have been significantly above the costs of stores of similar 
size and location. Effective vendor cost containment is 
required. The Committee urges the Food and Nutrition Service to 
promptly assist each State agency to assure that WIC-only 
stores are subject to the same requirements as other authorized 
vendors, as well as such cost containment requirements as are 
necessary to assure that WIC-only stores maintain food costs 
that are similar to participating vendors of similar size and 
location.

            TITLE V--FOREIGN ASSISTANCE AND RELATED PROGRAMS

                      Foreign Agricultural Service

 
                                                                                 Transfer from
                                                                 Appropriation   loan accounts     Total, FAS
 
2004 appropriation............................................    $131,368,000    ($4,355,000)    ($135,723,000)
2005 budget estimate..........................................     143,077,000     (4,542,000)     (147,619,000)
Provided in the bill..........................................     137,722,000     (4,542,000)     (142,264,000)
Comparison:
    2004 appropriation........................................      +6,354,000        +187,000        +6,541,000
    2005 budget estimate......................................      -5,355,000           - - -        -5,355,000
 

                          COMMITTEE PROVISIONS

    For the Foreign Agricultural Service, the Committee 
provides an appropriation of $137,722,000 and transfers of 
$4,542,000, for a total salaries and expenses level of 
$142,264,000, an increase of $6,541,000 above the amount 
available for fiscal year 2004 and a decrease of $5,355,000 
below the budget request.
    The Committee recommendation includes: $1,524,000 for pay 
cost; $1,759,000 for ICASS; $2,000,000 to offset the increased 
costs in overseas currency rates; $490,000 for overseas 
telecommunications; and $581,000 for the capital surcharge 
being levied on the Foreign Agricultural Service by the State 
Department.
    The Committee provides $581,000 for the FAS share of the 
State Department's ``Capital Security Cost Sharing'' program. 
This program requires agencies with an overseas presence to 
fund the construction of new embassies. While the Committee 
recommends these funds for the fiscal year 2005 cost of the 
program, there are significant concerns, including: the 
decentralized funding approach in the plan; significant out-
year assessments; cost assignment methodology; and, the 
uncertainty of future space availability, for FAS, in newly 
constructed embassies. The Committee understands that GAO is 
reviewing this proposal and many of these issues will be 
examined. If the GAO report reveals major flaws in this 
program, the Committee will reconsider its funding 
recommendation in the fiscal year 2005 Conference Committee for 
this bill.
    The Committee has included language that allows for the use 
of not more than $5,000,000 of funds transferred to the Foreign 
Agricultural Service from the Commodity Credit Corporation for 
Information Resource Management requirements.
    The Committee provides bill language permitting the 
Department to maintain up to $2,000,000 solely for the purpose 
of offsetting international currency fluctuations.
    The Committee encourages the Foreign Agricultural Service, 
through the Commodity Credit Corporation, to focus on exports 
of value-added products and food security packaging issues by 
leveraging resources that academic institutions such as San 
Jose State University's Processed Food Institute offer. The 
Committee expects a report on these efforts by February 1, 
2005.
    The Trade Assistance Act for Farmers requires that 
technical assistance be provided to farmers negatively impacted 
by imports. This technical assistance is an education program 
that helps farmers develop marketing opportunities, increase 
production efficiency and seek alternatives to offset losses 
created by imports. The Committee directs that from the funds 
made available by the Trade Adjustment Act that $3,000,000 be 
available to the Digital Center for Risk Management Education 
to coordinate an intensive technical assistance program for 
farmers.

                             Public Law 480


                       PROGRAM AND GRANT ACCOUNTS

                          COMMITTEE PROVISIONS

    The Farm Security and Rural Investment Act of 2002 
envisioned the use of USDA commodity monetization programs to 
support rural electrification development in developing 
countries carried out with the help of the international 
assistance program of U.S. rural electric cooperatives. The 
Committee considers it an important and necessary step to 
integrate the successful U.S. rural electrification experience 
as a component of on-going USDA assistance to food-aid 
recipient counties in order to help them overcome chronic 
conditions of hunger and poverty and, over the long term, to 
reduce their dependency on feeding assistance programs from the 
U.S. and other donor nations.
    The following table reflects the loan levels, subsidy 
levels, and administrative costs for all Public Law 480 
programs:

----------------------------------------------------------------------------------------------------------------
                                                                                                    Committee
                                                             FY 2004 enacted  FY 2005 estimate     provisions
----------------------------------------------------------------------------------------------------------------
Public Law 480 Program Account:
    Title I--Credit sales:
        Direct loans......................................    ($130,892,000)    ($100,000,000)    ($100,000,000)
        Loan subsidies....................................       103,274,000        86,420,000        86,420,000
        Ocean freight differential........................        27,835,000        22,723,000        22,723,000
    Title II--Commodities for disposition abroad:
        Program level.....................................   (1,184,967,000)   (1,185,000,000)   (1,180,002,000)
        Appropriation.....................................     1,184,967,000     1,185,000,000     1,180,002,000
    Salaries and expenses:
        FAS...............................................         1,069,000         1,102,000         1,102,000
        FSA...............................................         1,053,000         3,119,000         1,269,000
                                                           -----------------------------------------------------
          Total, P.L. 480-S&E.............................         2,122,000         4,221,000         2,371,000
 
----------------------------------------------------------------------------------------------------------------

    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

 
 
 
2004 appropriation....................................        $4,127,000
2005 budget estimate..................................         4,473,000
Provided in the bill..................................         4,473,000
Comparison:
    2004 appropriation................................          +346,000
    2005 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For administrative expenses of the Commodity Credit 
Corporation Export Loans Program Account, the Committee 
provides an appropriation of $4,473,000, an increase of 
$346,000 above the amount available for fiscal year 2004 and 
the same amount as the budget request.

  MCGOVERN-DOLE INTERNATIONAL FOOD FOR EDUCATION AND CHILD NUTRITION 
                             PROGRAM GRANTS

 
 
 
2004 appropriation....................................       $49,705,000
2005 budget estimate..................................        75,000,000
Provided in the bill..................................        75,000,000
Comparison:
    2004 appropriation................................       +25,295,000
    2005 budget estimate..............................             - - -
 

                          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 
$75,000,000, an increase of $25,295,000 above the amount 
available for fiscal year 2004, and the same as 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, device and
                                                             Appropriation    animal drug user   Total, FDA, S&E
                                                                                    fees
 
2004 appropriation......................................      $1,378,779,000      $286,479,000    $1,665,258,000
2005 budget estimate....................................       1,494,517,000       326,332,000     1,820,849,000
Provided in the bill....................................       1,462,517,000       326,332,000     1,788,849,000
Comparison:
    2004 appropriation..................................          83,738,000        39,853,000       123,591,000
    2005 budget estimate................................         -32,000,000             - - -       -32,000,000
 

                          COMMITTEE PROVISIONS

    The Committee recommendation includes $1,788,849,000 for 
the salaries and expenses of the Food and Drug Administration. 
Of the total, $1,462,517,000 is provided in budget authority, 
and the Committee makes available $284,394,000 in prescription 
drug user fees, $33,938,000 in medical device user fees and 
$8,000,000 in animal drug user fees. The budget authority 
provided is $83,738,000 over the fiscal year 2004 level, and 
$32,000,000 under the budget request.
    Included in this funding level are increases of $43,367,000 
for food safety and counter-terrorism activities, $8,325,000 
for BSE-prevention activities, $23,055,000 for medical device 
review, and $5,000,000 for medical countermeasures relating to 
terrorism. Within the total amount for the agency, $484,974,000 
in budget authority and $8,046,000 in user fees are made 
available for field activities conducted by the Office of 
Regulatory Affairs. Within the $43,367,000 increase the 
Committee provides for food safety and counter-terrorism 
activities are the following: $7,000,000, the full amount 
requested for inspections; $23,067,000 for the Food Emergency 
Response Network; $9,000,000 for research; $2,500,000 for 
biosurveillance; and $1,800,000 for incidence management. The 
Committee assumes a cut of $23,122,000 from FDA's base 
resources, as proposed in the President's budget. To maintain 
agency functions the Committee provides the requested amount 
for cost of living requirements.
    Prior Notice and Facility registration.--The Committee 
expects FDA to fully consider all comments received during the 
open comment period regarding the Interim Final Rule for Prior 
Notice of Imported Food Shipments. The Committee understands 
that a final rule will be issued in March 2005. The Committee 
is concerned about FDA's requirement--based in part on the 
statutory language in section 305 of the Bioterrorism Act--that 
all prior notices contain the registration number of the 
facility where the food was produced. This may impede the 
importation of certain foods, including wine and products 
imported into the U.S. for analytical testing or research and 
development (not for consumption), without materially adding to 
the security of the food supply. Alternatives when a person 
filing a prior notice cannot reasonably obtain the registration 
number of the facility in which the item to be imported was 
produced should be considered.
    Testing food products.--The Committee expects FDA to 
establish a mechanism for providing prior notice without a 
manufacturer's facility registration number for food products 
that are imported for analytical testing or research and 
development activities that do not involve consumption by 
humans or animals.
    Women's health.--The Committee recommendation includes an 
increase of $325,000 above the budget request for the Office of 
Women's Health, for a total of not less than $4,000,000. Part 
of this office's mission is to determine if we are designing 
systems and collecting data to find the crucial differences 
between women and men's diagnoses, treatment, and outcomes for 
a given disease. Coronary heart disease is a predominant cause 
of mortality in women in the United States, and studies have 
shown that women differ from men in the symptoms they present, 
the effectiveness of diagnostic testing, success of treatment 
regimens, and their prognoses. The Committee directs that, in 
addition to base resources for that purpose, $250,000 of the 
increase amount is to be used for research, data analysis, and 
outreach related to cardiovascular disease in women. The 
Committee provides $75,000 of the increase amount for 
continuation and expansion of the hormone therapy education 
program.
    Orphan products.--The Committee directs that no less than 
$15,000,000 be available for grants and contracts awarded under 
section 5 of the Orphan Drug Act, an increase of $1,808,000 
over the amount available in fiscal year 2004.
    The Committee encourages the Commissioner to support the 
Office of Orphan Product Development in the coordination of 
government-wide efforts to accelerate development and approval 
of orphan drugs. Concurrent with this, the Committee requests 
confirmation that the agency's stakeholder initiative is fully 
implemented in the orphan product area. The Committee also 
requests a schedule of outreach activities, including workshops 
and meetings planned for fiscal year 2005, and a list of those 
that occurred in fiscal year 2004, by January 31, 2005.
    The Committee is concerned about the availability of 
diagnosis and treatment for rare eye disorders, and requests 
that the agency update the Committee on progress in this area.
    Diagnostic tests.--The Committee is concerned that there 
has been insufficient attention to the development of 
diagnostic tests for rare diseases. The Committee requests that 
the Commissioner, in consultation with the Office of Orphan 
Products Development, evaluates this situation and reports to 
the Committee by January 31, 2005, on current activities and on 
what steps have been taken to increase FDA's commitment and 
results in this area.
    Rare Diseases Clinical Trials and Drug Evaluation.--The 
Committee supports rapid access to therapeutics for children 
and adults with rare diseases. The Committee encourages the FDA 
to make the best possible use of FDA's Advisory Committee 
members in FDA's considerations of clinical trial design and 
allow the same panel to participate in final review meetings, 
when feasible. The Committee supports utilization of qualified 
independent consultants as reflected in the draft guidance 
document ``Independent Consultants for Biotechnology Clinical 
Protocols'' issued in May 2003. The Committee encourages 
exploration of potential surrogate endpoints and use of the 
fast-track process, where appropriate, to make drugs available 
as early as possible for serious and life-threatening orphan 
diseases.
    Alpha-1 Antitrypsin Deficiency.--The Committee commends the 
agency for the progress made in bringing two additional plasma-
based therapies to market for the treatment of the progressive 
lung disease Alpha-1. Further, the Center for Biologics 
Evaluation and Research (CBER) is recognized for meeting with 
consumer stakeholders in efforts to further the development of 
the next generation of therapies. The Committee encourages CBER 
to facilitate the development of therapies that will eliminate 
the dependence of the Alpha-1 community on plasma-derived 
products and to foster these therapies in order to treat the 
entire spectrum of individuals with Chronic Obstructive 
Pulmonary Disease.
    Labeling of Genetically Modified Foods: Final Rule.--In 
January 2001, FDA issued a proposed rule concerning food 
developed through biotechnology. As proposed, the rule would 
require food developers to notify FDA at least 120 days in 
advance of their intent to market a food or animal feed 
developed through biotechnology and to provide information to 
demonstrate that the product is as safe as its conventional 
counterpart. The comment period ended April 3, 2001. The 
Committee expects the Agency to make this matter a high 
priority, and finalize both the pre-market notification rule as 
well as the related guidance document that assists 
manufacturers who wish to label their food products as being 
made with or without ingredients developed through 
biotechnology.
    Spending for the Generic Drugs Program.--The Committee 
commends the Agency for making progress over the past several 
years in expediting the review of generic drug applications. In 
order to ensure that this success continues, the Committee 
directs FDA to maintain spending for this program at not less 
than $56,000,000.
    Rent and related activities.--The Committee provides a 
$10,628,000 budget authority increase and expects appropriated 
user fees to fund the additional amount needed for relocation 
costs to the White Oak, Maryland, facility.
    Financial management.--The Committee recommendation 
includes the same funding level as fiscal year 2004 for the 
Unified Financial Management System. Within that amount, 
sufficient funding should be provided for improvements in FDA's 
legacy systems. Any additional costs for this purpose, either 
direct or by transfer, are subject to approval by the 
Committee. The Committee continues to request regular updates 
from the Department of Health and Human Services (DHHS) on the 
progress of the system, its ability to meet agency needs, and 
updated cost estimates for implementation.
    Human resources.--The Committee requests a report within 60 
days of enactment regarding the DHHS human resource 
consolidation including: an update on the performance metrics 
specified in the service level agreement between FDA and DHHS; 
a description of any cases in which the performance measures 
were not met during fiscal year 2004, and the resolution of 
those cases; and a list of the DHHS operating divisions that 
are participating in the consolidation.
    Consolidation.--The Committee directs DHHS to include all 
future consolidations that impact FDA in the President's budget 
request submitted to Congress.
    Fees.--The Committee directs that none of the funds made 
available to FDA in this bill be used for any assessments, 
fees, or charges by DHHS unless such assessments, fees, or 
charges are identified in the FDA budget justification and 
expressly provided by Congress, or approved by Congress in the 
official reprogramming process as required in the General 
Provisions of this bill.
    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 that work.
    The Committee is concerned that some states are taking 
actions outside the ISSC process and expects the FDA to urge 
all states to work cooperatively in conformity with the 
National Shellfish Sanitation Program implemented by the ISSC.
    Food safety.--The Committee recognizes the contributions 
which the National Center for Food Safety and Technology 
(NCFST) is making toward ensuring the security of the nation's 
food supply. The Committee directs that FDA continue to provide 
$3,000,000 to NCFST through the cooperative agreement. The 
$3,000,000 in funding shall be exclusive of any additional 
initiative funds that FDA may award to NCFST.
    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 2004 level.
    WERC.--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 the fiscal year 2004 level.
    Antibiotics in shrimp imports.--The Committee continues to 
have serious concerns regarding seafood safety issues posed by 
banned antibiotic contamination in farm-raised shrimp imports. 
The Committee recommends that the FDA, in cooperation with any 
state testing programs, continue testing of farm-raised shrimp 
imports for chloramphenicol and other related harmful 
antibiotics used in the aquaculture industry and ensure that 
any adulterated shrimp that tests positive for chloramphenicol 
or other banned antibiotics will be destroyed or exported from 
the United States.
    Dental mercury.--The Committee is concerned about the 
safety of mercury in dental amalgam, and its classification 
within FDA's regulatory framework. The Committee understands 
that recent studies have found high mercury levels in some 
pregnant women and infants, but have not attributed the mercury 
to a particular source. FDA proposed to reclassify dental 
mercury in February 2002 and the rulemaking is not complete. It 
is the Committee's understanding that FDA has contracted for a 
comprehensive review and examination of peer-reviewed 
literature by an independent outside source, which will be 
completed in the summer of 2004. The Committee requests a copy 
of the report. The Committee urges the Food and Drug 
Administration to continue its examination of the peer-reviewed 
scientific literature on the safety of mercury and take action 
on the reclassification of dental mercury in light of these 
scientific findings.
    FDA rule.--On January 26, 2004, in response to the BSE case 
in Washington state, FDA announced it was issuing new rules 
banning various bovine-derived material from human food and 
cosmetics, prohibiting feeding mammalian blood products and 
several other substances to ruminants, and requiring separation 
of the production of ruminant and non-ruminant feed. In 
announcing the new rules, Secretary Thompson said, ``this is 
the time to make sure the public is protected to the greatest 
extent possible.'' The Committee is very concerned that FDA has 
still not published these rules nearly five months later. In 
the absence of the new rules, compliance with the proposed new 
safeguards is not required. The Committee directs FDA to issue 
these rules at the earliest possible time.
    Recall improvement.--The Committee directs FDA to list on 
all FDA recall press releases the website address of the 
manufacturer of the recalled product--if any--and, when it will 
assist consumers and the media in identifying it, a photograph 
of the recalled product and/or product label. The Committee 
further directs FDA to ask the manufacturer to voluntarily 
provide information on retail outlets of the product for 
inclusion on the FDA press release.
    Concerns about FDA response.--Information before the 
Committee raises concerns about a response provided by FDA for 
the Record to a question from a member of the Committee 
relating to an FDA official's employment before coming to the 
agency and current activities by that official. The question 
was posed due to concerns about a conflict of interest. The 
Committee is concerned about whether the response was fully 
forthcoming and whether it may have had the effect of 
misleading the Committee. The Committee intends to look into 
this matter further and expects FDA to cooperate fully in this 
effort.

                        BUILDINGS AND FACILITIES

 
 
 
2004 appropriation....................................        $6,959,000
2005 budget estimate..................................                 0
Provided in the bill..................................                 0
Comparison:
    2004 appropriation................................        -6,959,000
    2005 budget estimate..............................             - - -
 

                          COMMITTEE PROVISIONS

    For Buildings and Facilities of the Food and Drug 
Administration, the Committee provides no funding, a decrease 
of $6,959,000 below the amount available for fiscal year 2004 
and the same as the budget request.

                          Independent Agencies


                  Commodity Futures Trading Commission


 
 
 
2004 appropriation....................................       $89,901,000
2005 budget estimate..................................        95,327,000
Provided in the bill..................................        93,327,000
Comparison:
    2004 appropriation................................         3,426,000
    2005 budget estimate..............................        -2,000,000
 

                          COMMITTEE PROVISIONS

    For the Commodity Futures Trading Commission, the Committee 
provides an appropriation of $93,327,000, an increase of 
$3,426,000 above the amount available for fiscal year 2004 and 
$2,000,000 below the budget request.
    Report on BSE investigation.--The Commodity Futures Trading 
Commission (``CFTC'') announced in January that it was 
investigating the possibility that certain commodity traders 
may have had advance knowledge of the finding of BSE in a cow 
in Washington state in December, 2003. CFTC said it was 
specifically looking into ``whether news of the announcement 
was leaked in advance from government or other sources.'' The 
Committee directs the CFTC to provide a report to the Committee 
on its findings as soon as the investigation is concluded.

                       Farm Credit Administration


                 LIMITATION ON ADMINISTRATIVE EXPENSES

 
 
 
2004 limitation.......................................     ($40,900,000)
2005 budget estimate..................................             - - -
Provided in the bill..................................      (42,900,000)
Comparison:
    2004 limitation...................................        +2,000,000
    2005 budget estimate..............................       +42,900,000
 

                          COMMITTEE PROVISIONS

    For a limitation on the expenses of the Farm Credit 
Administration, the Committee provides $42,900,000, an increase 
of $2,000,000 above the amount available for fiscal year 2004 
and an increase of $42,900,000 above the budget request.

                     TITLE VII--GENERAL PROVISIONS

    The General Provisions contained in the accompanying bill 
for fiscal year 2005 are fundamentally the same as those 
included in last year's appropriations bill.
    Section 709: 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 25 percent of 
total direct costs, except for grants available under the Small 
Business Innovation and Development Act.
    Section 719: Language is included to prohibit funds from 
being used to carry out the Initiative for Future Agriculture 
and Food Systems.
    Section 722: Language is included that provides $2,500,000 
for a hunger fellowship program.
    Section 723: 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 724: 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 725: Language is included for the guaranteed 
single-family housing loan program guarantee fee.
    Section 726: Language is included that provides that 
certain locations shall be considered as meeting the 
eligibility requirements of rural development programs.
    Section 727: 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 728: 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 729: Language is included that allows funds to be 
used to carry out a competitive grants program.
    Section 730: Language is included that limits the dam 
rehabilitation program.
    Section 731: Language is included that limits the rural 
strategic investment program.
    Section 732: Language is included that limits the rural 
firefighters and emergency personnel grant program.
    Section 733: Language is included regarding certain 
accounting procedures of the Agricultural Marketing Service and 
the Grain Inspection, Packers and Stockyards Administration.
    Section 734: Language is included regarding costs 
associated with the distribution of commodities.
    Section 735: Language is included that limits the wetlands 
reserve program.
    Section 736: Language is included that limits the 
environmental quality incentives program.
    Section 737: Language is included allows for USDA employees 
to carry firearms in remote locations.
    Section 738: Language is included that limits the renewable 
energy program.
    Section 739: Language is included that limits the broadband 
program.
    Section 740: Language is included that limits the value-
added market development grant program.
    Section 741: Language is included that ensures that 
sufficient funds are available to pay the subsidy costs for 
note guarantees for certain rural electric programs.
    Section 742: Language is included that limits the 
conservation security program.
    Section 743: Language is included that limits the Wildlife 
Habitat Incentive Program.
    Section 744: Language is included that limits the Farmland 
Protection Program.
    Section 745: Language is included that allows the Secretary 
of Agriculture to compensate citrus producers for losses due to 
citrus canker.
    Section 746: Language is included that limits the Rural 
Business Investment Program.
    Section 747: Language is included that provides that none 
of the funds appropriated or otherwise made available by this 
Act shall be used to violate P.L. 105-264.
    Section 748: Language is included related to final 
rulemaking on cost-sharing for APHIS animal and plant health 
emergency programs.
    Section 749: Language is included related to competitive 
sourcing related to rural development and farm loan programs.
    Section 750: Language is included related to the leasing of 
aircraft to carry out certain APHIS activities.
    Section 751: Language is included that rescinds certain 
unobligated balances.
    Section 752: Language is included that limits the Bioenergy 
Program.
    Section 753: Language is included that amends P.L. 108-199 
to make Delta Regional Authority grants available for grants 
authorized in the Rural Community Advancement Program account.
    Section 754: Language is included that rescinds a portion 
of the unobligated funds in the Rural Housing Assistance Grants 
Program account.
    Section 755: Language is included that rescinds a portion 
of the unobligated funds in the Rural Housing Insurance Fund 
Program account.
    Section 756: Language is included regarding the 
availability of funds for certain conservation programs.
    Section 757: Language is included regarding certain FDA 
activities.
    Section 758: Language is included that amends section 
502(h)(6)(C) of the Housing Act of 1949 (42 U.S.C. 
1472(h)(6)(C)).

              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 Funds

    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 funds provided in the accompanying 
bill.
    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 Community Advancement Program.--The bill provides 
that prior year balances for high cost energy grants shall be 
transferred to and merged with the High Energy Costs Grants 
Account.
    11. Rural Development Salaries and Expenses.--The bill 
provides that prior year balances from certain accounts shall 
be transferred to and merged with this account.
    12. 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.
    13. Child Nutrition Programs.--The bill includes authority 
to transfer section 32 funds to these programs.
    14. 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.
    15. Public Law 480 Title I Program Account.--The bill 
allows funds to be transferred to the Foreign Agricultural 
Service, Salaries and Expenses account.
    16. 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.
    17. 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.
    18. 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.
    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 four-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.
    19. Special Supplemental Nutrition Program for Women, 
Infants, and Children (WIC).--Language is included to: provide 
funds for a breastfeeding support initiative; 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. Language is included to allow 
certain funds transferred from the Commodity Credit Corporation 
to be used for information resource management.
    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, 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: 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, up to $33,197,000 for 
        an animal identification program, up to $12,000,000 for 
        avian influenza-related indemnities, and up to 
        $3,000,000 for a vaccine bank; 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 707: 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 708: 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 709: 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 25 percent of total direct costs, 
        except for grants available under the Small Business 
        Innovation and Development Act.
          Section 710: 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 711: 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; and the Rural 
        Housing Insurance Fund 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 
        unexpended 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 712: Provides that not more than 5 percent of 
        the Class A stock of the Rural Telephone Bank may be 
        retired in fiscal year 2005. 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 713: 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 714: Provides that none of the funds may be 
        used to carry out certain provisions of meat and 
        poultry inspection acts.
          Section 715: 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 716: 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 717: 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 718: Language is included that requires 
        certain reprogramming procedures of funds provided in 
        Appropriations Acts.
          Section 719: Language is included to prohibit funds 
        from being used to carry out the Initiative for Future 
        Agriculture and Food Systems.
          Section 720: 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 721: 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 722: Language is included that provides 
        $2,500,000 for a hunger fellowship program.
          Section 723: 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 724: 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 725: Language is included for the guaranteed 
        single-family housing loan program guarantee fee.
          Section 726: Language is included that provides that 
        certain locations shall be considered as meeting the 
        eligibility requirements of rural development programs.
          Section 727: Language is included that Natural 
        Resources Conservation Service shall provide certain 
        assistance to certain locations under the Watershed and 
        Flood Prevention Operations program.
          Section 728: 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 729: Language is included that allows funds 
        to be used to carry out a competitive grants program.
          Section 730: Language is included that limits the dam 
        rehabilitation program.
          Section 731: Language is included that limits the 
        rural strategic investment program.
          Section 732: Language is included that limits the 
        rural firefighters and emergency personnel grant 
        program.
          Section 733: Language is included regarding certain 
        accounting procedures of the Agricultural Marketing 
        Service and the Grain Inspection, Packers and 
        Stockyards Administration.
          Section 734: Language is included regarding costs 
        associated with the distribution of commodities.
          Section 735: Language is included that limits the 
        wetlands reserve program.
          Section 736: Language is included that limits the 
        environmental quality incentives program.
          Section 737: Language is included that allows for 
        USDA employees to carry firearms in remote locations.
          Section 738: Language is included that limits the 
        renewable energy program.
          Section 739: Language is included that limits the 
        broadband program.
          Section 740: Language is included that limits the 
        value-added market development grant program.
          Section 741: Language is included that ensures that 
        sufficient funds are available to pay the subsidy costs 
        for note guarantees for certain rural electric 
        programs.
          Section 742: Language is included that limits the 
        conservation security program.
          Section 743: Language is included that limits the 
        Wildlife Habitat Incentive Program.
          Section 744: Language is included that limits the 
        Farmland Protection Program.
          Section 745: Language is included that allows the 
        Secretary of Agriculture to compensate citrus producers 
        for losses due to citrus canker.
          Section 746: Language is included that limits the 
        Rural Business Investment Program.
          Section 747: Language is included that provides that 
        none of the funds appropriated or otherwise made 
        available by this Act shall be used to violate P.L. 
        105-264.
          Section 748: Language is included related to final 
        rulemaking on cost-sharing for APHIS animal and plant 
        health emergency programs.
          Section 749: Language is included related to 
        competitive sourcing related to rural development or 
        farm loan programs.
          Section 750: Language is included related to the 
        leasing of aircraft to carry out certain APHIS 
        activities.
          Section 751: Language is included that rescinds 
        certain unobligated balances.
          Section 752: Language is included that limits the 
        Bioenergy Program.
          Section 753: Language is included that amends P.L. 
        108-199 to make Delta Regional Authority grants 
        available for grants authorized in the Rural Community 
        Advancement Program account.
          Section 754: Language is included that rescinds a 
        portion of the unobligated funds in the Rural Housing 
        Assistance Grants Program account.
          Section 755: Language is included that rescinds a 
        portion of the unobligated funds in the Rural Housing 
        Insurance Fund Program account.
          Section 756: Language is included regarding the 
        availability of funds for certain conservation 
        programs.
          Section 757: Language is included regarding certain 
        FDA activities.
          Section 758: Language is included that amends section 
        502(h)(6)(C) of the Housing Act of 1949 (42 U.S.C. 
        1472(h)(6)(C)).

         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 italic, existing law in which no change is 
proposed is shown in roman):

     SECTION 375 OF THE CONSOLIDATED FARM AND RURAL DEVELOPMENT ACT


SEC. 375. NATIONAL SHEEP INDUSTRY IMPROVEMENT CENTER.

    (a) * * *

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

          (6) Funding.--
                  (A) * * *
                  (B) Mandatory funds.--Out of any moneys in 
                the Treasury not otherwise appropriated, the 
                Secretary of the Treasury shall provide to the 
                Center not to exceed [$26,998,000] $27,498,000 
                to carry out this section.

           *       *       *       *       *       *       *


   SECTION 723 OF THE AGRICULTURE, RURAL, DEVELOPMENT, FOOD AND DRUG 
     ADMINISTRATION, AND RELATED AGENCIES APPROPRIATIONS ACT, 2004


                    (Division A of Public Law 108-7)

    Sec. 726. In addition to amounts otherwise appropriated or 
made available by this Act, $2,500,000 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
----------------------------------------------------------------------------------------------------------------
FDA: MQSA....................................  Indefinite                            16,576,000       16,919,000
----------------------------------------------------------------------------------------------------------------

                              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 $5,000,000 of funds derived 
from interest on the cushion of credit payments in fiscal year 
2005 under the Rural Economic Development Loans Program 
Account, which is an annual technical adjustment contained in 
the budget estimates.
    The bill proposes rescission of unobligated balances in the 
Rural Housing Assistance Grant Program, Rural Housing Insurance 
Fund Program, and Local Television Loan Guarantee Program. The 
Congressional Budget Office estimates that savings of 
$92,000,000 during fiscal year 2005 will result from enactment 
of these proposals.

                   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...........................................      $16,772      $18,113      $16,772      $18,043
    Mandatory...............................................       57,913       43,908       57,913       43,908
----------------------------------------------------------------------------------------------------------------

                      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]
Outlays:
    2005..............................................            51,162
    2006..............................................             7,746
    2007..............................................               776
    2008..............................................               367
    2009 and beyond...................................               422
 

               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..................................           $22,005
Fiscal year 2005 outlays resulting therefrom..........            17,830
 

                     Program, Project, and Activity

    During fiscal year 2005 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 
2005, 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 2005 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 2005 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

    There were no full committee votes.
    
    

Additional Views of David R. Obey, Marcy Kaptur, Rosa DeLauro, Maurice 
                    Hinchey, Sam Farr and Allen Boyd

    Americans have reason to be concerned about the performance 
of USDA and FDA in the past year in a number of areas.
    Democrats on the Subcommittee worked hard during the year 
to review these agencies' work in carrying out their important 
responsibilities.
    This was not always easy because agencies often failed to 
give direct answers to written questions, while witnesses were 
often unable to answer basic questions and failed to provide 
promised information. For example, when asked at a hearing, a 
senior USDA official could not tell the Subcommittee how many 
BSE tests had been conducted since the finding of BSE in 
Washington state in December, 2003.
    Nevertheless, Democrats pressed the agencies for answers.
    As we learned in hearings and in recent news reports, there 
are many unanswered questions about the handling of the BSE 
issue by USDA and FDA and about their management of other 
important matters. We also learned that USDA moved funds within 
the Department in violation of explicit statutory provisions in 
the Agriculture appropriations bill. Finally, we have serious 
concerns about the allocation of funding for this bill that, in 
turn, resulted in funding shortfalls in some important program 
areas.

             CONCERNS ABOUT THE MANAGEMENT OF USDA AND FDA

    Findings from the hearings and from recent news reports 
raise serious questions about the management by USDA and FDA of 
the BSE case--questions to which we still do not have answers--
and about the apparent lack of oversight by senior officials of 
some important decisions made by their own staffs.
    For example:
     Was the cow in Washington state actually a downer? 
Were official records altered? There is now a federal criminal 
investigation underway.
     Why didn't USDA test a cow in Texas that was 
showing BSE symptoms? This is under investigation by the USDA 
Inspector General.
     Why did USDA allow millions of pounds of banned 
Canadian beef products into the U.S.? This is now under 
investigation by the USDA Inspector General.
     Why are promised BSE safeguards for human food, 
cosmetics and animal feed not in place yet? In January, FDA 
announced it was going to issue key rules to protect human food 
and cosmetics, and animal feed from the risk of BSE. As of 
today, more than five months later, the rules are still not 
out. Until the rules are issued, the public remains 
unprotected.
     Did a government employee leak advance information 
about the BSE case to someone in the commodity futures trading 
business? That matter is now under investigation by the 
Commodity Futures Trading Commission.
     When a federal judge found USDA had illegally 
allowed the import of prohibited beef products from Canada, the 
Secretary's press person said Veneman had not been informed 
that her own Department had approved the imports for entry into 
the U.S.
     When Senator Daschle raised questions about USDA 
guidance on the effect of Medicare prescription drug benefits 
on Food Stamp eligibility, press reports said Secretary Veneman 
and Under Secretary Bost were unaware of the guidance.
     At the FDA budget hearing, the Acting Commissioner 
seemed unaware of briefs filed by the FDA General Counsel 
seeking to stop private lawsuits against drug companies for the 
death or injury of people taking FDA-approved drugs.
     Democrats proposed six amendments to the report 
relating directly to the BSE issue. The amendments noted many 
of the outstanding issues and requested further information. In 
the case of FDA, the language called for prompt issuance of the 
promised rules.
    The Chairman included these amendments in the manager's 
amendment.

    USDA VIOLATED EXPLICIT STATUTORY PROVISIONS IN THE AGRICULTURE 
                          APPROPRIATIONS BILL

    In two cases, senior officials at USDA approved actions 
that were specifically prohibited in the Agriculture bill. In 
one instance, USDA transferred millions of dollars from 
agencies' funds to another account for ``e-Gov'' initiatives. 
In the other, the USDA natural resources staff were told to 
charge some of the costs of farm bill conservation programs to 
a discretionary conservation account. Both actions were in 
violation of explicit prohibitions in bill language.
    Because of concern that the transfers of funds were 
undermining the constitutional prerogatives of Congress, Mr. 
Obey offered an amendment to stop all of USDA's existing 
transfer authority, with the strong support of the Majority. 
Obviously, USDA needs some transfer authority to carry out 
various functions. Such authority will be provided once there 
is an explicit understanding that the administration will 
respect the limitations Congress imposes on such transfers.

                     CRITICAL SHORTFALLS IN FUNDING

    While it was possible to address many of the issues 
outlined above, there are key funding shortfalls in the bill 
that cannot be remedied within the inadequate allocation 
provided to the subcommittee. We will highlight some of the key 
funding problems.
    First, due to the inadequate allocation, the bill does not 
provide all the funds we expect the WIC program to need this 
year. Those funds will have to be provided in conference, but 
unless the allocation is increased, there may be cuts in other 
programs.
    Second, the bill cuts 60 percent of the requested increase 
for homeland security activities at USDA's Food Safety and 
Inspection Service and one-third of the requested homeland 
security increase for FDA food safety activities. Since many 
people believe the requests did not go far enough to protect 
our food supply, it is very disturbing to see them underfunded.
    Third, the bill fails to provide even the level of funding 
in the rural water and waste program and the rural single 
family housing direct loan program that was provided last year. 
There are also a host of reductions in other programs in the 
bill.
    Fourth, in an effort to make up for the poor allocation, 
the bill makes cuts in farm bill programs that are nearly twice 
as large as those in last year's bill and deeper than those in 
the Bush budget.
    As we have noted, the allocation given to the Subcommittee 
is inadequate. It is $67 million lower than the level provided 
in the 2004 bill, and $1.1 billion lower than the 2003 bill. In 
fact, it is so inadequate that millions of dollars requested by 
the administration could not be funded.
    The reason the bill has been shortchanged is simple. As 
they have in the past, the House Republicans passed a budget 
resolution that gave priority to tax cuts for wealthy Americans 
over meeting the needs of all Americans. As a result, the 
Appropriations Committee is once again faced with the need to 
provide the services our citizens expect without the means to 
do so.
    To make this point absolutely clear, Mr. Obey offered a 
resolution on the House floor in June that would have addressed 
the Nation's needs in ten key areas by reducing the tax cuts 
given to those with incomes over $1 million in 2005 by the 
Republicans and the Bush administration.
    For rural development, the bill would have:
           More than doubled funding for rural water 
        and waste disposal direct loans;
           Doubled funding for rural community facility 
        direct loans that are used for health care, fire, day 
        care and other essential community facilities;
           More than doubled funding for distance 
        learning and telemedicine grants, which help rural 
        America to access distant educational and medical 
        resources;
           Provided an increase of more than 80% in 
        rural single family housing direct loans; and
           Provided funding for several other key 
        programs cut in the Bush budget.
    In addition, the bill provided a substantial down-payment 
on the long-term cost of implementing a national animal 
identification program. In the recent BSE case, USDA was unable 
to identify every animal that could have been infected despite 
weeks of effort. In the case of a terrorist attack or an 
accidental outbreak of a highly contagious animal disease, such 
delay would be disastrous to the nation's economy and food 
supply.
    Arguing that protecting those with incomes over $1 million 
in 2005 was more important than providing basic services to 
rural Americans and others, the Republicans in the House voted 
overwhelmingly against the resolution.

                               CONCLUSION

    The shortfalls in the bill reflect the decision of the 
Majority in the House to put super-sized tax cuts for the most 
well-off and privileged members of our society ahead of almost 
all other economic and social needs of the country. It does not 
appear that this will change this year.
    But there is still a chance for USDA and FDA to improve 
their handling of the important tasks before them. We look 
forward to seeing the reports that the Committee has requested 
on many issues as a result of the amendments we proposed, and 
we will follow the agencies' performance closely.

                                   David Obey.
                                   Marcy Kaptur.
                                   Rosa DeLauro.
                                   Maurice Hinchey.
                                   Sam Farr.
                                   Allen Boyd.

                                  
